PA RE Practice Quiz 5 with Questions and Answers

PA RE Practice Quiz 5 with Questions and Answers An agency contract is an employment contract rather than a real estate contract. a. True b. False ANSWER A. TRUE Most business relationships in real estate are created by written agreement. An agency contract may be used to hire the broker to represent the buyer, the seller, the landlord, or the tenant. These are employment contracts rather than real estate contracts. They contract for the personal professional services of the broker; they are not contracts for the transfer of real estate or a real estate interest. The broker has the exclusive authorization to market the seller's property in an exclusive-right-to-sell listing. a. True b. False ANSWER A. TRUE In an exclusive-right-to-sell listing, one broker is appointed as the sole (exclusive) agent of the seller. The broker has the exclusive right, or authorization, to market the seller's property. If the property is sold while the listing is in effect, the seller must compensate the broker regardless of who sells the property. An exclusive-right-to-lease agreement may not contain a statement that the broker earns a commission on the lease of the property, regardless of who, including the owner, makes the lease during the listing period.