CH. 7 QUIZ Flashcards

CH. 7 QUIZ Flashcards This listing is preferred by brokers because it gives a broker the best chance of earning a commission.a. Openb.Open right to sellc. Exclusive agencyd. Exclusive right to sell

• Exclusive right to sell

True/FalseLee purchases a residential property using a land contract. He may take possession of the property immediately.True True/FalseThe provision in the listing agreement that empowers the listing broker to receive good faith deposits from buyers contemplates that in doing so the broker will be acting on behalf of the seller, not the buyer.True True/FalseA land contract is a type of financing agreement in which the buyer agrees to pay the purchase price in installments over a period of time.True True/FalseGenerally, once a ready, willing, and able buyer has been found, the broker has earned the commission, whether or not the sale is ever completed.True A broker worked hard to find a buyer, but when the property was sold the broker was not entitled to a commission. Which type of listing could this NOT be?a.Openb. Exclusive agencyc. Exclusive right to selld. Open right to sell

• Exclusive right to sell

A broker cannot successfully sue a seller for a commission

unless:A. they had a written listing agreementB. the broker

was properly licensed at the time the brokerage services were providedC. the broker has fulfilled the terms of the listing agreementD. All of the above

• All of the above

True/FalseIf the seller accepts an offer for less than the asking price, she is obligated to pay a commission to the broker, but she can subtract from the commission an amount equal to the price reduction.False True/FalseA ready and willing buyer is considered "able" if he has capacity to contract, and also enough cash to buy the property on the agreed terms (or is qualified for the financing necessary to complete the purchase).True A lessee assigns his lease to a friend. The assignee is the

new:A. vendeeB. sublesseeC. tenantD. landlord

• tenant

True/FalseIt is standard practice for the seller to provide marketable title, pay for a title insurance policy protecting the buyer (at least in Southern California), and pay off all liens the buyer has not agreed to assume.True

Under a land contract, legal title is held by the:A.

beneficiaryB. vendorC. vendeeD. trustor

• vendor

True/FalseAn option does not give the optionee an interest in the property that's the subject of the option.True True/FalseThe standard time limit for a listing agreement is 90 days.False True/FalseIf a broker holds an option on a property she's selling, she must disclose to the buyers that she is a principal in the transaction.True True/FalseAn exclusive listing must have a termination date.True True/FalseAs a rule, the date possession is transferred to the buyer is two days after closing.False True/FalseIn a land contract transaction, the purchaser is called the vendor.False True/FalseA safety clause provision in a listing agreement means the seller can't avoid liability for the commission simply by waiting until after the listing expires to accept a buyer's offer.True True/FalseTechnically, the listing agreement is an offer by the seller to sell the property to a ready, willing, and able buyer. To form a valid contract to purchase property, an interested buyer only has to accept the terms offered in the listing.False With this listing, the seller agrees to list with only one broker, but retains the right to sell the property himself without being obligated to pay a commission.a. Exclusive agencyb. Open right to sellc. Opend. Exclusive right to sell

• Exclusive agency

True/FalseNet listings, in which all sales proceeds over a specified amount belong to the broker, are illegal in California.False True/FalseA contract in which time is of the essence is one in which performance on or before the exact dates specified is one of the essential terms of the agreement.True

A broker's commission is usually a:A. percentage of the

property's listing priceB. percentage of the property's appraised valueC. percentage of the property's sales priceD. flat fee based on the anticipated difficulty of selling the property

• percentage of the property's sales price

True/FalseA land contract gives the vendee legal title to the property.False The term "procuring cause" is most closely associated with this type of listing.a. Open right to sellb. Openc. Exclusive right to selld. Exclusive agency

• Open

True/FalseA security deposit can be used by the landlord to cover any unpaid rent or to repair damage caused by the tenant, but it cannot be used to pay for cleaning the unit.False True/FalseA residential landlord must return the security deposit to the tenant within 30 days after the tenant vacates the leased property, or else send the tenant a written statement explaining why all or part of the deposit is being retained.False True/FalseA broker can sue a seller for a commission only if they had a written contract.True True/FalseWhen a buyer makes an offer on terms other than those set forth in the listing agreement, the seller can turn down the offer without becoming liable for the broker's commission.True True/FalseFor an option to be valid, the optionee must pay consideration to the optionor.True True/FalseWhen a contract terminates because a contingent event does not occur, the buyer is usually entitled to a refund of the good faith deposit.True A seller signs an open listing agreement with Broker A, and then immediately signs another open listing agreement with Broker B. If the property is sold before either listing expires,

and Broker B is the procuring cause of the sale:A. the seller

is required to pay the full commission to Broker A as well as to Broker BB. Broker A will not be compensated for her effortsC. Broker A and Broker B will each receive half of the agreed commissionD. Broker A can sue the seller for breach of contract

• Broker A will not be compensated for her efforts

A written extension agreement between buyer and seller

serves to:A. terminate the existing purchase agreementB.

defer the closing dateC. invalidate the listing agreementD.increase the sales price

• defer the closing date

Peter purchases a house on a land contract from Ruth and records the contract, but defaults after several payments and moves out. Ruth retakes possession of the property. In

this situation:A. there is a cloud on the titleB. title is

marketableC. a subsequent buyer would not be concernedD. Ruth may execute a quitclaim deed to restore title

• there is a cloud on the title

A lease must be in writing if:A. the annual rent is greater

than $10,000B. the property will be occupied by the tenant as his primary residenceC. the term of the lease is longer than one yearD. the tenant is an individual and not a business

• the term of the lease is longer than one year

When a buyer makes an offer on terms other than those

set forth in the listing agreement:A. the broker should

refuse to present it to the sellerB. the seller is liable for the broker's commission whether she accepts the offer or notC.the seller can accept the offer without becoming liable for the broker's commissionD. the seller can turn down the offer without becoming liable for the broker's commission

• the seller can turn down the offer without becoming

liable for the broker's commission

With an exclusive agency listing, the seller:A. lists the

property with only one broker, but retains the right to sell the property by herself without being obligated to pay the broker's commissionB. can list the property with several brokers, but only one of the brokers is considered the seller's agentC. is only allowed to list the property with the procuring cause of the saleD. can list the property with several brokers, but is obligated to pay a commission only to the procuring cause

• lists the property with only one broker, but retains the

right to sell the property by herself without being obligated to pay the broker's commission Regardless of whether the listing broker, a cooperating broker, or the seller is responsible for finding a buyer, the

listing broker will be entitled to a commission under a/an:A.

open listingB. nonexclusive listingC. exclusive agency listingD. exclusive right to sell listing

• exclusive right to sell listing

Despite a good faith effort, the buyer was unable to obtain financing on the terms spelled out in the contingency

clause. As a result:A. the seller is entitled to damagesB. the

good faith deposit is forfeitedC. the purchase agreement terminates and the good faith deposit is refundedD. new financing terms must be specified

• the purchase agreement terminates and the good faith

deposit is refunded An unlawful detainer action would be filed by an

offended:A. grantorB. lessorC. trustorD. holder of a note in

default

• lessor

True/FalseIf the property is destroyed by fire after the purchase agreement is signed but before closing, the buyer cannot withdraw from the transaction, but she can collect the hazard insurance proceeds.False True/FalseIf a residential landlord wants to enter a leased unit to perform nonemergency repairs or provide other services, she must give the tenant at least 24 hours' notice.True True/FalseIf the buyer and seller agree in the purchase agreement that the seller won't vacate the property until ten days after closing, a separate rental agreement should signed by both parties.True True/FalseCalifornia law requires any lease for a fixed term to be in writing and signed by the landlord.False True/FalseA listing agreement can fix the brokerage fee as a percentage of the sales price or as a set dollar amount.True