Question 1

The broker/manager receives 45% of the commissions on all sales made through her office. What would she receive on monthly sales totaling $252,000 at an average 3.7% commission (rounded to the nearest dollar)?

Accepted Answer

252,000 × .037 = 9,324;9,324 × .45 = 4,195.80 rounded to 4,196.

Question 2

Under an exclusive authority to purchase agreement, the buyer becomes a principal.

Accepted Answer

Under an exclusive authority to purchase agreement, the buyer becomes a principal.

Question 3

A properly signed multiple listing agreement is the property of the multiple listing service.

Accepted Answer

A properly signed multiple listing agreement is the property of the listing salesperson's broker.

Question 4

A licensed salesperson has an open listing with Sara and an exclusive listing with Kelley. One week after both listings expire, Sara and Kelley sell their homes to each other. With no more information available, the licensee would claim a commission from both parties.

Accepted Answer

The licensee would not be entitled to a commission.

Question 5

A written, exclusive right to sell listing is most likely to specify that the commission has been earned upon procurement of a full price offer or upon acceptance of an offer by the seller.

Accepted Answer

The listing that is most likely to specify that the commission has been earned upon procurement of a full price offer or upon acceptance of an offer by the seller would be a written, exclusive right to sell listing.

Question 6

A real estate licensee draws $1,000 per month from her broker against future commissions. Last year, she sold $2,000,000 worth of property. If she makes 3% gross commissions on all sales, how much did she earn last year?

Accepted Answer

2,000,000 × .03 = 60,000.

Question 7

A real estate listing

Accepted Answer

A real estate listing is an employment contract between a property owner and a real estate broker but does not authorizes a real estate broker to sell and convey title to an owner's real property.

Question 8

In an area where the multiple listing commission split is 50/50, a broker sells another broker's 6% listing for $105,000. How much commission will the selling broker receive?

Accepted Answer

105,000 × .06 = 6,300;6,300 × .50 = 3,150.

Question 9

Under the terms of an exclusive right to sell listing, a commission is due the listing broker if a buyer is found by

Accepted Answer

Under the terms of an exclusive right to sell listing, a commission is due the listing broker if a buyer is found by the listing broker, a sales associate employed by the listing broker, or another broker.

Question 10

A typical exclusive right to sell listing requires the owner to

Accepted Answer

A typical exclusive right to sell listing requires the owner to exclude other brokers from advertising or placing a sign on the property and to pay a commission if a purchaser is found who agrees to buy at the price and terms stipulated in the listing.

Question 11

A salesperson worked for broker Barbara when they agreed to take a note from a seller for a deferred commission. The salesperson left the first broker and now works for another broker. When the note is paid, the salesperson is entitled to receive the commission directly from Barbara because she was working for her at the time she earned the commission.

Accepted Answer

When the note is paid, the salesperson is entitled to receive the commission directly from Barbara because she was working for her at the time she earned the commission.

Question 12

The property owner is permitted to compete against the real estate broker in searching for a buyer if he signed an exclusive right to sell listing.

Accepted Answer

An exclusive agency listing permits the property owner to compete against the real estate broker in searching for a buyer.

Question 13

The amount of commission to be paid the broker for selling a property is

Accepted Answer

The amount of commission to be paid the broker for selling a property is agreed upon by seller and broker and stated in the listing contract.

Question 14

The first thing a licensed broker must prove to recover a commission is that he has competitive commission rates.

Accepted Answer

The first thing a licensed broker must prove to recover a commission is that he has an employment contract.

Question 15

With a net listing, the sales commission is a fixed dollar amount.

Accepted Answer

With a net listing, the sales commission is the difference between the sales price and what the seller wants to net.

Question 16

Broker Alice was to receive 6% on a property she had listed for $170,000. How much commission would she receive if the owner accepted an offer which reduced the price by 4%?

Accepted Answer

Selling price = 170,000 - (170,000 ×.04)= 163,200;163,200 × .06 = 9,792.

Question 17

A broker is attempting to collect a commission on a property after his exclusive right to sell listing expires. If he ends up in court, he must prove that he was the procuring cause.

Accepted Answer

In order to collect a commission on a property after his exclusive right to sell listing has expired, a broker must prove that he was the procuring cause.

Question 18

A residence originally listed at $92,000 sold for 7% less than that. If the listing broker gets half of the 6% sales commission and he gives his salesperson 60% of that, how much does the listing salesperson receive? (rounded to the nearest dollar)

Accepted Answer

Selling price is 92,000 - (92,000x.07)= 85,560;85,560 × .06 = 5,133.60;5,133.60 × .50 = 2,566.80;2,566.80 × .60 = 1,540.08 rounded to 1,540.

Question 19

A listing to find a buyer for each of the following properties will usually be for a period of time ranging from six months to one year EXCEPT

Accepted Answer

Typically residential properties are listed for a shorter time, three to six months.

Question 20

A broker is employed to find a buyer using an exclusive right to sell listing. He finds one at the seller's price and terms. If the seller then refuses to sell, the broker is entitled to a full commission.

Accepted Answer

If a broker finds a buyer at the seller's price and terms, and the seller refuses to sell, the broker is still entitled to a full commission.

Quiz 19: The Principal-Broker Relationship: Employment

The broker/manager receives 45% of the commissions on all sales made through her office. What would she receive on monthly sales totaling $252,000 at an average 3.7% commission (rounded to the nearest dollar) ?

Under an exclusive authority to purchase agreement, the buyer becomes a principal.

A properly signed multiple listing agreement is the property of the multiple listing service.

A licensed salesperson has an open listing with Sara and an exclusive listing with Kelley. One week after both listings expire, Sara and Kelley sell their homes to each other. With no more information available, the licensee would claim a commission from both parties.

A written, exclusive right to sell listing is most likely to specify that the commission has been earned upon procurement of a full price offer or upon acceptance of an offer by the seller.

A real estate licensee draws $1,000 per month from her broker against future commissions. Last year, she sold $2,000,000 worth of property. If she makes 3% gross commissions on all sales, how much did she earn last year?

A real estate listing

In an area where the multiple listing commission split is 50/50, a broker sells another broker's 6% listing for $105,000. How much commission will the selling broker receive?

Under the terms of an exclusive right to sell listing, a commission is due the listing broker if a buyer is found by

A typical exclusive right to sell listing requires the owner to

The property owner is permitted to compete against the real estate broker in searching for a buyer if he signed an exclusive right to sell listing.

The amount of commission to be paid the broker for selling a property is

The first thing a licensed broker must prove to recover a commission is that he has competitive commission rates.

With a net listing, the sales commission is a fixed dollar amount.

Broker Alice was to receive 6% on a property she had listed for $170,000. How much commission would she receive if the owner accepted an offer which reduced the price by 4%?

A broker is attempting to collect a commission on a property after his exclusive right to sell listing expires. If he ends up in court, he must prove that he was the procuring cause.

A residence originally listed at $92,000 sold for 7% less than that. If the listing broker gets half of the 6% sales commission and he gives his salesperson 60% of that, how much does the listing salesperson receive? (rounded to the nearest dollar)

A listing to find a buyer for each of the following properties will usually be for a period of time ranging from six months to one year EXCEPT

A broker is employed to find a buyer using an exclusive right to sell listing. He finds one at the seller's price and terms. If the seller then refuses to sell, the broker is entitled to a full commission.