Chapter 10 Listings/ Client Representation Agreements

Question 1

The employment contract between broker and a real estate seller is called

Answer 1

a listing agreement

Question 2

A listing agreement is a contract for professional or personal services?

Answer 2

Professional

Question 3

Death terminates a professional or personal service contract?

Answer 3

Personal

Question 4

All states require that an exclusive listing agreements must be in writing to be enforceable in court. True or false?

Answer 4

True

Question 5

Exclusive right to sell includes what in the agreement? 2 items.

Answer 5

• Seller employs on broker.

- Listing broker is paid regardless of who sells the property

Question 6

How are exclusive right to sell and exclusive agency similar and different?

Answer 6

Similar: Seller employs 1 broker
Different: Exclusive agency means seller retains the right not to pay broker if they sell.

Question 7

How are exclusive agency similar and different to an open listing

Answer 7

similar: seller retains right to sell without an obligation to pay broker.
Different- In an open listing, a seller may have multiple brokers. Nonexclusive.

Question 8

Seller will receive a net amount of money from any sale, with eh excess going to the listing broker as a commission is a definition of what

Answer 8

Net listing

Question 9

Definition: Defenite period of time during which the broker is to be employed. Time frame- 6 mo to a yr.

Answer 9

Expiration of listing period

Question 10

True or false:

Legislatures allow the use of automatic extension clauses

Answer 10

False.

Automatic renewals not allowed.

Question 11

The property owner will pay the listing broker a commission if, within a specified number of days after the listing expires, the owner transfers the property to someone the broker originally introduced to the owner (someone who offered list). Fee still due.

Answer 11

Broker protection clause

Question 12

Presentation of properties on the market similar to subject in size, location and amenities. Not an appraisal. No fee to be charged for this.

Answer 12

CMA COmparative Market Analysis

Question 13

True of false:

Anyone with ownership interest in the property must be identified and should sign the listing to validate it

Answer 13

True

Question 14

The listing price is the same as

Answer 14

Asking price

Question 15

True or false:
Broker has right to sign legal documents and contracts for seller, as well as accept earnest money on behalf of the seller.

Answer 15

False.

Broker COULD do these things if stated in contract. Broker must obtain power of attorney from seller in order to sign documents. Without stated in contract, this is false.

Question 16

Where are the circumstances of how broker is paid stated?

Answer 16

In contract.

Question 17

True or false:

Any personal property that will be included in the sale of the real estate must be explicitly identified

Answer 17

True

Question 18

True or false:

Seller is not responsible for leased equipment

Answer 18

False.

Seller is responsible for notifying lessor in change of property ownership

Question 19

PACH is an acronym related to what term?

Answer 19

Home warranty program

Plumbing, AC, and Heating.

Question 20

“Harmless” wording, or:

Answer 20

Indemnification

Question 21

True or false:

Often times there is no written contract between broker and buyer

Answer 21

True.