Chapter 15 - Brokerage Agreements

Question 1

Listing Agreement

Answer 1

aka service provision contracts - are written agency contracts between a seller and a real estate sponsoring broker stipulating the conditions under which the broker will be paid a commission with regard to the seller’s property

Question 2

Exclusive Right to Sell

Answer 2

is an agency agreement between a seller and broker that gives the broker the exclusive right to represent the seller in the sale of the seller’s property

Question 3

Exclusive Agency Agreement

Answer 3

is an agency agreement between a seller and broker that also gives the broker the exclusive right to represent the seller in the sale of the seller’s property

Question 4

Open listing

Answer 4

is a non-exclusive listing given by a seller to as many brokers as he chooses.

Question 5

Procuring Cause

Answer 5

the agent is primarily responsible for bringing about a sale

Question 6

Net Listings

Answer 6

it describes a method of compensation. The seller sets a net amount he is willing to accept for the property, and the broker is entitled to keep any amount in excess of that as commission

Question 7

Multiple Listing Service (MLS)

Answer 7

a listing service whereby local member brokers agree to share listings, and agree to share commissions on properties sold jointly

Question 8

Buyer Agency Agreement

Answer 8

An employment contract between a buyer and a broker that grants the broker the exclusive right to represent the purchaser in the purchase or lease of property and that makes the buyer responsible for paying commission to the buyer broker

Question 9

Rental Finding Service

Answer 9

any business that finds, attempts to find, or offers to find - for any person who pays or is obligated to pay a fee or other valuable consideration: a unit of residential rental real estate or a lessee to occupy a residential rental real estate

Question 10

Minimum Services

Answer 10

The specific services mandated in the illinois real estate license act that a broker owes a client with whom there is an exclusive agency agreement. The minimum services include presentation of all offers, assisting the client in negotiating offers until a sale or lease contract is signed and contigincies met or waived, and answer the client’s questions related to offers.

Question 11

Commingling

Answer 11

illegally mixing money held in trust on behalf of a client with personal funds.

Question 12

Conversion

Answer 12

1. Misappropriating property or funds belonging to another 2. Changing an existing rental apartment into a condominum

Question 13

Escrow Moneys

Answer 13

All moneys, promissory notes, or any other type or manner of legal tender or financial considerations deposited with any person for the benefit of the parties to the transaction

Question 14

Escrow Account

Answer 14

1. an account maintained by a broker for the deposit of client’s money.