Chapter 17- QUIZ

The listing broker, AAA Realty, shows a house to the Smiths two days before the listing expires. The When Earned clause in the Listing Contract has a 30-day holdover period, no box was checked indicating if the Listing Broker would get a commission if relisted during the holdover period. The buyers call the broker back four days after seeing the house and want to buy it. The sellers have listed the house with another broker, Rogers Realty. The sellers accept the offer of the Smith's to buy the house. Which of the following is true? AAA Realty is not entitled to a commission Rogers Realty is entitled to the listing and selling commission AAA gets the selling (buyers) commission and Rogers Realty gets the listing commission AAA Realty is entitled to the listing and the selling commission

AAA gets the selling (buyers) commission and Rogers Realty gets the listing commission There is a checkbox in the holdover period section of the When Earned clause which would have allowed the holdover period to survive re-listing the property. Since this box was not checked, the holdover period ended when the property was re-listed. This section says that a listing broker may be entitled to a commission after the expiration of a listing contract for the period of time specified in the clause if: 1) the broker negotiated with the buyer during the listing period and 2) the broker submitted the name of this buyer in writing to the seller. Although the protection is for a negotiated time after the listing expires; it can terminate early if the property is re-listed by another agent and the "Will Not" box is checked, meaning the old listing agent "will not" be owed a commission if another brokerage firm has earned one. If neither the "Will" or "Will Not" be owned a commission" box is checked - the default is "Will Not".

According to the Exclusive Right-To-Sell listing agreement - when the Transaction Broker option is selected, the listing broker must disclose to any possible buyer: Seller's motivation for selling All facts about the transaction the broker knows All material facts about the property the broker knows All facts about the seller the broker knows

All material facts about the property the broker knows

The Exclusive Brokerage Listing Addendum attached to an Exclusive Right-to-Sell Agreement: Removes the seller's vicarious liability for activities of the broker Eliminates the broker's confidentiality duties Allows the seller to sell to anyone after the listing period is expired Allows the seller to negotiate a sale and not pay the broker

Allows the seller to negotiate a sale and not pay the broker

A real estate broker filling out a listing agreement finds that there is not enough room for the legal description. The broker may: Abbreviate the description, as it must fit within the body of the contract Use only the street address as it is shorterInsert the legal description on MLS in lieu of the listing agreement Attach the legal description; information may be added outside the body of the contract

Attach the legal description; information may be added outside the body of the contract

In the event that the seller and broker have a dispute about the Exclusive Right-to-Sell Listing Contract, which of the following is true? Both agree to submit to arbitration with the local REALTOR association Both agree to submit the matter to binding mediation Both agree to mediation before proceeding to arbitration or litigation The matter must be resolved by a real estate commission hearing

Both agree to mediation before proceeding to arbitration or litigation

Which of the following is true in describing how a dispute about the Exclusive-Right-to-Sell Listing Contract between seller and broker would be resolved? Both must agree to mediation before proceeding to arbitration or litigation The matter must be resolved by a real estate commission hearing Both must agree to submit to arbitration with the local Realtor association Both must agree to submit the matter to binding mediation

Both must agree to mediation before proceeding to arbitration or litigation

The licensee is holding an Exclusive Right-to-Sell Listing contract, s/he: Must sell the seller's property to comply with the contract Has permission to work with other sellers Agrees to work exclusively with this seller and no others at the same time Cannot work with buyers who might be interested in the property

Has permission to work with other sellers

As per the Exclusive Right-to-Sell Listing Contract, fixtures listed on the approved form will be included: In every case Unless they are crossed out on the form If on the property at the time of the listing If attached on the date of the listing unless specifically excluded by the seller

If attached on the date of the listing unless specifically excluded by the seller

When a defaulting buyer forfeits an earnest money deposit, according to the Exclusive Right-to-Sell Listing Contract, who gets the money? The seller is entitled to keep the funds It is negotiable according to the contract The broker receives the funds The broker and seller submit the funds for mediation

It is negotiable according to the contract

An agent lists a property using the Colorado Exclusive Right-to-Sell Listing Contract and checked the "Will Not" box in the holdover period section of the When Earned clause. Just before the listing expired, a buyer views the property. Wanting to retain the rights to this buyer, the listing agent provides the buyer's name in writing to the seller. After the listing expires, the seller lists with another agent and the buyer's agent submits an offer on the property. If accepted, would the old listing agent receive a listing commission? No, the new listing broker earned the listing side commission Both the new and the old listing brokers are entitled to a listing commission Yes, because it is within the holdover period Yes, because he is the procuring cause of the sale

No, the new listing broker earned the listing side commission

Unless otherwise disclosed by the Seller, who owns materials such as photographs, videos, renderings, images and such creative items supplied to Listing Broker by the Seller? Seller Broker Shared ownership by broker and seller Buyer

Seller

An Exclusive Right-to-Sell Listing contract establishes which of the following agreements? That the broker will never sue the seller That the seller will never sue the broker That the broker and the seller will use the same attorney That the broker and the seller will submit to mediation prior to litigation

That the broker and the seller will submit to mediation prior to litigation

Regarding the broker/seller relationship under the terms of an Exclusive Right-to-Sell listing contract, which of the following statements are true? The broker may be the seller's agent and a transaction broker for the buyer The broker can take the listing without being an agent of the seller The listing must have at least a 60 day holdover period The listing has to be for at least thirty days

The broker can take the listing without being an agent of the seller

Which of the following is true with regard to the Seller's Property Disclosure form that is mentioned in an Exclusive-Right-to-Sell listing form? The seller is required by law to provide this form to every buyer The seller may check the "as is" box, making the buyer responsible to find any defects The seller may decline to provide the disclosure but still must disclose latent material defects The seller may refuse to provide the disclosure and avoid disclosure of material defects

The seller may decline to provide the disclosure but still must disclose latent material defects

A broker has a listing on a house that contains a provision that the house is to be sold in "as-is" condition. The broker learns of a major hidden defect in the property. The broker should: advise the buyer of the defect point out that the house will be sold in "as-is" condition mention the defect to the buyer only if asked inform the buyer that the seller has told him of no defect

advise the buyer of the defect

Which monetary encumbrances should be listed by the seller when completing the Exclusive-Right-to-Sell Listing Contract? all encumbrances known to the seller all encumbrances the seller will not pay off only encumbrances of public record all encumbrances to be assumed by a buyer

all encumbrances known to the seller The seller should list all encumbrances known at the time of the listing. Specific encumbrances to be listed in the contract include monetary, such as mortgages, deeds of trust, liens and financing statements. Another encumbrance to be disclosed are any leases and tenancies that will survive closing.

After a listing has expired, the original listing broker may be paid a commission under the terms of the holdover period section of the When Earned clause in the original contract if: the broker had negotiated with the purchaser before the expiration date the broker had disclosed the name of the purchaser in writing to the sellers before the listing expired the sale occured during the specified holdover period all of the above

all of the above ALL of these are requirements in order to be paid a commission after expiration. The holdover period section of the When Earned clause says that a listing broker may be entitled to a commission after the expiration of a listing contract for the period of time specified in the clause if: 1) the broker negotiated with the buyer during the listing period and 2) the broker submitted the name of this buyer in writing to the seller. Although the protection is for a negotiated time after the listing expires; it can terminate early if the property is re-listed by another agent and the "Will Not" box is checked, meaning the old listing agent "Will Not" be owed a commission if another brokerage firm has earned one. If neither the "Will" or "Will Not" be owed a commission" box is checked - the default is "Will Not." See "Holdover Period" in the "When Earned" clause of an Exclusive Right-to-Sell listing agreement.

The Exclusive Right-to-Sell listing contract gives the listing broker the right to: sign the purchase agreement for the seller collect deposits from the purchasers depost earnest money into operating bank account all of the above

collect deposits from the purchaser The listing broker is authorized by the seller to collect and hold earnest money in the broker's escrow account, or deliver it to a neutral escrow agent.

The broker's commission for certain disclosed buyers is protected by the holdover period section of the When Earned clause in the approved Right-to-Sell Listing Contract. Which of the following correctly describes the length of protection afforded by this clause? for a negotiated time unless the seller lists the property with another broker after expiration and the "Will Not" box is checked only during the term of the listing and any extensions for a negotiated time even if the seller lists the property with another broker after expiration and the "Will Not" box is checked for up to six months after the listing expires

for a negotiated time unless the seller lists the property with another broker after expiration and the "Will Not" box is checked The holdover period section of the When Earned clause says that a listing broker may be entitled to a commission after the expiration of a listing contract for the period of time specified in the clause if: 1) the broker negotiated with the buyer during the listing period and 2) the broker submitted the name of this buyer in writing to the seller. Although the protection is for a negotiated time after the listing expires; it can terminate early if the property is re-listed by another agent and the "Will Not" box is checked, meaning the old listing agent "will not" be owed a commission if another brokerage firm has earned one. Chcking the "Will" box means the old listing If neither the "Will" or "Will Not" be owed a commission box is checked - the default is "Will Not."

The Conveyance clause of the Exclusive Right to Sell agreement allows the Seller to specify which deed conveying ownership they are giving the Buyer. Which of the following deeds have language making the extent of ownership transferred "subject to statutory exemptions"? quit claim deed bargain and sale deed personal representative's deed general warranty deed

general warranty deed Ownership transferring "subject to statutory exemptions" affects the General Warranty and Special Warranty deeds.In simpleeze, it means that regardless of how the ownership rights being transferred are described in the deed, there are 3 limitations defined by the legislature that the Buyer must accept and cannot go after the Seller for: 1) Current and Future Taxes, 2) Anything an improvement survey or an inspection could have found (i.e. as long as the seller told the buyer everything they knew about the property, if the buyer chose not to do these due diligence activities the problems that reasonably could have been found are their problems, 3) Anything documented in the Public Records (i.e. buyer you are supposed to look before you buy, you can't claim ignorance).

The amount of commission a listing broker offers to buyer brokers: is specified by antitrust law is inserted into the listing contract is regulated by MLS is determined by the actual costs the respective brokers incur

is inserted into the listing contract

Towards the end of the Exclusive Right-to-Sell agreement is a clause that recommends certain types of counsel. What are they? legal counsel legal and tax counsel legal and tax or other counsel legal, tax, financial or other counsel

legal and tax or other counsel

All of the following are true regarding the Exclusive Right-to-Sell listing contract except: there is one contract for all types of listings a listing contract may establish seller agency a listing contract may be executed without establishing agency more than one listing contract may be executed for the same time period, for the same property

more than one listing contract may be executed for the same time period, for the same property

The Commission approved written listing contract: must have a definite termination date limits the commission to 10% of the selling price cannot be effective for more than four months cannot be effective for more than six months

must have a definite termination date

In the FIRPTA clause, the seller is notified that if they are a "Foreign Person" for the purposes of U.S. income taxation a substantial portion of: the purchase price may be withheld after closing the net proceeds may be withheld after closing the loan amount may be withheld after closing the down payment may be withheld after closing

the net proceeds may be withheld after closing FIRPTA. Pursuant to the Foreign Investment in Real Property Tax Act (FIRPTA), the Internal Revenue Service (IRS) may require a substantial portion of Seller's proceeds be withheld after Closing when Seller is a foreign person. If the box in this Section is checked, Seller represents that Seller IS a foreign person for purposes of U.S. income taxation and authorizes Broker to disclose such status. If the box in this Section is not checked, Seller represents that Seller is not a foreign person for purposes of U.S. income taxation.

According to the Exclusive-Right-to-Sell Listing Contract, which of the following is true with regard to fixtures listed on the approved form? they are included unless they are crossed out on the form they are included if attached on the date of the listing unless specifically excluded by the seller they are included in every case they are included if they are on the property at the time of the listing

they are included if attached on the date of the listing unless specifically excluded by the seller

The seller must disclose within the listing contract if the property is a part of an Affordable Housing program. True False

true