Real Estate Broker Rights Quiz

Questions and Answers

Which of the following is true regarding Rick Champion and Jill Avery's situation?

Rick is entitled to collect his full commission based on the accepted offer price.

If Jill withdraws her acceptance of the offer, what happens to Rick's commission?

Rick is not entitled to his commission.

What is the percentage of commission that Rick is entitled to if the property does not sell?

50%

Can Rick sue Jill to collect his commission if the property does not sell?

Yes Signup and view all the answers

What is Rick entitled to keep if Jill withdraws her acceptance of the offer?

Nothing Signup and view all the answers

Which of the following is true about equity in a home?

Equity is the difference between a home's value and the debt owed on it. Signup and view all the answers

What is principal in the context of a loan?

The actual amount borrowed. Signup and view all the answers

What is interest in the context of a loan?

The cost of borrowing money, stated as an annual percentage. Signup and view all the answers

How is the total amount of interest on a loan calculated?

(monthly payment × total payment) - original loan value Signup and view all the answers

What is the formula to calculate per diem interest on a loan?

Amount of annual interest ÷ number of days in a year (360 in a statutory year; 365 in a calendar year) Signup and view all the answers

Study Notes

Rick Champion and Jill Avery's Situation

If Jill withdraws her acceptance of the offer, Rick's commission is forfeited.

Commission Entitlement

Rick is entitled to a percentage of commission if the property sells, but if the property does not sell, he is entitled to 0% commission.

Legal Action

Rick cannot sue Jill to collect his commission if the property does not sell.

Withdrawal of Acceptance

If Jill withdraws her acceptance of the offer, Rick is entitled to keep the earnest money.

Equity in a Home

Equity in a home refers to the difference between the market value of the property and the outstanding loan balance.

Loan Components

Principal in the context of a loan refers to the amount borrowed.
Interest in the context of a loan refers to the cost of borrowing the principal amount.

Calculating Interest

The total amount of interest on a loan is calculated by multiplying the principal amount by the interest rate over a specific period.

Per Diem Interest Formula

The formula to calculate per diem interest on a loan is: (Outstanding Balance x Interest Rate) / 365 (or 366 in a leap year).