Real Estate 3

An owner decides to sell his property and signs several different listings with several different brokers, allowing each broker an opportunity to sell the property to sell the property and earn commission. Which of the following statements would be true in this situation?

The owner can procure a buyer and pay no one.

Regarding personal income taxes, less income taxes are due when a person:

itemizes expenses such as mortage interest on a primary residence

What would be deductible on an individual's personal tax return?

mortgage interest

A buyer and seller entered into a contract for the sale of a house. The buyer applied for and was approved for a loan. At the last minute the seller backed out of the sale. Is the broker due a commission?

Yes, because the buyer was able to perform all of the requirements in the contract

A broker had a listing with a seller that expired on July 5th. The broker brought a buyer to the property on July 8th. If a deal was consummated, how much commission would the broker be legally entitled to?

Zero, as the buyer was procured after the listing expired.

A buyer purchased a property for $70,000 adding improvements of $30,000. If the buyer then sold the property for $150,000, the $50,000 would be considered:

a capital gain

A listing agreement is BEST thought of as a legal:

agency agreement

Real estate sales contracts must be in writing to be enforceable under which body of law?

Statute of frauds

A seller signed a listing agreement with a real estate brokerage company. Prior to the expiration of the listing agreement, the seller decided to cancel the listing. Which of the following statements would be true?

The seller might be liable for damages to the broker

Bankruptcy would cancel a listing after:

discharge by the court

A broker is trying to sell an owner's house under an exclusive agency listing. The entire block where the house is located is condemned under the right of eminent domain. What is now true of the broker's agency relationship with the owner?

it is terminated

If an improvement on a property was destroyed by a fire, what happens to the existing agency agreement?

it would be automatically terminated

A seller listed a property with a broker whereby the broker was to receive as commission any money realized over 94% of the list price. This would be a(n):

net listing

A real estate sales contract becomes binding when:

the buyer receives notification of the seller's acceptance.

An exclusive agency agreement is best defined as where:

the seller can sell the property and not pay a commission