Assessment

Question 1

An agency agreement may end upon mutual agreement between…

Answer 1

All parties

Question 2

If a house burns to the ground before the broker can find a buyer, the listing agreement is…

Answer 2

Automatically terminated

Question 3

Agency agreement where seller retains the right to sell the property without owing a commission to the broker

Answer 3

Exclusive agency listing agreement

Question 4

Agency agreement where sponsoring brokers are entitled to payment regardless of whether they locate the property

Answer 4

Exclusive buyer agency agreement

Question 5

A marketing organization whose broker members make their listings available for showing and sale through all the other member brokers

Answer 5

Multiple Listing Service (MLS)

Question 6

Agency agreement where sponsoring brokers entitled to payment only if they locate the property the buyer ultimately purchases

Answer 6

Exclusive agency buyer agency agreement

Question 7

Agency agreement where if the property is sold, the seller must pay the sponsoring broker a commission no matter who sold the property

Answer 7

Exclusive right-to-sell listing

Question 8

Clause that states property owner owes the listing broker a commission if the owner transfers the property title to someone who saw the property while it was listed with the sponsoring broker

Answer 8

Broker protection clause

Question 9

Employment contracts for the personal professional services of the broker

Answer 9

Brokerage agreements

Question 10

In a(n) ___ listing, one authorized broker receives a commission regardless of who sells the property.

Answer 10

Exclusive Right-to-Sell

Question 11

A ___ provision specifies that the seller will receive a specific amount of money from any sale, with the excess going to the listing broker as commission.

Answer 11

Net listing

Question 12

A broker must not withhold ___ concerning a property of which he has knowledge from any purchaser.

Answer 12

material facts

Question 13

The ___ must determine the listing price from a property.

Answer 13

seller

Question 14

A(n) ___ buyer agency agreement provides the most protection to the broker.

Answer 14

Exclusive

Question 15

A(n) ___ buyer agency agreement permits the buyer to enter into similar agreements with any number of brokers.

Answer 15

open

Question 16

With a(n) ___ buyer agency agreement, the buyer is only obligated to compensate the broker who locates the property that is ultimately purchased.

Answer 16

open

Question 17

A listing taken by a real estate licensee is an agreement between the seller and the…

Answer 17

sponsoring broker

Question 18

What is a similarity between an exclusive agency listing and an exclusive right to sell listing?

Answer 18

Both types of listings give responsibility of representing the seller to one broker only

Question 19

A listing agreement expires on May 2. The seller’s house is destroyed by a fire on April 25. Therefore the agreement may be ___ due to the destruction of the property.

Answer 19

canceled

Question 20

The seller has listed his property under an exclusive agency listing with the broker. If the seller sells the property himself during the term of the listing to someone introduced to the property by the seller, he will owe the broker…

Answer 20

No commission

Question 21

A broker sold a residence for $235,000 and received $12,925 as her commission in accordance with the terms of the listing. What was her commission rate?

Answer 21

5.5%

Question 22

Under a listing agreement, the broker is entitled to sell the property for any price as long as the seller receives $185,000. The broker may keep any amount over what the seller specifies. This type of listing is called…

Answer 22

A net listing

Question 23

What is a similarity between an open listing and an exclusive agency listing?

Answer 23

Under both, seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure

Question 24

The final decision on a property’s listed value should be determined by the ___.

Answer 24

Seller

Question 25

The final decision on a property's listed value should be determined by the seller based on...

Answer 25

The broker's CMAs and advice

Question 26

A listing contract is a(n) ___ contract for the professional services of the broker.

Answer 26

employment

Question 27

A real estate company received a 6.5% commission on the sale of a property. The listing broker in the company received 40% of the commission, which was $9,750. What was the selling price of the property?

Answer 27

$375,000

Question 28

A seller listed her residence with a broker. The broker brought an offer at full price and satisfying terms of the listing from buyers who were ready, willing, and able to pay cash for the property. However, the seller changed her mind and rejected the buyer's offer. Is the broker entitled to a commission from the seller?

Answer 28

Yes

Question 29

A comparative market analysis can help the seller ___ their property.

Answer 29

price

Question 30

A property was listed with a broker who belonged to a MLS and was sold by another member broker for $153,500. The total commission was 6% of the sales price. The selling broker received 60% of the commission, and the listing broker kept the balance. What was the listing broker's commission?

Answer 30

$3,684

Question 31

A seller signs a listing agreement with a broker to sell his home. The agreement states that the broker will receive a 5.5% commission. The home sells for $387,000. What is the net amount that the seller will receive from the sale?

Answer 31

$365,715

Question 32

A real estate broker and a seller enter into a listing agreement that contains the following language: "Seller will receive $100,000 from the sale of the subject property. Any amount greater than $100,000 will constitute Broker's sole and complete compensation. In Illinois, the broker may offer the property for any price above $100,000, however the agreement may be ___.

Answer 32

unethical

Question 33

A broker enters into an agreement with a client. The agreement states "In return for the compensation agreed upon, Broker will assist Client in locating and purchasing a suitable property. Broker will receive the agreed compensation regardless of whether Broker, Client, or some other party locates the property ultimately purchased by Client." What kind of agreement is this?

Answer 33

Exclusive Buyer Agency Agreement

Question 34

Illinois licensees may submit a listing to a(n)...

Answer 34

Multiple listing service

Question 35

Under what conditions is a disclosure of contemporaneous offers required?

Answer 35

When a buyer's agent is acting as a designated agent for more than one buyer interested in buying the same property

Question 36

Illinois requires listing agreements to contain what in regards to termination of the contract?

Answer 36

either an automatic expiration date or a statement of the client's right to terminate

Question 37

In Illinois, what brokerage agreements must be in writing?

Answer 37

Exclusive brokerage agreements

Question 38

In Illinois, an exclusive listing agreement may contain blank spaces to be filled in later. True or false?

Answer 38

False

Question 39

In Illinois a(n) ___ agreement must be in writing and include the amount of brokerage compensation, and the listing price of the property

Answer 39

Exclusive listing agreement