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25 Cards in this Set
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chap 6, ques 1
Which of the following statements most closely describes a listing contract? A: It serves as an employment contract between the broker and the seller B: It is a list of all the salable features in the property that is to be placed on the market. C: It's language is designed to serve as a guide for the closing attorney when the sale is complete. D: It authorizes a licensee to reject or accept an offer. |
A: It serves as an employment contract between the broker and a seller.
=================== chap 6-11 B: The Listing The listing is the broker's contract of emplyment with an owner autorizing the broker to find a buyer or tenant who is "ready, willing and able" to meet the owner's terms. In general this means that the broker has earned the commission ONLY if a buyer is found who offers the asking price, is willing to pay and can afford to pay on the specified terms |
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chap 6, ques 2
in some cases a broker's commission can be earned if the broker can prove that he/she set into motion a series of events which resulted in the sale. To do so means the broker: A: had an exclusive right to sell listing B: secured the buyers signature on the sales contract C: was the procuring cause of the sale D: showed the property to the buyer |
C: Was the procuring cause of the sale.
===================== Chap 6-14 5. The Right to commission When a seller refuses to pay commission that the broker feels he has earned, and the broker goes to court for a resolution, the broker must prove: * First, that he/she is a licensed real estate agent * Second, that there was a written listing agreement * Third, that the broker was the "procuring cause" of the sale. |
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chap 6, ques 3
When a salesperson performs the duties of the licensee, the salesperson does so: A: On behalf of himself/herself B: as a special agent for the seller C: As a general agent for his broker D: on behalf of the buyer |
C: As a general agent for his/her broker
==================== C is the best answer because the question said... "performs duties as a licensee" which encompasses all duties. Had the question asked ..while performing as a listing agent, the best answer would have been special agent to the client. |
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chap 6, ques 4
If a slaeperson acts as an independent contractor, then: A: he/she is responsible to his/her broker as to how work is performed. B: he/she controls his/her working hours C: all his/her listing belong to him/her D: his/her broker must withhold income tax from commission |
B: he/she controls his/her working hours
===================== chap 6-10 3. Relationship between broker and salesperson b: Independant contractor Independent contractors are literally in business for themselves, and pay their own taxes and expenses. They are accountable to their broker only for the results of their work, not how the work is performed. |
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chap 6, ques 5
The listing broker and the salesperson owe all but which of the following to the broker: A: Negotiation of the lowest possible price B: Honesty C: Integrity D: Disclosure of defects |
A: Negotiation of the lowest possible price
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chap 6, ques 6
The provision in a listing agreement that extends the period of the agency on those prospects to whom the broker introduced the property prior to the expiration is called: A: an automatic renewal clause B: an estoppel clause C: an equal dignities clause D: an safety clause |
D: a safety clause
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chap 6, ques 7
Which of the following is not true regarding a subagency relationship: A: The listing broker is the principal of the selling broker B: A subagent has an implied authority to act as a dual agent C: A subagent can only perform the activities delegated and cannot be involved in making decisions which would directly affect the welfare of the seller. D: The selling company should contact the listing company before showing the property. |
B: A subagent has an implied authority to act as a dual agent
====================== chap 6-15 1. Sub Agency Buyers tended to think that the agent assisting them was acting on their behalf, although in a sub-agency that was not the fact. There was a danger that an implied agency could arise, creating an undisclosed dual agency. |
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chap 6, ques 8
The amount of the brokers commission is: A: Based on standard rates established in the area B: Established by agreement between broker and seller C: established by real estate commission D: six or seven percent for single family residences, depending on the area |
B: Established by agreement between the broker and the seller.
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chap 6, ques 9
A listing broker has noticed there has been water in the basement of the house he is marketing, but the seller states that the problem was solved and therefore he does not want it mentioned. Should this fact be revealed by the broker to a perspective buyer. A: The broker owes absolute loyalty to the seller so he must obey the request that the water problem not be mentioned. B: Yes, the problem is clearly a material fact and therefore must be disclosed C: As long as the problem was corrected, it is no longer relevant D: The broker should mention the water only if asked. |
B: Yes, the problem is clearly a "material fact" and must be disclosed.
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chap 6, ques 10
Which of the following statements about appointing subagents is true? A: The listing broker may appoint salespersons within the company to act as subagents B: The listing broker must appoint a sub-agent if the subagent requests it. C: The seller may prohibit the listing broker from appointing a subagent D: A subagent is appointed to take over the listing agens duties to the seller |
C: The seller may prohibit the listing broker from appointing a subagent.
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chap 6, ques 11
Owner Brewer authorized agent Owens to sign a contract of sale.This authorization was granted by: A: A special provision in the exclusive right-to-sell listing B: making Owens a general agent C: making Owens an Ostensible agent. D: execution the power of attorney |
D: Executing the power of attorney
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chap 6, ques 12
A general agency empowers the agent to: A: transact matters of all types for the principal B: transact the principals affairs in a certain business. C: perform only specific acts for the principal D: perform any legal act for the principal |
B: transact the principal's affairs in certain business.
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chap 6, ques 13
A listing which allows the owner to sell property without being liable for a commission, but which appoints only one broker to act as a sole agent is an: A: exclusive agency listing B: open listing C. exclusive right to sell listing D: sole listing |
A: exclusive agency listing
=================== chap 6-12 b. Exclusive agency listing In an exclusive agency listing only one broker is authorized to market the property but the owner reserves the right to sell it himself/herself with no obligation to pay commission. |
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chap 6, ques 14
Exclusive listings must include: A: Safety clause B: permission for the listing broker to appoint subagents C: a definate date of expiration D: both B and C |
C: a definate date of expiration
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chap 6, ques 15
When a third party relies upon the principal's representation that a particular broker is his/her agent, even though the broker is unaware of the fact, the principal's actions create a/an: A: agency by ratification B: obstensible agency C: buyer agency D: estoppal agency |
B: Obstensible agency
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chap 6, ques 16
If a listing agreement does not specifically authorize a broker to accept and hold an earnest money deposit on behalf of the seller then the: A: deposit must be turned over to the seller immediately. B: a purchaser cannot be required to pay a deposit C: broker has implied authority to accept such deposits D: Broker must obtain power of attorney from a perpesfict purchaser to hold the deposit. |
C: broker has implied authority to accept such deposits
=================== chap 6-3 3. Implied Authority Sometimes an agent's implied authority can arise out of custom and common usage. Example: A listing contract might not state that the broker has the right to accept an earnest money deposit, or solicit the help of cooperationg brokers in marketing the property; but since these are the customary ways of doing business, the right is implied unless specifically forbidden. |
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chap 6, ques 17
Acting as a dual agent without the consent of all parties is a breach of a broker's duty of: A:loyalty B: personal performance C: due care D: accountablity |
A: loyalty
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chap 6, ques 18
A provision in a contract of sale which obligates the purchaser to list the property with a specific broker when the property is resold is: A: A violation of the antitrust laws B: good business practice and perfectly legal C: called a tie in D: both (A) and (C) |
D: both (A) and (C)
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chap 6, ques 19
An owner desires a net of 147600 from the sale of her home. Broker baily accepts the listing with a 6.5% commission. The list price will be. A: 157,900 B: 157,200 C: 138,000 D: 227,100 |
A: 157900
=================== 100% - 6.5% = 93.5% (.935) 93.5% of X = 147600 X = 147600/.935 X = 157860.9625 |
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chap 6, ques 20
The 100 percent commission pln means: A: The listing broker is obligated to share the fee with a subagent B: There are no fees to be deducted for MLS or franchise services C: the salesperson recieves half of the fee D: the salesperson recieves the entire fee but pays the broker a monthly fee for office space, administrative services, and use of the brokers name. |
D: the salesperson recieves the entire fee but pays the broker a monthly fee for office space, administrative services, and use of the brokers name.
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chap 6, ques 21
Which of the following is a characteristic of an exclusive right to sell listing? A: It may allow more than one broker to share commision paid by the seller B: The seller may sell the property without being obligated to pay a brokers commision C: The seller must sell to a ready willing and able buyer found by the broker D: The broker may sign a contract of sale on behalf of the seller. |
A: It may allow more than one broker to share a commision paid by the seller.
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chap 6, ques 22
Ronald is acting as a buyer broker for his sister regina, who is looking for a house. Since he has a written contract authorizing him to consider her a client, he, is autorized to do all of the follwowing EXCEPT: A: share with her any information he has about why the seller is selling B: let the lender she has chosen know that Regina might not be planning to be an owner/occupant C: write an offer for her signature and present it to the listing agent D: accept a counter offer on Regina's behalf while she is out of town |
D: accept a counter offer on regina's behalf while she is out of town.
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chap 6, ques 22
Alice has listed as property for an out-of-town investor. Her advertising is producing calls but a hostile tenant is denying access for showings. When told of this, the seller replies, "That's your problem." Which is true? A: Alice might ask for help from the local police B: a really motivated buyer might be found who would offer even without seeing the interior. C: Alice should have discovered the this problem before she listed the property. D: Alice can renounce her listing since the owner refuses to cooperate. |
D: Alice can renounce her listing since the owner refuses to cooperate.
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chap 6, ques 24
A statement of exaggeration which a reasonable person would recognize as untrue is an example of: a. misrepresentation b: actual fraud c: puffing d: innocent misrepresentation |
C: puffing
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chap 6, ques 25
If a contract for sale provides for the owner to sell a home in "as is" condition, then: A: caveat emptor applies B: latent defects must still be disclosed to the purchaser C: the owner is generally immune from liability d: the broker must assist the buyer in making a thorough inspection. |
B: latent defects must still be disclosed to the purchaser
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