Chapt 8
Erica has signed a listing contract with broker Tom stating that his brokerage fee will be 4 percent of the gross sales price of her property. If Erica's property sells for $250,000, the commission owed to Tom will be: A$5,000 (Dollars) B$8,000 (Dollars) C$10,000 (Dollars)
$10,000 (Dollars) The commission, when calculated as per the listing agreement, is $10,000 i.e.- .04 x 250,000 = 10,000.
A buyer's agent may call a seller listed on the Do Not Call registry if the: ABuyer's agent has a buyer interested in viewing the property BBuyer's agent had a business relationship with the seller within the last eighteen months CBoth of the above
CBoth of the above
Seller Lyle began a listing contract with Harmon Brokers on March, 30 2022 that ends on september, 30 2022. Having received very few inquiries about his property, Lyle decides to end the contract on August, 28, 2022. Is Lyle justified in his actions? AYes BNo
No When a listing contract specifies a definite period of employment, the owner has no right to terminate the broker's agency prior to the expiration of the term and, upon a wrongful termination, may be liable to the broker.
Broker Jenny, along with six other agents, has an open listing agreement with Rose Smith, owner of Smith Realty. Jenny and one of the brokers, Liona, take their respective clients to see one of the listings. However, Liona is able to close the sale quickly as her client is ready, willing and able to buy the property. Would Jenny be able to claim a commission in this case? Yes No
No In an open listing agreement, it is important to determine which broker is the procuring cause of the sale of property. As Liona was able to find a ready, willing and able purchaser for the property, she will receive the brokerage commission.
Karen, searching for a new home in Raleigh, has an agreement with Cathy, a licensed North Carolina agent, to show her properties. Cathy shows her four options but Karen is not pleased. Karen is getting impatient and considers approaching other agents. But Cathy insists that Karen stick with her and select one of the four options she has offered. What should Karen do?
She must insist on a written agreement immediately Cathy is trying to insist on an exclusive, restrictive broker relationship with Karen. In such cases, if the oral buyer agency agreement attempts to be exclusive, then the agreement must be in writing from the inception of the restricted relationship.
Buyer Hannah has entered into a buyer agency contract with Allan of Lorenzo Realtors. Hannah and Allan agree to a brokerage compensation of $3,500. Hannah decides to buy a property from the firm. The seller of the property, Tom, offers $,2750 as the compensation fee at the time of closing of the transaction. What should Hannah do? AShe must pay $3,500 as agreed BShe must bargain with the seller to pay the total sum of $3,500 CShe must pay the difference in amount, which is $750
She must pay the difference in amount, which is $750 If the buyer purchases property where the compensation offered to the listing firm by the seller is less than the amount stated in the buyer agency contract, then the buyer is expected to pay the difference between the fee amount stated in the agency contract and the compensation offered.
Property owner Hari has signed a listing contract with broker Gia that mentions the broker will receive 3 percent of the gross sale of the property. Gia finds a buyer that is ready to pay $305,000 for Hari's property. Calculate the commission fee due to Gia and choose the correct amount below: A$9,000 (Dollars) B$9,100 (Dollars) C$9,150 (Dollars)
$9,150 (Dollars) The commission, when calculated as per the listing contract, is $9,150 i.e.- .03 x 305,000 = 9,150.
When did a written agency agreement become effective?
1995—The Commission rule made it mandatory to have written agency agreements in all sales transactions. 2002—The Commission rule required written agency agreements in all real estate transactions. 2011—The General Statute states that no action between broker and broker's client is valid unless the contract is reduced to writing and signed by the party to be charged.
Toby has an oddly shaped plot and wants to sell a part of it. He decides to sell a triangular piece of land that has a height of 10' and a base of 5'. What is the square footage of the plot that Toby wants to sell? A15 sq. ft B20 sq. ft C25 sq. ft D50 sq. ft
25 sq. ft The formula for calculating the area of a triangle is (Height x Base) / 2. Using this formula, we can calculate the area of Toby's triangular plot as follows: (10' x 5') / 2 = 50 sq. ft / 2 = 25 sq. ft
Tamsyn's apartment has three rooms with the following dimensions: bedroom (10' x 12'), bathroom (5' x 7') and living room/kitchenette (12' x 12'). What is the total living area of the apartment? A249 sq. ft B299 sq. ft C305 sq. ft D349 sq. ft
299 sq. ft The formula for the area of a square or rectangle is width x depth. We can calculate the area of each room in Tamsyn's apartment using this formula: Bedroom: 120 sq. ft Bathroom: 35 sq. ft Living room/kitchenette: 144 sq. ft. When we add these the area of the three rooms together, we get 299 sq. ft.
Fenella owns a plot of land that is 1.5 acres. Her neighbor owns a 0.75 acre plot. Louis is interested in buying both plots and combining them. What is the square footage of the land that Louis wants to buy? A96,010 sq. ft B98,010 sq. ft C108,010 sq. ft D198,010 sq. ft
98,010 sq. ft The plots that Louis is interested in buying total 2.25 acres. Using the formula square Feet = number of acres x 43,560, we get 98,010 sq. ft.
A contingent sale provision, on the other hand, conditions the buyer's purchase on the buyer being able to close the sale of property currently owned by the buyer by a specified date.
A contingent sale provision, on the other hand, conditions the buyer's purchase on the buyer being able to close the sale of property currently owned by the buyer by a specified date.
Identify the listing agreement for the following statement: The property owner must pay a commission only to the first broker who finds a buyer. AOpen listing BExclusive agency CExclusive right to sell
An open listing agreement allows for many brokers. So the owner must only pay the first broker who finds a buyer for the property.
An option to terminate provision in a sales contract permits the buyer to terminate the contract by some stated date prior to closing at the option of the buyer.
An option to terminate provision in a sales contract permits the buyer to terminate the contract by some stated date prior to closing at the option of the buyer.
Agent Dan is in the process of collecting all the important documents from the seller. Due to time constraints, the seller states that he is unable to produce the deed to the property. Dan assures him that it's alright and goes ahead with the transaction using the other documents like the survey and his mortgage balance status. Is it safe to proceed in a situation like this? Yes, Dan can take the seller at his word No, Dan must insist that the seller make every effort to locate the document
BNo, Dan must insist that the seller make every effort to locate the document If all the documents cannot be made available by the seller at the agent's initial meeting with the seller, then the agent should advise the seller to make every effort to gather such information by the time the listing agent subsequently has a follow-up meeting with the seller to actually list the property. It is also important that the listing agent obtain a copy of the seller's deed and verify the seller's legal interest.
Buyer Tana, meets agent Clyde to discuss the kinds of property she is looking to buy. Clyde shows her information for twenty three such properties within her budget. They view the properties in the following days. Tana decides to buy one of the properties. Clyde meets with and sends an offer to the seller of that property. A few days later, Tana visits the property again with another agent, Leo. Clyde goes ahead and draws up the sale contract. The seller signs the contract and Tana gets ready to move into her new home! Before closing the transaction, agent Leo puts in a claim for commission. Is Leo justified in claiming a commission on this transaction? AYes, because he contributed to the buyer finally buying the property. BNo, because he was not the procuring cause of the sale.
BNo, because he was not the procuring cause of the sale. The second agent's action was not the predominant reason in bringing about the transaction. So he cannot be called the procuring cause of the sale and hence cannot claim a commission.
Select the entity that benefits from the following: Easier to obtain exclusive listing. ASeller BBuyer CBroker
Broker
Select the entity that benefits from the following: Being able to access available property in a particular market. ASeller BBuyer CBroker
Buyer
Hector Santana, a real estate mogul, wants to purchase commercial property to lease out in Charlotte. He would need a ............ contract with the local real estate broker, in order for the broker to locate the suitable property for him.
Buyer agency
Rachel Brooks is looking to purchase property in the Wrightsville Beach area. She must sign a ............ contract in order for the firm to be able to represent her while locating the right property for her. AProperty management BTenant representation CBuyer agency DListing
Buyer agency
Property owner Mavis has a listing contract with broker Nancy, that mentions that Nancy will receive 3.5 percent of the gross sale of the property. Nancy finds a buyer that is ready to pay $315,000 for Mavis's property. Choose the correct amount that Mavis will have to pay Nancy: A$10,000 (Dollars) B$11,100 (Dollars) C$11,025 (Dollars)
C$11,025 (Dollars) The commission, when calculated as per the listing contract, is $11,025 i.e.- .035 x 315,000 = $11,025.
Select which document must be acquired based on its purpose. The document in which the listing agent can collate all information about the property as well as what buyers typically ask when they're interested in buying property. AWorking with Real Estate Agents Brochure BWell-drafted Listing Contract Form CProperty Data Sheet
CProperty Data Sheet
If the buyer is not able to close the sale of his current property in a timely manner, and does not waive the condition, the buyer is not 'ready and willing' to consummate the purchase. ACorrect BIncorrect
Correct If the buyer is unable to sell his current property and does not waive the condition at the right time, it means that the buyer is not ready and willing to purchase the new property.
If a buyer has sufficient funds to make the prescribed down payment and pay the closing expenses for a new property, having obtained a loan approval for a mortgage loan in an amount sufficient to pay the balance of the purchase price, the buyer is said to be financially able to complete the transaction. ACorrect BIncorrect
Correct It is not necessary for the buyer to have cash in hand to complete the purchase. It is sufficient that the buyer can definitely produce the necessary funds at the scheduled closing.
dentify the safe harbor practices: AProperly maintain a company do not call list for those who request not to be called BCheck the national Do Not Call Registry at least once every 31 days. CMaintain complete records, especially for any unpermitted calls inadvertently made DAll of the above
DAll of the above
Does this statement apply to independent contractors or employees? The company is responsible to withhold income tax. AIndependent contractor BEmployee
Employee
Does this statement apply to independent contractors or employees? The company pays the individual a salary. AIndependent contractor BEmployee
Employee
Identify the listing agreement for the following statement: The principal signs a listing agreement with a broker but completes a real estate transaction through their own efforts and so has no liability to pay any brokerage fee to the broker. AOpen listing BExclusive agency CExclusive right to sell
Exclusive agency An exclusive agency listing contract allows the owner to personally sell the property without being obligated to the broker/firm for a brokerage fee.
Identify the listing agreement for the following statement: The owner sells the property through the owner's own efforts during the term of the contract but the owner still has to pay a commission to the broker who has been given the exclusive right to sell. AOpen listing BExclusive agency CExclusive right to sell
Exclusive right to sell An exclusive right to sell implies that the owner must pay the agent who has been given that exclusive right, even if it is the owner who has found the buyer for the property.
Which of these duties are expected of a listing broker? A limited service listing broker who receives any trust monies must handle and account for the funds as required by the License Law and Commission rules. AExpected BNot expected
Expected
Which of these duties are expected of a listing broker? All listing brokers must act competently and provide accurate information in the MLS listing. AExpected BNot expected
Expected
Which of these duties are expected of a listing broker? Listing brokers must obey the Residential Property Disclosure Act while fulfilling their duties. AExpected BNot expected
Expected
An agent is entitled to receive a fee when the agent has performed the services required under the terms of the agency agreement with the principal. In the context of a listing agreement, to earn the fee a listing broker must:
Have a current North Carolina real estate license on active status Have a valid written listing contract with the seller-principal Procure a purchaser who is 'ready, willing and able' to buy the listed property on the terms stipulated in the listing contract, unless the listing contract provides for a different standard
Listing broker Fred, has listed a property on the MLS. Within a few hours, there is an interest from a buyer's agent. The agent says he wants to show the listed property to his client the same day. But Fred is not keen on cooperating with the buyer's agent as he is expecting a higher commission, and does not want to split the fee. What should Fred have done at the time of listing the property? AHe should not have listed the property at all. BHe should have mentioned at the time of listing that he would not be cooperating with other firms.
He should have mentioned at the time of listing that he would not be cooperating with other firms. The rules of NAR require that MLS member firms cooperate with other member firms who are acting as seller subagents and buyer agents unless the seller specifically instructs the listing firm to not cooperate with other firms. In this case, the listing brokers should have indicated at the time of placing the listing in the MLS, his intention not to cooperate with other member firms.
An unsolicited advertisement is any material advertising the commercial availability or quality of any property which is transmitted to any person without that person's prior express permission or invitation. ATrue BFalse
True
Under a typical listing agreement, the broker (or firm) becomes entitled to a brokerage fee when the broker procures a prospective purchaser who is ready, willing and able to purchase on the terms stipulated in the listing contract or upon other terms that the owner may accept.
Under a typical listing agreement, the broker (or firm) becomes entitled to a brokerage fee when the broker procures a prospective purchaser who is ready, willing and able to purchase on the terms stipulated in the listing contract or upon other terms that the owner may accept.
Under established contract law governing real estate listing contracts, it is usually not essential that the seller accept the buyer's offer or actually enter into a contract of sale, or that the sale closes. The broker's entitlement to compensation also is not affected because the seller voluntarily fails to comply with an agreement to sell or is unable to convey a good title.
Under established contract law governing real estate listing contracts, it is usually not essential that the seller accept the buyer's offer or actually enter into a contract of sale, or that the sale closes. The broker's entitlement to compensation also is not affected because the seller voluntarily fails to comply with an agreement to sell or is unable to convey a good title.
Select which document must be acquired based on its purpose. The document that real estate firms must prepare to promote a good working relation with their seller-clients, using the North Carolina Association of REALTORS® Standard Form 101 as a best practice. AWorking with Real Estate Agents Brochure BWell-drafted Listing Contract Form CProperty Data Sheet
Well-drafted Listing Contract Form
Select which document must be acquired based on its purpose. The document which the seller will need to understand the types of agency relationships and the services that real estate professionals provide. AWorking with Real Estate Agents Brochure BWell-drafted Listing Contract Form CProperty Data Sheet
Working with Real Estate Agents Brochure
Broker Sarah, employed by Sunshine Real Estate and broker Shawn from Nehme Brokerage are unhappy that broker Navin has been closing more property deals than both of them together. They have decided to stop showing Navin's properties to their clients. Have Sarah and Shawn violated any laws? AYes BNo
Yes By refusing to show their clients, broker Navin's properties, Sarah and Shawn are violating antitrust laws and boycotting Navin's chances at equal opportunity.
Buyer Charity's agent, Liza has helped her locate a sprawling property in Asheville. They have spoken with seller James on several occasions and are in the process of drawing up a sales contract. Till they receive a call from James saying that he does not wish to sell the property. Charity is disheartened and so is Liza. Liza knows that after all the efforts put in, she may lose out on her commission. Is James justified in his action? AYes BNo
Yes Unfortunately for Liza, the seller is permitted to do so. If the seller improperly backs out of the sales contract, through no fault of the buyer or buyer's agent, the agent would legally be entitled to compensation, but cannot sue the seller.
Seller Vijay has his home listed with Star Realtors for a period of three months. In the contract, Jane ensures that Vijay is aware of the protection period provision for fifteen days after the listing has expired. During the period of the listing, broker Jane brings in ten prospective buyers to see the property. She notifies Vijay of their names too. Then a week after the listing expires, one of the buyers makes an offer directly to Vijay. Hoping to get out of paying Jane a commission, Vijay draws up the sale for the property. Can Jane take any action against Vijay? AYes BNo
Yes Yes, Jane can definitely take action against Vijay. The protection clause requires the seller to pay a commission if the broker has produced a purchaser who viewed the property during the listing period, who subsequently purchases the property within a specified period-the protection period-after the listing expires.
Broker Jenny has the exclusive right to advertise and sell the property of Katie who owns Jupiter Realtors. Seeing that Jenny is unable to find a buyer for one of the properties, Katie enlists the help of Jack. Jack sells the property within no time. Does Jenny still have the right to claim a brokerage fee? Yes No
Yes Because Jenny had signed an exclusive agency listing agreement with Katie and Katie hired Jack who was able to sell the property, Jenny has the right to claim a brokerage fee as Katie has breached her agency contract with Jenny.
Broker Jenny, has an exclusive listing agreement with Hahn Brokerage, property owners who have listed several properties with Jenny. If Gordon Hahn were to sell one of the listed properties, would Jenny be able to claim a brokerage commission? Yes No
Yes With regards to an exclusive right to sell listing agreement, the broker who has the exclusive right to sell is entitled to compensation no matter who sells the property.
Broker Pete has a prospective client, Buyer Gary who is searching for the ideal property in Wilmington. Pete receives several leads from other brokers in the form of flyers and forwarded emails. Can Pete send these leads to Gary, without fear of being fined? Yes, because Gary is a prospective client No, because Gary did not consent to receiving property related emails
Yes, because Gary is a prospective client Pete does not have to fear being fined as he is emailing Gary during the course of a real estate transaction. This is not considered a spam email and should not be a problem.
Connie and Rachel are best friends. Connie has good relations with broker Tammy, who works at a listing firm. Rachel however has listed her property for sale with another realtor, Kevin Shand. Connie plans an outing with Tammy and Rachel, where Tammy tries to convince Rachel to give her the listing rights, promising that she will sell the property within 15 days. Would this behavior constitute an act of solicitation? AYes, because it is an ethical and potential legal violation. BNo, the listing agent was just trying to be helpful.
Yes, because it is an ethical and potential legal violation. In keeping with the NAR Code of Ethics, broker's can't contact a client via mail, e-mail, phone or in person about changing their property listing from one broker or firm to another while there is an active listing contract.
Broker Jewel has listed first-time seller Andrew's property on her firm's MLS for $210,000. Unaware of how the system works, Andrew agrees to a net fee of $3500 as commission to Jewel. However, Jewel decides to negotiate the sale price to $215,000, thus earning her a higher commission of $8500. When Andrew finds out about this, he threatens to take legal action against Jewel and the firm. Will Andrew be justified if he does? AYes, he can safely pursue legal action and complain to the Real Estate Commission as well BNo, he cannot pursue any legal action as he is the one who agreed to the net commission in the first place.
Yes, he can safely pursue legal action and complain to the Real Estate Commission as well If the seller realizes that the broker has acquired a net listing fee which is substantially higher than the fee they agreed to or even one that is higher than what the broker would have earned under a common commission arrangement, then the seller may complain to the Real Estate Commission and may pursue legal action against the broker.
Seller Zain has a listing agreement with Knightly Real Estate. In a tragic turn of events, 3 units of his townhouse complex gets burned down during 4th of July celebrations. Can Zain terminate his listing contract? AYes, he can terminate the contract for the properties that were burned BNo, he cannot terminate the contract
Yes, he can terminate the contract for the properties that were burned The listing contract can be terminated only if the listed property is totally destroyed. In this case, he can terminate the contract for the properties that were burned and make a new contract for the units that are still available.
Agent Jackie is inspecting seller Vanya's house along with her. Jackie notices that the house is full of fixtures on the walls including state-of-the-art lighting appliances. She pulls out a pen and paper and starts to make a note of all the fixtures she has noticed. Is this a necessary task while listing a property? Yes, it is very important to establish what fixtures will remain and which ones will not No, it's a waste of time at this stage of the listing process
Yes, it is very important to establish what fixtures will remain and which ones will not It is extremely important to make a list and include in the listing contract and property data sheet all items of personal property that the seller wants to sell or keep with the real estate. These matters will need to be addressed in any sales contract too. Identifying these issues initially will avoid confusion and problems later.
Broker Wayne is having trouble with his email. He is unable to inform his prospective buyer client, Yash, about the properties that he would like to show him. Can Wayne send the details to Yash by fax? AYes, once he calls Yash and confirms it's ok to do so. BNo, he runs the risk of having to pay a fine, if he does.
Yes, once he calls Yash and confirms it's ok to do so. Brokers must have the client's permission to send them faxes. Once the client confirms it is ok, the broker may send the fax across.
Buyer George signs an exclusive buyer's agent agreement with broker Giselle to locate a 5 bedroom home. Giselle informs him about the details of their contract, her broker compensation for her services and how it will be paid. Giselle shows him four homes within his budget and he decides to make an offer on the fourth home. After preparing a competitive market analysis, Giselle and George agree upon an offer of $450,000. The selling agent presents the offer to the seller and they quickly agree to accept. Then the property enters into the escrow process. There are no problems until George calls Giselle and says he cannot qualify for the mortgage he needs. The loan officer says George can only qualify for a mortgage of half the amount. The home sale that was pending returns to the market. How could Giselle have helped be better prepared for the purchase of a new home? AHelped George to pre-qualify for a mortgage earl
Helped George to pre-qualify for a mortgage early in the process The agent should have referred George to a loan officer before showing him any properties. George would have then been looking for properties in a price range with mortgage amounts he could afford and qualify for.
Point to remember
If the licenses of the firm and the individual broker were on active status throughout the period during which brokerage services were rendered, then the firm may be paid and the firm may in turn pay the individual broker, even if their license is not active at the time of payment. Payment is forfeited if either of the licenses were not active at any time that services were being performed.
Does this statement apply to independent contractors or employees? The company pays the individual commission only. AIndependent contractor BEmployee
Independent contractor
Does this statement apply to independent contractors or employees? The individual is responsible for paying income tax. AIndependent contractor BEmployee
Independent contractor
Luke is hoping to sell his ancestral property. He decides to enlist the help of Jaden, a listing agent. While informing Luke about the details of the listing contract, Jaden realizes that Lena, Luke's sister, is also named as a property owner. Luke tells Jaden that his sister is out of the country and will be unable to sign any documents. What should Jaden do? AInform Luke that it will not be possible to proceed without Lena's signature BProceed with the other details of the listing contract
Inform Luke that it will not be possible to proceed without Lena's signature It is essential that the names and signatures of all property owners be included on the listing contract. A common broker error is to fail to name all of the owners of the property in the listing contract and to obtain all of their signatures on the listin
Listing agent Kiran has signed a limited service listing contract with seller Tess. In the process of the transaction, Kiran is requested to become the buyer agent as well. What must Kiran do? AContinue as Tess's agent, without mentioning his new role BInform Tess that he is required to become the buyer's agent as well
Inform Tess that he is required to become the buyer's agent as well It is the listing agent's duty to avoid any undisclosed conflict of interest. So even a limited service listing broker must comply with agency disclosure requirements and obtain the seller's express written consent to represent a buyer interested in the seller's property.
Newly licensed listing agent Warren is meeting with seller Greg to decide upon a listing price. Warren has Done his research and evaluated current market conditions. He has a Comparative Market Analysis to support the price he has in mind. He meets Greg who tells him that he would like to sell the property as soon as possible. Hoping to make his first commission, Warren agrees that it's a good idea. What should Warren have done? Asked about his Greg's employment status Inquired about the reason behind the hurry to the sell the property Proceeded as if nothing had happened
Inquired about the reason behind the hurry to the sell the property While arriving at an appropriate listing price, the agent must consider the probable selling price of the property, the current market conditions etc. He must also take into consideration the seller's personal circumstances, such as job transfer or loss, marital separation, family member illness, etc. as they are a significant factor in determining the correct listing price.
Nicholas East, has employed HC Weiss and Associates to find a buyer for his apartment complex. He must ensure he signs a ............ contract with the firm.
Listing
Seller Uri is selling his house through Mary, a newly licensed listing agent. While completing the listing contract, both individuals forget to mention that Uri will not remove the invisible fencing that surrounds the perimeter of the backyard. After showing the property to three prospective buyers, Mary realizes that the cost of the fencing is raising the overheads of mainiating the property. What should Mary have done? AMary should have checked the fixtures list thoroughly before listing the property. BMary should have told Uri to remove the invisible fencing before he sold the house.
Mary should have checked the fixtures list thoroughly before listing the property. To avoid any misunderstandings about this matter, it is very important for the listing contract to be clear about which items are fixtures and will transfer with the real property and which items are personal property that will be retained by the seller unless specifically purchased by the buyer.
Carla, a newly licensed agent, has signed an open listing agreement with Mark Rune of Citadel Realty. Mark has also signed listing contracts with agents Diane and Theo. While all three agents were trying to convince their clients about one of Mark's properties, Mark himself was able to find a client who was ready, willing and able to purchase it. Who can claim a brokerage fee in this situation? Carla Diane Theo No one
No one If the owner of the property personally sells it to a purchaser who has not been produced by any of the employed brokers, the owner is under no obligation to pay a commission to anyone.
Consider that Carla, the agent we met in the previous question, had signed an exclusive agency contract with Mark. If Mark sells his own property to a client without any interaction from Carla, who do you think should be paid the brokerage fee? ACarla BNo one
No one Even though Carla has an exclusive agency contract with Mark, since Mark has completed the transaction through his own efforts, he is not liable to pay Carla any brokerage fee.
Rob, a licensed real estate broker, has verbally agreed to find suitable tenants for, as well as maintain the property on behalf of Pat of Piazza Homes & Condominiums. Pat hands over the keys of the property to Rob. Does Rob have all he needs to start looking for tenants?
No, he must first put down the agreement in writing Rob must make sure that Pat signs a property management contract before he starts any transaction for Pat's property.
Which of these duties are expected of a listing broker? A listing broker who has signed a contract to place advertisements for the property in the LMS must be responsible for all advertising of the property. AExpected BNot expected
Not expected
Mrs. Brown's property on Sunset Drive has been on the market for more than thirteen months and she's in a hurry to sell it. In order to close the deal, brokers Sarah and Shawn agree to work together and settle at a commission of four percent with Mrs. Brown. What would the brokers be guilty of? ABoycotting BPrice fixing
Price fixing Agreeing on setting brokerage fees amounts to price fixing in the real estate industry and could mean civil or criminal penalties for the brokers involved.
Jeremiah Dell, the owner of NC Residences must use a ............ contract to enlist the services of a broker or firm to find suitable tenants and manage the ongoing services at his property. AProperty management BTenant representation CBuyer agency DListing
Property management
What exactly does the phrase 'ready, willing and able' mean?
Ready: indicates that the prospective buyer desires to purchase the property Willing: means that the buyer is agreeable to enter into an enforceable contract to purchase the property involved Able: tells us that the buyer has the financial and legal capacity to buy on the terms specified by the owner-principal within the time required
Seller Olly has listed his property for sale with listing firm, Express Realty for a period of eight months. As the period comes to an end, there are more credible and keen inquiries about the property. What would you recommend Olly do? ARenew the listing and let the agents take care of finding a suitable buyer BPut his property on for sale by owner and handle the inquiries himself
Renew the listing and let the agents take care of finding a suitable buyer If the listing period expires without the broker producing a ready, willing and able buyer, the listing agent must enter into a new listing agreement in order to resume marketing a property.
Buyer Kian and broker Sue agree to a nonrefundable amount of $300, that Kian pays Sue upon entering into a written buyer agency contract. Identify what kind of fee this is. ATrading commission BSuccess fee CRetainer fee
Retainer fee As per the Exclusive Buyer Agency Agreement, the buyer and broker can agree to a nonrefundable retainer fee of a specified amount, paid by the buyer upon entering into the oral or written buyer agency contract.
Select the entity that benefits from the following: Property is available to more than one real estate firm. ASeller BBuyer CBroker
Seller
The Meaning of 'Ready, Willing and Able'
The purchaser generally indicates that they are 'ready and willing' by submitting a valid offer to purchase. If a buyer legally withdraws from a transaction in accordance with the contract's provisions, the buyer was not 'ready and willing' to proceed with the purchase, and the listing broker did not satisfy the 'ready, willing and able' standard.
Buyer Mark is eager to purchase a new home before he gets married in eight months. His friend, Ryan, recommends that Mark register with the local listing firm to help him. Within a week's time, the listing agent has shown Mark six properties. He is also planning to make an offer on one of them. What do you think was the reason for this quick result? AThe use of the MLS BQuick thinking on Ryan's part
The use of the MLS The MLS proves to be an advantage to buyers because they are able to see much of the available property in the market in a particular locality by dealing with only one broker without the necessity of explaining needs and desires over and over again to brokers with different firms.
Lata, a real estate broker, has shown Isabella, her client, a property that she is interested in purchasing. Isabella then goes on to view other properties with Lata but they don't seem to meet her requirements. As their contract draws to a close, Lata ends her relationship as Isabella's agent. Isabella then signs a buyer representation agreement with Tim, Lata's colleague at the same firm. Tim takes Isabella to see the same property, and this time, Isabella does an in-depth study of the property, reviewing the changes she would like to make to it before she moves in. Tim assists her in this process, even writing an offer letter to the property owner and drawing up a contract for the same. Six months after first seeing the property, Isabella moves into her new home. Which broker would you say is the procuring cause of the sale?
Tim Tim helped Isabella in actually completing the sale of the property. Hence , he is the procuring cause of the sale.
In a Buyer Agency contract, the non-discrimination provision must be included in the 'fine print'. ATrue BFalse
false
Your friend, buyer Mia has seen a property that she likes and wants you to accompany her to see it. You agree and meet her at the property the next day, ending the meeting by promising Mia you will send an offer letter to the owner of the property. As a listing agent, have you done the right thing? AYes BNo
no If you don't have an oral agreement or a written buyer's agency contract, you need to explain the contract and buyer process to Mia first, and how you will represent her in the transaction before showing any property. Before making any offer, you must have a buyer's agency agreement.
Broker Jack has a signed contract as buyer Troy's agent. While viewing the seller's property, Jack exaggerates the need for Troy to move out of his current home, adding that Troy was very impressed with the pictures of this property as soon as Jack showed them to him. Jack even goes so far as to say that Troy is looking forward to living in the same neighborhood. Would you call Jack a good agent? AYes BNo
no The broker must avoid engaging in acts on behalf of the seller or acting as an undisclosed dual agent of the seller and the buyer.
A buyer may reject a firm acting as dual agent in the written contract, even if they have previously agreed verbally. ATrue BFalse
true
A buyer's special conditions of purchase should be included in the Buyer Agency Contract. ATrue BFalse
true
A real estate agent generally is prohibited from cold calling a homeowner to solicit the homeowner's business when the homeowner's telephone number appears on the national Do Not Call registry. AYes BNo
yes
Broker Tanner has signed an exclusive agency agreement with buyer Tom. Tanner becomes aware of certain loan approval issues that Tom is facing. He explains in simple terms how to go about applying for the mortgage and puts in a word to the mortgage agent as well. The mortgage is approved and Tanner finds Tom the ideal property within his budget. Did Tanner do the right thing?
yes Because a buyer's agent has a fiduciary agency relationship with his buyer-principal, the buyer's agent's obligations to the buyer are considerably greater than the obligations of a seller's agent to a buyer.
With experience on her side, Carla decides it's best to sign an exclusive right to sell listing agreement with Mark. If Mark were to sell his own property by his own efforts, would Carla be in a position to claim a brokerage fee? AYes BNo
yes Mark still has to pay Carla a commission as she has been given the exclusive right to sell. However, Carla's agreement is restricted to the power to find a buyer for Mark's property. Carla cannot sign a sales contract on behalf of Mark.
What are the requirements prescribed by the Real Estate Commission that must be included in the contract with respect to any kind of non-discrimination? AThe broker must conduct all brokerage activities irrespective of the nationality of the prospective party BThe broker must conduct all brokerage activities with a non-biased attitude CThe broker must conduct all brokerage activities with citizens of North Carolina exclusively DThe broker must conduct all brokerage activities without respect to the race, color, religion, sex, national origin, handicap or familial status of any party or prospective party
The broker must conduct all brokerage activities without respect to the race, color, religion, sex, national origin, handicap or familial status of any party or prospective party The real estate contract between the broker and the interested party must contain the provision which states that the broker shall conduct all brokerage activities in regard to this agreement without respect to the race, color, religion, sex, national origin, handicap or familial status of any party or prospective party.