Module 5 Brokerage

Question 1

Define: Brokerage

Answer 1

The bringing together of parties interested in making a real estate transaction for consideration (For commission you are being paid. 133

Question 2

Define: Law of agency

Answer 2

The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions. 152–153

Question 3

Single Agency

Answer 3

single agency Agency relationship in which the agent represents only one party to a transaction. Only one side of the Transaction 162

Question 4

Dual Agency

Answer 4

The listing broker or agent represents both sides of the transaction.

Question 5

What is an open listing?

Answer 5

Receiving a commission based on producing a ready, willing, and able buyer before the property is sold by the seller or another real estate professional. 177

Question 6

What is an exclusive office listing?

Answer 6

A listing that if you, your office or any other office brings a buyer a commission will be paid, but the seller is still reserving the right to sell the property on his own and if he sells the property no commission will be paid.

Question 7

Define: Exclusive right to sell

Answer 7

If the house sells you will get a commission no matter who brought the buyer

Question 8

Define: Net Listing

Answer 8

A Net Listing in Massachusetts is illiberal.

net listing A listing based on the net price the seller will receive if the property is sold. Under a net listing, the real estate professional can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states. 177

Question 9

What is the Multiple listing service (MLS)?

Answer 9

A marketing organization composed of member real estate professionals who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most multiple listing services accept exclusive right-to-sell or exclusive agency listings from their member real estate professionals. 136

Question 10

What are an agents Fiduciary Responsibilities? Hint OLD CARD

Answer 10

O= Obedience 
L= Loyalty 
D= Disclosure 

C= Confidentiality 
A= Accountability
R= Reasonable Car / Diligence

Question 11

Define: Agent

Answer 11

One who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent. A prospective property buyer may authorize a real estate broker to act as the buyer’s agent to find a suitable property. 153

Question 12

Define: Subagent

Answer 12

A sales associate acting as an agent of a broker and who therefore owes fiduciary duties to the broker’s client. 162

Question 13

What can Terminate Agency?

Answer 13

• Completion of the objective
• Expiration of Time
• Mutual consent
• Revocation of either party. There could be damages involved
• Death of one of the parties
• Destruction of the subject property
• Bankruptcies

Question 14

Define: Commissions

Answer 14

Payment to a real estate professional for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property. 136

Question 15

Define: procuring cause

Answer 15

The effort that brings about the desired result. Under an open listing, the real estate professional who is the procuring cause of the sale receives the commission. 137

Question 16

What 3 things occurred due to Tristram’s Landing VS Wait

Answer 16

• when is a commission due. When the agent brings a ready willing and able buyer and the seller accepts and it must be in written contract and a closing must occur unless it is caused by a wrongful act of the seller.