REAE 3325 Ch.12 Questions and Answers 100% Correct
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Course
REAE 3325
Institution
REAE 3325
REAE 3325 Ch.12 Questions and Answers 100% CorrectvREAE 3325 Ch.12 Questions and Answers 100% CorrectREAE 3325 Ch.12 Questions and Answers 100% Correct
The importance of brokers in the real estate market is often overlooked. In the absence of a real estate broker, one would expect all of the follo...
REAE 3325 Ch.12 Questions and
Answers 100% Correct
The importance of brokers in the real estate market is often overlooked. In the absence
of a real estate broker, one would expect all of the following to be true EXCEPT: -
ANSWER-The asking price would most likely be higher, on average, than in the case
where a broker was involved because the seller is in total control of the sale
Real estate brokers operate under the law of agency, which gives a broker the right to
act for a principal in trying to buy or sell a property. In the basic principal-agent
relationship of real estate brokerage, real estate brokers act in the capacity of a: -
ANSWER-Special agent
In determining the appropriate listing contract to be used, it is important to know
whether a multiple listing service (MLS) will be employed. The MLS only accepts which
of the following types of listing contracts? - ANSWER-Exclusive right of sale listing
Jim has hired a real estate broker to help facilitate the sale of his home. If the broker
requires a commission of 6%, how much will Jim clear from the sale (after the
commission has been paid) if he is able to sell his house for $478,723 (Assume that Jim
has already paid off his mortgage)? - ANSWER-$450,000
There are a number of different types of listing contracts that can be used when
marketing a property. Which of the following types of listings requires the broker to be
paid a commission if anyone, other than the owner, sells the property during the
contract period? - ANSWER-Exclusive agency listing
Christopher has hired a real estate broker to help facilitate the sale of his home.
Realizing that Christopher is most likely going to realize a loss on his investment due to
the recent decline in housing values in his neighborhood, the broker has agreed to
charge Christopher a lower commission rate as long as Christopher enters into an
exclusive right of sale listing contract. If Christopher ends up selling his house for
$364,583 and takes home $350,000 after paying the real estate broker's commission,
what was the commission rate that the broker ended up charging? - ANSWER-4.0%
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