Sean Chapter 5: Listing Agreements and Earnest Money Agreements

John Lewis signed a 90-day listing agreement for his property with Broker Ferguson. One month later Mr. Lewis died. Ferguson, unaware of Lewis' death, obtained an offer for the property from Thompson. Which of the following is correct concerning Thompson's offer? -Lewis' estate must sell the property to Thompson and pay a commission to Ferguson. -Lewis' estate is not required to sell the property to Thompson, but must pay Ferguson a commission. -Lewis' estate must sell the property to Thompson only if Thompson pays the commission. -Lewis' estate is not required to sell the property, nor pay a commission to Ferguson.

-Lewis' estate is not required to sell the property, nor pay a commission to Ferguson.

A listing broker receives authority to accept an earnest money deposit in the -earnest money agreement. -listing. -closing documents. -Administrative Rules and Regulations.

-listing

When an earnest money agreement is amended by the seller, the broker must -send a memorandum to his/her principal broker confirming the nature of the change so the principal broker may initial the change. -reduce the change to writing and have it initialed by both parties. -make the necessary change and initial the change him/herself. -do none of the above.

-reduce the change to writing and have it initialed by both parties.

If a 160-acre parcel of land is square, the length of one side would be 1/8 mile. 1/4 mile. 3/8 mile. 1/2 mile.

1/2 mile.

Equitable title is transferred to a buyer upon the execution of which of the following documents? 1. Mortgage 2. Land sale contract 3. Trust deed I only II only III only II and III only

2 ONLY

Which of the following statements concerning counteroffers is true? 1. If the counteroffer is refused the original offer is open for acceptance. 2. Material changes made to an original offer constitute a counteroffer. I only II only Both I and II Neither I nor II

2 only

A listing agreement may be terminated for which of the following reasons? Destruction of the property Bankruptcy of the client Death of the broker who listed the property

Destruction of the property Bankruptcy of the client - death of broker does not matter

Which of the following statements concerning commissions is true? Under no circumstances may a broker receive a commission if a sale was consummated after the listing expired. Agreements regarding division of commission between brokers must be in writing. The amount of the broker's commission is established by law. Exclusive agency listings permit the owner to sell without being liable for a commission.

Exclusive agency listings permit the owner to sell without being liable for a commission.

When a purchaser offers to buy real property, the -earnest money check should be made payable to the broker writing up the offer. -purchaser may terminate the offer and have the earnest money refunded even though the seller has orally approved the offer. I only II only Both I and II Neither I nor II

II only: purchaser may terminate the offer and have the earnest money refunded even though the seller has orally approved the offer.

Which of the following statements is correct as to the general practice of real estate brokering? The commission a broker may charge for the sale of a home is controlled by regulations of the Real Estate Commissioner. In an exclusive agency listing, a seller may sell without being liable for paying a commission. Any agreement to divide commissions between cooperating brokers must be in writing. Under no circumstances may a broker collect a commission after a listing has expired.

In an exclusive agency listing, a seller may sell without being liable for paying a commission.

The absence of which of the following would render an earnest money agreement unenforceable? -Time period for seller's acceptance -Earnest money deposit -Legal description of the property without the street address -Legal purpose

Legal purpose

Buyer made an offer at less than asking price. Seller made a counter-offer. Buyer would not accept counter offer. Seller then agreed to accept the first offer. The situation now is that the: 1. buyer is legally bound to complete the deal. 2. broker has earned his commission. I only II only Both I and II Neither I nor II

Neither I nor II

Ward noticed a broker's 'for sale' sign on a property he was interested in purchasing. He called the property owner, Taylor, who told him that the exclusive agency listing on the property would expire on May 9. Ward waited until May 11 to meet with Taylor, and then bought the property for the listed price. The listing broker -is legally entitled to a commission from the seller since Ward's attention to the property was induced by the broker's display sign. -is legally entitled to a commission from the seller since the property was sold within the protective period after the listing expired. I only II only Both I and II Neither I nor II

Neither I nor II

Which of the following statements about listing agreements for residential properties is incorrect? The listing agreement is a contract for sale of real estate. All contracts of employment must contain a definite termination date. A legible copy of the signed listing must be given to the client. The agreement must be in writing to be enforceable.

The listing agreement is a contract for sale of real estate.

An earnest money agreement is -a legally enforceable contract immediately upon the signature of the seller only. -a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer. -an option to buy which the purchaser may accept or reject. -None of the above

a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer.

A listing agreement which gives only one broker the right to sell a property during the listing period, but which also reserves to the owner the right to sell his own property during the listing period without liability for a commission, is called

an exclusive agency.

Mark and Eleanor Walworth have signed a listing agreement with Kim Pederson to sell their house. By the terms of the agreement, Pederson will definitely receive a 6% commission if the house is sold during the listing period. This type of contract is called

an exclusive right to sell.

In a usual listing agreement, the broker is authorized to convey the real property listed. promise a buyer that any offer on the listed terms will be accepted. find a purchaser and bind his client to a contract find a purchaser and accept a deposit.

find a purchaser and accept a deposit.

In order to be enforceable, an exclusive listing for residential property shall contain the words 'exclusive right to sell.' need only be in writing. must be signed by the owner and broker. must be signed and accepted by the purchaser.

must be signed by the owner and broker.

A licensed real estate broker took an exclusive agency listing from an owner for a 90 day term. After the broker had expended considerable time and expense in trying to locate a buyer, the owner sold the property himself during the listing period. Under these circumstances the broker was entitled to a full commission. no commission. half of the agreed commission. his advertising expenses.

no commission.

Where no time for acceptance by the offeree is stipulated in an offer, the offer will lapse in 24 hours' time. will lapse in 48 hours' time. will lapse after a reasonable time. will not lapse; it must be revoked by the offeror.

will lapse after a reasonable time.