Question: To be valid, a listing agreement

Answer: may be oral or written

Question: The type of listing that assures a broker ofcompensation for procuring a customer, regardlessof the procuring party, is a(n)

Answer: exclusive right-to sell agreement

Question: An owner agrees to pay a broker for procuring atenant unless it is the owner who finds the tenant.This is an example of a(n)

Answer: exclusive agency agreement.

Question: A landlord promises to compensate a broker forprocuring a tenant, provided the broker is theprocuring cause. This is an example of a(n)

Answer: open listing

Question: A property owner agrees to pay a broker acommission, provided the owner receives aminimum amount of proceeds from the sale atclosing. This is an example of a(n)

Answer: net listing

Question: A multiple listing authorization gives a broker whatauthority?

Answer: To list the owner's property in a multiple listingservice.

Question: A broker is hired to procure a customer for a client.In order to earn compensation, the agent must procure a customer who

Answer: is ready, willing, and able to transact.

Question: One of the most important actions an owner's agent is authorized to perform under an exclusive listingagreement is

Answer: showing the property.

Question: An agent's performance of due diligence concerning a listing can best be described as

Answer: ascertaining the facts about the client and theproperty at the onset of the listing period.

Question: The amount of a real estate broker's commission is

Answer: established through negotiation with clients

Question: The most significant difference between an ownerrepresentation agreement and a buyer representation agreement is

Answer: the client.

Question: A client suddenly decides to revoke an exclusiveright-to-sell listing midway through the listing term.The reason stated: the client did not like the agent.In this case,

Answer: the client may be liable for a commission andmarketing expenses.

Question: A "protection period" clause in an exclusive listingprovides that

Answer: the agent has a claim to a commission if theowner sells or leases to a party within a certaintime following the listing's expiration.

Question: Broker Protection Clause

Answer: Protects broker from buyer and seller making contract behind broker's back. Provides for commission if broker's buyer purchases a period after listing expires.

Question: Buyer Agency Agreement

Answer: Employment contract in which the buyer hires the broker to find a property to buy. Broker owes fiduciary responsibilities to buyer/client

Question: Competitive Market Analysis (CMA)

Answer: Analysis of market activity among comparable properties; not an appraisal

Question: Exclusive-Agency Listing Agreement

Answer: One agent (broker) is hired; broker receives a commission only if he or she is the procuring cause; seller retains right to sell without obligation to pay commission

Question: Exclusive-Right-To-Sell Listing Agreement

Answer: One agent (broker) is hired; broker receives a commission regardless of who finds the buyer for the property

Question: Expiration of listing

Answer: Specific termination of listing; in most states, failure to specify specific date is grounds for suspension or revocation of license

Question: Indemnification

Answer: In a listing, a clause that states that the seller and broker will not sue each other for any incorrect information supplied by one to the other

Question: Market Value

Answer: Most probable price the property will sell for in an arm's-length transaction under normal conditions on the open market

Question: Multiple-Listing Service (MLS)

Answer: Marketing organization in which brokers share information and commission with other brokers; sellers gain because of greater exposure to larger market

Question: Net Listing

Answer: Broker entitled to any amount above the seller's stated net; often illegal; potential conflict of interest between broker's interest and seller's interest

Question: Open Listing

Answer: Multiple agents; only the selling agent (broker) entitled to commission; seller retains right to sell independently without obligation to pay anyone a commission

Question: Option Listing

Answer: Broker has the right to purchase the property; broker must be very honest to avoid charges of fraud

Question: prospect

Answer: a potential customer