CH 08 - Agency Contracts, Sales, and Related Products

A valid listing agreement may be terminated for any of the following reasons, EXCEPT:

• sale of the property

• expiration of the individual listing agent's license

• agreement of the parties

• destruction of the premises

According to North Carolina Real Estate Commission Rules, all of the following are required to be part of a listing agreement, EXCEPT:

• signature of all parties

• the licensee's license number

• a definite termination date

• an automatic renewal clause

By entering into an exclusive agency listing agreement with a seller, a real estate brokerage firm:

• is not entitled to receive a commission if another agency finds a buyer for the property

• has become the seller's designated agent

• has become the exclusive agent of the seller, but is not entitled to receive a commission if the seller finds a buyer for the property

• has agreed to renegotiate the commission with the seller should another agency offer a lower commission rate

If a seller needs to net $50,000 after the sale of a property, what is the minimum acceptable sales price if the selling expenses include a 7% commission and $1,200 in additional expenses?

• $53,763.44

• $54,784.00

• $55,053.76

• $55,633.25

A property owner lists a property for sale with a broker. The owner told the broker during the listing negotiations that he wanted $138,000 for the property, and anything above that amount the broker could keep as commission. The listing with this type of provision is known as:

• gross listing

• net listing

• open listing

• nonexclusive listing

The fact that the NC listing agreement and buyer agency agreement must be in writing is required by:

• Statute of Frauds

• Commission Rule

• Conner Act

• Contract law

A licensee has just discovered a major roofing leak in one of his current listings even though the seller has indicated “no representation” on the Residential Property Disclosure Statement. The listing agent does not inform the selling agent of the defect and since the defect, is hidden, the selling agent does not discover or disclose the problem to the buyer. According to the North Carolina Real Estate Commission, who is held responsible for this nondisclosure?

• the listing agent

• the listing broker and the selling broker

• the seller and the listing agent

• the seller

Ricardo is showing the buyer a house in the capacity of seller sub-agent. Prior to being shown any house, the buyer indicates to Ricardo that it is essential he have a fence erected around the backyard of any house he purchases.

Ricardo finds the perfect house for the buyer but it does not have a fenced in backyard nor does the listing information sheet indicate whether fences are allowed or not. Ricardo does not inquire of the listing agent anything about a fence.

The buyer purchases the house and later learns that he cannot erect a fence. Which of the following statements regarding these facts are true?

• The listing agent had a duty to disclose in the listing information sheet that fences were not permitted.

• Ricardo had a duty to determine if fences were permitted even though the listing information sheet did not indicate anything regarding fences.

• Since Ricardo and the listing agent are acting in the capacity of seller sub-agent, they have no responsibility to determine if fences are permitted.

• Since the buyer did not have a buyer agent in the transaction, it is solely his responsibility to check into the permissibility of having a fence.

Which of the following is TRUE about the North Carolina Residential Property Disclosure Act?

• All agents in the transaction should facilitate the timely delivery of the property disclosure report to the buyer.

• The property owner should disclose the condition of the listed property or be subject to a 3-day rescission period on any contract formed.

• All residential sellers are exempt from this act unless a broker is not involved in the transaction.

• Buyers must receive the completed disclosure report no later than the beginning of the due diligence period.

The seller wants to net $165,000 after paying the broker fee of 6% of the sales price. What is the minimum acceptable gross sales price to the nearest dollar?

• $169,850

• $174,900

• $175,532

• $178,745