chapter013 - CHAPTER 13 REAL ESTATE BROKERAGE AND LISTING...

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CHAPTER 13 REAL ESTATE BROKERAGE AND LISTING CONTRACTS Test Problems 1. A salesperson who collects a down payment deposit from a potential buyer must place the funds in: e. The hands of his broker. 2. One of the most effective ways that salespersons or brokers can distinguish themselves as a preferred agent in a particular specialization of real estate brokerage is to: b. Obtaining a related industry designation. 3. A broker, who is the agent of a seller, must deal honestly and fairly with whom? e. Everyone involved in the transaction. 4. Real estate salespersons can lose their licenses for: c. Commingling escrow (trust) money with personal funds. 5. The state real estate commission is responsible for: c. Establishing education requirements for licensees. 6. Real estate brokers are paid commissions primarily for c. Providing a service. 7. A real estate broker is what type of agent for his or her principal? b. Special agent. 8. The sub agency relationship that traditionally has characterized multiple listing services (MLS) has tended to result in the wide-spread danger of: c. Unintended dual agency. 9. How are commission rates charged by real estate brokers determined? d . By agreement between broker and principal. 13-1
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10. According to most listing contracts, a broker has earned a commission when c. The broker finds a buyer who is ready, willing, and able to buy on the terms specified in the listing contract. Study Questions 1. Ted Richardson owns a large industrial building in your city that he wishes to sell. As a real estate broker, you would be delighted to obtain the listing on this property. You have worked with Richardson on two other transactions in which he was the buyer; therefore, you approach Richardson to request that he consider listing his property with you. Richardson agrees to do so, but indicates that he will not give you an exclusive right of sale listing, because he wants to retain the right to sell the property himself without owing a real estate commission. He will, however, give you an exclusive agency listing. a. What should you do? Should you accept such a listing from Richardson? b. Are there any provisions that you would propose including in the listing contract to give yourself some protection? Solution: a. The exclusive agency listing is infrequently used and provides less protection to the broker than an exclusive right of sale listing. This arrangement should be used only if Mr. Richardson understands that I, as the agent, will be less willing to spend significant time and effort to market properties listed under this arrangement. b.
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chapter013 - CHAPTER 13 REAL ESTATE BROKERAGE AND LISTING...

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