Contracts & Agency Flashcards
6 cards from real Real Estate practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Contracts & Agency flashcards as text
In an exclusive right-to-sell listing, the listing broker earns a commission if the property is sold by:
Answer: Any of the above
Under an exclusive right-to-sell listing, the broker earns a commission regardless of who procures the buyer, including the seller.
Earnest money in a purchase transaction is best described as:
Answer: A good-faith deposit demonstrating buyer's intent to purchase
Earnest money is a deposit made by the buyer to show serious intent; it is typically applied toward the purchase price at closing.
For a real estate contract to be legally valid, it must include all EXCEPT:
Answer: Notarization
Notarization is required for recording a deed but is not one of the essential elements for a contract to be valid and enforceable.
Dual agency occurs when:
Answer: One agent represents both buyer and seller in the same transaction
Dual agency exists when the same broker or agent represents both the buyer and seller, requiring disclosure and consent from all parties.
A buyer's agency agreement creates a fiduciary relationship in which the agent owes primary loyalty to the:
Answer: Buyer
A buyer's agency agreement legally obligates the agent to represent the buyer's best interests, creating full fiduciary duties to the buyer.
Which listing agreement allows a seller to also sell the property themselves without owing a commission?
Answer: Exclusive agency listing
In an exclusive agency listing, only one broker is authorized, but the seller retains the right to sell without owing a commission if they find the buyer themselves.