Ch.9 Working With Sellers Flashcards
(10 cards)
California requires delivery of the agency disclosure form by the listing agent for:
any sale of 1-to-4 residential units and commercial properties
The disclosure form is required by statute on any sale or exchange of single-family residential property, any sale or exchange of multi-unit residential property with more than four dwelling units, any commercial real property, any vacant land, any ground lease coupled with improvements, and a mobile or manufactured home when sold by a real estate licensee.
Which statement is FALSE regarding delivery of the Agency Disclosure form?
The pamphlet does NOT have to be given to potential sellers of a 50-unit apartment building
The agency disclosure pamphlet is given to any sale or exchange of 1-to-4 units as well as all commercial properties. A 50-unit apartment building is a commercial property, so the pamphlet MUST be given to the potential purchaser.
With respect to the Estimated Seller’s Proceeds statement, which of the following is/are true?
-The California Association of REALTORS® makes available to its members an Estimated Seller’s Proceeds form.
-Adjusted statements should be given if the listing price is reduced or if an offer is presented for a price less than the listed price.
-The initial statement is based on the established listing price.
-All of the above (correct answer)
All of the above statements are true in regards to an estimated seller’s proceeds disclosure.
Which one of the following does NOT apply to the enforceability of a listing contract?
It must contain an automatic renewal provision
A listing contract cannot contain an automatic renewal provision. It must contain a definite expiration date.
Which statement is FALSE regarding listing contracts?
Specific performance is a remedy if one of the parties to a listing contract unilaterally terminates the agreement
Because the listing agreement is a personal service contract, specific performance cannot, by law, be used to force the terms of the agreement.
A listing agreement that permits the listing licensee to receive a commission for any sale of the property that occurs during the listing period, no matter who procures the buyer, is:
an exclusive right to sell listing.
Under the exclusive right to sell listing, the seller employs one broker for a specific period. That broker will be entitled to a commission regardless of how the listing is sold or by whom. Another broker can sell the property, the seller can sell the property, or the listing broker can sell it. In each case, the listing broker is paid a commission.
The most weight when assisting a seller to determine a listing price should be given to:
closed sales.
Closed sales are probably the best indicator of probable selling price for the subject property.
Which statement is TRUE regarding a Comparative Market Analysis (CMA)?
It is an informal assessment of establishing a suggested listing price by comparing the property to similar properties currently on the market, expired listings, pending sales, and closed sales.
The CMA is an informal assessment of a property’s market value, which is usually done to establish a reasonable listing price when a property is to be placed on the market for sale. The price is established by comparing the property to similar properties that are currently on the market, property listings that have expired, property listings that are in pending status, and property listings that have sold.
Under which circumstance should a licensee prepare a CMA?
To assist a seller to establish a realistic listing price
The CMA’s restricted purpose is for determining a listing price or an offering price on a specific property for a specific customer or client. Any attempt to value a property outside of this limited scope would not be a CMA and would require a licensed certified appraiser to perform.
A type of listing agreement that allows the seller to employ multiple licensees at the same time with a commission owed only to the licensee procuring the buyer is known as:
an open listing.
An open listing agreement allows the seller (the property owner) to employ any number of brokers at the same time; however, the seller only owes a commission to the actual broker who sells property.
