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WorksheetsCH 08 - Agency Contracts, Sales, and Related Products
Total questions: 33
Worksheet time: 1hrs 5mins
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
A seller and a broker are engaged in a dispute over a forfeited earnest money deposit. The seller feels that he does not owe this broker a commission. In fact, the seller has no reasonable basis for refusing to allow the broker to return the earnest money to the buyer who cancelled within their due diligence period. According to the North Carolina Real Estate Commission, what should the broker do about the earnest money?
wait for a signed release from the buyer
try to obtain mutual consent from all parties as to the disposition of the earnest money and if that is not possible then the funds cannot be released and may be paid into the clerk of courts with proper notice
inform the buyer that the seller is being unreasonable and explain that the broker must release the earnest money to the seller
disperse the money according to the terms of the Offer to Purchase and Contract
Anti-trust laws prohibit all of the following, EXCEPT:
property management companies all agreeing to charge standardized management fees
three different brokerage firms allocating markets based on the value of homes
real estate companies agreeing not to cooperate with a broker because of the fees that broker charges
a broker requiring all the agents of his firm to join the local listing service
Earnest money deposits, when paid in the form of a personal check given on an Offer to Purchase and Contract, must be deposited in an escrow account:
no later than three banking days after acceptance of contract
no later than 72 hours after receipt of money
no later than three business days after receipt of the money
no later than 72 hours after acceptance of contract
If a seller and a listing firm have a commission dispute prior to the closing, the listing firm:
is not allowed to release any earnest money being held until the commission dispute is settled
is to hold up the closing until the dispute is settled
must allow the transaction to close
cannot release any earnest money until there is a signed release between the seller and buyer
Which of the following statement(s) is/are true regarding death of a seller? l. If a seller dies after signing a listing agreement, the listing agreement is terminated. ll. If a seller signs a sales contract and dies before the closing of the property, the sales contract is terminated.
l only
ll only
Both l and ll
Neither l nor ll
A buyer paid $45,000 for a home. Five years later, she put the home on the market for 20% more than she originally paid. The home eventually sold for 10% less than the asking price. At what price was the home sold?
$49,500
$54,000
$44,000
$48,600
Two brokers split a 6% commission equally on a $73,000 home. The selling provisional broker, Joe, was paid 70% of his broker’s share. The listing provisional broker, Janice, was paid 30% of her broker’s share. How much did Janice receive?
$657
$1,314
$1,533
$4,380
You are on a listing appointment and the sellers tell you they would like to net $135,000 from the sale of their home. You estimate they will have to pay $950 in miscellaneous settlement costs. You will charge them a 6.5% commission to sell the property. They also have a loan payoff of $53,500. What must the property sell for to ensure they receive their desired net?
$145,401.06
$201,604.27
$201,764.25
$202,620.32
An investor sold a property for $590,000. He made a 35% profit on the sale. What did he originally pay for the property?
$206,500.50
$437,037.03
$428,500.25
$286,222.41
A seller sold his property for $97,000. He made a 321.74% profit. What was the purchase price of the property?
$13,000
$23,000
$74,000
$97,000
The clause in a listing contract that protects the brokers commission entitlement beyond the listing term in the event of sale of the property by the owner to a prospect who was shown the property by the listing firm or its agents is called a(n)
forfeiture clause
extender clause
settlement clause
exclusive rights clause
The clause in a listing contract that protects the brokers commission entitlement beyond the listing term in the event of sale of the property by the owner to a prospect who was shown the property by the listing firm or its agents is called a(n)
forfeiture clause
extender clause
settlement clause
exclusive rights clause
Samuel Seller lists his property with Exclusive Realty. Eventually, Samuel convinces a coworker, Wanda Wish, to purchase his home. In which situation would Samuel not owe a commission to Exclusive Realty?
in an open listing
a percentage listing
an exclusive right to sell listing
a net listing
The type of listing agreement for which a seller will owe the listing agency commission regardless of who sells the property is a(n)
open listing
exclusive agency listing
exclusive right to sell listing
co-brokered listing
Which of the following is true regarding the Residential Property and Owner's Association Disclosure Statement
this form must be provided to a purchaser by a seller who is selling his own property without assistance from a real estate broker
in the event that the seller does not provide the purchaser with this form by the date of the first offer, the transaction is automatically terminated by law
in the event that the seller does not provide the purchaser with this form by the date of the first offer, the transaction is automatically entitled to a refund of earnest money
this form must be provided by the seller of new construction that been used as a model home but has not been occupied as a personal residence
The rate of commission to be lawfully charged in a real estate transaction is set by
a local MLS
the Association of REALTORS
Sherman Anti Trust Laws
the firm and the seller
Which is true of a valid listing agreement in North Carolina?
it must contain a non discriminatory clause
it may be oral up to the first offer
it requires the seller to sell if a full price offer is made by a buyer
it can contain an automatic renewal clause of both parties agree to it in writing
Steve Seller needs to receive $180,500 from the sale of his house after paying the broker a 5% commission. How much must the house sell for?
$190,000
$180,000
$189,000
$171,475
Angela wishes to net $25,000 from the sale of her home after paying off her loan of 121,900 while miscellaneous costs would be $3,500 and a commission of 6%. What should the selling price of the property be?
141,376
158,404
159,424
160,000
A property recently sold for $225,000 at a commission rate of 6%. If the firm collects a 6% franchise fee from the total commission and then pays the agent 55% of the remainder, how much did the agent make on the transaction?
$8,235
$7,425
$6,979
$5,710
Christy has sold a property, which was listed at a 5% commission rate with another firm, for $240,000. The listing firm agrees to a 50/50 split with the selling firm. Christy's company will charge a 5% franchise fee on all earned commissions and then pay her 65% of the remainder. How much did Christy earn on this sale?
$4,200
$3,705
$3,900
$5,700
A broker's commission schedule calls for him to make 7% of the first $150,000 of sales price, 6% on the next $150,000, and 5% on the balance. What is the total commission on a sales price of $380,000?
$19,000
$22,000
$23,500
$27,000
An investor paid $150,000 for a property that he sold four years later for $210,000. What was his annual rate of profit?
10%
4.5%
7.25%
40%
