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Unit 6: Brokerage Agreements > Practice > Flashcards

Practice Flashcards

1
Q

___ agreements are employment contracts for the personal professional services of the sponsoring broker.

A

Brokerage

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2
Q

Brokerage agreements employment contracts for…

A

Personal professional services of the sponsoring broker

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3
Q

___ agreements establish the basic relationships between the parties.

A

Brokerage

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4
Q

___ agreements provide different levels of rights and responsibilities for the sponsoring broker, and address the essential questions of exclusivity and compensation.

A

Brokerage

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5
Q

___ agreements are an employment contract between the sponsoring broker and seller.

A

Listing

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6
Q

A(n) ___ agreement is an employment contract that establishes the rights and responsibilities of the sponsoring broker as an agent for the buyer.

A

Buyer representation

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7
Q

A(n) ___ contract sets up the relationship between the sponsoring broker and the owner of a rental property.

A

management

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8
Q

What is the part of a state law that requires that certain instruments, such as deeds, real estate sales contracts, and certain leases, be in writing to be legally enforceable?

A

Statute of Frauds

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9
Q

According to the Illinois Real Estate License Act, all exclusive brokerage agreements must be…

A

in writing

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10
Q

According to the Illinois Real Estate License Act, all exclusive brokerage agreements must indicate the required ___ in return for ___.

A

minimum services in return for compensation.

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11
Q

Race, color, religion, national origin, sex, ancestry, age, marital status, mental & physical disabilities, familial status are all classes protected by the ___.

A

Illinois Human Rights Act

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12
Q

In Illinois, each brokerage agreement must clearly state that it is illegal for either the owner or sponsoring broker to refuse to display or sell to any person because of their membership in ___.

A

A protected class

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13
Q

In a(n) ___ listing agreement, one broker is appointed as the seller’s sole agent.

A

Exclusive Right to Sell

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14
Q

In a(n) ___ listing agreement, the agent is given the exclusive right to market the seller’s property.

A

Exclusive Right-to-Sell

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15
Q

Bob is an agent who entered into an exclusive right-to-sell listing agreement with a seller named John. Bill is another agent who ends up helping John sell his home while this listing was still in effect. What is Bob entitled to?

A

Receiving a commission

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16
Q

___ listing agreements allow brokers the greatest opportunity to receive a commission.

A

Exclusive Right-to-Sell

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17
Q

In a(n) ___ listing agreement, one broker is authorized to act as the exclusive agent to the seller-principal.

A

Exclusive-agency

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18
Q

In an exclusive-agency listing, the seller retains the right to sell the property without ___ to the listing broker

A

financial obligation

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19
Q

In an exclusive-agency listing, the seller is only obligated to pay a commission to the listing broker if the listing broker has…

A

been the procuring cause of a sale

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20
Q

In Illinois, what 9 things must be included in a written exclusive listing agreement?

A

1) Listing price of property
2) Amount of commission and time of payment
3) Duration of the agreement
4) Names of the broker and seller
5) Identification of the property involved (address or legal description)
6) Duties of the listing broker
7) Minimum services
8) Nondiscrimination statement
9) Statement regarding antitrust

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21
Q

Licensees may use listing agreements with fill-in-the-blank spaces to save time with their clients. True or false?

A

False

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22
Q

An open listing agreement may also be called a(n) ___ listing in some areas.

A

nonexclusive

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23
Q

In a(n) ___ listing agreement, the seller has the right to employ any amount of brokers to act as their agent.

A

Open (or nonexclusive)

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24
Q

In an open listing agreement with multiple brokers acting as agents to the seller, who does the seller owe financial obligation to?

A

The agent who produces a ready, willing, able buyer

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25
Q

Bob and John are agents who entered into an open listing agreement with their seller, Bill. After entering into this agreement, Bill eventually sells his property to his neice, Sarah, without the help of either broker. Is Bill still obligated to pay a commission to Bob and John?

A

No

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26
Q

A(n) ___ listing provision specifies that the seller will receive a net amount of money from any sale, and that the broker will receive any excess funds as their commission.

A

net

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27
Q

A(n) ___ listing provision allows the broker to offer a property at any price greater than the amount the seller wants, and the difference in price is the broker’s fee

A

net

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28
Q

A net listing can create a conflict of interest with the broker’s ___ to the seller.

A

Fiduciary responsibility

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29
Q

Net listings are ___ in Illinois due to their potential for fraud.

A

discouraged

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30
Q

Net listings are illegal in some states. Are they legal in Illinois?

A

yes

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31
Q

In a(n) ___ listing, the broker is entitled to any amount exceeding the seller’s stated price.

A

net

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32
Q

In a(n) ___ listing, actual sale price minus the seller-required price equals the broker’s profit.

A

net

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33
Q

A(n) ___ listing provision gives the broker the right to purchase the listed property at some point in the future

A

option

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34
Q

An option listing may open the broker to ___ unless the broker fulfills all obligations to the property owner.

A

fraud

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35
Q

A(n) ___ allows the consumer to purchase a given property.

A

option contract

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36
Q

A(n) ___ agreement is when the broker agrees to buy the listed property if it fails to sell before the end of the listing period.

A

guaranteed sale

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37
Q

A(n) ___ clause may be included in an exclusive listing.

A

multiple listing

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38
Q

A(n) ___ is a marketing organization whose members make their listings available for showing and sale through all other member licensees.

A

Multiple Listing Service (MLS)

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39
Q

An advantage of a(n) ___ for licensees is that they develop a sizable inventory of properties to be sold, and that they are entitled to a portion of the commission if they either list the property or participate in the sale of another licensee’s listing.

A

Multiple Listing Service

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40
Q

An advantage of a(n) ___ to sellers is that their property is exposed to a larger market.

A

Multiple Listing Service

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41
Q

An advantage of a(n) ___ for buyers is that they can browse a variety of properties on the market.

A

Multiple Listing Service

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42
Q

If an agent delays turning over a listing to a Multiple Listing Service, what two things does the agent need to do for the seller?

A

Inform the seller and obtain their written consent

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43
Q

Most Multiple Listing Services require that licensees turn over new listings within a specific…

A

Time frame after obtaining the listing

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44
Q

A licensee must have ___ from the seller in order to include the property in a Multiple Listing Service.

A

written consent

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45
Q

___ often offer additional information about mortgage loans, real estate taxes & assessments, municipalities, and school districts.

A

Multiple Listing Services

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46
Q

A(n) ___ is helpful to a licensees who need to make a comparative market analysis (CMA) to determine a particular property’s value before suggesting an appropriate range of prices.

A

Multiple Listing Service

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47
Q

Paying someone a commission does not create ___ in Illinois

A

Agency

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48
Q

A few buyers may choose to remain as customers without representation, in Illinois, that lack of agency is now subject to ___, and by statute, a(n) ___ should be provided.

A

Disclosure; notice of no agency

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49
Q

In Illinois, if nothing is said about agency while a licensee is working with a consumer, licensees are considered to be…

A

representing the consumer as their designated agent

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50
Q

In Illinois, if a licensee is working with a consumer, however nothing has been said about agency, what obligation do they owe to the client?

A

Written disclosure of the designated agency relationship

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51
Q

In Illinois, the ___ often pays the fees for both agents in a real estate transaction.

A

Seller

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52
Q

If a seller pays the fees for both agents in a real estate transaction, those fees are called ___.

A

Cooperative commissions.

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53
Q

In an Illinois Multiple Listing Service data sheet, cooperative commissions are typically stated as ___ or as a(n) ___.

A

Co-op X% or as a flat fee

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54
Q

When listing a property for sale, an important safeguard is to check ___ to see who has an interest in the property so that all the appropriate parties are involved.

A

Title records

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55
Q

The ___ is the backbone of real estate practice.

A

Listing appointment

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56
Q

The ___ is the meeting of the licensee with a potential client (seller).

A

Listing appointment

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57
Q

The collection of data on other similar properties is also known as ___ or ___.

A

Comparables or “comps”

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58
Q

What are the 3 general categories of comparables/ comps?

A

1) Sold
2) Active
3) Expired

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59
Q

___ comps inform the agent as to what prices are attractive to buyers and what the average neighborhood market time is.

A

sold

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60
Q

___ comps show an agent what the competition is and if there are any “price points” in the current market

A

Active

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61
Q

___ are the high or low ends of a range of prices for similar properties.

A

Price Points

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62
Q

___ comps usually indicate a price that did not attract a buyer

A

Expired

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63
Q

___ comps are most often an indication of overpricing

A

Expired

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64
Q

Who determines the final decision about the price of a listed property?

A

The seller

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65
Q

The final decision about the price of a listed property is determined by the seller with ___ from the agent.

A

Advice

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66
Q

Is it legal in IL for a licensee to promote a price other than the price the seller agrees to?

A

No, this violates the Act

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67
Q

At a listing appointment, sellers often need help determining what their ___ is and what their ___ will be.

A

Equity; net

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68
Q

When a licensee helps calculate what a seller’s equity is and what their net will be, it is important that they stress to the seller that these calculations are only ___

A

Estimates

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69
Q

Brokers can help sellers determine a listing price for the property by using a(n) ___.

A

Comparative Market Analysis (CMA)

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70
Q

A(n) ___ analyzes properties similar to the subject property in size, location, and amenities.

A

Comparative Market Analysis (CMA)

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71
Q

Which provides a more in depth analysis in regards to the value of a property— appraisal or CMA?

A

Appraisal

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72
Q

A Comparative Market Analysis is based on properties that are ___, ___, or ___.

A

Sold, active, or expired

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73
Q

What should an Illinois licensee do before creating a CMA?

A

Review the requirements and restrictions in the Act

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74
Q

A comparative market analysis or broker price opinion needs to be prepared in ___

A

writing

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75
Q

A comparative market analysis or broker price opinion must be prepared in writing, either on ___ or ___.

A

Paper or electronically

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76
Q

In IL, what 7 provisions must be included in a CMA or broker price opinion?

A

1) Intended purpose
2) Brief description of the interest in real estate
3) Methodology used to develop the CMA or price opinion
4) Any assumptions or limiting conditions
5) A disclosure of any interest the broker or managing broker has in the real estate
6) Name, license number, and signature of the broker or managing broker who developed the opinion
7) “Not an appraisal” and “prepared by a licensed real estate broker / managing broker, who is NOT an appraiser”

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77
Q

When preparing a CMA or broker price opinion, the broker or managing broker who developed it must include their ___, ___, and ___.

A

Name, license number, and signature

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78
Q

When preparing a CMA or broker price opinion, the broker or managing broker who developed it must state in writing that it is not a(n) ___.

A

Appraisal

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79
Q

When preparing a CMA or broker price opinion, the broker or managing broker who developed it must state in writing it was prepared by a real estate broker, who is NOT a state certified ___.

A

real estate appraiser

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80
Q

___ prices represent what buyers have been willing to pay for similar properties in the neighborhood.

A

sold

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81
Q

___ prices often are prices that buyers have not been willing to pay for similar property

A

Expired

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82
Q

Asking prices ___ than sold prices indicate a slow or declining market.

A

lower

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83
Q

Asking prices that are ___ than sold prices indicate an optimistic market.

A

Higher

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84
Q

___ data includes information about the social, economic, governmental, and environmental influences on value.

A

General (secondary)

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85
Q

___ data is typically not collected by the appraiser.

A

General (secondary)

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86
Q

___ data details about the subject, comparable, and local market conditions.

A

Specific (primary)

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87
Q

Specific (primary) data is collected by the ___.

A

appraiser

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88
Q

___ data describes things that cannot be expressed with a numerical value

A

Qualitative

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89
Q

___ data includes information that can be expressed as a numerical value

A

Quantitative

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90
Q

Square feet and dimensions would be considered as ___ data.

A

Quantitative

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91
Q

The number of rooms a property has is considered as ___ data.

A

Quantitative

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92
Q

The amount of time a property is on the market is considered as ___ data.

A

Quantitative

93
Q

Lot size is considered as ___ data

A

Quantitative

94
Q

Amenities are considered as ___ data.

A

Qualitative

95
Q

A property’s location is considered as ___ data.

A

Qualitative

96
Q

Style is considered as ___ data.

A

Qualitative

97
Q

The figure sought in both CMAs and appraisals is the property’s ___.

A

Market value

98
Q

___ is the most probable price a property would bring in an arm’s length transaction under normal market conditions on the open market.

A

Market value

99
Q

A CMA estimates market value as a(n) ___.

A

Range

100
Q

A formal appraisal indicates a(n) ___ market value.

A

specific

101
Q

A(n) ___ estimates market value as likely to fall within a range of values, for example: $350,000-400,000

A

CMA

102
Q

A(n) ___ indicates a specific value rather than a range

A

appraisal

103
Q

A broker can reject any listing in which the seller’s final price is substantially exaggerated or severely out of line with the indications of the CMA or appraisal. True or false?

A

True, and brokers should consider rejecting such listings

104
Q

If a seller lists their home at a price that is much higher than the price indicated by the CMA or appraisal, a buyer may have difficulty obtaining ___.

A

Financing

105
Q

Why might it be difficult for a buyer to obtain a mortgage for a property that is selling at a price higher than the market value determined by the CMA?

A

The property will not appraise for the sale price

106
Q

When helping the seller determine an appropriate listing price, the broker must give a(n) ___ that is reasonable and as accurate as possible.

A

Estimate of value

107
Q

After agreeing on a listing price with a seller, the broker must obtain specific & detailed ___ about the property to ensure that most contingencies can be anticipated.

A

Information

108
Q

___ is defined as the sum of all connected, finished, and usable areas.

A

Square footage

109
Q

The square footage of home is determined by measurements of all ___ dimensions

A

Exterior

110
Q

When parallel sides of a home have the same measurement, the house is said to be ___.

A

square

111
Q

A(n) ___ is a private room that is closed off from all other living spaces and does not have its only entrance from another room of the same category.

A

Bedroom

112
Q

If a bedroom’s only entrance is from another bedroom, this would be considered as a(n) ___ room.

A

Tandem

113
Q

Bedrooms are required to have a window. True or false?

A

False

114
Q

Bedrooms are required to have a closet. True or false?

A

False

115
Q

___ normally cover a wide range of structural, mechanical, and other conditions that a prospective purchaser should know about to make an informed decision.

A

Property condition disclosures

116
Q

It is the broker’s responsibility to ensure that the ___ is aware of mandatory property condition disclosures.

A

seller

117
Q

___ disclosure of property conditions is required by IL state law.

A

Seller

118
Q

By using ___, IL agents are required to disclose whose interests they legally represent to a customer.

A

Disclosure of No Agency

119
Q

In IL, once a listing agreement is finalized, it needs to be signed by both the ___ and ___.

A

Broker and principal

120
Q

IL law prohibits the broker from making any addition, deletion, or alteration of a written listing agreement without ___ of the principal.

A

Written consent

121
Q

After a listing agreement has been finalized and signed by the broker and principal(s), the broker must return a true copy of the listing agreement to all parties within ___ of execution.

A

24 hours

122
Q

What 5 things does Illinois law require to be disclosed in a listing contract?

A

1) Material facts
2) Interest
3) Special compensation
4) Earnest money and purchaser default
5) property condition

123
Q

___ are any facts on which a reasonable person would base a contractual decision.

A

Material facts

124
Q

Disclosure of ___ includes that if a buyer or seller is a licensed broker, this needs to be clearly stated in the contract.

A

Interest

125
Q

A broker is prohibited from accepting any form of compensation from anybody other than…

A

another licensee

126
Q

Sponsored licensees may only receive any forms of compensation through…

A

their sponsoring broker

127
Q

What statement must appear emphasized in letters larger than those otherwise used in a listing agreement?

A

Disclosure that the seller will not receive the earnest money deposit if the purchaser defaults.

128
Q

A property ___ statement must be given to the buyer before an offer is made and accepted.

A

Property disclosure statement

129
Q

If a buyer is not given a property disclosure statement before making an offer that is accepted, how long do they have to rescind the contract based on any negative disclosures?

A

Three business days

130
Q

If a property was built before 1978, what must be disclosed?

A

Lead paint disclosure

131
Q

A radon disclosure may be required of the seller if a property…

A

was built before 1978

132
Q

If a broker would like to place a “for sale” sign on the principal’s property, does this need to be disclosed in the listing agreement?

A

yes

133
Q

If a broker would like to advertise and market a property on social media or the internet, does this need to be disclosed in the listing agreement?

A

yes

134
Q

Anyone who has ownership interest in a property must be ___ and must ___ the listing in order to validate it.

A

identified and must sign

135
Q

If a property is a principal residence of a married couple, but only the husband’s name is on the title, who’s signature is required on the listing agreement in order to release the homestead rights?

A

Both spouses

136
Q

If a property is in possession of a tenant, what 2 things must be included in the listing agreement?

A

Disclosure that a tenant is in possession, and instructions for how the property will be shown to prospective buyers

137
Q

What 3 things must a brokerage identify about themself in a listing agreement?

A

1) Brokerage company name
2) the sponsoring broker
3) the designated agent of the sponsoring broker

138
Q

Unpaid real estate taxes, outstanding mortgage debts, and any other outstanding financial obligations will reduce the seller’s ___.

A

Proceeds

139
Q

Listing agreements must specify that certain items on the property may be ___ that must remain with the property unless explicitly identified in the subsequent purchase contract between the buyer and seller.

A

fixtures

140
Q

A listing agreement should determine whether any lease equipment, such as a home security alarm, cable box, water softener, or antenna, will be left with the property. True or false?

A

true

141
Q

If leased equipment such as a satellite dish is left with the property, who is responsible for notifying the company that own’s the equipment of the change of property ownership?

A

The seller

142
Q

Which premises descriptor is required to be included in a listing agreement in order for it to be valid and enforceable under IL state law?

A

Street address

143
Q

In order for a listing agreement to be valid and enforceable under IL state law, does it need to require either the parcel number or property index number (PIN)?

A

No but it is strongly recommended

144
Q

Where can one acquire a property’s parcel number or property index number?

A

County tax database

145
Q

A warranty deed, title insurance policy, or abstract of title with an attorney’s opinion can be used for ___.

A

Proof of title

146
Q

Even if a physical enrichment on a property, such as a picket fence, was noted in the listing file, questions about their legal implications should be…

A

Referred to an attorney

147
Q

All liens must either be paid by the ___ or assumed by the ___ at closing.

A

Paid by the seller or assumed by the buyer

148
Q

A listing agreement is required to identify the current zoning for the property. True or false?

A

True

149
Q

If a broker has any money sent to them by a home warranty company, what must the broker do in regards to the listing agreement?

A

Disclose this in writing

150
Q

The circumstances under which a commission will be paid must be specifically stated in the ___.

A

listing contract

151
Q

The contract should indicate that all commissions have been negotiated between the ___ and the ___.

A

seller and broker

152
Q

Under IL law, written listing agreements in IL must state that no change in the amount of commission or time of payment will be valid or binding unless the change is made ___ and ___.

A

change is made in writing and signed by all parties

153
Q

Can a listing agreement include a provision stating that the seller and broker agree not to sue one another for any incorrect information supplied to one another?

A

Yes, but it is not a requirement

154
Q

Are listing agreements required to include a provision stating that the seller and broker agree not to sue one another for any incorrect information supplied to one another?

A

no

155
Q

Because of Fair Housing laws, what needs to be included in a listing contract?

A

Nondiscrimination / equal opportunity statement

156
Q

What are the 3 required minimum services provided that must be specified in an exclusive brokerage agreement?

A

1) Accept and present client with all offers and counteroffers
2) Assist in developing, communicating, negotiating, and presenting offers and counteroffers until lease or purchase agreement is signed
3) Answer clients questions

157
Q

In an exclusive brokerage agreement, the broker must ___ and ___ all offers and counteroffers for their client.

A

Accept and present

158
Q

In an exclusive brokerage agreement, the broker must assist their client in developing, communicating, negotiating, and presenting all offers and counteroffers until…

A

a lease or purchase agreement is signed

159
Q

Who is required to sign a listing contract?

A

All parties

160
Q

The date a contract is signed may ___ from the date a contract goes into effect.

A

differ

161
Q

Are neighborhood amenities that would make a property more appealing and marketable, such as information about schools or parks, required to be included in a listing agreement?

A

no

162
Q

Any written brokerage agreement must provide either a(n) ___ within a definite period of time or provide the client with the right to ___ the agreement annually by giving no more than 30 days prior written notice.

A

automatic expiration or right to terminate

163
Q

The ___ of a listing contract provides that the property owner will pay the listing broker a commission if within a specified time period after the listing agreement expires, the owner transfers the property title to someone who saw the property while it was listed with the broker.

A

Broker protection clause

164
Q

A ___ clause protects brokers from losing a commission on a sale involving buyers who saw a property while it was listed.

A

Broker protection clause

165
Q

A ___ clause discourages others from trying to reach private arrangements with sellers.

A

Broker protection clause

166
Q

Buyer agreements and listing agreements are ___ contracts.

A

employment

167
Q

Who is the principal for a buyer agency agreement?

A

The buyer

168
Q

Who is the principal for a listing agreement?

A

The seller

169
Q

A(n) ___ agreement indicates a principal-agent relationship in which the broker is the agent to the buyer with fiduciary responsibilities to the buyer.

A

buyer

170
Q

If a broker has a listing agreement with a principal, who do they owe fiduciary responsibilities to?

A

The seller

171
Q

If a broker has a buyer agency agreement with a principal, who do they owe fiduciary responsibilities to?

A

the buyer

172
Q

A(n) ___ indicates the exclusive right for a broker to represent a buyer.

A

Exclusive buyer agency agreement

173
Q

If a buyer enters into a(n) ___ agreement with a broker, they are legally bound to compensate the broker whenever they purchase a property of the type described in the contract, regardless if the broker helped them locate the property.

A

Exclusive buyer agency agreement

174
Q

Bob is a buyer who entered into an exclusive buyer agency agreement with Sarah, his broker. Bob later independently purchased a home he had found on Zillow without any assistance from Sarah. Is he legally obligated to compensate Sarah?

A

yes

175
Q

Which type of buyer agency agreement entitles a broker to payment regardless of whether or not they help the principal locate a property?

A

Exclusive buyer agency agreement

176
Q

A(n) ___ is an exclusive contract between a buyer and broker, where the broker is only entitled to compensation from the principal if they help them locate the property that is ultimately purchased.

A

Exclusive agency buyer agency agreement

177
Q

In a(n) ___, the buyer retains the right to locate and buy property without financial obligation to the broker.

A

Exclusive agency buyer agency agreement

178
Q

A(n) ___ agreement puts brokers at risk of educating buyers about the purchase process and showing many homes only to find that the buyers avoid compensating the broker by working directly with the owners of an unlisted property.

A

Exclusive agency buyer agency agreement

179
Q

A(n) ___ agreement is nonexclusive and allows a buyer to enter into similar agreements with an unlimited number of brokers.

A

Open buyer agency agreement

180
Q

If a buyer has an open buyer agency agreement, who are they obligated to compensate?

A

Only the broker who locates the property that is ultimately purchased

181
Q

A broker should conduct a(n) ___ with a buyer to determine the principal’s needs, goals, financial capabilities, and motivation.

A

Counseling session

182
Q

A(n) ___ gives a broker the opportunity to educate the buyer on the buying process and market conditions, and to formulate a strategy for finding the right property.

A

Counseling session

183
Q

A broker should have a discussion with a buyer addressing and negotiating compensation in the event that there is no offer of ___ from the listing broker.

A

Cooperative compensation

184
Q

A broker should make the same ___ to a buyer that they would make to a seller in a listing agreement.

A

disclosures

185
Q

In Illinois, it is common for a listing broker to share the listing fee with the buyer’s broker. This is a clear case where commission does not equate to ___.

A

agency

186
Q

If a broker receives compensation from more than one source in a transaction, it always needs to be…

A

Disclosed in writing to the client

187
Q

A(n) ___ determines and evaluates the needs, wants, and financial capacity of the buyer.

A

Needs assessment

188
Q

___ is a service where a broker locates the best property for the buyer by notifying them of new listings and for sale by owner properties.

A

Property selection

189
Q

___ is where a broker provides an objective evaluation of the property and shows buyers how to compare properties, as well as the disclosure of material facts that pertain to the property.

A

Viewing properties

190
Q

___ means to strategize with the principal, and suggest techniques that strengthen their position. Then implement those strategies on behalf of the principal.

A

negotiate

191
Q

When negotiating, the broker acting as an agent to a buyer should provide ___ and prepare a(n) ___ on the property that the buyer is considering.

A

Provide price counseling, prepare a CMA

192
Q

___ is a service where the broker resolves any issues that could prevent a closing from occurring.

A

Follow-up

193
Q

The buyer’s broker should prepare a(n) ___ to establish a price for the buyer to offer.

A

CMA

194
Q

Factors the buyer’s broker should take into account when preparing the ___include the property’s condition, length of time on the market, supply & demand, seller’s motivation, and terms & contingencies.

A

CMA

195
Q

If a buyer’s broker is working with two or more clients who are seeking similar property’s in the same price range, is the broker permitted to show alternative properties to prospective buyers or tenants without breaching any duties or obligations to their clients?

A

yes

196
Q

When a buyer’s agent is acting as a designated agent for more than one prospective buyer who the designated agent has reason to believe is making or preparing ___ offers to purchase the property located at a specific address, the buyers have the option of being referred to another designated agent who will serve as the agent of the buyer.

A

Contemporaneous

197
Q

If a broker is preparing or making contemporaneous offers or contracts to purchase or lease the same property, the broker must…

A

Provide written disclosure to all clients

198
Q

A(n) ___ agreement is a contract between a broker and a seller or buyer.

A

Broker employment agreement

199
Q

A broker cannot turn over a broker employment agreement to another broker without…

A

The principal’s written consent

200
Q

If either party cancels a broker employment agreement contract, one party may be ___ to the other.

A

Liable for damages

201
Q

If a principal fails to fulfill the terms of the broker employment agreement, they may be ___ to the broker.

A

Liable for damages

202
Q

Upon closing of a sale, an employment agreement’’s purpose has been fulfilled, and therefore the agreement may be ___.

A

canceled

203
Q

If an agreement’s term expires without a successful transfer, the employment agreement may be ___.

A

Canceled

204
Q

If a property is destroyed an employment agreement may be ___.

A

canceled

205
Q

If a force outside of the client’s control changes the property, such as a zoning change, what happens to the employment agreement?

A

canceled

206
Q

If the title to the property is transferred by operation of law, such as bankruptcy or foreclosure, the employment agreement is ___.

A

Canceled

207
Q

An employment agreement may be canceled upon mutual agreement to ___.

A

end the agreement

208
Q

If the sponsoring broker or client dies or becomes incapacitated, the employment agreement ___.

A

may be canceled

209
Q

If either party breaches the contract of an employment agreement, the agreement is ___.

A

terminated

210
Q

If either party of the employment agreement breaches the contract, the party responsible for the breach / cancelation may be ___ to the other.

A

liable

211
Q

In Illinois, what two duties does the broker still owe to the principal, even after termination, expiration, or completion of a brokerage agreement?

A

1) Accounting for all monies and property relating to the transaction
2) Confidentiality

212
Q

To acquire an inventory of property to sell, brokers must obtain ___

A

listings

213
Q

A(n) ___ can enhance the odds of the property selling.

A

Multiple listing service

214
Q

A(n) ___ provision gives the broker additional authority and obligation to distribute the listing to other members of the organization.

A

Multiple listing service (MLS)

215
Q

A broker employment agreement is a contract between a ___ and a ___ or ___

A

Between a broker and a buyer or seller

216
Q

A broker cannot turn over a brokerage agreement to another broker without…

A

the principal’s written consent

217
Q

If a property owner refuses to cooperate with the broker’s reasonable requests, such as allowing the broker to show the property to a prospective buyer, they could be ___ to the broker.

A

Liable

218
Q

If a property owner refuses to proceed with a completed sales contract, they could be ___ to the broker.

A

Liable

219
Q

If either party cancels a contract, one party may be ___ to the other

A

liable

220
Q

A(n) ___ compares the prices of recently sold properties that are similar to the seller’s property

A

CMA

221
Q

What can be used to help a seller determine a reasonable listing price?

A

CMA or appraisal

222
Q

The approximate amount a seller will ___ from a sale is calculated by subtracting the broker’s commission, and other seller expenses (attorney, title search, etc) and any existing liens (such as mortgage) from the sales price.

A

net

223
Q

___ of the broker’s agency relationships and agency policies are required.

A

Disclosure

224
Q

The seller is expected to ___ with legally required disclosures of property conditions.

A

comply

225
Q

In Illinois, buyer agency is regulated by ___.

A

Illinois Agency Laws

226
Q

A best practice for a broker representing a buyer is to conduct a(n) ___ to determine the buyer’s needs & goals, financial capabilities, and motivation

A

counseling session

227
Q

Qualifying ___ services include needs/financial capabilities assessment, property selection, and viewing properties

A

Buyer

228
Q

The ___ process also includes the agent preparing a CMA for them on the selected property then preparing and negotiating the offer that ultimately leads to a contract between both parties.

A

Buying

229
Q

In IL, all brokerage agreements must be ___ and must provide for ___.

A

in writing; minimum services

Unit 6: Brokerage Agreements (2 decks)

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