Unit 10 Flashcards
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.
True
In an exclusive agency listing, the seller is obligated to pay the broker a commission regardless of who sells the property.
False
Before signing a contract, the seller’s main concerns typically are the selling price of the property and the net proceeds.
True
Courts have encouraged the use of automatic extension clauses in exclusive listings.
False
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.
True
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.
True
In an exclusive buyer representation agreement, the buyer can work with more than one broker.
False
In a buyer-agency agreement, just as in any agency agreement, the source of compensation does NOT determine the relationship.
True
Which of the following is a requirement of residential property sellers in many states?
Complete a property condition disclosure form
A buyer’s agent who receives a check from the seller’s agent is receiving compensation based on
a percentage of list price.
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?
Comparative market analysis
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
a net listing.
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
the status of all existing loans on the property.
All of the following are typically found in a listing agreement EXCEPT
the date the real estate professional will schedule an open house.
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
specified in the listing agreement.
Which of the following is a similarity between an exclusive agency listing and an exclusive right-to-sell listing?
Both types of listings give the responsibility of representing the seller to one broker only.
Which person should make the final determination on a property’s asking price?
The seller
A broker’s agreement to represent a property buyer may be terminated because
the agreement’s purpose is fulfilled by the transfer of title to the buyer.
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
both brokers.
Personal property included in a sale of real estate may include
fireplace equipment.
If one or more of a property’s owners is married, the spouse’s consent
and signature on the contract to release any marital rights is required.
All of the following are valid reasons for terminating a listing agreement EXCEPT
death of the sales associate.
The listing agreement on a residential property states that it expires on May 2. Which event would terminate the listing before that date?
On April 15, the owner and agent cancel the agreement.
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
a multiple listing clause.
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?
Net listing
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
the seller.
In many states, a residential property seller is required to
complete a property condition disclosure form.
