legal aspects chapter 8 quiz
The broker is responsible for paying which of the following expenses of their agents...?
Advertising Travel Taxes
If the seller wants to change the terms of the contract, they can use either a counter-offer or a/an...?
addendum
These are additional pages of material that are added to, and become part of a contract...?
addendum
A listing agreement is signed between a seller and a/an...?
broker
A purchase contract is signed between a seller and...?
buyer
A response to an offer to enter into a contract, changing some of the terms of the original offer, is referred to as a...?
counter-offer
Which of the following is an example of a listing contract...?
exclusive right to sell agreement
Which of the following listing contracts offers the most protection to the broker...?
exclusive right to sell agreement
A broker may require their agents to spend at least 40 hours per week in the broker's office...? (t/f)
false
According to the IRS, a real estate salesperson is an employee of their sponsoring broker...? (t/f)
false
This refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right...?
option
A right of preemption is also known as a...?
right of first refusal
The extender clause is also known as the...?
safety clause
Who serves as the cooperating broker to a seller's broker...?
the buyer's broker
A broker is entitled to a commission if they find a ready, willing and able buyer...? (t/f)
true
A counter-offer is not a form of acceptance...? (t/f)
true
A counter-offer is not voidable...? (t/f)
true
As an independent contractor, an agent is required to pay their own taxes...? (t/f)
true
Commissions are always negotiable...? (t/f)
true
The commission split between a broker and agent can change over time...? (t/f)
true
An addendum may be used for which of the following...?
A change in the occupancy date A change in the escrow date Clarifying what inspections the seller will pay for
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is referred to as a/an...?
exclusive right to sell agreement
A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is referred to as a/an...?
independent contractor
The ....................serves as an employment contract between a sponsoring broker and an agent?
independent contractor agreement
A contract in which a property owner employs a real estate broker to market the property described in the contract is known as a/an...?
listing contract
Which of the following typically serves as the escrow instructions for a transaction...?
the purchase contract
What is the standard commission split between a broker and their salesperson...?
there is no standard commission split
A sponsoring broker holds workers compensation insurance for their agents...? (t/f)
true
Liquidated damages generally do not exceed 3% of the purchase price...? (t/f)
true
The buyer is entitled to their earnest money if they back out of the purchase contract during the inspection period...? (t/f)
true