Real Estate 30 hr 2 Flashcards

Real Estate 30 hr #2 Flashcards Commission rateThe commission rate must be fully negotiable.There can be no "mandatory" or "standard" rate of compensation.Listing amendment formChanges to the terms of a signed listing agreement should generally be made on a special addendum form, especially if the changes are numerous or complicated.CUnder an exclusive right to sell listing, the listing firm will earn a commission if the property sells during the listing period, even if it's a licensee from another firm or the seller who finds the buyer.Under which type of listing will the seller owe a commission to the listing agent regardless of who is the procuring cause of the sale?A. Open listingB. Exclusive agencyC. Exclusive right to sellD. Net listing AThe buyer can rescind the purchase and sale agreement within three days after receiving the seller disclosure statement.Once the buyer receives the seller disclosure statement, how many days does she have for deciding whether to rescind the purchase and sale agreement?A. 3B. 4C. 5D. 7 Open listingA seller may enter into open listing agreements with more than one real estate firm at the same time.In an open listing agreement, the seller agrees to pay the listing agent a commission only if the agent is the procuring cause of the sale.Real estate firms disfavor open listing agreements and many multiple listing associations prohibit them.AAn extender clause (or safety clause) protects the listing firm by guaranteeing a commission if the property sells in the six months after the expiration of the listing to a buyer who learned about the property through that firm.If a listing agreement contains an extender clause, this

offers the brokerage protection in the event that:A. the

property is sold in the months after the listing period endsB.the buyer sues the brokerage because of misinformation provided by the sellerC. personal property is stolen from the seller's house during a showingD. the sale falls through because the buyer is unable to sell her current home Seller disclosure statementWashington law requires a seller of real property to give the buyer a completed seller disclosure statement.The seller must complete the disclosure form without the agent's help and give it to the buyer within five days after a purchase and sale agreement is signed.BA listing agreement must adequately identify the property, and the best way to fulfill that requirement is to use the legal description (the NWMLS requires a legal). The legal description may be attached after the agreement is signed, and there isn't a specific deadline for getting that done; but the broker should follow through promptly.The seller doesn't know the property's legal description, so the listing broker writes "Legal description to be obtained by agent" on the listing agreement form. Which of the following is correct?A. This invalidates the listing agreementB. The listing agreement will be valid if the broker obtains the legal description, has the seller initial and date it, and attaches it to the agreementC. The broker must obtain the legal description within three business days after the seller signs the agreementD. It isn't necessary to identify the property in a listing agreement, since the seller knows which property the contract applies to

Modifying the agreementOnce a listing agreement has been signed, the terms of the agreement can be modified only with the written consent of both parties.CIn the hold harmless clause of a listing agreement, the seller accepts legal responsibility for the listing information and promises to reimburse the listing firm for damages resulting from the seller's misinformation.Which of the following listing agreement provisions protects the agent against liability for damages incurred because of information provided by the seller?A. Safety clauseB.Habendum clauseC. Hold harmless clauseD. Keybox clause exclusive agency listingUnder an exclusive agency listing, your brokerage firm is entitled to a commission if anyone but the seller finds a buyer for the home. If you (the listing agent) find the buyer, the seller must pay the commission.Extender clauseAn extender clause provides that if the seller sells the property within a specified period after the expiration of the listing agreement to someone that the agent introduced to the property, the seller must pay the agent the commission.Also, zoning restrictions and percolation problems will be of special interest. And the dimensions of the property itself often take on more importance with a vacant lot than with improved property.Vacant land is usually bought for development purposes.For instance, a buyer may want to purchase a vacant lot in order to build a house on it. This means that the availability of utilities will be important to the buyer.DAn attorney in fact is someone who has been authorized to represent another person in a document called a power of attorney. A listing agreement signed by the seller's attorney in fact is binding only if the power of attorney authorizes the attorney in fact to sell the property.A listing agreement was signed by an attorney in fact on

behalf of the seller. This is a binding contract only if:A. the

seller was unable to sign her name when the contract was executedB. the board of directors has authorized sale of the propertyC. the property is nonresidentialD. the power of attorney authorizes sale of the property TerminationA listing agreement will terminate on its expiration date or when the sale of the property closes.It will also terminate if the brokerage goes out of business, or has its license suspended or revoked.The seller and the brokerage may mutually agree to terminate the listing, or one party may decide to terminate the agreement on his own.However, if one party terminates the listing agreement unilaterally, he may be liable for breach of contract.Definition of saleThe listing agreement defines a sale quite broadly to protect the real estate brokerage.A sale is defined as including a contract to sell, an exchange or contract to exchange, an option to purchase, or a lease with an option to purchase.DA valid listing agreement must adequately identify the property and must be in writing and signed by the seller. In addition, it must authorize the firm to market the property in exchange for compensation. Words of conveyance are required in a deed, but would not be appropriate in a listing agreement.All of the following are legal requirements of a valid listing

agreement, except:A. adequate property descriptionB. in

writingC. signed by sellerD. words of conveyance

Rescission rightsA buyer can rescind the purchase and sale agreement within three days after receiving the seller disclosure statement.A buyer who doesn't receive a disclosure statement can rescind the agreement any time before closing.If the buyer rescinds, he's entitled to a full refund of the earnest money deposit.BThe MLS assumes no legal responsibility for the information provided in the listing agreement, and it will not verify the information.All of the following statements related to the multiple listing service provision in a standard listing agreement are true,

except:A. the information from the listing input sheet will be

shared with other MLS member agentsB. the MLS is responsible for verifying information provided by the sellerC. the brokerage will cooperate with other MLS agents to sell the propertyD. the MLS is not a party to the transaction SignaturesAll of the property's owners should sign the listing agreement as sellers. If a seller is married, the seller's spouse should also sign.If the listing agreement is signed by an attorney in fact, the power of attorney must authorize sale of the property, and it should be recorded.If the property is owned by an entity, the listing agreement must be signed by an authorized person, such as a corporate officer, a general partner, or a trustee.If the property is part of an estate, the agreement must be signed by the personal representative.Net listingIn a net listing arrangement, the seller designates the net amount he wishes to receive from the sale.If the property sells for more than the amount needed to achieve the seller's net, the brokerage firm is entitled to keep the excess.FThe hold harmless clause (not the safety clause) protects the brokerage against liability based on incorrect information provided by the seller.T or FThe safety clause provides that the seller is responsible for the listing information and will reimburse the brokerage firm for damages that the firm must pay because of misinformation in the listing agreement.Hold harmless clauseIn a listing agreement's hold harmless clause, the seller agrees to take responsibility for the information given to the agent in the listing agreement.If the agent and brokerage get into legal trouble because of the information provided by the seller, the seller will reimburse the brokerage firm for expenses incurred.FalseOn the listing input sheet we looked at, some sections are marked with a black dot to indicate that the information is required. Sections without a black dot don't have to be filled in.T or FThe multiple listing service will reject a listing unless every section of the listing input sheet has been completed in full.Vacant land listingA buyer purchasing vacant land is likely to be especially concerned about availability of utilities, zoning restrictions,

soil percolation, and lot dimensions.A portion of a larger property can't be sold separately unless the seller complies with local development procedures.