Client Representations

Question 1

an employment contract between a real estate broker and a property seller.

Answer 1

Listing agreement

Question 2

must be in writing to be enforceable in court.

Answer 2

Exclusive listing agreement

Question 3

general agent of the broker and can carry out listing services only in the name of and under the supervision of the broker.

Answer 3

Sales Associate

Question 4

one broker is appointed as the seller’s sole agent, and if the property is sold while the listing is in effect, the broker is entitled to a commission, no matter who sells the property.

Answer 4

exclusive right-to-sell listing,

Question 5

authorizes one broker to act as the sole agent of the seller but allows the seller to retain the right to sell the property without obligation of payment to the broker.

Answer 5

exclusive agency listing

Question 6

the seller retains the right to employ any number of brokers; the seller is obligated to pay a commission only to the broker who successfully produces a ready, willing, and able buyer; and the seller is not obligated to pay a commission if the seller personally sells the property without the aid of a broker.

Answer 6

open listing (also known as a nonexclusive listing)

Question 7

the excess over the seller’s desired net from the sale is paid to the broker as compensation may be prohibited by state law

Answer 7

Net listing

Question 8

permits cooperation with other brokers in the multiple listing service (MLS)

Answer 8

multiple listing clause

Question 9

preserves a broker’s right to compensation if, within a certain number of days after the listing agreement expires, the owner transfers the property to a purchaser who was brought to the seller by the listing broker.

Answer 9

Brokers Protection Clause

Question 10

usually made by a sales associate of the broker and is the job interview with a prospective client—the property owner.

Answer 10

Listing presentation

Question 11

will identify the property owner(s) and the property, describe the property improvements, list any loans held by the owner and their current status, itemize loan and other payments on the property, and provide the details of a short sale, if the lender is willing to accept one.

Answer 11

Listing agreement

Question 12

seller provides a policy for the buyer.

Answer 12

Home-warranty

Question 13

an employment contract in which a prospective property buyer employs a broker for the purpose of finding a suitable property.

Answer 13

Buyer representation agreement

Question 14

the buyer works with only one broker, but the broker is free to represent other buyer clients

Answer 14

Exclusive buyer representation

Question 15

will be compensated by a retainer, a flat fee for services, an hourly rate, a percentage of the purchase price, or some combination of these methods.

Answer 15

Buyers broker

Question 16

Who are the parties to a listing agreement?

Answer 16

Seller and broker

Question 17

A real estate broker working with a seller should transmit all offers to the

Answer 17

seller

Question 18

A sales associate who was working on a listing died. What is the present status of the listing?

Answer 18

still in effect

Question 19

A way to provide the widest possible marketing of a property that is the subject of a listing agreement is by including in the agreement

Answer 19

Multiple listing clause

Question 20

What are a broker’s responsibilities to a buyer?

Answer 20

Be fair with the seller but responsible to the buyer
Explain important documents to buyer
Negotiate on the buyer’s behalf

Question 21

In most states, a broker’s license can be suspended or revoked if the broker

Answer 21

takes a listing that does not include a date on which the listing expires.

Question 22

An agreement for a brokerage to list real estate for sale must be signed by

Answer 22

all individuals who have a legal interest in the property.

Question 23

Which person should make the final determination on a property’s asking price?

Answer 23

the seller

Question 24

By executing a listing agreement with a seller, a real estate broker becomes

Answer 24

agent of the seller

Question 25

A prospective buyer signs an agreement with a broker to find a property for the buyer, and the buyer agrees to work only with that broker. While this agreement is in effect.

Answer 25

The broker can represent other buyers at the same time.

Question 26

In a contract to list real estate for sale, personal property

Answer 26

should be identified if it is to be included in the sale.

Question 27

An employment contract that establishes the rights and obligations of the broker as agent and the seller as principal is

Answer 27

listing agreement

Question 28

The listing broker about to present an offer to a seller receives a message that the seller has died. Due to the seller’s death,

Answer 28

both the listing agreement and the offer are terminated.

Question 29

What information is needed for a listing agreement?

Answer 29

The dimensions of the lot
The most recent property taxes
The possibility of seller financing

Question 30

An exclusive agreement to list property for sale should include all of the following

Answer 30

expiration of listing period.
broker protection clause.
multiple listing clause.

Question 31

What kind of listing agreement is illegal in many states because of the potential for conflict of interest between a broker’s fiduciary responsibility to the seller and the broker’s profit motive?

Answer 31

Net listing

Question 32

What wont terminate a listing agreement?

Answer 32

An offer to purchase

Question 33

In an agreement to represent the seller in a sale of real estate, the listing broker’s ability to place a sign on the property, advertise it for sale, and show the property to prospective buyers should be

Answer 33

specified in the listing agreement.

Question 34

The listing agreement is

Answer 34

broker’s contract of employment by the seller.