Real Estate Principles and Broker Relations

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Questions and Answers

What is the primary legal requirement for a contract involving a broker and principal concerning real property transactions?

It must be signed by a notary public.
It must include a commission percentage.
It must specify the duration of the agreement.
It must be in writing to be enforceable. (correct)

Which of the following is NOT a necessary element between a broker and a principal in a real estate transaction?

An understanding of commission rates.
A verbal agreement to share responsibilities. (correct)
Establishment of rights by law.
A written contract of employment.

Which factor primarily establishes the legal rights associated with a commission in real estate transactions?

Broker's past performance history.
Written contract outlining commission terms. (correct)
Mutual consent between broker and client.
Applicable real estate laws in jurisdiction.

In the absence of a written contract, which situation would generally NOT be enforceable between a broker and principal?

<p>The principal agrees verbally to pay a commission. (B)</p> Signup and view all the answers

What essential legal principle underpins the need for a written contract in real estate transactions?

<p>Statute of frauds. (A)</p> Signup and view all the answers

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Flashcards

Statute of Frauds

A contract for real estate services must be in writing to be enforceable.

Broker-Principal Agreement

A written contract, legally binding, which establishes the terms of the agreement between a broker and a principal.

Statutory Requirement

The legal rule that requires certain contracts, like real estate ones, to be in writing to be enforced.

Scope of Service

A written agreement defines the scope of the broker's services and how they will be compensated.

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Accepting Deposit

The broker's right to accept a deposit as part of a real estate transaction.

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Study Notes

Essential Element Between Broker and Principal

The essential element needed between a broker and a principal for real estate transactions is the establishment of the parties' commission rights by law.
A written contract is required for contracts involving real property, agents, and periods longer than a year.

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Description

This quiz covers the essential elements necessary for establishing the relationship between a broker and a principal in real estate transactions. You'll learn about the legal requirements, including written contracts and commission rights. Test your knowledge on these crucial concepts!