Real Estate - Chapter 11 Flashcards

Real Estate - Chapter 11 Flashcards Perry is listing his home with Extra Real Estate Company, a

brokerage. He wants the listing as follows: He must receive

$250,000 from the sale of the home, anything above that price is the broker's commission. Which type of listing agreement is Perry demanding?Exclusive AgencyOpen Listing AgreementExclusive Right to Sell with Automatic ExtenderNet Listing D Hassan is not happy with the listing agreement on his home through REE Realty Company. He has not been pleased with the showings without notice, the agents showing his home have been rude, and he doesn't feel the property has received the advertising or exposure promised when he signed the listing contract. What is his best option for terminating the listing with REE Realty Company?Hassan could wait for himself or the broker to pass away.Hassan could wait for the expiration of the agreement term to pass.Hassan could speak with the broker and possibly come to a mutual agreement that it is in both parties' best interest to cancel the listing.Hassan could cancel the agreement; however, since it is contractual, the broker could decide to sue for damages.C What is the difference between commingling and conversion? Which, if either, is considered a more serious violation?Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Commingling is the more serious of the two violations.Commingling is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the practice of mixing a client's money with the agent's personal funds. Conversion is the more serious of the two violations.Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Neither violation is considered more serious than the other; they both have heavy criminal penalties.Commingling is the practice of mixing a client's money with the agent's p D TBH Realty Company is handling the sale of the Lopez (seller) home to the Bright (buyer) family. The buyers give an earnest money deposit to the brokerage in the amount

of $5,000. The money is then deposited into the broker's account at the bank on the seventh business day after receiving the funds. Has TBH Realty Company followed all trust account regulations with the earnest money?Yes, the money was received and deposited into the broker's account by the seventh business day after receiving the funds.No, the broker should have deposited the earnest money into the broker's account within three business days of receiving the funds.No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund not the broker's account.No, the broker should have deposited the earnest money into the broker's tru C Howard wants to purchase a vacation property. He decides to use the expertise of a real estate professional. One of

his business associates recommends Jose. Howard explains to Jose that he wants Jose to only represent his purchasing interest, and a contract is signed. Who is the agent? Who is the principal? What is their relationship?What is Jose's role?Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent.Jose is the principal; Howard is the agent; they have a third party relationship; Jose is a broker.Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent.Both A and C D

The Marinos are selling their home to the Snyders. Tim is representing both the Marinos and the Snyders in the transaction. He had initially listed the Marinos' home and realized their home would be perfect for his buyer clients, the Snyders. After making all the necessary disclosures to both parties, he showed the Snyders the Marinos' home and they are buying it. The Marinos are paying commission on the transaction to Tim's broker, who in turn, will compensate Tim. Since the Marinos are paying Tim's commission, does this constitute an agency relationship, and, if so, what kind of an agency relationship?The fact that one party (the Marinos/sellers) or another party (the Snyders/buyers) pays a commission does not create an agency relationship.Yes, this constitutes an agency relationship. Due to the Marinos' paying the commission, the relationship would be between Tim, a special agent to the Marinos, and the Marino A RSS Real Estate Brokerage is the listing broker for the Pratte property. RSS delegates some of the responsibility of the listing to Helpful Real Estate Company. The two brokers cooperate on listings frequently and have a good working relationship. Unfortunately, RSS failed to get the principal's (Pratte's) agreement to the delegation. What is the relationship between RSS Real Estate Brokerage and Helpful Real Estate Company?Helpful Real Estate Company becomes the agent of RSS Real Estate Brokerage due to the appointment without the consent of the principal.Helpful Real Estate Company is now the assigned agent of the listing broker, RSS Real Estate Brokerage.Helpful Real Estate Company becomes the cooperating agent to RSS Real Estate Brokerage's listing broker's ?representation of the Pratte property?.?Helpful Real Estate Company becomes the dual agent to RSS Real Estate Brokerage's listing broker's ?represent A Scott is trying to sell his home FSBO. The Bartells believe Scott's home could be their dream home, but they have been working with Melinda, a licensee, to find a new home.Melinda shows the Bartells the home, failing to disclose her status as an agent. They love Scott's home and want to buy it. Scott is not interested in any way, shape, or form in working with an agent. However, the Bartells have made an offer above his asking price and he can't refuse it over the Melinda issue. Which of the following describes the creation of this agency relationship?Written or expressedOstensible AgencyRatificationImplied C