Podcast
Questions and Answers
What does a broker have to do to be able to enforce a commission the broker earned under an agency agreement? (Select all that apply)
What does a broker have to do to be able to enforce a commission the broker earned under an agency agreement? (Select all that apply)
What kind of listing contract does a seller enter into if they agree to pay the listing broker 6% commission only if a named buyer purchases the property?
What kind of listing contract does a seller enter into if they agree to pay the listing broker 6% commission only if a named buyer purchases the property?
What are the listing broker's rights to the commission if a buyer writes an offer that the sellers accept, but the transaction does not close?
What are the listing broker's rights to the commission if a buyer writes an offer that the sellers accept, but the transaction does not close?
What was the sale price of the property if a broker pays a salesperson $1,522.50, which is one-half of the broker's 7% commission on a sale?
What was the sale price of the property if a broker pays a salesperson $1,522.50, which is one-half of the broker's 7% commission on a sale?
Signup and view all the answers
Apportioning commission percentages earned on a sale is:
Apportioning commission percentages earned on a sale is:
Signup and view all the answers
Which of the following does a broker not have to do before acting as an agent in a real estate transaction?
Which of the following does a broker not have to do before acting as an agent in a real estate transaction?
Signup and view all the answers
What can parties to an agency agreement do in the event of a breach?
What can parties to an agency agreement do in the event of a breach?
Signup and view all the answers
What percentage did the seller agree to pay the listing broker in the listing contract if a broker pays a salesperson $3,000, which is 50% of the listing broker's commission on a $100,000 sale?
What percentage did the seller agree to pay the listing broker in the listing contract if a broker pays a salesperson $3,000, which is 50% of the listing broker's commission on a $100,000 sale?
Signup and view all the answers
What could reduce a listing broker's commission if XYZ Realty listed a property and ABC Realty found a buyer with an agreement to share the commission evenly?
What could reduce a listing broker's commission if XYZ Realty listed a property and ABC Realty found a buyer with an agreement to share the commission evenly?
Signup and view all the answers
Which of the following is a similarity between an Exclusive-Agency and an Exclusive-Right-to-Sell listing?
Which of the following is a similarity between an Exclusive-Agency and an Exclusive-Right-to-Sell listing?
Signup and view all the answers
Which event does not terminate an agency relationship?
Which event does not terminate an agency relationship?
Signup and view all the answers
Study Notes
Agency Agreements and Broker Commissions
- A broker can enforce a commission earned from an agency agreement only if there is a written agreement with the client.
- A one-party listing contract is defined by the seller paying a commission only if a specified buyer purchases the property within the contract term.
Broker Rights and Commission Earnings
- A listing broker earns a commission when they procure a buyer, even if the transaction does not close.
- A broker's commission payment to a salesperson reflects half of the broker’s commission percentage on a sale; calculation based on commission percentage is necessary to find property sale price.
Commission Distribution and Broker Responsibilities
- Commission percentages on sales are determined by the brokers involved and permitted for distribution based on agreements.
- Brokers are not obligated to join the MLS before acting as agents, but they must provide agency disclosure, hold a valid license, and execute a valid agency agreement.
Legal Rights and Terms of Agency
- Parties to an agency agreement have the right to sue for damages if there is a breach of the agreement.
- Cancellation of an agency agreement must be communicated properly to avoid breaches; verbal notifications can leave no record.
Commission Adjustments and Listing Agreements
- The listing broker's commission can be reduced if agreed upon by the listing broker and the seller together.
- Exclusive-Agency and Exclusive-Right-to-Sell listings both utilize a single broker for property marketing but differ in commission structures regarding the seller's involvement in securing a buyer.
Agency Termination and Events
- An agency relationship can be terminated by various events such as death of a seller or a seller deciding not to sell.
- However, if a broker successfully procures a ready, willing, and able buyer regardless of closing, the agency relationship remains valid and does not terminate purely based on market conditions or seller decisions.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on agency agreements and broker commissions in real estate. This quiz covers key aspects such as written agreements, commission distribution, and brokers' responsibilities. Perfect for aspiring real estate professionals or anyone interested in understanding the basics of real estate transactions.
