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24 Cards in this Set

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A listing agreement may be terminated for any of the following reasons EXCEPT the

a. sale of the property
b. death of the salesperson
c. agreement of the parties
d. destruction of the premises
b. death of the salesperson
By executing a listing agreement with a seller, a real estate broker has become

a. a procuring cause
b. obligated to open a special trust account
c. an agent of the seller
d. responsible for sharing commissions
c. an agent of the seller
The provision in a listing agreement that gives additional authority to the broker and obligates the broker to distribute the listing to other brokers is a(n)

a. joint listing clause
b. multiple listing clause
c. net listing clause
d. open listing clause
b. multiple listing clause
A building sold for $157,000. The broker charged a 6 percent commission and divided it as follows: 10 percent to the sales person who took the listing; one-half of the balance to the sales person who made the sale; and the remainder to the broker. What was the listing salesperson’s commission?

a. $239
b. $942
c. $1,570
d. $4,239
b. $942
Broker W took a listing on a property and shortly thereafter discovered that her client had been preciously declared incompetent by the court. The listing now is

a. binding as the broker was acting in good faith
b. still valid
c. the basis for commission if the broker produces a buyer
d. void
d. void
The type of listing agreement that provides for the payment of a commission to the broker even though the owner makes the sale without the aid of the broker is called a(n)

a. exclusive-right-to-sell listing
b. open listing
c. exclusive-agency listing
d. option listing
a. exclusive-right-to-sell listing
A property owner lists his property for sale with a broker. During the negotiations, the owner told the broker that the owner wanted $138,000 for the property and anything above that amount the broker could keep as his commission. The listing with this type of provisions is known as the

a. gross listing
b. net listing
c. open listing
d. non-exclusive listing
b. net listing
Under which of the following listing agreements can the owner of listed property sell the property on his or her own without having to pay the listing broker a commission?

a. Exclusive-right-to-sell listing
b. Exclusive-agency listing
c. Open listing
d. Both b and c
d. Both b and c
A property owner signed a 90-day listing agreement with a broker. The owner was killed in an accident before the listing expired. Now the listing is

a. binding on the owner’s spouse for the remainder of the 90 days
b. still in effect as the owner’s intention was clearly defined
c. binding only if the broker can produce offers to purchase the property
d. terminated automatically upon the death of the principal
d. terminated automatically upon the death of the principal
A listing contract in which the broker’s commission is contingent on the broker being able to produce a buyer before the property is sold by the owner or another broker is called a(n)

a. open listing
b. net listing
c. exclusive-right-to-sell listing
d. exclusive-agency listing
a. open listing
A broker who represents a seller under an exclusive listing receives two offers for the property at the same time, one from one of his salespeople and one from a salesperson of a cooperating broker. What should the broker do?

a. submit the offer from his salesperson first
b. submit the offer from the other salesperson first
c. submit the higher offer first
d. submit both offers at the same time
d. submit both offers at the same time
Broker P listed the K’s property under an exclusive-right-to-sell agreement. Today, one of P’s salespeople, T, obtained an offer to purchase the property along with a certified check for 5 percent of the purchase price as earnest money. What should T do with the earnest money check?

a. give it to the K’s
b. hold it until the closing
c. deposit the money in his trust account
d. give the money to P for deposit in his trust account
d. give the money to P for deposit in his trust account
All of the following are typical provisions of a listing agreement EXCEPT the

a. price the seller is asking for the property
b. date the broker will schedule an open house
c. commission rate to be paid to the listing broker
d. responsibilities of the broker
b. date the broker will schedule an open house
The type of listing agreement that provides the least protection for the listing broker is the

a. exclusive-right-to-sell listing
b. exclusive-agency listing
c. open listing
d. net listing
c. open listing
If a seller needs to net $50,000 after the sale, how much must the real estate sell for if the selling costs include a 7 percent commission and a $1,200 in other expenses?

a. $54,700.00
b. $54,963.44
c. $55,053.76
d. $55,633.25
c. $55,053.76
A seller refused to pay a commission to the broker even though there was a valid listing agreement and the broker procured a buyer for the property. What can the broker do?

a. sue the seller in court for the commission
b. file a lien on the seller’s property for the amount of the commission
c. obtain an injunction to stop the transaction until the commission is paid
d. collect the commission from the buyer
a. sue the seller in court for the commission
Under an exclusive agency listing, the listing broker would not be entitled to a commission if

a. The broker sells the property herself
b. The property is sold through another broker
c. The property is sold through the multiple-listing service
d. The seller sells the property to a neighbor across the street who has her property listed with another broker
d. The seller sells the property to a neighbor across the street who has her property listed with another broker
All of the following are types of the listing contracts EXCEPT a(n)

a. open listing
b. exclusive agency
c. exclusive right-to-sell
d. MLS contract
d. MLS contract
A listing agreement may be terminated by all of the following EXCEPT

a. by mutual agreement
b. by operation of law
c. because the seller can’t find another house to buy
d. because of impossibility of performance
c. because the seller can’t find another house to buy
The seller wants to net $65,000 on the sale of his house after paying the broker a fee of 6 percent. How much must the gross selling price be?

a. $69,149
b. $68,093
c. $67,035
d. $66,091
a. $69,149
The broker enters into a listing agreement with a seller in which the seller will receive $12,000. This type of listing is a(n)

a. gross listing
b. legal and ethical way to ensure that the broker is compensated
c. exclusive agency
d. net listing
d. net listing
An owner lists her property for sale with a broker. Another broker, however, finds a buyer for the house. The listing broker did not receive a commission from the sale. The type of listing contract between the owner and the broker could have been a(n)

a. exclusive right-to-sell
b. exclusive agency
c. open listing
d. multiple listing
c. open listing
An owner who is interested in selling his house is usually concerned about how much money he can get hen it sells. A competitive market analysis may help the seller determine a realistic listing price. Which of the following is true?

a. a competitive market analysis is the same as an appraisal
b. a broker, not a salesperson, is permitted to prepare a competitive market analysis
c. a competitive market analysis is prepared by a certified real estate appraiser
d. a competitive market analysis contains a compilation of the other similar properties that have sold
d. a competitive market analysis contains a compilation of the other similar properties that have sold
Two different brokerage companies claimed they were entitled to a commission from the sale of a property that was listed by one of the firms under an open listing agreement. The broker who is entitled to the commission is the one who

a. listed the property
b. advertised the property
c. obtained the first offer
d. was the procuring cause of the sale
d. was the procuring cause of the sale