8.1 Quiz

A building sold for $157,000 with a listing commission rate of 6%. The individual listing broker got 10%; the brokerage firm and the individual selling broker equally split the balance. The individual listing broker's share is a. $942.00. b. $1,020.50. c. $4,239.00. d. $4,710.00.

a $157,000 SP × 0.06 = $9,420 gross comm. × 0.10 = $942

A listing contract in which the broker's commission is contingent on the broker being able to produce an acceptable buyer before the property is sold by the owner or another broker is called a. an open listing. b. a net listing. c. an exclusive right to sell listing. d. an exclusive agency listing.

a

A phone call from a licensee to which of the following people that are registered on the Do-Not-Call Registry will probably be a violation of the Do-Not-Call laws? a. An expired MLS listing with another firm b. A seller-client that closed one year ago c. A for-sale-by-owner about your buyer's interest in their property d. A home inspector about a property inspection

a

A seller refused to pay a commission to the broker even though there was a valid listing agreement and the broker procured a buyer for the property. What can the broker do to collect his firm's compensation? a. File suit in civil court against the seller b. File suit in criminal court c. File a complaint with the state real estate commission d. Collect the commission from the buyer

a

According to the North Carolina Real Estate Commission's Residential Square Footage Guidelines, a. residential square footage is measured externally. b. heated living area square footage is a material fact. c. stairs count only on the lower level for square footage. d. area must heated and air conditioned to be counted.

a

The type of listing agreement that provides for the payment of a commission to the broker even though the owner makes the sale without the aid of the broker is called an a. exclusive right to sell listing. b. open listing. c. exclusive agency listing. d. alternative two listing.

a

Which of the following statements is TRUE about the North Carolina Residential Property Disclosure Act? a. All agents in the transaction should facilitate the timely delivery of the property disclosure report to the buyer. b. The property owner must disclose the condition of the listed property or be subject to a three-day rescission period on any contract formed. c. All residential sellers are subject to this Act even if a broker is not involved in the transaction. d. Buyers must receive the completed disclosure report no later than the beginning of the due diligence period.

a

A property owner lists a property for sale with a broker. The owner told the broker during the listing negotiations that he wanted $138,000 for the property, and anything above that amount the broker could keep as commission. The listing with this type of provision is known as a. gross listing. b. net listing. c. open listing. d. nonexclusive listing.

b

A valid listing agreement may be terminated for any of the following reasons EXCEPT a. sale of the property. b. expiration of the individual broker's license agreement of the parties. c. Death of the Broker-in-charge d. destruction of the premises.

b

All of the following are typical provisions of a listing agreement EXCEPT a. the price the seller is asking for the property. b. the responsibilities of the buyer. c. the responsibilities of the broker. d. the compensation to be paid to the listing firm.

b

The mandatory disclosure on the status of the oil and gas rights to be transferred to the property purchasers is dictated under the a. Connor Act. b. North Carolina Residential Property Disclosure Act. c. Unfair and Deceptive Trade Practices Act. d. North Carolina Machinery Act.

b

The owner of listed property can sell the property on her own without having to pay the listing broker a commission under which of the following listing agreements? a. Exclusive right to sell listing agreement b. Exclusive agency listing agreement c. Net listing agreement d. Multiple listing service listing agreement

b

The provision in a listing agreement that may obligate the seller to pay the listing firm a commission after the expiration date of the listing is the a. compensation clause. b. override clause. c. marketing clause. d. open listing clause.

b

The state-mandated oil and gas rights disclosure language is required in sales contracts for all of the following EXCEPT a. new construction sold by homebuilder. b. an office building. c. a for-sale-by-owner property. d. a resale townhome.

b

Under the North Carolina Residential Property Disclosure Act, a. property owners must provide the property report only when their property is listed with a real estate firm. b. the property report information must be kept current. c. buyers can rescind any resulting contract for seven days if they did not receive the property report in a timely manner. d. listing agents can complete the property report on behalf of the seller.

b

A broker was accused of violating antitrust laws. She may be guilty of a. not posting an equal housing opportunity sign in her office. b. undisclosed dual agencies. c. allocation of customers or price fixing. d. dealing in unlicensed brokerage services.

c

A typical listing agreement may be terminated by all of the following EXCEPT a. mutual agreement. b. operation of law. c. because the seller can't find another house to buy. d. because of impossibility of performance.

c

An owner lists a property for sale with a broker. A different broker finds an acceptable buyer for the property. The listing broker was not entitled to receive a commission from the sale. The type of listing contract was most probably an a. exclusive right to sell listing agreement. b. exclusive agency listing agreement. c. open listing agreement. d. alternative two listing agreement.

c

By entering into an exclusive agency listing agreement with a seller, a real estate brokerage firm a. is not entitled to receive a commission if another agency finds a buyer for the property. b. has become the seller's designated agent. c. has become the exclusive agent of the seller, but is not entitled to receive a commission if the seller finds a buyer for the property. d. has agreed to renegotiate commission with the seller should another agency offer a lower commission rate.

c

The type of listing agreement that provides the LEAST assurance of earning a commission to the listing broker is the a. exclusive right to sell listing. b. exclusive agency listing. c. open listing. d. net listing.

c

If a seller needs to net $50,000 after the sale of a property, what is the minimum acceptable sales price if the selling expenses include a 7% commission and $1,200 in additional settlement expenses? a. $53,763.44 b. $54,784.00 c. $55,053.76 d. $55,633.25

c $50,000 net + $1,200 CC = $51,200 100% - 7% = 93% $51,200 ÷ 93% = $55,053.76

The seller wants to net $165,000 after paying the broker a fee of 6% of the sales price. What is the minimum acceptable gross sales price to the nearest dollar? a. $169,850 b. $174,900 c. $175,532 d. $178,745

c c $165,000 net 100% - 6 = 94% $165,000 / .94 = $175,532

A broker has been trying for several weeks to acquire a listing on a spectacular home. The owners have been interviewing agents from different firms. The owners inform the broker that another firm has offered to list the property for 2% less commission than the broker. What would be an appropriate response for the broker in an attempt to persuade the seller to list with his firm? a. "Many agents will not show that firm's listings because of their low commission fees." b. "Most brokers in the area, including my firm, charge a standard rate." c. "That firm cannot provide good services due to their low fees." d. "Although that firm may provide good services in marketing sellers' properties, please be sure to compare our list of services."

d

A listing firm would be entitled to commission in all of the following situations EXCEPT a. the seller's spouse refuses to sign deed at settlement. b. the seller insists on contract terms not in the listing agreement. c. the seller has a change of mind after contract formation and refuses to complete the transaction. d. the seller refuses to sign an offer that is not for the full listing price.

d

A property owner signed a 90-day listing agreement with a broker. The owner was killed in an accident before the listing expired. Now the listing is a. binding on the owner's spouse for the remainder of the 90 days. b. still in effect as the owner's intention was clearly defined. c. binding only if the broker can produce offers to purchase the property. d. terminated automatically upon the death of the principal.

d

Antitrust laws prohibit all of the following EXCEPT a. property management companies standardizing management fees. b. brokers allocating markets based on the value of homes. c. real estate companies agreeing not to cooperate with a broker because of the fees that broker charges. d. a broker requiring all the agents of his firm to join the local listing service.

d

The broker enters into a listing agreement with a seller in which the seller will receive $12,000 from the sale of a lot and the broker will receive any sale proceeds over this amount as brokerage compensation. This type of listing is a. a gross listing. b. an open listing. c. an exclusive agency. d. a net listing.

d

The property was listed with two different brokerage companies under open listing agreements. Both firms claim entitlement to a commission from the sale of the property. The broker who is entitled to the commission is the one who a. listed the property first. b. advertised the property most diligently. c. obtained the highest offer. d. was the procuring cause of the sale.

d

Under an exclusive agency listing, the listing broker would be entitled to a commission in all the following situations EXCEPT a. broker buys the property personally. b. property is sold through another broker. c. property is listed in a multiple listing service. d. seller sells the property to another real estate licensee as a FSBO.

d