Unit 6 Quiz

An Illinois real estate broker is the listing agent for a home. After one month of the three-month listing has gone by without any offers on the property, the broker becomes concerned. At the time the listing agreement was signed, the broker and the sellers orally agreed that if no offers were received after one month, the price of the property would be reduced by ten percent. Because the sellers are out of town, the broker crosses out the old listing price, writes in he new one, and then updates the information on the computerized listing service. Three days later, a prospective buyer comes into the broker's office to make an offer on the property. Bases on these facts, which of the following statements is TRUE? A. Illinois licensees are prohibited from making any addition to, deletion from or other alteration of a written listing agreement without written consent of the principal b. while alteration of a written listing agreement is usually prohibited by Illinois law, the broker acted properly in this situation because the sellers were out of town c. changing the listing price of a property is a matter of professional discretion, and Illinois licensees are permitted to make alterations to that aspect of a listing agreement only without the written consent of the principal d. while alteration of a written listing agreement is usually prohibited by Illinois law, the broker acted properly in this situation because of the prior oral agreement with the sellers

A. Illinois licensees are prohibited from making any addition to, deletion from or other alteration of a written listing agreement without written consent of the principal

The type of listing agreement that provides for payment of commission to the broker even though the owner makes the sale without the aid of the broker is called a (n) a. exclusive-right-to-sell listing b. opening listing c. exclusive-agency listing d. option listing

a. exclusive-right-to-sell listing

An owner who is interested in selling his house is usually concerned about how much money he can get when it sells. A competitive market analysis may help the seller determine a realistic listing price. Which of the following is true? A) A competitive market analysis is the same as an appraisal. B) A broker, but not a salesperson, is permitted to prepare a competitive market analysis. C) A competitive market analysis is what is prepared by a certified real estate appraiser. D) A competitive market analysis contains a compilation of facts about similar properties that have recently sold.

D) A competitive market analysis contains a compilation of facts about similar properties that have recently sold.

Which of the following constitutes grounds for the suspension or revocation of a real estate license? a. failure to specify a termination date in a listing agreement b. inclusion of a multiple-listing clause in a listing agreement c. entering into a guarantee sales agreement d. encouraging a seller to agree to a net listing

a. failure to specify a termination date in a listing agreement

A seller refused to pay a commission to the sponsoring broker even though there was a valid listing agreement to find a buyer for the sellers home and the broker procured a buyer. What can this sponsoring broker do? a. sue the seller in court for the commission b. file a lien on the seller's property for the amount of the commission c. obtain an injunction to stop the transaction until the commission is paid d. collect the commission from the buyer

a. sue the seller in court for the commission

Which of the following is TRUE of listing agreements in Illinois? a. all listing agreements must be in writing to be legal b. all exclusive listing agreements must be in writing to be enforceable c. opening listing agreements are illegal d. net listings are not legal in Illinois

b. all exclusive listing agreements must be in writing to be enforceable

Under which of the following listing agreements can the owner of the listed property sell the property on his or her own without having to pay the listing broker a commission? a. exclusive-right-to-sell listing b. both exclusive-agency listing an open listing c. exclusive-agency listing d. open listing

b. both exclusive-agency listing an open listing

Which of the following is NOT a reason a listing agreement may be terminated? a. sale of the property b. death of the salesperson c. agreement of the parties d. destruction of the premises

b. death of the salesperson

The provision in a listing agreement that gives additional authority to the broker and obligates the broker to distribute the listing to other brokers is a (n) a. joint listing clause b. multiple listing clause c. net listing clause d. open listing clause

b. multiple listing clause

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

b. net listing

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. This type of listing is a(n) a. gross listing b. legal and ethical way to ensure that the broker is compensated c. exclusive agency d. net listing

d. net listing

Which of the following is NOT required to appear in a written Illinois listing agreement? a. A statement that the property must be shown to all prospective buyers regardless of race, color, religion, national origin, sex, handicap, or familial status b. the complete legal description of the property being sold c. the time duration of the listing d. the proposed gross sales price of the property

b. the complete legal description of the property being sold

Which of the following is NOT a typical provision of a listing agreement? a. the price the seller is asking for the property b. the date the broker will schedule an open house c. the commission rate to be paid to the listing broker d. the responsibilities of the broker

b. the date the broker will schedule an open house

A house has a non-resident owner who rents the house to a married couple. If the non-resident owner wants to sell the property, who is required by law to sign the listing agreement? a. the non-resident owner and both spouses living in the house b. the non-resident owner only c. the non-resident owner and the spouses in the as tenants in possession d. only the spouses in the house, because of their marital homestead interest

b. the non-resident owner only

Which of the following is true of guaranteed sale agreements in Illinois? a. they are illegal b. they must be in writing c. they may be either written or oral d. they provide for a refund of the pre-paid retainer if the property fails to sell with a specific period

b. they must be in writing

Be executing a listing agreement with the seller, a real estate broker has become a. procuring cause b. obligated to open a special trust account c. an agent of the seller d. responsible for sharing commissions

c. an agent of the seller

Which of the following is NOT a reason that a listing agreement may be terminated? a. by mutual agreement b. by operation of law c. because the seller can't find another house to buy d. because of impossibility of performace

c. because the seller can't find another house to buy

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

d. open listing

A sponsoring broker listed a house for sale under and exclusive-right-to-sell agreement. One of the licensees the broker sponsors obtained an offer to purchase the property along with a certified check for 5 percent of the purchase price as earnest money. What should the managing broker do with the earnest money check? a. deposit the money with the seller to be held for closing or damages b. do nothing with the money since the transaction may never close c. deposit the money in the sponsoring brokers escrow or trust account d. deposit the money in the sponsored license's escrow or trust account

c. deposit the money in the sponsoring brokers escrow or trust account

An owner lists her property for sale with a broker. Another broker, however finds a buyer for the house. The lising broker did not receive a commission from the sale. The type of listing contract betweenthe owner and the borker could have been a(n) a. exclusive-right-to sell b. exclusive-agency c. open listing d. multiple listing

c. open listing

The type of listing agreement that provides the least protection for the listing broker is the a. exclusive-right-to-sell listing b. exclusive-agency listing c. open listing d. multiple listing

c. open listing

Which of the following is NOT a type of listing contract? a. open listing b. exclusive-agency c. exclusive-right-to-sell d. MLS contract

d. MLS contract

In Illinois, if a broker is taking a listing and asks the seller to complete a disclosure of property conditions, which of the following statements is TRUE? a. the disclosures are optional, and the seller may avoid liability to make any disclosures about the condition of the property b. the standard disclosures cover a narrow range of structural conditions only c. an agent should give the seller advice regarding which property conditions to disclose and which to ignore d. seller disclosure of property conditions is required by Illinois statue

d. seller disclosure of property conditions is required by Illinois statue

A broker who represents a seller under an exclusive listing receives two offers for the property at the same time, one from one of his salespeople and one from a salesperson of a cooperating broker. What should the broker do? a. submit the offer form his salesperson first b. submit the offer from the other salesperson first c. submit the higher offer first d. submit both offers at the same time

d. submit both offers at the same time

A property owner signed a 90-day listing agreement with the 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. terminated automatically upon the death of the principal

Under an exclusive-agency listing, the listing broker would NOT be entitled to a commission if a. the broker sells the property herself b. the property is sold through another broker c. the property is sold through the multiple-listing service d. the sellers sells the property to a neighbor across the street who has her property listed with another broker

d. the sellers sells the property to a neighbor across the street who has her property listed with another broker

Broker W took a listing on a property and shortly thereafter discovered that her client had been previously declared incompetent by the court. The listing now is a. binding as the broker was acting in good faith b. still valid c. the basis for commission if the broker produces a buyer d. voidable

d. voidable

Two different brokerage companies claimed they were entitled to a commission from the sale of a property that was listed by each of the firms under an open listing agreement. The broker who is entitled to the commission is the one who a. first listed the property b. advertised the property c. obtained the first offer d. was the procuring cause of the sale

d. was the procuring cause of the sale