Ball Flashcards Part 1

Front 1

Broker can sue Seller for breach of K where seller withdraws the Property.

Back 1

True

Front 2

Broker can sue seller for breach of K for not acting in good faith

Back 2

True

Front 3

Buyer Cannot Sue the seller in Tort

Back 3

False. But you have to be creative

Front 4

Broker can sue the Buyer for Breach of K

Back 4

False. There is no K between Broker and Buyer

Front 5

Broker can sue the Buyer in Tort

Back 5

Yes. Where buyer and Seller conspire to sell after listing agreement to avoid commission.

Front 6

What is the listing agrement?

Back 6

COntract between a broker and a client

Front 7

Broker is not entitled to a comission if the seller sells it to a buyer that the broker found after the listing agreement expires

Back 7

False.

Front 8

Broker 2 gets a list of people who looked at the property from Broker 1. One of the listed buyers purchases the property. Is broker 2 entitled to commission?

Back 8

Yes. Because Broker 2 "negotiated" the transaction with the buyer even if he didn't introduced it.

Front 9

Legal Description is required on the Listing agreement.

Back 9

False, although it is helpful because it can be formally incorporated later.

Front 10

What does a Listing Agreement Require.

Back 10

Termination Date. Extension Agreement possible. Listing Price. May be required to be in writing.

Front 11

Any broker that finds a "ready willing and able" buyer during an "open listing" is entitled to a comission.

Back 11

Fale, only the first one.

Front 12

Open Listing is the default listing if it is not designated on a listing agreement.

Back 12

True

Front 13

Broker earns his commission if the seller finds his own buyer.

Back 13

False. Hoewver, Broker gets commission if B1 hires B2 and B2 finds bu

Front 14

The owner can hire another broker during an "exclusive agency listing" with Broker 1

Back 14

True. Policy is to protect the Broker from Other Brokers.

Front 15

In an exclusive agent agreement, the broker cannot hire another broker to find a buyer.

Back 15

True.

Front 16

If Seller finds buyer during an Exclusive Listing Agreement, then Broker Gets Paid

Back 16

No Commission is owed.

Front 17

A Broker gets a commission during an "exclusive right to sell agreement" if any buyer is found.

Back 17

True. Highest Protection for Broker.

Front 18

How much does a broker get in a Net listing

Back 18

A portion of the excess received over the listing price or other agreed upon price.

Front 19

A listing Agent signs a K with the seller

Back 19

True

Front 20

A selling Agent signs a K with the seller.

Back 20

False. Signs K with Listing Agent and goes out to find a buyer.

Front 21

A broker is not allowed to represent both parties on the table

Back 21

False, A broker can, as long as he complies with the rules of disclosure.

Front 22

Selling Broker is the agent of the buyer

Back 22

False. Considered the subagent of the listing agent which is the agent of the seller.

Front 23

Traditional rule is that Selling Broker represents the Buyer

Back 23

False. If there is agency it is under a theory of implied Agency.

Front 24

The Traditional Rule Requires a Ready Willing and Able Buyer as well as a Closing for a Broker to receive a commission.

Back 24

False. COmmission is earned at Ready WIlling and Able Rule buyer. New Minority Rule is Ready Willing and Able plus a closing.

Front 25

In a new rule jurisdiction RE: brokerage closing, A broker does not receive a commission because there is no closing due to seller's interference or wrongful act

Back 25

FALSE. A broker is entitled to a commission.

Front 26

Under the new rule RE: brokers, a broekr does not get a commission if parties fail to meet all the conditions of the K

Back 26

True.

Front 27

Brokers can make express conditions that they get paid regardless of closing in a new rule state.

Back 27

False. Sellers can make conditions of closing, but buyers usually cant because of greater bargaining power.

Front 28

What can a seller sue a broker for

Back 28

Breach of fiduciary duties, Breach of K, Tort, Unauthorized practice of Law/Legal Malpractice

Front 29

Broker can sue seller for

Back 29

Breach of K

Front 30

Buyer can sue Broker for

Back 30

Tort ONLY unless he can show an implied agency. If he can, Breach of K or LEgal Malpractice

Front 31

Broker can Sue Buyer For

Back 31

Tortious Interference with K. Only when buyer interferes with Broker and Sellers K.

Front 32

Under the old rule, Buyer can sue broker based on a quqasi agency theory.

Back 32

False, new rule. Old rule was no privity in K so no suing between buyer and broker.

Front 33

the broker does not have to disclose the nature and extent of the broker’s interest if he has a conflicting interest to the seller

Back 33

False. Duty to Disclose requires it. Part of fiduciary duty.

Front 34

A broker can expressly waive his duty of loyalty.

Back 34

True

Front 35

A broker can reveal material information about his client's objective if it will help make a sale quicker.

Back 35

Fale Duty of confidentiality.

Front 36

Broke has duty to keep client informed of all infomration that would be material to his client's interest

Back 36

True

Front 37

A broker does not ahve to reveal his own interest that might be competing with the seller.

Back 37

False.

Front 38

What are hte brokers jobs

Back 38

Bring Parties Together. Negotiate terms. Assist parties in preparing for closing by ordering inspection fo the property. Search the Multiple Listings for Property. List the House.

Front 39

Lawyers Jobs

Back 39

Draft K of sale. Review financing Documnets. Work on Title. Act as counsel for representation. Can do limited broker jobs.

Front 40

Brokers can buy and sell real estate as well as assist clients in real estate law.

Back 40

No brokers cannot practice realestate law. Brokers can perform very simple legal form jobs.

Front 41

Contract/Conveyance Test

Back 41

Broker can prepare contracts that deal with money like eaernest money, but they cant prepare documents that convey real estate

Front 42

Simple Complex Test

Back 42

Brokers can use simple K forms that require fill in the blanks but they cant take part in complex matters.

Front 43

Incidental Test

Back 43

Brokers can draft documents that are incidental to being a broker but they cant charge extra for drafting.

Front 44

A broker that makes a mistake is held accountable to the standard of reasonable and prudent real estate broker.

Back 44

False. Held to the standard of Real Estate Lawyer