RE Chap 10 Flashcards

RE Chap 10 Flashcards If leased equipment is to be included in the listing agreement terms upon a sale, the lessor must be notified of the change of ownership by The answer is the seller. If leased equipment is to be included in the listing agreement terms upon a sale, the lessor must be notified of the change of ownership by the seller.By executing a listing agreement with a seller, a real estate broker becomes The answer is the agent of the seller. As agent, the broker represents the seller with whom the broker executed the listing agreement.A seller listed a residence with a broker. The broker brought an offer at full price and terms of 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 The answer is owes a commission to the broker. The broker has fulfilled all the requirements. Even though no contract is signed with the willing buyer, the broker is due a full commission. The seller does not have to sell, just pay the commission.The form of listing that insures that the listing broker will earn a commission regardless of who sells the property is The answer is the exclusive-right-to sell listing. This is the only form of listing agreement that provides for compensation to the broker if the property is sold during the term of the listing agreement, regardless of who sells the property-the listing broker, another broker, or the property owner.In which of these types of listing agreements is the broker appointed as the seller's only agent?The answer is exclusive right-to-sell and exclusive agency listings. Under an exclusive right-to-sell and exclusive agency listing, one broker is appointed as the seller's sole agent. Open and option listings do not specifically exclude other brokers from acting as the seller's agent.Proof of title to real estate may be provided by a warranty deed, title insurance policy, or The answer is abstract of title with attorney's opinion. Proof of ownership of real estate may be provided by a warranty deed, title insurance policy, or abstract of title with attorney's opinion.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 The answer is a net listing. Whether an open, an exclusive agency, or an exclusive right-to-sell, any listing that allows the broker to keep all of the selling price over the net amount that the seller requires is a net listing. Net listings are illegal in many states.Any of these will terminate a listing agreement EXCEPTA)abandonment by broker.B)an offer to purchase.C)expiration.D)performance.The answer is an offer to purchase. Because an offer to purchase may not be accepted, it would not terminate the listing agreement.The broker's commission on a real estate sale is usually paid at closing directly by The answer is the seller or the party handling the closing.The broker's commission on a real estate sale is usually paid at closing directly by the seller or the party handling the closing.Before making a listing presentation to a prospective property seller, a real estate sales associate should The answer is prepare a comparative market analysis. The comparative market analysis, also called a competitive

market analysis, will review MLS data for the asking prices of properties currently available, as well as the sales prices of properties that have sold recently and the asking prices of listings that have expired without a sale having occurred.While the sales associate should be sensitive to the seller's purchase price and financial needs, it is the market that is the best indicator of the property's current value.

The information required for the listing agreement does NOT include The answer is Social Security number of seller(s). The information necessary to prepare the listing agreement does not include a seller's personal data, such as Social Security number.A property owner signed a 90-day listing agreement with a real estate professional. The owner was killed in an accident before the listing expired. Now the listing is The answer is terminated automatically because of the death of the principal. A listing agreement may be terminated if either party dies or becomes incapacitated.A broker just explained the value of signing an exclusive agency listing with a broker who is a member of the multiple listing service. The broker is trying to overcome the misconceptions of the seller who asked about The answer is an open listing. Sellers are often confused, thinking that the only way to find buyers from a number of brokers is to enter into an open listing. Explaining the advantages of a multiple listing service can overcome the misconception.In which type of listing agreement does a seller employ multiple brokers?The answer is open listing. in an open listing, the seller employs multiple brokers and only the successful listing broker is paid. The seller also retains the right to sell without obligation to any listing broker.The listing contract should provide that if the broker is to have the authority to sign legal documents on behalf of the seller, the broker The answer is must first obtain a power of attorney from the seller. The listing contract should provide that if the broker is to have the authority to sign legal documents on behalf of the seller, the broker must first obtain a power of attorney from the seller.A way to provide the widest possible marketing of a property that is the subject of a listing agreement is by including in the agreement The answer is a multiple listing clause. A multiple listing clause may be included in an exclusive listing if the broker is a member of the multiple listing service (MLS), through which broker members make their listings available to other brokers who participate in the MLS.All of the following are valid reasons for terminating a buyer representation agreement EXCEPTA)death of the sales associate who worked with the buyer.B)purchase of a property.C)agreement of the parties.D)death of the broker.The answer is death of the sales associate who worked with the buyer. A listing agreement is a personal service agreement between a broker and a seller, not between a sales associate and a seller.When should a sales associate prepare a comparative market analysis?The answer is before making a listing presentation to a prospective property seller. The sales associate who prepares a comparative market analysis, also called a competitive market analysis, will review MLS data for the asking prices of properties currently available, as well as the sales prices of properties that have sold recently and the asking prices of listings that have expired without a sale having occurred. While the sales associate should be sensitive to the seller's purchase price and financial needs, the market is the best indicator of the property's current value.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 The answer is no commission. Only the exclusive right-to-sell listing earns the listing broker a commission if someone else sells the property during the term of the agreement.

A seller signed an exclusive right-to-sell agreement with a brokerage firm. If the seller finds a suitable buyer with no assistance, the firm is entitled to The answer is full compensation from the seller. If a seller signs an exclusive right-to-sell listing with a broker, the seller owes the broker a commission, regardless of who sells the property.In a listing agreement, the broker protection clause describes the circumstances under which The answer is the broker may be entitled to a commission after the termination of the listing. The broker's protection clause describes the circumstances under which the broker may be entitled to a commission after the termination of the listing.All parties identified in the contract must sign a listing agreement, including The answer is individuals having a legal interest in the property. All parties identified in the contract must sign the listing, including individuals having a legal interest in the property.A broker's agreement to represent a property buyer may be terminated because The answer is the agreement's purpose is fulfilled by the transfer of title to the buyer. The death or incapacity of a sales associate does not the terminate the agreement, which is with the employing broker.A listing broker was informed by another broker that a prospective buyer would be making an offer on the listed property, in an amount that would be 25% lower than the $345,000 asking price. The listing broker said that such a low offer would be insulting and would not be presented to the seller. The listing broker joked about the proposed offer when speaking to the property owner the next day. The property owner has the right to The answer is terminate the listing agreement. A listing agreement may be terminated if either the broker or the seller breaches the agreement, such as by the broker's refusal to present an offer to the seller.An example of personal property that a seller may take away from the property and, therefore, MUST be identified on the listing agreement is The answer is stacked firewood. Firewood is not attached to the real property and is therefore considered personal property. All the other items, even the door key, are normally considered to be part of the real property.Which of the following is a similarity between an exclusive agency listing and an exclusive right-to-sell listing?The answer is both types of listings give the responsibility of representing the seller to one broker only. Each listing is exclusive, meaning it is granted to one broker exclusively.While the exclusive agency listing would allow the seller to find a buyer without paying a commission, the exclusive right-to-sell listing would require a commission to be paid even if the seller alone procured the buyer. Open listings impose no limit on the number of additional brokers that might be hired by the seller.The listing agreement on a residential property states that it expires on May 2. Which event would terminate the listing before that date?The answer is on April 15, the owner and agent cancel the agreement. Mutual agreement by the owner and the agent would terminate a listing agreement before its expiration date. The death of the owner or the destruction of the property also would end the listing agreement before the expiration date.