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30 Cards in this Set
- Front
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If a defaulting buyer forfeits an earnest money deposit, based on the language of the Colorado exclusive Right to Sell Listing Contract: Broker would receive the funds Seller is entitled to keep the funds Broker and Seller would split the funds Broker and Seller would submit the funds for mediation |
A: Broker and Seller would split the funds It specifically is stated in the contract that the Broker and Seller will split the funds. |
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A listing agreement may be terminated for all but which of the following reasons? Sale of the property Agreement of the parties Death of the agent who took the listing Destruction of the premises |
A: Death of the agent who took the listing The parties to a listing agreement are the Seller and a Brokerage Firm. The licensee is the person signing on behalf of the Brokerage Firm. The death of the licensee does not in itself terminate the listing contract as the agent was not a party to the agreement. The death of either the Seller or the dissolution of the Brokerage Firm would. |
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What legal duties does a seller's agent have to an unrepresented buyer?
Fair and honest dealing and disclosure of material facts about the property Loyalty, fidelity, and disclosure of material facts about the property No specific duties, agency duties are to the principal Honest dealing and full disclosure of anything that the broker knows about the transaction |
A: Fair and honest dealing and disclosure of material facts about the property The agent has legal duties to the buyer; fair and honest dealing and disclosure about material facts related to the property and title to the property. |
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The seller was dissatisfied with her broker and contacted another broker. She found there were five days left on the listing. The second broker may: take the listing now, to become effective upon the expiration of the current listing, and verification of the expiration. take an exclusive right to sell listing without any possible consequences to the seller immediately take an exclusive agency listing and change it to an exclusive right to sell listing when the old listing expires. Take an oral listing for five days until the old listing expires, then get a written listing |
A: take the listing now, to become effective upon the expiration of the current listing, and verification of the expiration. To take a listing that started prior to the expiration of the old one would be placing the seller in a position that they might have to pay two commissions. |
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According to the Exclusive-Right-to-Sell Listing Contract, which of the following is true with regard to fixtures listed on the approved form? they are included unless they are crossed out on the form they are included if attached on the date of the listing unless specifically excluded by the seller they are included in every case they are included if they are on the property at the time of the listing |
A: they are included if attached on the date of the listing unless specifically excluded by the seller Unless excluded by the seller, all fixtures will be included. A fixture is any physical property that is permanently attached to real property. All other property which is not permanently attached is Personal Property. |
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An Exclusive Right-to-Sell Listing contract establishes which of the following agreements? That the broker will never sue the seller That the seller will never sue the broker That the broker and the seller will use the same attorney That the broker and the seller will submit to mediation prior to litigation |
A: That the broker and the seller will submit to mediation prior to litigation Mediation provision: Mediation provides for disputes between the parties, to submit the matter first, to mediation. |
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Which of the following is true in describing how a dispute about the Exclusive-Right-to-Sell Listing Contract between seller and broker would be resolved? Both must agree to mediation before proceeding to arbitration or litigation. The matter must be resolved by a real estate commission hearing. Both must agree to submit to arbitration with the local Realtor association. Both must agree to submit the matter to binding mediation. |
A: Both must agree to mediation before proceeding to arbitration or litigation. The listing contract forms are specific in requiring mediation in good faith before submitting the matter to arbitration or litigation. |
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The listing contract that provides the most protection for the broker is a(n): exclusive brokerage listing open listing exclusive right-to-sell listing net listing |
A: exclusive right-to-sell listing An exclusive right to sell listing contract provides the most protection for the broker. This contract engages the broker and guarantees a commission regardless of whether the seller or the broker initially found the buyer. |
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Which of the following is true with regard to the Seller's Property Disclosure form that is mentioned in an Exclusive-Right-to-Sell listing form? The seller is required by law to provide this form to every buyer. The seller may check the "as is" box, making the buyer responsible to find any defects. The seller may decline to provide the disclosure but still must disclose latent material defects. The seller may refuse to provide the disclosure and avoid disclosure of material defects. |
A: The seller may decline to provide the disclosure but still must disclose latent material defects. The seller has the choice whether to provide the disclosure form, but is nevertheless responsible for disclosure of hidden material defects |
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According to the Exclusive-Right-To-Sell listing agreement - when the Transaction Broker option is selected, the listing broker must disclose to any possible buyer Seller’s motivation for selling All facts about the transaction the broker knows All material facts about the property the broker knows All facts about the seller the broker knows |
A: All material facts about the property the broker knows Material facts must always be disclosed weather you are working as an agent or as a transaction broker. |
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When can you talk to a seller about listing his house, if the house is listed with another broker? Five days before listing expires The day after listing is taken Anytime, if the seller approaches you first After the holdover period expires |
A: Anytime, if the seller approaches you first Talking to the seller anytime prior to the listing expiration date is called "going behind the sign" and is illegal unless the seller approaches the agent first. Rule E-13 allows this practice. |
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A Listing based on a “net price” is: more profitable because no minimum is set on the amount of commission collectible legal in Colorado as long as the seller agrees. illegal in Colorado at any time. permissible with approval of the commission. |
A: legal in Colorado as long as the seller agrees. A net listing is legal in Colorado as long as the seller agrees. It may be problematic if the commission received is unjustifiably exorbitant. |
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The “holdover clause” in the Exclusive-Right-To-Sell Listing Contract protects the listing broker’s commission for disclosed buyers: Usually for 60 days after the expiration of the contract For the period of time specified in the contract even if the property is relisted by another broker and the "Shall Not" box is checked For the period of time specified in the contract, or if the "Shall Not" box is checked until the property is relisted with another broker For up to six months after the listing expires |
A: For the period of time specified in the contract, or if the "Shall Not" box is checked until the property is relisted with another broker The Holdover Period says that a listing broker may be entitled to a commission after the expiration of a listing contract for the period of time specified in the clause if: 1) the broker negotiated with the buyer during the listing period and 2) the broker submitted the name of this buyer in writing to the seller. Although the protection is for a negotiated time after the listing expires; it can terminate early if the property is re-listed by another agent and the "Shall Not" box is checked, meaning the old listing agent "shall not" be owed a commission if another brokerage firm has earned one. If neither the "Shall" or "Shall Not" be owned a commission" box is checked - the default is "Shall Not". See "Holdover Period" in the "When Earned" clause of an Exclusive Right to Sell listing agreement. |
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The broker's commission for certain disclosed buyers is protected by the "holdover clause" in the approved Right-to-Sell Listing Contract. Which of the following correctly describes the length of protection afforded by this clause? for a negotiated time unless the seller lists the property with another broker after expiration and the "Will Not" box is checked only during the term of the listing and any extensions for a negotiated time even if the seller lists the property with another broker after expiration and the "Will Not" box is checked for up to six months after the listing expires |
A: for a negotiated time unless the seller lists the property with another broker after expiration and the "Will Not" box is checked The Holdover Period says that a listing broker may be entitled to a commission after the expiration of a listing contract for the period of time specified in the clause if: 1) the broker negotiated with the buyer during the listing period and 2) the broker submitted the name of this buyer in writing to the seller. Although the protection is for a negotiated time after the listing expires; it can terminate early if the property is re-listed by another agent and the "Will Not" box is checked, meaning the old listing agent "will not" be owed a commission if another brokerage firm has earned one. If neither the "Will" or "Will Not" be owned a commission" box is checked - the default is "Will Not". See "Holdover Period" in the "When Earned" clause of an Exclusive Right to Sell listing agreement. |
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A seller hired broker N under the terms of an open listing. While that listing was still in effect, the seller without informing broker N, hired broker K under an exclusive right-to-sell listing for the same property. If broker N produces a buyer for the property whose offer the seller accepts, then the seller must pay a: full commission only to broker N full commission only to broker K full commission to both broker N and broker K half commission to both broker N and broker K |
A: full commission to both broker N and broker K In an open listing who ever sells the property receives the commission, this means N by bringing a buyer is entitled to a commission. In an exclusive right to sell listing, no matter who sells the property, the broker who listed the property will receive a commission. This means K will receive a commission. Therefore the seller would be responsible to pay both brokers a commission. |
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The authority to act for a seller, in the sale of real estate, is given to the real estate broker by means of a: right-to-buy contract listing contract purchase and sale contract transaction broker addendum |
A: listing contract A listing contract is an employment contract between the seller and the broker. |
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As per the Exclusive Right to Sell Listing Contract fixtures listed on the improved form will be included: In every case Unless they are crossed out on the form If on the property at the time of the listing If attached on the date of the listing unless specifically excluded by the seller |
A: If attached on the date of the listing unless specifically excluded by the seller All fixtures will be included unless specifically excluded by the seller at the time the listing was taken. |
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The broker has taken a listing agreement for six months starting June 1 on September 15 the seller decides he does not want to sell the home. Which of he following is true? The house must remain on the market for the full duration of time The seller's actions will be determined by the real estate commission as to their legality The contract is cancelled and there are no penalties The seller has withdrawn the listing and may be subject to reimbursing some broker expenses |
A: The seller has withdrawn the listing and may be subject to reimbursing some broker expenses The listing may be cancelled but the broker may be due some reimbursement for expenses |
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Listing information: may be added outside the body of a contract as an attachment can never be added outside the body of a contract may be obtained after the listing agreement has been signed by the buyer and the broker none of the above |
A: may be added outside the body of a contract as an attachment Listing information may be added outside of the body of the listing contract by an Amend & Extend With Broker or addendum, and is usually obtained after the contract has been signed.i.e., MLS info, title info, etc. |
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Your client is: the same as your customer the seller the buyer the party who signs an agency contract with you |
A: the party who signs an agency contract with you The party, who signs an agency buyer or agency seller contract, is your client. The word "client" implies Agency. |
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The licensee is holding an Exclusive Right to sell Listing contract, he: Must sell the seller's property to comply with the contract Has permission to work with other sellers Agrees to work exclusively with this seller and no others at the same time Cannot work with buyers who might be interested in the property |
A: Has permission to work with other sellers The other sellers provision of the listing contract specifically allows the broker to work with other sellers |
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Kevin, a real estate broker, sold a property and received a 6-1/2% commission. Kevin gave the selling broker 30% of the commission, or $3,575. What was the selling price of the property? 55000 95775 152580 183333 |
A: 183333 $3,575 (agent share of commision in dollars) / 30% (agent share of commission as a percentage) = $11,916.666 (total commission in dollars) / 6.5% (total commission as a percentage) = $183,333.32 (Selling Price of Property) |
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After a listing has expired, the original listing broker may be paid a commission under the terms of the holdover clause in the original contract if: the broker had worked with the purchaser before the expiration date the broker had disclosed the name of the purchaser to the sellers before the listing expired the broker was the procuring cause for the purchaser all of the above |
A: all of the above ALL of these are requirements in order to be paid a commission after expiration. The Holdover Period says that a listing broker may be entitled to a commission after the expiration of a listing contract for the period of time specified in the clause if: 1) the broker negotiated with the buyer during the listing period and 2) the broker submitted the name of this buyer in writing to the seller. Although the protection is for a negotiated time after the listing expires; it can terminate early if the property is re-listed by another agent and the "Shall Not" box is checked, meaning the old listing agent "shall not" be owed a commission if another brokerage firm has earned one. If neither the "Shall" or "Shall Not" be owned a commission" box is checked - the default is "Shall Not". See "Holdover Period" in the "When Earned" clause of an Exclusive Right to Sell listing agreement. In simpleze: the Holdover Clause addresses what happens if a buyer is found during the listing period, but does the deal after. The “Shall” and “Shall not” box addresses the wrinkle as to what happens if the property has been relisted with a new agent. The original agent “shall” get paid or “shall not “ get paid. For extra points: how does this impact the new agent? Whelp – the new agent is not a part of the old contract. So, all this talk so far about commission only refers to the old agent. The new agent has another contract with the seller. BOTH contracts are valid. There is nothing in the listing contract that protects the seller from paying two commissions; other than the fact that the agents will have to collect from the seller’s estate, after the Seller dies from heart failure when they figure out they owe two commissions and really really REALLY wish they had read the contract they signed. |
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The Exclusive Right-to-Sell listing contract gives the listing broker the right to: sign the purchase agreement for the seller collect deposits from the purchasers deposit earnest money into operating bank account all of the above |
A: collect deposits from the purchasers The listing broker is authorized by the seller to collect and hold earnest money in the broker's escrow account, or deliver it to a neutral escrow agent. |
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A broker has a listing on a house that contains a provision that the house is to be sold in “as-is” condition. The broker learns of a major hidden defect in the property. When showing the property to a prospective purchaser, the broker should advise the buyer of the defect. point out that the house will be sold in “as-is” condition. mention the defect to the buyer only if asked. inform the buyer that the seller has told him of no defects. |
A: advise the buyer of the defect. Advise the buyer of the defect this is a material fact. |
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The listing broker, AAA Realty, shows a house to the Smiths two days before the listing expires. The listing has a 30-day holdover period, no box was checked in the Holdover clause in the Listing Contract. The buyers call the broker back four days after seeing the house and want to buy it. The sellers have listed the house with another broker, Rogers Realty. The sellers accept the offer of the Smith’s from AAA realty to buy the house. Which of the following is true? AAA Realty is not entitled to a commission Rogers Realty is entitled to the listing and selling commission AAA gets the selling (buyers) commission and Rogers Realty gets the listing commission AAA Realty is entitled to the listing and the selling commission |
A: AAA gets the selling (buyers) commission and Rogers Realty gets the listing commission The new listing terminated the holdover period. Therefore AAA cannot claim a listing side commission, Rogers Realty is going to recieve the listing commission. However, since AAA is now representing the buyer, they will be entitled to the buy side commission. There is a checkbox in the Holdover Clause which would have allowed the Holdover clause to survive re-listing the property. Since this box was not checked, the Holdover period ended when the property was re-listed. The Holdover Period says that a listing broker may be entitled to a commission after the expiration of a listing contract for the period of time specified in the clause if: 1) the broker negotiated with the buyer during the listing period and 2) the broker submitted the name of this buyer in writing to the seller. Although the protection is for a negotiated time after the listing expires; it can terminate early if the property is re-listed by another agent and the "Will Not" box is checked, meaning the old listing agent "shall not" be owed a commission if another brokerage firm has earned one. If neither the "Will" or "Will Not" be owned a commission" box is checked - the default is "Will Not". See "Holdover Period" in the "When Earned" clause of an Exclusive Right to Sell listing agreement. |
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All of the following are true regarding the Exclusive Right-to-Sell listing contract except: there is a one contract for all types of listings a listing contract may establish seller-agency a listing contract may be executed without establishing agency more than one listing contract may be executed for the same time period, for the same property |
A: more than one listing contract may be executed for the same time period, for the same property The Right to Sell Listing contract provides exclusivity to the listing broker to sell the property. The broker will be entitled to compensation regardless of who sells the property. If there is more than one listing contract active at the same time, the seller could be liable for multiple commissions to be paid. Commission Rule E-13 does not allow a real estate licensee to enter into an exclusive listing agreement with a seller if there is a listing contract currently in force with another licensee. It allows a listing contract executed that will become effective upon the expiration of the listing currently in force - but the two cannot be in effect concurrently. |
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Under the approved listing agreement, the broker is responsible for: all damage occurring to the premises maintenance of the premises damage caused by the broker’s negligence only punitive damages caused by broker’s negligence |
A: damage caused by the broker’s negligence If the broker causes any damage to the property he/she are responsible. |
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Regarding the broker/seller relationship under the terms of an Exclusive Right-to-Sell listing contract, which of the following statements are true? The broker may be the seller's agent and a transaction broker for the buyer The broker can take the listing without being an agent of the seller The listing must have at least a 60 day holdover period The listing has to be for at least thirty days |
A: The broker can take the listing without being an agent of the seller A broker may list a property as either a Seller's Agent or Transaction Broker. Only a Seller's Agent is considered to be an "agency relationship." Transaction Broker is considered to be a "working relationship." In an agency relationship you are an advocate for the client and owe the client your loyalty. In a working relationship you are a neutral party, advocating for neither the buyer or the seller but are instead just a facilitator for the transaction. Under NO CIRCUMSTANCES can you be an agent for one party and a transaction broker for the other in the same transaction. That would have the effect of you telling one party you are working for them (Buyer or Sellers Agency) and the other that you are a neutral party (Transaction Broker). That would be dishonest. |
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In the event that the seller and broker have a dispute about the Exclusive Right To Sell Listing Contract, which of the following is true? Both agree to submit to arbitration with the local REALTOR association. Both agree to submit the matter to binding mediation. Both agree to mediation before proceeding to arbitration or litigation The matter must be resolved by a real estate commission hearing. |
A: Both agree to mediation before proceeding to arbitration or litigation In a Exclusive Right To Sell Listing Contract both agree to mediation before proceeding to arbitration or litigation |
