Modern Real Estate Practice 21st Edition Unit 10 QUIZ Flashcards

Modern Real Estate Practice 21st Edition Unit 10 QUIZ Flashcards The final decision on a property's asking price should be made by the Seller Most states require that a real estate listing agreement contain A definite contract termination date A prospective buyer signs an agreement with a broker to find a property for the buyer, and the buyer agrees to work only with that broker. While this agreement is effect The broker can represent other buyer A seller hired a broker under the terms of an open listing agreement. While that agreement was still in effect, the seller- without informing the broker-hired another broker from a separate firm under an exclusive right-to-sell listing for the same property. If the first broker produces buyer for the property who's offer the seller accepts, the seller must pay a full commission to Both broker A broker sold a property that was owned by a bank that had acquired it through a foreclosure, and the broker received a 6.5% commission. The broker gave the listing sales associate $3,75, which was 30% of the firm's commission. What was the selling price of the property?

the answer is $183,333. 2 steps are involved:(1)find the

firm's full commission. (2) Find the selling price using the full commission and the rate. (1) $3,575 amount so Salesperson= 30% x full commission; amount to salesperson / 30%= $11,916.67 (rounded to the nearest cent). (2) $11,916.67 full comm / 6.5% brokerage rate =$183,333.38 (round top nearest) A buyer signed an agreement with a broker to compensate the broker even if the buyer purchases the property from a relative, This is called an Exclusive buyer representation agreement A seller listed her residence with a broker. The broker brought an offer at full price and terms the listing agreement from a buyer who is ready, willing, and able to pay cash for the property, but the seller rejected the buyer's offer. In this situation, the seller Owes commission to the broker Which statement is true of a listing agreement? It is an employment contract for the professional services of the broker The provision in a a contract with a property seller that gives additional authority to the broker and obligates the broker to alert other brokers to the availability of the property is a Multiple listing clause All of the following reasons are valid bases for terminating a buyer representation agreement except Death of the sales associate who worked with the buyer Under a brokerage agreement with a property owner, the broker is entitled to sell the property for any price, as long as the seller receives $85,000. The broker may keep any amount over $85,000 as a commission. This type of listing

might be illegal and is called Net listing A property listing taken by a real estate sales associate is technically an employment agreement between the seller and the Broker

Which of the following is a similarity between an exclusive agency listing and an exclusive right-to-sell listing?Both types of listings are open listings Which type of listing is prohibited in some states?Net listing By executing listing agreement with a seller, a real estate broker becomes The agent of the seller Which of the following is a similarity between an open listing and an exclusive agency listing ?Under each, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure.A seller listed a property with a broker under an exclusive agency listing agreement. If the seller finds a buyer, the seller will owe the broker No commision The listing agreement on a residential property states that it expires on May 2. Which event would terminate the listing before that date?On April 15, the owner and agent cancel the agreement A broker sold a residence for $485,000 and received $26,675 as commission in accordance with the terms of the listing agreement. What was the broker's commission rate?

5.5%485,000-5.55= 26,675

A seller sold property to a neighbor without the services of a real estate broker; however, the seller still owes a broker a commission because the seller signed An exclusive right-to-sell listing agreement