ageny-most commonly missed Flashcards

ageny-most commonly missed Flashcards Dan is house shopping and contacts a real estate office.He tells the agent, Stephen, that he is interested in the area but is not ready to sign any agreements just yet. Stephen can be helpful and accommodating with all of the following

actions except:explaining to Dan about buyer agency,

seller agency, and dual agency.pre-qualifying Dan for a mortgage.providing information on mortgage interest rates and terms.providing information on properties for sale in the area.pre-qualifying dan for a mortgageStephen cannot obtain confidential information about Dan without first entering into a buyer agency relationship, so Stephen may NOT prequalify Dan for a mortgage.NOTE - This question says "Stephen can be helpful... with many actions EXCEPT" which means it's looking for a false answer, and it's false that Stephen can pre-qualify Dan for a mortgage.A broker and seller terminate the listing contract. An offer is received in the mail by the broker after the termination of the listing contract. The offer is for full price and includes all of the terms and conditions of the seller. Why is this NOT a valid contract?No earnest money has been enclosed.No acceptance has been given.There is no consideration involved.There is no current listing agreement.no acceptance has been givenIt has not been presented to or accepted by the owner. Remember, contracts aren't valid until both parties agree. However, even though the listing agreement has expired, the offer should be presented. If it's accepted and the transaction closes, the broker will generally be entitled to his or her full commission.NOTE- while there's no listing agreement here, that's not what makes the offer "NOT a valid contract"- it's the lack of 1 of the 4 essentials of a valid contract that makes it so (consideration has been offered, but no acceptance of the offer has been made).Which is an example of ostensible agency?The principal allows a licensee to act as the listing broker in front of a prospective buyerA broker sells only one of an owner's propertiesA selling broker acts as a sub-agent of a listing brokerA broker is able to sell all of an owner's properties and is granted power of attorney for all the owner's affairs The principal allows a licensee to act as the listing broker in front of a prospective buyerOstensible agency is similar to implied agency in that the relationship is created by the actions of the parties, rather than by written contract.Ostensible agency occurs when a third party would "reasonably" believe an agency agreement exists between a principal and an agent, even if no such agreement was ever made. Even in those states that recognize ostensible and implied agency relationships as binding, a written agency agreement should be obtained as soon as possible to clarify the understandings of all parties and protect interests.Which of the following lists the essential elements of a valid contract?Tender, consideration, deposit, performanceExecution, consideration, mutuality, competenceLawful object, competency, mutual consent, considerationAcceptance, consideration, performance, lawful object There are four essentials to all contracts:A lawful object: It

must be legal.Competency: Parties capable of

contracting.Mutual consent: Their consent which includes

the offer and acceptance.Consideration: A sufficient

consideration. This can be love or affection, but it's usually money.When is a properly licensed real estate salesperson most likely to get paid their commission?When the buyer signs the contractWhen the grant deed is signedWhen the grant

deed is recordedWhen escrow closes when escrow closesBe careful when reading this question- it is not asking when the commission is EARNED, but when it's PAID. The salesperson is most likely to get paid their

commission when escrow closes. They have earned a commission once acceptance of the offer is communicated back to the buyer.