The amount of the earnest money in a sales contract should
D) discourage the buyer from walking away from the agreement.
What kind of listing agreement is illegal in many states because of the potential for conflict of interest between a broker’s fiduciary responsibility to the seller and the broker’s profit motive?
B) Net listing
The term statute of limitations is BEST described as the limitation on the
B) time period in which parties to a contract may bring a lawsuit to enforce their rights.
All of these are essential to a valid real estate sales contract EXCEPT
B) an earnest money deposit, held in an escrow account.
A broker just explained the value of signing an exclusive-agency listing with a broker who is a member of the multiple listing service. The broker is trying to overcome the misconceptions of the seller who asked about
A) an open listing.
An example of personal property that a seller may leave with the property and, therefore, must be identified on the listing agreement is
B) stacked firewood.
A woman is buying a man’s house and wants to take over the mortgage. The lender releases the man from the obligation, substituting the woman as the party liable for the debt. This new agreement is called
D) a novation.
In most states, a broker’s license can be suspended or revoked if the broker
B) takes a listing that does not include a date on which the listing expires.
What information is NOT needed for a listing agreement?
C) the age of the seller
When may a broker’s agreement to represent a property buyer be terminated?
D) The broker and buyer mutually agree to cancel the agreement.
The buyer and seller agreed to a closing date of September 7 and that time is of the essence. Which of these is the closest meaning of the phrase?
A) Closing must be on or before September 7.
A buyer and a seller enter into a sales contract for the sale of a home. The seller changes his mind at the last minute, and the buyer suffers a financial loss of $1,500 and must rent a home in which to live. Unless the contract provides otherwise, all of these are legal actions that are likely to succeed EXCEPT
A) the seller is not liable because the buyer should not have incurred the $1,500 cost before the sale.
Which of these is an example of a unilateral contract?
B) Option
A listing agreement is
A) an employment contract between the seller and the broker.
A seller accepted all of the terms that the buyer offered, making only one small change in the amount of the earnest money. At the moment, these agreements constitute
B) a counteroffer.
A buyer makes an offer on a house, and the seller accepts in writing. What is the current status of this relationship?
A) The buyer and seller have an express, bilateral executory contract.
In a buyer representation agreement, the broker acts as the agent of the buyer and must protect the buyer’s interests
C) at all points in the transaction.
It is the broker’s office policy that salespeople keep 60% of the firm’s share of any commission earned from any property they list. The salesperson listed a property that was later sold by a cooperating broker for $285,000. If the two brokers agree to split the 6.5% commission equally, what will the sales person receive?
A) $5,557.50
Any of these will terminate a listing agreement EXCEPT
D) an offer to purchase.
Additional conditions that must be satisfied before a sales contract is fully enforceable are called
B) contingencies.
If a man allows a woman to back out of a contract, returns the earnest money to her, and both are back to the positions they held before the contract, the contract has been
D) rescinded.
A 14-year-old comes into a brokerage office and says, “I want to make an offer on this property. Here is a certified check for 10% of the asking price. Please help me with the paperwork.” Why should the broker be concerned?
B) The sales contract may be disaffirmed by the minor.
If a contract does NOT contain a time or date for performance, the act should be done within