Chapter 8 - Agency Contracts (sales) and Related Practices (Quiz)
What does an agent need to do before hosting an open house
-Discuss having an open house with the homeowner -place announcements in open houses online and in local papers -put a sign up sheet and business cards out
which of the following platforms are used for internet marketing ?
-facebook -twitter -google
Because a salesperson is an independent contractor, the broker is prohibited from which of the following?
-setting work hours -setting location of work -controlling the activities of the salesperson
if the sellers broker and the buyers broker agreed to split a commission 50/50 how much would each broker earn if the final sales price was 360,000 with a commission rate of 6%
10,800
If the sellers broker received a commission of 10,800 what I the sales price if a 6% commission rate was paid?
180,000
A property recently sold for 480,000 what is the commission owed if the seller agreed to a 4% commission rate?
19,200
One of your clients is considering buying a 1,500 square foot home the asking price is 300,000 base don this what is the homes cost per square foot ?
200
Terry has just sold a $900,000 home for clients. The listing agreement stated that Terry would receive a 6% commission. Terry agreed to do a 50/50 split with the buyer's broker. What is the final broker's commission that Terry will receive after the split with the buyer's broker?
27,000
If a real estate salesperson and their sponsoring broker agreed to a 40/60 (60% going to broker)split how much would the sales person earn if their broker received commission of 11,600
4,640
What is the area of a garage that measures 20 by 20
400 square feet
Your seller is listing their home for 300,000. They have a mortgage payoff of 204,000 and an additional home equity loan payoff of 16,000. The combined commission for you and the buyers agent will be 6%: 3% for you and 3% for the buyers agent. The additional closing costs, including taxes, will total 5,400. How much will the sellers net profit be?
56,000
A sales person and their sponsoring broker agree to a 50/50 commission split. if a property sells for 520,000 with a 6% commission, how much will the salesperson earn on the deal if their broker also splits the commission with the buyers broker 50/50 ?
7,800
What items should you include in your pre listing meeting with the seller ?
A comparative market analysis , listing contract and disclosure forms
Serving tasty snacks at an open house is...?
A great idea
Which of these is not a true statement regarding a profit and loss sheet that projects a loss to the seller?
A negative number on the profit and loss sheet means the seller is engaging in a short sale
What type of clause is required I agency contracts?
A non discriminatory clause
To be enforceable, the buyer agency contract must be in writing with one exception, what Is that?
A temporary, nonexclusive oral buyer agency agreement with no specific time frame
Currently you are working on two very different listings. One is a $3.4 million mansion. The other is a studio apartment condo that is real fixer-upper, listed for $175,000. How should your marketing approach differ for each property?
AFor the mansion, it is a good idea to hire a professional photographer, and perhaps have the home staged. It will be a big investment, but it will pay off when you receive the commission for selling the house. The studio won't photograph well, so pictures you take yourself will suffice. It's more important that you explain in words the potential of the property and what a bargain it is.
Simon Levine is a real estate agent representing Paula Schaefer (seller), in a listing agreement. Paula wants to ask $300,000 for her home, which is only valued at $200,000. What is Simon's best course of action in advising Paula of a reasonable sales price?
Advise paula that the property isn't likely to sell if over priced, but include the price agreed on in the listing agreement
Which of the following faxes falls under the "no junk fax" rule?
An advertisement for the latest "hot deals" sent to your current contact list
Where should a pre listing meeting occur?
At the property that being listed
Which statement about the termination of an independent contractor agreement is true?
Both the broker and the salesperson may terminate the agreements at anytime
Limited service and full service agreements have one duty in common. what is it?
Brokers must negotiate a fee
Which of the following are part of a listing contract ?
Duration of the listing contract, sales price and commission
When it coms to working with a professional email marketing company, which of the following statements is true?
If a company you hire violates CAN-SPAM rules, both you and the marketing company can receive penalties
Which of the following platforms is considered the most visual when marketing a property?
What is the purpose of an independent contractor agreement?
It lays out the expectations between an independent contractor and the person they are providing their services to
What is the importance of providing a working with real estate agents brochure when interacting with a potential buyer?
It outlines how buying a house works, as well as agent and buyer roles
Which statement is true about facebook ads?
Its a great way for small businesses to create ads and listings that you can tailor to reach specific target audience
Real estate salesperson Lindsay has held an open house for a listing she recently received from 8-10pm on a Wednesday evening, serving wine and cheese. The neighborhood is made up almost entirely of young families and is in a great school district, so she's really marketed to that demographic, placing ads for the open house in local parenting newsletters and blogs. Her open house not only didn't get an offer, the turnout was low. Lindsay's Which statement is NOT true?
Lindsay should completely change her target audience and start marketing the house to retirees and stop marketing to young families.
Which of the following platforms has typically been the most effective way to share information regarding a proeprty?
MLS (multiple listing service)
Marie Sanchez is a real estate agent. Her neighbor, Ayako Aki, asks Marie to put her house on the market. Marie prepares the listing agreement, but she cannot sign it. Who is the legal owner of the relationship with the seller (and must sign the contract)?
Maries Broker
Most buyer leads are typically discovered through the?
Multiple Listing Service
You are listing a single family residence for 350,000 and you have negotiated your commission as 6% what should you multiply the sales price by to determine your commission, and what will your commission be?
Multiply that sales price of 350,000 by .06 your commission will be 21,000
Are verbal listing contracts legally binding?
No, listing contracts must be written to be valid.
Which of the following is not an effective way to avoid violating the CAN-SPAM act?
Only sending emails to one person at a time
Out of these options, which is the BEST choice to directly reach people who are searching for real estate over the internet?
Place listings on real estate blogs, like zillow and trulia
Which of the following expenses should you include when you're calculating the net to seller amount using a net profit form?
Recording fees, escrow handling fees, title and transfer fees, repair costs, environmental reports, and the mortgage payoff amount
Which of the following would be recorded as a credit rather than a debit on the sellers profit and loss statement?
Sales price of the home
What is one primary advantage of the MLS ?
Sellers have the advantage of having their property accessible to all members of the local board of realtors
What are three agreements that brokers and agencies in the local area agree upon for the MLS
Share information about listed properties, cooperate in the sale of properties in the MLS and share commissions that they earn on sales
Which of the following should you always avoid doing when it comes time to putting the commission for you and your brokerage in the listing contract ?
Telling the seller that your brokerage has a "customary rate" or usual commission rate
What makes a non exclusive buyers agreement different ?
The buyer can work with multiple real estate professionals
How are the listing agent fees shared with the broker?
The listing agent fees go to the in-house sale, the co brokered sale, and the co brokerage with a broker licensed in another state, if applicable
Which of the following are you not required to include in a written buyer agency contract ?
The price range and any special requirements the buyer might have
Which of the following is not a feature of an exclusive agency contract
The seller cannot be a real estate agent
When a sales person participates in a successful real estate transaction who pays them?
Their sponsoring broker
When a broker has a salesperson working as an independent contractor which of the following is NOT true?
They must withhold taxes from their pay
When listing a sellers property for sale, which of these is not one of the reasons the listing agent should complete a profit and loss statement for the seller?
To show the seller exactly how much they will receive at closing
An open listing is a non-exclusive, unilateral real estate contract. This means that more than one broker may be employed to sell a single property, and the owners may act on their own behalf, is this statement true or false?
True
What is one of the best ways to determine the mortgage payoff amount for the sellers net profit calculations
Use a current mortgage statement from the sellers mortgage provider
if a prospective buyer declines to agree to an oral or written buyers agency agreement what role if any can you play in a transaction ?
Work as the sellers agent or as a subagent
Can a listing agent also be the buyers agent and collect a commission on both?
Yes, a listing agent can also be the buyers agent and collect a commission on both, if you have an active license in good standing, have a valid listing contract and have an able buyer
Can a real estate professional represent a buyer under an oral agreements?
Yes, but only until the buyer wants to make an offer on a property
Donna Frank decides to sell her home using an open listing, which she sends to dozens of brokers in the area. It takes a few months, but since the market is hot and the home is relatively new, with many improvements that increase the value, she eventually is contacted by a Broker Mike Donovan with a willing and able buyer. During the walk-through, the buyer gives Donna his business card, and contacts Donna. They agree on a sales price and decided to circumvent the broker who facilitated the sale. Is Donna liable for commission owed to Mike?
Yes, since mike found the buyer, he is due a commission
If you talk with a client about breaking an exclusive listing agreement with an active, current exclusive contract with another firm and broker, which of the following is the primary potential consequence?
You could be accused of "tortious interference with contractual relations, and you and your firm could be sued by the other firm and broker
What is the stipulation for making a legal payment to an expired or inactive broker?
You must have an active license when any broker activity is performed. One your license has expired or becomes inactive, you can no longer legally collect any form of payment.
What time frame should you put on a full service listing contract?
Your firm probably have standard time frames, but if you need to choose your own, it should be specified and limited
Joe is a salesperson working under his sponsoring broker, clara. which form of payment does the IRS allow clara make ?
a percentage of commission received from successfully transactions which joe has worked
What is the potential penalty for violating the CAN-SPAM act?
up to 43,280 for each email sent
if you send someone an unsolicited fax, how much can they sue your for ?
up to 500 or 1500 if it was willful