PRINCIPLES AND PRACTICES 9 Flashcards
What is the most common way to create an agency relationship between a home seller and a broker?
A. buyer broker agreement
B. by implication
C. listing agreement
D. oral contract
C. listing agreement
You are currently associated with Ace Realty. They recently changed the commission structure and so you’re looking for a new broker. You decide to go to work for Tip Top Real Estate. On your last day at Ace, you have three active listings. What happens to them?
A. The listing agreements convert to open listings.
B. The listing agreements remain at Ace.
C. The listing agreements automatically terminate.
D. You can take the listings with you to Tip Top.
B. The listing agreements remain at Ace.
Ji-Hoon calls a real estate agent to list his home. He tells the agent that he wants $156,000 in his pocket at closing and the agent can have the rest for the commission. What type of listing would this be?
A. exclusive agency
B. exclusive right to sell
C. net listing
D. open listing
C. net listing
Ursula lists her house with New Age Realty. The next day, she mentions it at work, and a co-worker expresses interest. Which type of listing would entitle the listing broker to a commission if Ursula’s co- worker makes an acceptable offer?
A. exclusive agency
B. exclusive right to sell
C. net listing
D. open listing
B. exclusive right to sell
After meeting with an agent, seller Sally agrees to sign a listing agreement. She tells the agent that her husband is out of state on business, but they want to sell the house right away since he is taking a new job and they will be moving soon. The agent should
A. refuse to take the listing because the seller is clearly trying to sell the house without her husband’s knowledge and could be committing fraud.
B. refuse to take the listing but tell the seller they can proceed once her husband signs it.
C. take the listing and plan on getting the husband’s signature later.
D. take the listing because one spouse has the right to list marital property.
B. refuse to take the listing but tell the seller they can proceed once her husband signs it.
Jake lists his home with PDQ Realty, allowing PDQ to put a sign in the yard, list it in MLS, and advertise it in the local newspaper. During the listing period, the owner sells the home to his brother and is not obligated to pay PDQ any commission. What type of listing did he have with PDQ?
A. exclusive agency
B. net listing
C. nonexclusive right to sell
D. open listing
A. exclusive agency
Of these, which is LEAST LIKELY to be negotiable in a listing agreement?
A. the broker’s cooperation with other brokers
B. the commission
C. whether there is an end date
D. the scope of activities permitted
C. whether there is an end date
An open buyer agency agreement means that a
broker earns commission
A. if any broker introduces their buyer client to the property they ultimately buy.
B. only if their buyer client purchases a property that they have listed.
C. only if they introduce their buyer client to the property they ultimately buy.
D. no matter who introduces their buyer client to the property they ultimately buy.
C. only if they introduce their buyer client to the property they ultimately buy.
A seller and buyer agree to wait until the listing Agreement with ABC Realty expires, then they will sign a purchase contract so the seller can avoid paying commission. Assuming the listing agreement Did not contain an extender clause, does the broker of ABC Realty have any legal recourse?
A. No, the broker has no recourse since the listing agreement expired.
B. Yes, the broker can pursue criminal charges.
C. Yes, the broker can sue the buyer under the listing agreement.
D. Yes, the broker can sue the seller under the listing agreement.
A. No, the broker has no recourse since the listing agreement expired.
A broker lists a client’s home for sale on the MLS. There is no offer of cooperation mentioned. An agent from another brokerage has a buyer client who is interested in the home and presents an offer that the seller accepts. The seller is paying 7% commission. How much of the commission must the seller pay the buyer’s agent?
A. 7%
B. 3.5%
C. nothing
D. impossible to tell
C. nothing
A seller lists a property for $220,000. Assuming the listing agreement is typical, the broker would NOT be entitled to commission if the seller
A. accepts a $215,000 offer from a financially qualified buyer.
B. accepts a $220,0000 offer, but the title to the property turns out to be unmarketable.
C. rejects a $215,000 offer from a financially qualified buyer.
D. rejects a $220,000 offer from a financially qualified buyer.
C. rejects a $215,000 offer from a financially qualified buyer.
Generally speaking, a broker has earned their commission
A. when the listing agreement is signed.
B. when a ready, willing, and able buyer offers to meet the seller’s terms.
C. when a sales contract is signed.
D. when the transaction closes.
B. when a ready, willing, and able buyer offers to meet the seller’s terms.
To be valid, a listing agreement may be signed by
A. an attorney-in-fact.
B. the buyer.
C. the listing agent only.
D. the listing agent’s broker only.
A. an attorney-in-fact.
An agent from listing agency ABC Realty has concluded a lengthy and detailed negotiation with an agent from buyer agency XYZ Realty. After the closing of this transaction, which is the most likely scenario?
A. The seller will pay both agents.
- ABC Realty, the listing agency, will pay both agents.
C. XYZ Realty, the buyer agency, will pay both agents.
D. ABC Realty will pay the listing agent; XYZ Realty will pay the buyer’s agent.
D. ABC Realty will pay the listing agent; XYZ Realty will pay the buyer’s agent.
What mandates how much a real estate broker can charge for a commission?
A. multiple listing service membership regulations
B. National Association of REALTORS® bylaws
C. state licensing law
D. There are no mandates.
D. There are no mandates.
