Unit 3
Which statement is TRUE about the listing agreement?
It is an employment contract for a broker's professional services.
The net proceeds from a real estate transaction are also called
the bottom line
The VA closing fee must be paid by
the seller.
According to state law, an override clause in a listing agreement may not be for a period longer than
6 months.
The protective list generated by a broker at the expiration of the listing agreement must be delivered to the seller within how many hours after the expiration of the listing agreement?
72 hours
When a salesperson just starts filling out the listing contract, what type of close is that?
Action close
Which of the following client types would likely have the LEAST experience?
First-time sellers
Gabriela is selling her home. A well on the property has not been used in 10 years, but it also has not been capped. Which of the following is TRUE?
Gabriela is required to make a written disclosure about the well and its status.
Which clause in the listing agreement protects the broker's commission once a listing has expired should the seller sell the property to a person that the broker had substantive contact with before the expiration of the listing contract?
Override Clause
A property is listed at $145,000. The state deed tax will be $3.30 per $1,000 of the net sale price. Other closing costs for the transaction are estimated to be $500. What would the seller's state tax deed charge be if the property sold for its list price?
The answer is $478.50. The calculation is as follows: 145 × 3.3 = 478.50.
Which statement about additional costs associated with a real estate sales transaction is FALSE?
The broker commission is reduced based on the amount of additional costs the sellers pay.
Which of the following is a reason to place a new listing on the office tour?
The office tour exposes listings to salespeople in the salesperson's office who sell property in the area.
The listing agreement on a residential property states that it will expire on June 15. Which event would NOT cause the termination of the listing agreement?
The owner shares concerns with the broker regarding marketing efforts on May 20.
Which statement is TRUE of short sale property transactions?
The seller owes more to the lender than the property is worth.
In which situation is the broker NOT entitled to a commission?
The seller withdraws the property from the market due to destruction of improvements
Which statement is TRUE regarding experienced home sellers?
They have higher expectations of service. They often have higher-priced homes to sell than first-time sellers. They are more knowledgeable than first-time sellers.
A competitive market analysis (CMA) provides information on current market conditions so the seller can better determine the value of the seller's property. T/F
True
Commissions and fees charged by brokers for their services are set by negotiation between the broker and the client. T/F
True
The listing contract includes the price for which the seller would like to initially list the property. T/F
True
One of the first items in the marketing plan is to place a lockbox on the property. Inside the lockbox is
a key to the property.
An example of a document that creates a relationship between the agent and the principal is
a listing agreement
Fixtures are expected to be included in the purchase and sale of real estate. An example of a fixture is
a remote control for a ceiling fan.
When a seller owes more on a property than the current value, it is commonly called
a short sale
A listing agreement in which one broker is appointed as the seller's agent and the seller agrees to pay the broker a commission regardless of who sells the property is
an exclusive right-to-sell listing.
A seller listed a property with a broker, and five days after the broker's sign was placed in the yard, the seller sold the property to a co-worker without using the broker's services. The contract requires that the broker still receive a commission. The type of listing contract between the seller and the broker is
an exclusive right-to-sell listing.
A listing that allows the seller to list concurrently with more than one broker and owe a commission only to the broker that sells the property is
an open listing.
First-time sellers generally
are inexperienced
When providing real estate services to an employee who is transferring, all of the following should be considered EXCEPT
costs associated with transferees are minimal compared to other transactions.
When presenting the seller's estimated selling expenses or seller's net sheet, it is important that salespeople explain
each expense
Commissions charged by brokers for their services are set by
negotiation between the client and the broker.
The For Sale sign in the yard is
one of the largest sources of qualified buyers.
A broker listed a seller's property and, three days later, presented the seller with an offer that met the seller's requirements for sale, including a full-price offer. However, the seller rejected the buyer's offer. In this situation, the seller must
pay the listing broker a commission
During the listing presentation to the sellers, it is important to demonstrate real estate knowledge, marketing skills, and
sales abilities.
Financial institutions may need help from real estate professionals for all the following transactions EXCEPT
selling common elements in a common-interest community.
When sellers choose to sell their home, the MOST important number to them is not the listing price but
the bottom line
The MOST important number to the seller is not the sale price but
the bottom line or net proceeds.
The provision in the listing contract that allows the broker to share information on the seller's listing with other brokers to help generate offers is
the multiple listing clause.
The seller's property disclosure statement is signed by
the seller and the buyer.
What is the MOST important number to sellers?
the seller's net proceeds
The listing presentation provides an opportunity for salespeople to demonstrate their real estate knowledge, marketing skills, and sales abilities to
the seller.
