Comprehensive Study 1 Up to Date Content
Real Estate Brokers Latest
Questions and Graded Answers
What is a Real Estate Broker?
Ans: An individual or company licensed by the state
to help a seller find a buyer or sometimes help a
buyer locate the right property
The "exclusive right to sell" listings entitles the broker a
commission no matter who sells the property as long as?
Ans: The court interprets the transaction as a "sale"
e.g., transfer as part of a settlements of litigation is
NOT a "sale"
What are the requirements of a broker?
Ans: a. One must be a licensed broker to collect a
commission
b. The real estate agent is licensed and is hired by
the broker
c. Both must be licenses
d. Some states allow "finders" who introduces the
buyer and seller and who is not part of the
negotiations
i. They can collect a fee
What are the involved parties in a real estate transaction?
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, Comprehensive Study 2 Up to Date Content
Ans: a. Licensed broker to collect commission
b. Real estate agent licensed and hired by broker
c. Some states allow finders. → see above
What are the characteristics of Fiduciary Duty?
Ans: a. The broker usually represents the seller,
though the buyer can hire a broker
i. Where the buyer does not have a broker, however,
the seller's broker has a fiduciary duty to the buyer
ii. if the broker attempts to represent both parties,
there is a problem of "dual agency"
iii. The broker must fully disclose his dual agency to
all parties or risk loss of a commission for breach of
fiduciary duty
When a seller engages a broker, the property is "listed,"
and listing will expire at?
Ans: A stated time.
i. If the broker sells within that period, he earns a
commission
What is a Net Listing?
Ans: i. Seller sets a minimum amount of money he
will accept, and the broker's commission is the
amount above of the minimum the broker can get the
buyer to pay.
ii. This type of listing may cause the broker to
bargain for a low base, causing a conflict between the
seller and the broker
Up to Date Content
Real Estate Brokers Latest
Questions and Graded Answers
What is a Real Estate Broker?
Ans: An individual or company licensed by the state
to help a seller find a buyer or sometimes help a
buyer locate the right property
The "exclusive right to sell" listings entitles the broker a
commission no matter who sells the property as long as?
Ans: The court interprets the transaction as a "sale"
e.g., transfer as part of a settlements of litigation is
NOT a "sale"
What are the requirements of a broker?
Ans: a. One must be a licensed broker to collect a
commission
b. The real estate agent is licensed and is hired by
the broker
c. Both must be licenses
d. Some states allow "finders" who introduces the
buyer and seller and who is not part of the
negotiations
i. They can collect a fee
What are the involved parties in a real estate transaction?
Up to Date Content
, Comprehensive Study 2 Up to Date Content
Ans: a. Licensed broker to collect commission
b. Real estate agent licensed and hired by broker
c. Some states allow finders. → see above
What are the characteristics of Fiduciary Duty?
Ans: a. The broker usually represents the seller,
though the buyer can hire a broker
i. Where the buyer does not have a broker, however,
the seller's broker has a fiduciary duty to the buyer
ii. if the broker attempts to represent both parties,
there is a problem of "dual agency"
iii. The broker must fully disclose his dual agency to
all parties or risk loss of a commission for breach of
fiduciary duty
When a seller engages a broker, the property is "listed,"
and listing will expire at?
Ans: A stated time.
i. If the broker sells within that period, he earns a
commission
What is a Net Listing?
Ans: i. Seller sets a minimum amount of money he
will accept, and the broker's commission is the
amount above of the minimum the broker can get the
buyer to pay.
ii. This type of listing may cause the broker to
bargain for a low base, causing a conflict between the
seller and the broker
Up to Date Content
