Deck 19: The Principal-Broker Relationship: Employment

Question 1

Which of the following listings provides the least protection of the broker's interests?

A) Net listing
B) Exclusive right to sell
C) Open listing
D) Exclusive agency listing

Answer 1

C
An open listing provides the least protection of the broker's interests.

Question 2

Broker commissions for the sale of real property are usually based on

A) amount of the first written offer.
B) selling price.
C) listed price.
D) loan amount.

Answer 2

B
Broker commissions for the sale of real property are usually based on the selling price.

Question 3

A licensed salesperson participating in a real estate transaction is allowed to accept a commission from

A) the seller.
B) the buyer.
C) his broker.
D) the title company.

Answer 3

C
A licensed salesperson participating in a real estate transaction is allowed to accept a commission from only his broker.

Question 4

The problem with net listings is that

A) the seller is assured of receiving the net amount he specifies.
B) the broker receives a higher than average commission.
C) the broker does not have to submit the offer to the seller if the offer is too low.
D) there could be a conflict of interest if dealing with an inexperienced seller.

Question 5

A listing that does not require the listing agent to show that he or his subagents are the procuring cause in order to earn a commission is

A) an exclusive right to sell listing.
B) an exclusive agency listing.
C) a net listing.
D) illegal.

Question 6

A written agreement giving the listing broker the right to collect a commission, no matter who sells the property, within the term of the agreement, is

A) usury.
B) a net listing.
C) an open listing.
D) an exclusive right to sell listing.

Question 7

From the broker's point of view, one of the least desirable listings is an

A) net listing.
B) exclusive right to sell.
C) open listing.
D) exclusive agency listing.

Question 8

A licensed real estate salesman may lawfully receive a commission from

A) the buyer.
B) the seller.
C) the title company.
D) his broker.

Question 9

In an exclusive right to sell listing

A) the broker can claim a commission without presenting an offer.
B) there must be a definite termination date.
C) the broker cannot claim a commission if the seller sells the property herself.
D) there can be an indefinite term of the agreement.

Question 10

In whose name does a salesperson take a listing?

A) His broker's
B) His own name
C) The seller's
D) The Real Estate Commission

Question 11

A licensed salesperson is paid 2% commission on all sales that he produces. How much dollar volume of real estate would she have to sell each month to make $3,500 per month?

A) $122,900
B) $135,000
C) $175,000
D) $210,000

Question 12

When one broker lists a property, another broker sells it, and they split the commission between them, it is called

A) broker competition.
B) broker cooperation.
C) a pocket listing.
D) a mutual listing.

Question 13

Multiple listing organizations typically use

A) an open listing.
B) an non-exclusive listing.
C) a net listing.
D) an exclusive right to sell listing.

Question 14

The broker is helping the home buyer obtain the lowest possible price. As agent for the buyer, the broker and the buyer have probably signed an agreement called

A) an exclusive right to sell listing.
B) an exclusive authority to purchase agreement.
C) an open listing.
D) a net listing.

Question 15

A residence was listed at $100,000 and sold for 92% of that amount. The rate of commission was 6%, and was divided equally between the selling and listing brokers. How much did each broker get?

A) $5,520
B) $3,360
C) $5,510
D) $2,760

Question 16

A listing agreement authorizes the broker to

A) find a buyer.
B) sell the property.
C) convey the property.
D) hypothecate the property.

Question 17

A licensed real estate salesperson can accept a commission from more than one broker

A) if both brokers are fully informed in writing.
B) when brokers are cooperating through the multiple listing service.
C) at no time.
D) if the salesperson was the procuring cause in each transaction.

Question 18

A broker lists a property and gets a sum from the seller as an advance deposit against the hours he spends marketing the property. This is called

A) a net listing.
B) an exclusive right to sell listing.
C) an advanced fee listing.
D) an open listing.

Question 19

A broker has an exclusive right to sell listing with the sellers. The broker brings an offer to buy at the seller's asking price and terms from a capable buyer. At what point has the broker earned her commission?

A) At the close of escrow
B) Upon presentation of the offer
C) Upon acceptance of the offer
D) Upon qualification of the buyer

Question 20

Broker Billy secured a written listing from a large company which owned an unused warehouse. Billy later entered into a verbal agreement to share his commission with cooperating broker, Cynthia. The cooperating broker procured a buyer, but later Billy refused to split the commission at closing. Cynthia could

A) sue to recover her share.
B) not sue because this was only a verbal agreement.
C) ask the real estate commission to arbitrate.
D) forbid her sales agents from ever working with Billy's agents in the future.

Question 21

The broker/manager receives 45% of the commissions on all sales made through her office. What would she receive on monthly sales totaling $252,000 at an average 3.7% commission (rounded to the nearest dollar)?

A) $9,324
B) $4,196
C) $7,527
D) $3,765

Question 22

Under an exclusive authority to purchase agreement, the buyer becomes a principal.

Question 23

A properly signed multiple listing agreement is the property of the multiple listing service.

Question 24

A licensed salesperson has an open listing with Sara and an exclusive listing with Kelley. One week after both listings expire, Sara and Kelley sell their homes to each other. With no more information available, the licensee would claim a commission from both parties.

Question 25

A written, exclusive right to sell listing is most likely to specify that the commission has been earned upon procurement of a full price offer or upon acceptance of an offer by the seller.

Question 26

A real estate licensee draws $1,000 per month from her broker against future commissions. Last year, she sold $2,000,000 worth of property. If she makes 3% gross commissions on all sales, how much did she earn last year?

A) $48,000
B) $55,000
C) $60,000
D) $72,000

Question 27

A real estate listing

A) is an employment contract between a property owner and a real estate broker.
B) authorizes a real estate broker to sell and convey title to an owner's real property.
C) both a and b.
D) neither a nor b.

Question 28

In an area where the multiple listing commission split is 50/50, a broker sells another broker's 6% listing for $105,000. How much commission will the selling broker receive?

A) $1,896
B) $2,790
C) $3,150
D) $6,300

Question 29

Under the terms of an exclusive right to sell listing, a commission is due the listing broker if a buyer is found by

A) the listing broker.
B) a sales associate employed by the listing broker.
C) another broker.
D) any of the above.

Question 30

A typical exclusive right to sell listing requires the owner to

A) exclude other brokers from advertising or placing a sign on the property.
B) pay a commission if a purchaser is found who agrees to buy at the price and terms stipulated in the listing.
C) both a and b.
D) neither a nor b.

Question 31

A salesperson worked for broker Barbara when they agreed to take a note from a seller for a deferred commission. The salesperson left the first broker and now works for another broker. When the note is paid, the salesperson is entitled to receive the commission directly from Barbara because she was working for her at the time she earned the commission.

Question 32

The property owner is permitted to compete against the real estate broker in searching for a buyer if he signed an exclusive right to sell listing.

Question 33

The amount of commission to be paid the broker for selling a property is

A) set by law.
B) negotiated at the time a buyer is found.
C) set forth in the rules of the state real estate commission.
D) stated in the listing contract.

Question 34

The first thing a licensed broker must prove to recover a commission is that he has competitive commission rates.

Question 35

With a net listing, the sales commission is a fixed dollar amount.

Question 36

Broker Alice was to receive 6% on a property she had listed for $170,000. How much commission would she receive if the owner accepted an offer which reduced the price by 4%?

A) $8,976
B) $9,792
C) $10,200
D) $17,000

Question 37

A broker is attempting to collect a commission on a property after his exclusive right to sell listing expires. If he ends up in court, he must prove that he was the procuring cause.

Question 38

A residence originally listed at $92,000 sold for 7% less than that. If the listing broker gets half of the 6% sales commission and he gives his salesperson 60% of that, how much does the listing salesperson receive? (rounded to the nearest dollar)

A) $1,540
B) $5,133
C) $2,567
D) $1,026

Question 39

A listing to find a buyer for each of the following properties will usually be for a period of time ranging from six months to one year EXCEPT

A) farms.
B) commercial properties.
C) residential properties.
D) industrial properties.

Question 40

A broker is employed to find a buyer using an exclusive right to sell listing. He finds one at the seller's price and terms. If the seller then refuses to sell, the broker is entitled to a full commission.

Question 41

With an exclusive right to sell listing agreement, the broker will receive a commission regardless of whether the property is sold.

Question 42

An exclusive agency listing permits the owner to sell through their own effort without liability to pay a commission to the listing broker.

Question 43

A ____________________ broker is a full service broker who charges less than the prevailing commission rates in his community.

Question 44

A buyer's broker would use an exclusive right to ____________________ listing agreement.

Question 45

Most brokers are reluctant to accept net listings even when they are permitted to do so.

Question 46

A listing is automatically terminated upon the death of the seller.

Question 47

An open listing allows the owner to list the property with several brokers at the same time.

Question 48

A flat-fee broker is an example of a ____________________ broker.

Question 49

A listing can be terminated by improper performance or ____________________ by the broker.

Question 50

With an exclusive right to sell listing agreement, the owner may sell the property through their personal efforts without liability for a commission.

Question 51

Under an exclusive authority to purchase agreement, the buyer must pay the real estate commission.

Question 52

A listing automatically will expire when the listing salesperson dies.

Question 53

A broker who is the primary cause of a transaction is known as the ____________________ cause.

Question 54

A listing wherein the owner reserves the right to sell the property himself, but agrees to list with no other broker during the listing period is called an exclusive ____________________ listing.

Question 55

The broker has an exclusive agency listing with the sellers. The broker shows the home to a buyer who then calls the sellers directly to make an offer to buy the property. The broker has earned a commission because the listing is an exclusive agency listing.

Question 56

A listing that gives the broker the nonexclusive right to find a purchaser is a(n)____________________ listing.

Question 57

Under the terms of a multiple listing agreement, if a broker other than the listing broker sells the property, the seller may be responsible for paying two commissions.

Question 58

A listing that gives the broker the right to collect a commission no matter who sells the property during the listing period is called a(n)____________________ right to sell listing.

Question 59

A listing for which the commission is the difference between the sales price and a minimum price set by the seller is called a(n)____________________ listing.

Question 60

A listing agreement is a(n)____________________ contract between a property owner and a real estate broker.

Question 61

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
one who, for a fee, acts as an agent for others in negotiating contracts or sales

Question 62

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a listing that gives a broker a nonexclusive right to find a purchaser

Question 63

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a broker who deviates from the full-service concept of real estate brokerage and thereby charges lower commissions

Question 64

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a full-service broker who charges less than the prevailing commission rates in his community

Question 65

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
if a broker acts counter to the principal's best financial interests, the employment is terminated and no commission is paid

Question 66

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
an acronym that describes a division of the National Association of REALTORS® whose members specialize in buyer agency

Question 67

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a listing for which the commission is the difference between the sales price and the minimum price set by the seller

Question 68

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a listing wherein the owner reserves the right to sell the property himself, but agrees to list with no other broker during the listing period

Question 69

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a broker who charges a preset brokerage fee that is collected whether the property sells or not

Question 70

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a listing that covers only out-of-pocket costs incurred by the broker

Question 71

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a listing where the broker charges for time by the hour and for out-of -pocket expenses to market a property

Question 72

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
an organization of real estate brokers that exists for the purpose of exchanging listing information

Question 73

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a contract wherein a broker is employed to find a buyer or tenant

Question 74

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a listing that gives a broker the right to collect a commission no matter who sells the property during the listing period

Question 75

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
the broker who is the primary cause of a transaction

Question 76

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a buyer who is ready to buy at the seller's price and terms and who has the financial capability to do so

Question 77

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a person empowered to act by and on behalf of the principal

Question 78

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a broker who represents the buyer in a real estate transaction

Question 79

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
a real estate listing between a property owner and a real estate broker

Question 80

Choose the one most appropriate answer for each.
a.abandonment
k.exclusive authority to purchase
b.advance fee listing
l.exclusive right to sell
c.advanced cost listing
m.flat-fee broker
d.agent
n.Multiple listing service (MLS)
e.bargain broker
o.net listing
f.broker
p.open listing
g.buyer's broker
q.procuring cause
h.discount broker
r.ready willing and able buyer
i.employment contract
s.real estate listing
j.exclusive agency listing
t.REBAC
listing utilized by buyer's brokers