Exam 12: Brokerage and Listing Contracts

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 any other broker,or even the owner,sells the property during the contract period?

State licensing laws prescribe behavioral requirements with which licensees must comply to keep their licenses.Licensing laws generally seek to prevent brokers from partaking in all of the following activities EXCEPT:

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)?

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?

Jonathan recently sold his home and was able to take home $423,000 after paying the real estate broker's commission of 6%.If the buyer was ultimately found through a buyer broker,the dollar commission will need to be split between the listing broker and buyer broker.If the buyer broker is entitled to 40% of the commission,what is her share of the commission rounded to the nearest dollar?

Critical to any listing contract is the question of when the broker becomes entitled to a commission.Traditionally,the broker is still entitled to a commission in all of the following scenarios EXCEPT:

Although the function of commercial brokerage is the same as that of residential brokerage,the activities of commercial brokers usually differ considerably from those of residential brokers due to fundamental differences in these two markets.All of the following statements regarding commercial brokerage are true EXCEPT:

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?

In recent years,many U.S.investors have expanded their purchases of real estate into foreign countries,and many foreign investors have held interests in U.S.real estate.This is an example of what is commonly referred to as ________________ of real estate markets.

State licensing laws generally prescribe two levels of real estate brokerage licensing: the broker license and the salesperson license.Which of the following responsibilities is an individual with a salesperson license permitted to do?

The recent emergence of discount brokerage services has had a modest effect on the price of brokerage services.The average commission that a broker could expect to receive today would most likely range between:

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:

Suppose you are interested in selling your home and would like to clear a net value of $300,000.If you have agreed to pay your broker a commission of 5.5% (no matter who ultimately is responsible for finding the buyer),what price must you sell the home for in order to meet your net profit (rounded to the nearest dollar)?

In dual agency,conflicts of interest may arise since a single broker has both the listing contract with the seller and a buyer agency agreement with the purchaser.One way that states have attempted to deal with this issue is to develop a new type of brokerage relationship in which the broker assists the buyer and seller,but does not represent either party.This type of brokerage relationship is commonly referred to as:

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:

Blockbusting,which involves persuading an individual to sell her home by telling her that minority groups are moving into the neighborhood,is one form of discrimination in housing that is prohibited by which of the following acts of Congress?

Amy is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate the sale of her home.She has estimated that the marketing costs and opportunity cost associated with time spent dealing with prospective buyers amounts to $5,000.If Amy were to sell the house on her own for $200,000,but a broker would have been able to negotiate a higher price of $206,350,what commission rate should Amy have been willing to accept from a real estate broker to make her indifferent between selling the house on her own and hiring a real estate broker?

All 50 states have licensing laws that regulate persons and companies that engage in the brokerage business.Interpreting and enforcing state licensing laws falls under the responsibilities of which of the following parties?

One of the traditional requirements for individuals who wish to obtain a brokerage license has been to demonstrate financial capacity to cover damage judgments brought against them by clients.In order to address this concern,some states have required licensees to first obtain:

In acting as an agent for another person,the broker carries several special responsibilities,which by law must be adhered here to throughout the transaction process.These responsibilities constitute what is commonly referred to as a: