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1. In a real estate brokerage contract, which of the
following elements is essential for a valid contract to exist?
a. The contract must be in writing.
b. The contract must be signed by both parties.
c. The contract must include consideration.
d. The contract must contain a termination clause.
Answer: c. The contract must include consideration.
Rationale: Consideration refers to something of value
exchanged between the parties involved. It can be money,
goods, services, or even a promise to do something.
Without consideration, a contract is generally considered
unenforceable.
2. Which of the following statements is true about
exclusive agency agreements in real estate brokerage?
a. The broker receives a commission only if they are the
procuring cause.
b. The broker is entitled to a commission irrespective of
who procured the buyer.
c. The agreement can be oral or written.
d. The agreement must include a termination clause.
Answer: a. The broker receives a commission only if they
are the procuring cause.
Rationale: In an exclusive agency agreement, the broker is
entitled to a commission only if they are the procuring
cause of the sale. This means that the broker must have
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