Unit 8 Agency Contracts Flashcards
In North Carolina, a listing agreement
A can allow automatic renewal until either party gives notice.
B with an override clause protects the listing firm’s commission in all situations for the prescribed time period.
C is allowed to be oral prior to presentation of an offer.
D is required by North Carolina License Law to be written from formation.
D is required by North Carolina License Law to be written from formation.
How are an exclusive-agency listing and an exclusive right-to-sell listing alike?
A The seller retains the right to sell the real estate without the broker’s help and without paying the broker a commission.
B The seller authorizes only one particular agent to show the property.
C The responsibility of representing the seller is given to one broker only.
D There is no similarity between the two listing types.
C The responsibility of representing the seller is given to one broker only.
All of the following would terminate a listing EXCEPT
A expiration of the contract period.
B death or incapacity of the seller.
C nonpayment of the commission by the seller.
D destruction of the improvements on the property.
C nonpayment of the commission by the seller.
The parties to the listing contract are the A seller and the buyer. B seller and the broker. C buyer and the broker. D broker and the MLS.
B seller and the broker.
A listing taken by a real estate broker belongs to the A firm. B seller. C agent. D agent and firm equally.
A firm.
A seller’s residence is listed with a broker, and the seller stipulates that she wants to receive $85,000 from the sale, but the broker can sell the property for as much as possible and keep the difference as the commission. The broker agrees. This is what type of listing? A Exclusive right to sell B Exclusive agency C Open listing D Net listing
D Net listing
A real estate commission rate is set by the A local real estate board. B North Carolina Real Estate Commission. C principal and the agent. D local multiple listing service.
C principal and the agent.
In a sales transaction, which of the following statements is/are TRUE of a listing agreement?
I It must be in writing to be legal and enforceable.
II It requires the seller to sell the property if terms of an offer match the terms in the listing.
A I only
B II only
C Both I and II
D Neither I nor II
A I only
A listing contract contains a clause that gives the broker the right to collect a commission after the listing contract terminates if the owner sells the property to someone the broker introduced to the property. This is what type of clause? A Extender B Subordination C Exclusivity D Procurement
A Extender
A broker listed a property at an 8% commission rate. After the sale closed, the seller discovered that the broker had been listing similar properties at a 7% commission rate. Based on this information, which of the following statements is/are TRUE?
I The broker has violated antitrust laws.
II The seller can cancel the listing agreement without penalty.
A I only
B II only
C Both I and II
D Neither I nor II
D Neither I nor II
A broker gets a commission if her listed property is sold, no matter who sells it, if she used what type of listing agreement? A Net B Open C Exclusive agency D Exclusive right to sell
D Exclusive right to sell
Under the North Carolina Residential Property Disclosure Act, the seller must
I provide a completed property disclosure form to the buyer before the buyer makes an offer.
II disclose all known property defects on the mandatory form.
A I only
B II only
C Both I and II
D Neither I nor II
A I only
Which of the following statements is NOT true about the North Carolina Residential Property Disclosure Act?
A If the form is not provided per the statute, the buyer may be able to cancel any resulting contract.
B If the seller marks “no representation” on the form, the agent is relieved of their duty to discover and disclose material facts.
C If the buyer rescinds the contract within the allowed time period, all deposit monies will be refunded to the buyer.
D Act compliance is required of the seller even if there is no real estate broker involved in the transaction.
B If the seller marks “no representation” on the form, the agent is relieved of their duty to discover and disclose material facts.
Which of the following transactions is exempt from the Mineral and Oil and Gas Rights Mandatory Disclosure Statement?
A Residential sales of one to four dwellings
B New construction
C A lease with an option where the tenant intends to occupy
D Vacant land
D Vacant land
Which statement about listing contracts is FALSE?
A A listing agreement is an employment contract rather than a real estate contract.
B With a listing agreement, the broker/firm is hired to represent the seller-principal.
C Real property is transferred when a listing agreement is signed by the seller.
D An agreement for brokerage services between a broker and an owner of real property must be in writing from the outset of the relationship.
C Real property is transferred when a listing agreement is signed by the seller.
Do not contact laws govern all the following areas EXCEPT A faxes. B email. C postal mail. D telephone calls.
C postal mail.
Placing listing in an MLS may be advantageous because
A the MLS establishes a set commission split between co-brokers.
B sellers have more marketing exposure for their property.
C brokers agree to show only MLS properties and not show any for-sale-by-owner properties.
D brokers have a smaller number of properties available for showings.
B sellers have more marketing exposure for their property.
The responsibilities of the listing agent regarding the Residential Property and Owners Association Disclosure include all of the following EXCEPT
A the duty to fill out the form for property owner.
B the duty to disclose material facts to consumers even if the property owner indicated “no representation” on the form.
C the duty to inform the seller that it is the seller’s responsibility to complete and provide the mandatory disclosure form to prospective buyers.
D assisting the seller in providing a complete and up-to-date form to the buyer or their agent.
A the duty to fill out the form for property owner.
Which statement is FALSE regarding issues that must be discussed by a broker and a buyer before signing a buyer agency agreement?
A The Mineral and Oil and Gas Rights Mandatory Disclosure Statement must be completed by the buyer.
B The licensee should explain the forms of agency available and the parties’ rights and responsibilities under each type.
C The specific services provided to a buyer-client should be clearly explained.
D Compensation issues must be discussed.
A The Mineral and Oil and Gas Rights Mandatory Disclosure Statement must be completed by the buyer.
If a broker shows a property to a buyer-consumer who chooses NOT to be represented by any type of buyer agency, after proper review by the broker of all agency choices in the Working with Real Estate Agents brochure, the buyer must
A complete and sign a buyer representation agreement.
B hire an attorney.
C sign a dual agency consent form.
D initial the “Disclosure of Seller Subagency” statement at the bottom of the brochure panel authorizing the broker to work as a seller’s subagent.
D initial the “Disclosure of Seller Subagency” statement at the bottom of the brochure panel authorizing the broker to work as a seller’s subagent.
Which statement is FALSE regarding oral buyer agency relationships?
A A buyer/tenant consumer may wish representation but elect to postpone the execution of a written agency agreement.
B The oral agreement should address issues of compensation and whether the client authorizes dual agency, if the situation arises.
C All oral buyer agency agreements must be exclusive.
D Any oral agency agreement must be open-ended with no definite termination date.
C All oral buyer agency agreements must be exclusive.
A buyer’s agent must
A disclose the possible presence of sex offenders in an area, if asked.
B properly qualify the prospective buyer/client.
C show the buyer at least 20 properties.
D guarantee that the contract price represents a good investment for the buyer.
B properly qualify the prospective buyer/client.
When a buyer broker has an opportunity to work with a limited services listing broker, the buyer’s agent
A will act as a dual agent.
B will be paid by the seller.
C should boycott those opportunities.
D should be very clear about expected compensation arrangements before entering a transaction.
D should be very clear about expected compensation arrangements before entering a transaction.
Typical matters addressed in a buyer agency agreement include the following EXCEPT
A the type of property that the buyer is seeking.
B whether or not the brokers may disclose the name of the buyer.
C the broker’s requirement to disclose the nature of the buyer’s offers to other buyer clients.
D the need for the buyer to retain specialized assistance.
C the broker’s requirement to disclose the nature of the buyer’s offers to other buyer clients.
