listings; PURCHASE/SALES AGREEMENTS EXAM QUESTIONS WITH ANSWERS
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Module
Listings; PURCHASE/SALES AGREEMENTS
Institution
Listings; PURCHASE/SALES AGREEMENTS
listings; PURCHASE/SALES AGREEMENTS EXAM QUESTIONS WITH ANSWERS
A salesperson newly licensed in this state, takes a listing on real property. Who does the listing belong to?
A. The salesperson only.
B. The salesperson and the broker.
C. The broker only.
D. Neither, until a sale is mad...
listings; PURCHASE/SALES
AGREEMENTS EXAM QUESTIONS WITH
ANSWERS
A salesperson newly licensed in this state, takes a listing on real property. Who does
the listing belong to?
A. The salesperson only.
B. The salesperson and the broker.
C. The broker only.
D. Neither, until a sale is made. - AnswerC. The broker only.
All listings are considered to be contracts between the seller and the broker. The
salesperson is only a representative of the broker. The listing employs the broker to
seek a buyer for the seller. If the salesperson leaves the employment of the broker, the
listing stays with the broker. If the seller does not pay the commission when due, only
the broker can sue the seller.
/.A listing agreement is essentially
A. an employment contract.
B. a purchase contract.
C. an option to sell.
D. all of these. - AnswerA. an employment contract.
Correct. A listing agreement is an employment contract. It authorizes the broker to try to
find a buyer for the seller's property. It is not a sales contract.
/.A licensed real estate broker took an exclusive agency listing from an owner for a 90-
day term. After the broker had expended considerable time and expense in trying to
locate a buyer, the owner sold the property himself during the listing period. Under
these circumstances, the broker was entitled to
A. a full commission.
B. no commission.
C. half of the agreed commission.
D. his advertising expenses. - AnswerB. no commission.
An exclusive agency listing provides that the broker is entitled to a commission if any
agent sells the property. This allows the owner to sell the property himself and not be
liable for a commission.
, /.Broker Wilson, a sole proprietor of a real estate firm, obtained an exclusive right-to-sell
listing on a property. Five days later, he died. Ten days after his death, an offer was
made on the property to a cooperating broker. Which of the following statements is
TRUE concerning this situation?
A. Wilson's wife could assume the listing contract and present the offer to the seller.
B. If the offer was accepted by the seller, Wilson's commission would be paid to his
estate.
C. The listing agreement terminated at Wilson's death.
D. Any commission from the sale of the property would be paid to Wilson's heirs. -
AnswerC. The listing agreement terminated at Wilson's death.
A listing may be terminated by death of the broker or seller, bankruptcy of the broker or
seller, destruction of the property, performance (producing a ready, willing and able
buyer), mutual consent of the broker and seller, or expiration of the listing period.
Because listings create agency relationships, death of either party will terminate the
listing and the heirs are not bound to the contract.
/.In a usual listing agreement, the broker is authorized to
A. convey the real property listed.
B. promise a buyer that any offer on the listed terms will be accepted.
C. find a purchaser and bind his principal to a contract.
D. find a purchaser and accept a deposit. - AnswerD. find a purchaser and accept a
deposit.
The listing is an employment contract promising to pay the broker a commission if he
secures a buyer. It generally will authorize the broker to accept a deposit on behalf of
the seller, but will not authorize the broker to sign contracts for the seller or bind the
seller to a contract. The broker cannot promise a buyer that an offer will be accepted
even if the offer meets the terms of the listing, because the listing is not an offer to sell.
Unless the seller accepts the buyer's offer the buyer has no right to make the seller sell
to him. The seller's only obligation in the event a bona fide offer to purchase on the
listed terms is submitted, is to pay the broker the commission.
/.Brooks gave Broker Johnson an exclusive agency listing. Brooks' friend, Martin, a real
estate broker in another city, finds a buyer and Brooks pays Martin the commission.
Which of the following is TRUE regarding this situation?
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