Real Estate Contracts & Agency 1

Question 1

In an exclusive right-to-sell listing, the listing broker earns a commission if the property is sold by:

Accepted Answer

Any of the above

Answer

Only the listing agent

Answer

Any cooperating agent

Answer

The owner themselves

Question 2

Earnest money in a purchase transaction is best described as:

Accepted Answer

A good-faith deposit demonstrating buyer's intent to purchase

Answer

The down payment amount

Answer

The broker's commission

Answer

A non-refundable fee

Question 3

For a real estate contract to be legally valid, it must include all EXCEPT:

Accepted Answer

Notarization

Answer

Offer and acceptance

Answer

Consideration

Answer

Competent parties

Question 4

Dual agency occurs when:

Accepted Answer

One agent represents both buyer and seller in the same transaction

Answer

Two brokers co-list a property

Answer

A property is listed on two MLS systems

Answer

Two buyers compete for one property

Question 5

A buyer's agency agreement creates a fiduciary relationship in which the agent owes primary loyalty to the:

Accepted Answer

Buyer

Answer

Seller

Answer

Lender

Answer

Listing broker

Question 6

Which listing agreement allows a seller to also sell the property themselves without owing a commission?

Accepted Answer

Exclusive agency listing

Answer

Exclusive right-to-sell

Answer

Net listing

Answer

Open listing