Real Estate Practice: Q 2/Chp 7-10

Question 1

1) The content of the Agency Law Disclosure form is not dictated by statute.
True
False

Answer 1

False (pg 54)

Question 2

2) An Agency Law Disclosure form needs to be presented to all parties by an agent when listing, selling, buying or leasing for a term greater than one year:
a. commercial property.
b. mobilehomes.
c. Both a and b.
d. Neither a nor b.

Answer 2

c. Both a and b (pg 54)

Also, lproperty containing one-to-four residential units

Question 3

3) A separate agency confirmation provision is not mandated for inclusion in purchase agreement forms.
True
False

Answer 3

False (pg 57)
In addition to the use requirements for the Agency Law Disclosure form, a separate, long-mandated agency confirmation is also required on all targeted transactions. The agency confirmation provision declares the agency relationships each broker may have with the principals in the specific transaction underway. With the agency confirmation included in written negotiations to purchase or lease and lease agreements, this relationship is consented to by all parties when they sign the documents.

Question 4

4) An open listing does not need to contain an expiration date.
True
False

Answer 4

True (pg 72)

Question 5

5) A seller’s broker needs to disclose to the seller the broker fee they will receive on a net listing:
a. before the close of escrow.
b. before the seller signs the listing agreement.
c. before the seller accepts a buyer’s offer.
d. None of the above.

Answer 5

c. before the seller accepts a buyer’s offer (pg 73)

Question 6

6) A broker is prohibited from including an advance fee provision in a guaranteed sale listing.
True
False

Answer 6

True (pg 75)

Question 7

7) An exclusive right-to-sell listing agreement entitles a broker to collect a fee when they locate a ready, willing and able buyer and submit the buyer’s full listing offer to the seller.
True
False

Answer 7

True (pg 80)

Question 8

8) A client’s oral promise to pay a broker fee entitles the broker to enforce collection of the fee.
True
False

Answer 8

False (pg 81)
Formal documentation of an obligation to pay a fee — a written agreement containing a fee provision and signed by the client — is the legislatively enacted and judicially mandated requisite to the right to enforce collection of a broker fee from a client who has agreed to pay a fee.

Question 9

9) The diligent effort of a broker under an exclusive listing includes:
a. analyzing the property.
b. marketing the property.
c. Both a and b.
d. Neither a nor b.

Answer 9

c. Both a and b (pg 92)

Question 10

10) A right-to-buy listing supersedes a replacement property provision in an exclusive right-to-sell listing.
True
False

Answer 10

True (pg 95)
The right-to-buy listing supersedes the replacement property provision in the exclusive right-to-sell listing. The exclusive right-to-buy listing assures the broker they will receive a fee when the owner acquires any replacement property during the right-to-buy listing period, regardless of who brings the property to the owner’s attention.