Real Estate 84 Chapter 2 Real Estate Practice Quiz
1. If a listing agreement contains a safety clause, this offers the broker protection in the event of:
A. the sale of the property in the period after the listing expires
B. a suit against the broker by the buyer resulting from misinformation provided by the seller
C. the theft of property from the seller's house when it is being shown
D. an agreement to purchase the seller's home before the buyer has sold his property
Correct Answer: A
Explanation: A safety clause protects the broker's right to a commission if the property sells
during a specified period after the expiration of the listing. It applies if the buyer was shown the
property or made an offer during the listing period.
2. All of the following are legal requirements of a valid listing agreement EXCEPT:
A. adequate property description
B. in writing
C. signed by seller
D. words of conveyance
Correct Answer: D
Explanation: A valid listing agreement must adequately identify the property (usually through a
legal description) and must be in writing and signed by the seller. Words of conveyance are
required in a deed but not a listing agreement.
3. Which of the following persons is not authorized to sign a listing agreement?
A. An attorney in fact whose power of attorney has been recorded in the county where the
property is located
B. An officer of a corporation who has been authorized by the corporate board of directors to
list the property
C. Any partner in a general partnership
D. A real estate broker on behalf of an out-of-state seller
Correct Answer: D
Explanation: A broker is not ordinarily authorized to sign a listing agreement on behalf of the
seller. To do so, she would need to receive power of attorney from the seller.
4. Which of the following is not a way in which a listing agreement may terminate?
A. Upon the death of the broker
B. Mutual agreement between the parties
C. Abandonment
D. Renunciation by broker
, Correct Answer: C
Explanation: A listing agreement may not be terminated through abandonment. (Abandonment
is a method for terminating an easement.)
5. Which of the following statements regarding the multiple listing service provision of a standard
listing agreement is NOT correct?
A. Information about the listing will be shared with other MLS member agents
B. The MLS is responsible for verifying information provided by the seller
C. The broker will cooperate with other MLS agents to sell the property
D. The MLS is not a party to the transaction
Correct Answer: B
Explanation: The MLS will not verify information provided by the seller, and assumes no legal
responsibility for the information provided in the listing agreement.
6. If information on the listing agreement must be changed, who must provide written consent?
A. Seller and listing broker
B. Seller and buyer
C. Seller only
D. Listing broker only
Correct Answer: A
Explanation: Both parties to the listing agreement, the seller and the listing broker, must
consent in writing to changes to the listing agreement. This means initialing and dating any
changes made directly to the form, or completing an amendment addendum form.
7. Under which of the following listings will an agent receive a commission only if he is the
procuring cause of the sale?
A. Open listing
B. Exclusive agency
C. Exclusive right to sell
D. Net listing
Correct Answer: A
Explanation: Under an open listing, the seller pays a commission only if the agent is the person
responsible for bringing about the agreement between buyer and seller. No commission is owed if
another agent or the seller is responsible for the sale.
8. The most common means of compensation in a listing agreement is:
A. a set dollar amount
B. a percentage of the sales price
C. an hourly rate
D. all of the sales price above a specified amount
1. If a listing agreement contains a safety clause, this offers the broker protection in the event of:
A. the sale of the property in the period after the listing expires
B. a suit against the broker by the buyer resulting from misinformation provided by the seller
C. the theft of property from the seller's house when it is being shown
D. an agreement to purchase the seller's home before the buyer has sold his property
Correct Answer: A
Explanation: A safety clause protects the broker's right to a commission if the property sells
during a specified period after the expiration of the listing. It applies if the buyer was shown the
property or made an offer during the listing period.
2. All of the following are legal requirements of a valid listing agreement EXCEPT:
A. adequate property description
B. in writing
C. signed by seller
D. words of conveyance
Correct Answer: D
Explanation: A valid listing agreement must adequately identify the property (usually through a
legal description) and must be in writing and signed by the seller. Words of conveyance are
required in a deed but not a listing agreement.
3. Which of the following persons is not authorized to sign a listing agreement?
A. An attorney in fact whose power of attorney has been recorded in the county where the
property is located
B. An officer of a corporation who has been authorized by the corporate board of directors to
list the property
C. Any partner in a general partnership
D. A real estate broker on behalf of an out-of-state seller
Correct Answer: D
Explanation: A broker is not ordinarily authorized to sign a listing agreement on behalf of the
seller. To do so, she would need to receive power of attorney from the seller.
4. Which of the following is not a way in which a listing agreement may terminate?
A. Upon the death of the broker
B. Mutual agreement between the parties
C. Abandonment
D. Renunciation by broker
, Correct Answer: C
Explanation: A listing agreement may not be terminated through abandonment. (Abandonment
is a method for terminating an easement.)
5. Which of the following statements regarding the multiple listing service provision of a standard
listing agreement is NOT correct?
A. Information about the listing will be shared with other MLS member agents
B. The MLS is responsible for verifying information provided by the seller
C. The broker will cooperate with other MLS agents to sell the property
D. The MLS is not a party to the transaction
Correct Answer: B
Explanation: The MLS will not verify information provided by the seller, and assumes no legal
responsibility for the information provided in the listing agreement.
6. If information on the listing agreement must be changed, who must provide written consent?
A. Seller and listing broker
B. Seller and buyer
C. Seller only
D. Listing broker only
Correct Answer: A
Explanation: Both parties to the listing agreement, the seller and the listing broker, must
consent in writing to changes to the listing agreement. This means initialing and dating any
changes made directly to the form, or completing an amendment addendum form.
7. Under which of the following listings will an agent receive a commission only if he is the
procuring cause of the sale?
A. Open listing
B. Exclusive agency
C. Exclusive right to sell
D. Net listing
Correct Answer: A
Explanation: Under an open listing, the seller pays a commission only if the agent is the person
responsible for bringing about the agreement between buyer and seller. No commission is owed if
another agent or the seller is responsible for the sale.
8. The most common means of compensation in a listing agreement is:
A. a set dollar amount
B. a percentage of the sales price
C. an hourly rate
D. all of the sales price above a specified amount
