Listing Agreements
Your seller client asked about the tax ramifications of selling his townhome. What's your best response? "Let me check with my accountant and get back to you." "That's not my area of expertise. You should ask your tax advisor." "There is no tax on the sale of a personal residence." "Your capital gains exclusion should take care of any tax issues."
"That's not my area of expertise. You should ask your tax advisor."
Listing agents have the responsibility to receive, care for, and ____________ for all money received on the client's behalf. Account Compensate Disclose Negotiate
Account
An exclusive right-to-sell agreement must include ______. A protection clause A start and end date for the listing period The name of the attorney who drafted the agreement The seller's requested closing date
A start and end date for the listing period
When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign? Exclusive agency Exclusive right to collect commission Exclusive right to sell Net listing
Exclusive right to sell
Paulo signed an open listing agreement with Debbie, his real estate agent. Which of the following statements is true? Debbie will receive her commission regardless of who brings the buyer to the property. If Paulo finds a buyer on his own, he doesn't owe anyone a commission. Paulo may not have more than one open listing Paulo won't owe a commission if he finds the buyer, but the buyer will have to pay the commission.
If Paulo finds a buyer on his own, he doesn't owe anyone a commission.
Which of the following scenarios best describes a net listing? Carmel is selling her condo for $280,000 and is offering 6% commission to the listing broker. Jason is listing his duplex for $400,000 but reserves the right to find his own buyer and not have to pay a listing commission. Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount. Ralph is selling his townhome for $225,000 and is paying a brokerage fee of $25,000.
Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount.
Which of the following is one of a listing agent's duties? Disclose material facts to the seller alone. Guarantee a sale to the seller. Maintain seller confidentiality. Negotiate on behalf of all buyers.
Maintain seller confidentiality.
Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers? Broadcast clause Marketing clause Multiple listing clause Provisionary clause
Multiple listing clause
Which of the following is NOT a valid way to terminate a listing agreement? Expiration Mutual agreement The buyer requests it The property sells and closes
The buyer requests it
Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission? The listing agent stops working on the listing. The seller decides to sell the property without an agent. The seller has a change of heart. The seller locates a buyer.
The listing agent stops working on the listing.
Why are net listings illegal in some states? The commission can't be split. The commission is confidential. There's potential for a conflict of interest. They can't be guaranteed.
There's potential for a conflict of interest.
Can listing agreements be terminated without penalty? Only by the seller Only when they expire Yes, at any time since they're not binding Yes, if both the listing broker and the seller's agree in writing
Yes, if both the listing broker and the seller's agree in writing