Chapter 12 Listing Flashcards
A multiple listing agreement is a type of exclusive listing agreement in which:
(1) the brokerage lists two or more properties for the same seller.
(2) the seller lists the property with two or more brokerages.
(3) the seller pays more than one commission.
(4) the contract requires the listing to be distributed to all members of the real estate b
4
When a listing contract has expired, and the listed property is later sold to a buyer who was first introduced to the property by the listing brokerage during the listing period, the brokerage will:
(1) always be entitled to commission in these circumstances.
(2) be entitled to commission where the seller and buyer have conspired to sell after the expiry of the listing to avoid commission.
(3) be entitled to commission if he/she can prove the buyer inspected the house with one of its licensees.
(4) never be entitled to commission in these circumstances.
2
Angus wishes to sell his residence. He has entered into a multiple listing agreement with a licensee at Castle Rock Realty. Which of the following statements is true?
(1) The Multiple Listing Service® is managed by the real estate boards.
(2) Angus may employ other real estate companies to assist him in selling his house.
(3) Under this type of agreement, Angus is not obligated to pay a commission if he sells the house himself.
(4) All of the above items are true.
1
An agency contract that specifies that the real estate brokerage shall be the sole agent for the owner with respect to the sale of property, is called:
(1) an open listing.
(2) a general listing.
(3) an exclusive listing.
3
A standard Multiple Listing Service® (MLS®) contract must:
(1) be in writing.
(2) be for a higher rate of commission than other listing contracts.
(3) be submitted to the Real Estate Board before the property may be sold.
(4) meet all of the above requirements.
1
Quan, a real estate licensee, completes a listing contract with Betsy Smith “to endeavour to effect a sale” of Smith’s property for $250,000 payable in five equal annual installments. In return, Smith will pay Quan a flat fee of $10,000 if a suitable buyer is found. Quan feels the property is worth $190,000 market value. Green makes an offer to Smith through Quan of $250,000 cash, payable on completion day. Which of the following statements are TRUE?
A. Quan may advise Smith that Green’s offer exceeds Smith’s stated price in the listing contract.
B. Smith will be liable to Quan for $10,000 whether or not she accepts Green’s offer because Quan has found an offeror who is ready, willing and able to purchase at Smith’s stated price.
C. Green can sue Smith for damages if she does not accept his offer of $250,000 cash because he has met or exceeded the terms specified in the listing contract.
D. Smith will make a secret profit if she accepts Green’s offer and this is illegal under the Real Estate Services Act.
(1) All four statements above are false.
(2) Statement A is true; the other three statements are false.
(3) Statements B and C are true; statements A and D are false.
(4) Statements A, B and D are true; statement C is false.
2
Which of the following statements is TRUE with respect to listing contracts?
(1) While a listing contract is a contract between the brokerage and the seller, the buyer is bound to some of the terms contained in the contract.
(2) It is not necessary that an exclusive listing contain a specified duration or commencement date.
(3) The open listing provides better protection for the agent than the exclusive listing.
(4) None of the above statements is true.
4
Sally, a listing licensee, agreed with an aggressive purchaser that Sally would give part of her commission to the buyer in the event that the buyer’s offer for Whiteacre was accepted by Jacob, the seller. This arrangement will result in a quick sale of Whiteacre for the price stipulated in the listing contract, which is what Jacob desperately needs.
Which of the following statements is/are FALSE?
A. It is the duty of the listing licensee to get the best price for the seller.
B. Disclosure to Jacob by Sally is not required because the commission is Sally’s to do with as she pleases and she is not making a secret profit.
C. Sally should have told the buyer to offer a lower price which she could recommend to Jacob, rather than reduce her commission.
D. Assuming that all the terms in the listing contract are met by Sally, she will be entitled to commission when this deal closes.
(1) Only C is false.
(2) Only statements B and C are false.
(3) Only statements B, C and D are false.
(4) None of the above statements is false.
3
Deborah is a trading services licensee. After providing her best estimate with respect to the value of Susan’s property, Deborah lists the property at $600,000. Jennifer, who has learned that Susan’s property is situated in the middle of an area to be redeveloped, immediately comes to Deborah with a full-price, subject-free, offer. In response to Deborah’s surprise at the instantaneous results, Jennifer acknowledges that a redevelopment of the area is intended. Deborah does not advise Susan of the redevelopment as it might throw a “spanner” in the works and, in any event, she feels that a redevelopment might cause the value of Susan’s property to decrease rather than rise. Susan accepts Jennifer’s offer and is delighted that the property sold so quickly. Analyze the following statements.
A. Deborah has breached her duty to Susan by not advising Susan of the proposed redevelopment.
B. Susan does not have any claim against Deborah because she received the full listing price for her property.
C. The proposed redevelopment might have affected Susan’s decision to sell her property and therefore, should have been brought to Susan’s attention.
D. If Deborah had advised Susan of the redevelopment she would have breached the duty that she owed to Jennifer.
E. As long as Deborah honestly believed that the offer was fair, she has satisfied her duty to Susan.
F. Deborah could have suggested that Susan consider cancelling the $600,000 listing and re-listing at a higher price.
Which of the statements are TRUE?
(1) A, C, D and F
(2) B, C, D and E
(3) A, C and F
(4) B, C, D, E and F
3
Which of the following statements concerning an open listing is FALSE?
(1) Under an open listing a commission will only be paid to the agent who is the effective cause of the sale.
(2) The Real Estate Services Act requires all listings to always be in writing.
(3) Under an open listing the seller is free to dispose of the property independently without any liability to pay commission to an agent.
(4) Under an open listing a seller is free to use the services of any number of brokerages.
2
A prospective buyer signs an offer on a property for $250,000 and mentions to the listing licensee that she would be willing to pay as much as $270,000 for the property if necessary. The listing licensee presents the offer to the seller without mentioning that the buyer may be willing to increase the offer. The seller accepts the offer of $250,000. Since it is not a dual agency situation, this fact pattern is:
(1) an example of the agent’s ethical obligation to deal fairly with the buyer at all times.
(2) a breach of the agent’s legal and ethical duty of full disclosure to her principal.
(3) acceptable conduct on the part of the agent.
(4) an example of the agent’s duty not to make a secret profit.
2
julie is acting as the listing licesee for her client george.julia also represents a client Ahmed whom she is helping find a property to buy. ahmed becomes interested in purchasing georgese property. julie would like to continue to represent george in the sale of his property, while releasing Ahmed as a client. to do this Julie must enter into an agreement regarding conflict of interest between clients with:
- george the continuing client only
- ahmed the released client only
- both george and ahmed
- neither george nor ahmed, as the agreement regarding conflict of interest between clients must only be agreed to by julies managing broker
3
