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15 Cards in this Set
- Front
- Back
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A licensed broker obtained an exclusive right-to-sell listing from an owner. During the listing period, the broker found a buyer who made an offer on the property that was accepted by the seller. Neither the offer nor the escrow instructions mentioned: the broker as the agent, or terms for payment of a commission. Under these circumstances the broker: - is legally entitled to a commission -has no legal right to a commission -is subject to disciplinary action by the real estate commissioner for negligence must prove that the broker was the procuring cause to be able to collect a commission |
- is legally entitled to a commission. an exclusive right to sell listing agreement stipulates the broker will be paid a commission regardless of who sells the property - the broker, the seller, or another cooperating broker |
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a broker is the pricing cause of a sale if he or she can produce a buyer who is ready to purchase the property for the price and terms specified by the seller. True or False |
- True - procuring cause occurs when a broker produces a buyer ready, willing, and able to purchase the property for the price and on the terms specified by the seller, regardless of whether the sale is completed |
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The RLA - exclusive form is the Exclusive Authorization and Right to Sell Listing Agreement. True or False |
True - |
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A customer is a property seller and the listing broker's client. True of False |
False - a customer is a prospective buyer of real estate; not to be confused with a property seller, who is the listing broker's client |
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A salesperson is a person with a real estate license and employed by a real estate broker. True or False |
True: |
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An agent is guaranteed a commission in a net listing. True or False |
False : A net listing is an employment contract in which the commission is not definite |
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A person who authorizes another to act in his or her place in regard to relations with third persons is: - agent -fiduciary -principal -broker |
Principal - hint - agency is a legal relationship in which a principal authorizes an agent to act as the principal's representative when dealing with third parties |
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Statements not known to be false at the time they are made are called ____ misrepresentations. -accidental -innocent -fraudulent -negligent |
Innocent misrepresentations are statements not known to be untrue at the time they are made, and usually carry no criminal liability for an agent |
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Which of the following is true of a listing agreement? -it allows a broker to complete a specific task -it allows a broker to be an independent contractor -it allows a broker to complete general tasks -it allows a broker to transfer title |
it allows a broker to complete a specific task: Hint: a listing agreement is a written contract by which a principal, or seller, employs a broker to sell real estate |
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If a listing broker acts as an agent, the broker owes to the seller a fiduciary duty. What does the broker owe to the buyer? -a duty to answer all questions - the same fiduciary duty - a duty to disclose all information regarding the selling price only - a duty of fair and honest dealing |
a duty of fair and honest dealing; hint: a listing broker has the duty of fair and honest dealings with third parties -- the buyer. this duty includes full disclosure of all material facts |
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a listing agreement is a oral contract by which seller employs a broker to sell real estate. True or False |
False: a listing agreement is a written contract |
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an agent is a person who acts for and in the place of another. True or False |
True: |
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A person employed to sell real estate is not an example of a special agent. True or False |
False: a special agent is a person employed to perform specific task, such as a real estate agent |
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Ready, unwilling, and capitalized is the type of person prepared to enter a purchase contract. True or False |
False: a ready, willing, and able buyer is prepared to enter a purchase contract, who really wants to buy and who meets the financing requirements of purchase |
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a listing broker received a bona fide offer and a personal check as a deposit. the prospective buyer asked the listing broker to hold the check unwashed until the end of the week. The listing broker must: - refuse to accept the check -deposit the check within 24 hours -inform the seller -follow the buyer's instructions to the letter |
Inform the seller - listing brokers fiduciary duties requires full disclosure of material facts. if the buyer instructs the listing broker to hold the check unwashed until the offer is accepted, this material fact must be disclosed to the seller when the offer is presented |
