Real Estate Online - Listing Contracts Flashcards

Real Estate Online - Listing Contracts Flashcards A seller signed a 90-day listing for his property with a salesperson for ABC Realty. One month later, the seller died. At the same time, the salesperson received an offer for the property. Which of the following is correct concerning the offer?The answer is the seller's estate is not required to sell the property or pay a commission. A listing may be terminated by death of the broker or seller, bankruptcy of the broker or seller, destruction of the property, performance (producing a ready, willing, and able buyer), mutual consent of the broker and seller, or expiration of the listing period.Because listings are employment contracts, death of either party will terminate the listing, and the heirs are not bound to the contract. Death terminated the listing and all obligations under it.To earn a commission, a listing broker with any exclusive listing must procure a ready, willing, and able buyer at the

seller's listing terms and:

The answer is nothing else. The commission has been earned when a ready, willing, and able buyer at the seller's listing terms is found.If the listing broker procures a ready, willing, and able buyer but the sale fails to close because of a failure on the

part of the seller, the commission:

The answer is is earned by the broker. The commission has been earned when a ready, willing, and able buyer at the seller's listing terms is found. Most of the time, the listing brokerage must also have an accepted sales contract to earn the commission without having to sue the seller.Which type of listing allows the broker the right to collect a commission if any other brokerage firm brings a buyer but not if the seller obtains the buyer?The answer is exclusive agency listing. An exclusive agency listing provides that the broker is entitled to a commission if any other real estate professional sells the property. This allows the owner to sell the property himself and not be liable for a commission.The most common type of listing contract, which gives the

brokerage firm maximum protection, is known as:

The answer is exclusive right to sell. The listing gives the maximum protection to the firm, since the firm will be paid no matter who sells the property.In order to create a valid listing contract, who must sign the contract?The answer is all property owners and the agent. All sellers and the listing agent, who represents the brokerage firm, must sign the listing contract. If only one of the property owners signs, the sale cannot include the full property, only the ownership rights of the party signing.A type of real estate listing in which the brokerage firm receives a commission unless the seller sells the property

is know as:

The answer is exclusive agency. In this type of listing, the firm and co-op brokerages will be paid if they sell the property. No one earns a commission if the seller sells the property.If a sale fails to close because of a failure on the buyer's

part, the listing broker's commission:

The answer is is not earned. The commission has been earned when a ready, willing, and able buyer at the seller's listing terms is found. If the buyer fails to close, the commission is not be earned.

Which of the following is usually correct regarding listing contracts between a real estate broker and a seller?The answer is it must be in writing to be enforceable in court. Only written listing contracts are enforceable in court.An agency listing agreement between the owner of real

property and a real estate broker:

The answer is does all of these. An agency listing is an employment contract establishing an agency relationship between the broker and seller. An agency relationship is a fiduciary relationship. A fiduciary relationship is a position of trust and loyalty, which an agent has with regard to the client. Since the listing establishes an agency relationship only for the purpose of securing a buyer, it must define the agent's authority and responsibility as well as the seller's responsibility when the broker performs the required acts.An owner of property gave a listing to a principal broker.

Shortly thereafter, the owner died. In this case, the:

The answer is listing is immediately terminated. A listing may be terminated by death of the principal broker or seller, bankruptcy of the principal broker or seller, destruction of the property, performance (producing a ready, willing, and able buyer), mutual consent of the principal broker and seller, or expiration of the listing period. Because listings create agency relationships, death of either party will terminate the listing, and the heirs are not bound to the contract.A broker had an open listing on a property and showed the property to a buyer. Thirty days later, the buyer negotiated directly with the seller and purchased the property at a price equal to the listed price less the commission that would have been paid. Has the broker earned a commission?The answer is yes, under the doctrine of procuring cause.The broker was the person who introduced the buyer to the seller and was the procuring cause and should receive a commission.An owner signed a listing with a broker where it was understood that, if the property were sold through the efforts of any other broker or the owner, the listing broker would not be entitled to a commission. This kind of listing

contract is called a(n):

The answer is open listing. An open listing provides for the broker to be paid a commission if he procures a buyer at terms listed or acceptable to the seller. It allows the seller to sell the property himself and to enter into listings with other brokers, since his obligation is to pay the listing broker only if the broker procures the buyer.A salesperson for ABC Realty has moved to XYZ Realty.What happens to the listings the salesperson took at ABC Realty?The answer is they belong to ABC Realty. The listings belong to ABC Realty, not the salesperson who listed the property.A multiple listing service is a(n):The answer is organization for exchanging information and sharing fees. The MLS allows brokerage firms to exchange property information and set co-op fees for the sale of property.In an exclusive right to sell listing, if the owner sells the property who gets the commission?The answer is the listing brokerage. With an exclusive right to sell, the brokerage firm gets paid no matter who sells the property.Membership in a multiple listing service is an advantage to.The answer is sellers, buyers and brokers. All parties benefit when properties are listed in the MLS.

ABC Realty has an exclusive agency listing on the seller's property and has put it in the MLS. A salesperson from XYZ Realty brings an offer, which the seller accepts, and

the transaction closes. The commission will be:

The answer is split between the two brokerage firms, per the MLS terms. In an exclusive agency listing, the brokerage firm who lists the property (ABC Realty) will receive a commission if anyone other than the seller sells the property. In this case, since the property was listed in the MLS, the commission is split between the two firms, based upon the local MLS agreement.A broker is entitled to a commission regardless of who sells the property during the listing period if he or she has which of the following listings?The answer is exclusive right-to-sell. The exclusive right-to-sell provides that the broker will be paid a commission regardless of who sells the property, including the owner.The difference between an exclusive right-to-sell listing and an exclusive agency listing is that in the exclusive agency

listing, the:

The answer is principal will owe no commission if the principal sell's the property on his or her own. An exclusive agency listing provides that the broker is entitled to a commission if any agent sells the property. This allows owners to sell the property themselves and not be liable for a commission. Under an exclusive right-to-sell listing, the broker is entitled to the commission if anyone, including the owner, sells the property. Either type of listing may provide that the agent will pay promotional expenses (or may provide that the seller will do so). The seller has the right to sell on his or her own property, in either case. The exclusive agency listing provides that the seller does not owe a commission if he or she does sell the property. The exclusive right-to-sell listing provides that the seller owes a commission if he or she does sell the property. It is false to imply that the agent would not be paid under any circumstance.A seller engages a real estate broker to find a buyer ready, willing, and able to purchase the seller's parcel of real property. The seller executes and delivers to the broker an exclusive right-to-sell employment contract. A few weeks prior to the expiration date of the employment contract, the seller decides to revoke the contract before any sale occurs and prior to the broker finding a buyer ready, willing, and

able to buy the property. The owner:

The answer is can revoke this contract but could be liable for damages. No one can be forced to retain an agent he or she does not want, or represent a seller he or she cannot perform loyally for. Therefore, unless the agency is coupled with an interest, either the seller or the broker can terminate the listing at any time. However, if the broker will suffer a loss (e.g., advertising expense) the broker could sue to recover damages for his or her loss.The owner agrees to pay a commission to the agent if the property is sold by anyone during the listing period under

the terms of an:

The answer is exclusive right to sell listing. In an exclusive right to sell listing, the seller agrees to pay a commission no matter who sells the property.The type of listing that allows more than one brokerage firm

to list the property is know as a(an):

The answer is open listing. An open listing is a nonexclusive listing that allows a number of firms to list the property, and only the firm that is the procuring cause of the sale earns the commission.All of the following would terminate a listing EXCEPT:The answer is death of the listing salesperson. The salesperson is not a party to the listing contract, which

belongs to the brokerage firm. Therefore, his or her death does not terminate the listing.