Chapter 17- Study Guide

What is the purpose of creating agency relationships with written agreements?

• To serve a legal purpose only

• To serve a practical purpose only

• To serve both a legal and practical purpose

• To serve neither a legal nor practical purpose

According to Pennsylvania licensing law, when is a written agreement required between a broker and a consumer?

• When the consumer is or may be obligated to compensate the broker for services.

• When the broker is providing free consultation services.

• When the consumer is purchasing a property without a mortgage.

• When the broker is acting as a dual agent in a transaction.

What is one requirement of written agreements according to the licensing law (RELRA section 608.1)?

• They must be signed by all parties involved.

• They must be notarized.

• They must be filed with the state.

• They must include a witness signature.

What is a listing agreement?

• An employment contract between a broker and a seller

• A contract for the transfer of real estate

• A verbal agreement between a broker and a seller

• A contract for the real estate professional services of the broker

What must a listing agreement be in order to be enforceable in court?

• It must be in writing.

• It must be verbal.

• It must be notarized.

• It must be signed by a witness.

Who does the client belong to in a listing agreement?

• The client belongs to the broker.

• The client belongs to the buyer.

• The client belongs to the seller.

• The client belongs to the agent.

What is a benefit of an exclusive right-to-sell listing for sellers?

• Sellers can sell the property without any broker involvement.

• Sellers benefit because the broker feels freer to spend time and money to actively market the property.

• Sellers do not have to pay any commission.

• Sellers can list the property with multiple brokers.

In an exclusive agency listing, when is the broker compensated?

• When the property is sold by the broker or any other agent

• Only when the broker sells the property

• When the property is sold by the owner

• When the listing agreement is signed

What is an open listing also known as?

• Exclusive listing

• Nonexclusive listing

• Agency listing

• Multiple listing

What are the advantages of a multiple listing service (MLS) for brokers, sellers, and buyers?

• Increased property visibility and access to a larger pool of potential buyers

• Limited exposure to properties and fewer buyer options

• Higher transaction costs and longer selling times

• Reduced collaboration between real estate professionals