Unit 10

Question 1

In an open listing, the seller is obligated to pay a commission to only the broker who successfully produces a ready, willing, and able buyer.

Answer 1

True

Question 2

In an exclusive agency listing, the seller is obligated to pay the broker a commission regardless of who sells the property.

Answer 2

False

Question 3

Before signing a contract, the seller’s main concerns typically are the selling price of the property and the net proceeds.

Answer 3

True

Question 4

Courts have encouraged the use of automatic extension clauses in exclusive listings.

Answer 4

False

Question 5

If one or more of the owners in a listing agreement is married, the spouse’s consent and signature on the contract to release any marital rights is required in most states.

Answer 5

True

Question 6

Most states specifically allow a real estate professional to go over the terms of a preprinted contract with a client without risking an accusation of the unlawful practice of law.

Answer 6

True

Question 7

In an exclusive buyer representation agreement, the buyer can work with more than one broker.

Answer 7

False

Question 8

In a buyer-agency agreement, just as in any agency agreement, the source of compensation does NOT determine the relationship.

Answer 8

True

Question 9

Which of the following is a requirement of residential property sellers in many states?

Answer 9

Complete a property condition disclosure form

Question 10

A buyer’s agent who receives a check from the seller’s agent is receiving compensation based on

Answer 10

a percentage of list price.

Question 11

What is prepared by a sales associate by a review of MLS data for the asking prices of properties currently available, as well as the sales prices of properties that have sold recently and the asking prices of listings that have expired without a sale having occurred?

Answer 11

Comparative market analysis

Question 12

Under a brokerage agreement with a property owner, the broker is entitled to sell the property for any price, as long as the seller receives $85,000. The broker may keep any amount over $85,000 as a commission. This type of listing might be illegal and is called

Answer 12

a net listing.

Question 13

Information that a real estate sales associate should obtain from a prospective property seller to make sure that all contingencies are covered in the listing agreement includes

Answer 13

the status of all existing loans on the property.

Question 14

All of the following are typically found in a listing agreement EXCEPT

Answer 14

the date the real estate professional will schedule an open house.

Question 15

In an agreement to represent the seller in a sale of real estate, the listing broker’s ability to place a sign on the property, advertise it for sale, and show the property to prospective buyers should be

Answer 15

specified in the listing agreement.

Question 16

Which of the following is a similarity between an exclusive agency listing and an exclusive right-to-sell listing?

Answer 16

Both types of listings give the responsibility of representing the seller to one broker only.

Question 17

Which person should make the final determination on a property’s asking price?

Answer 17

The seller

Question 18

A broker’s agreement to represent a property buyer may be terminated because

Answer 18

the agreement’s purpose is fulfilled by the transfer of title to the buyer.

Question 19

A seller hired a broker under the terms of an open listing agreement. While that agreement was still in effect, the seller—without informing the first broker—hired another broker from a separate firm under an exclusive right-to-sell listing for the same property. If the first broker produces a buyer for the property whose offer the seller accepts, the seller must pay a full commission to

Answer 19

both brokers.

Question 20

Personal property included in a sale of real estate may include

Answer 20

fireplace equipment.

Question 21

If one or more of a property’s owners is married, the spouse’s consent

Answer 21

and signature on the contract to release any marital rights is required.

Question 22

All of the following are valid reasons for terminating a listing agreement EXCEPT

Answer 22

death of the sales associate.

Question 23

The listing agreement on a residential property states that it expires on May 2. Which event would terminate the listing before that date?

Answer 23

On April 15, the owner and agent cancel the agreement.

Question 24

The provision in a contract with a property seller that gives additional authority to the broker and obligates the broker to alert other brokers to the availability of the property is

Answer 24

a multiple listing clause.

Question 25

What kind of listing agreement is illegal in many states because of the potential for conflict of interest between a broker’s fiduciary responsibility to the seller and the broker’s profit motive?

Answer 25

Net listing

Question 26

If leased equipment is to be included in the listing agreement terms upon a sale, the lessor must be notified of the change of ownership by

Answer 26

the seller.

Question 27

In many states, a residential property seller is required to

Answer 27

complete a property condition disclosure form.