Deck 6: Real Estate Brokers

Question 1

This type of listing agreement makes the listing broker the seller's exclusive agent while allowing the seller to retain the right to procure a buyer on his or her own:

A) open listing
B) exclusive listing
C) exclusive-right-to-sell listing

Answer 1

B

Question 2

An agreement in which the seller specifies the net amount of money he or she must receive in order to sell the property, allowing the broker to receive any monies in excess of this specified amount as commission, is called a ___.

Answer 2

net listing

Question 3

Under this type of listing agreement, the broker is entitled to a commission only if he or she finds the buyer or effects the sale:

A) open listing
B) exclusive listing
C) exclusive-right-to-sell listing

Answer 3

A

Question 4

A real estate broker is never a:

A) universal agent
B) special agent
C) subagent

Question 5

The common law doctrine of caveat emptor, "let the buyer beware," does not apply to real estate transactions.

Question 6

The legal doctrine of ___ holds the principal legally responsible for the actions of the agent.

Question 7

A broker is an agent with unlimited authority to act on the principal's behalf.

Question 8

Federal law prohibits real estate brokerage firms from imposing uniform rates of commission.

Question 9

Brokers are prohibited by law from partaking in the preliminary negotiation and drafting of documents leading to an agreement between the parties to a real estate transaction.

Question 10

Explain the seller's and broker's responsibilities under a flat-fee sales agreement.

Question 11

The contract between the broker and the seller is a contract for the transfer of an interest in real property and, therefore, must be in writing to be legally enforceable.

Question 12

This fiduciary duty requires the broker to always act in the best interest of the principal, to the exclusion of all other interests, including that of the broker:

A) duty of obedience
B) duty of loyalty
C) duty of confidentiality

Question 13

Distinguish between the responsibilities of the broker versus the attorney in a real estate transaction.

Question 14

What information should be included in a listing agreement?

Question 15

A ___ is an organization of brokers who agree to publicize their listings to all other broker members through the use of the service.

Question 16

What is the purpose of a multiple listing service?

Question 17

Under this type of listing agreement, the listing broker is entitled to a commission if anyone procures a buyer for the property within the listing term:

A) open listing
B) exclusive listing
C) exclusive-right-to-sell listing

Question 18

___ is a comparison of prices of properties similar to the seller's property that have been recently sold.

Question 19

What are the broker's responsibilities when faced with conflicting demands for escrow deposits?

Question 20

___ is the name given to the business engaged in by real estate brokers.

Question 21

Define a short sale and list the items that should be included in a short sale addendum.