PURCHASE/SALES AGREEMENTS
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS
A salesperson newly licensed in this state, takes a listing on real property. Who
does the listing belong to?
A. The salesperson only.
B. The salesperson and the broker.
C. The broker only.
D. Neither, until a sale is made. - ANSWER ✔✔C. The broker only.
All listings are considered to be contracts between the seller and the broker.
The salesperson is only a representative of the broker. The listing employs the
broker to seek a buyer for the seller. If the salesperson leaves the employment
of the broker, the listing stays with the broker. If the seller does not pay the
commission when due, only the broker can sue the seller.
A listing agreement is essentially
Page 1 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
,A. an employment contract.
B. a purchase contract.
C. an option to sell.
D. all of these. - ANSWER ✔✔A. an employment contract.
Correct. A listing agreement is an employment contract. It authorizes the broker
to try to find a buyer for the seller's property. It is not a sales contract.
A licensed real estate broker took an exclusive agency listing from an owner for
a 90-day term. After the broker had expended considerable time and expense in
trying to locate a buyer, the owner sold the property himself during the listing
period. Under these circumstances, the broker was entitled to
A. a full commission.
B. no commission.
C. half of the agreed commission.
D. his advertising expenses. - ANSWER ✔✔B. no commission.
Page 2 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
,An exclusive agency listing provides that the broker is entitled to a commission
if any agent sells the property. This allows the owner to sell the property
himself and not be liable for a commission.
Broker Wilson, a sole proprietor of a real estate firm, obtained an exclusive
right-to-sell listing on a property. Five days later, he died. Ten days after his
death, an offer was made on the property to a cooperating broker. Which of the
following statements is TRUE concerning this situation?
A. Wilson's wife could assume the listing contract and present the offer to the
seller.
B. If the offer was accepted by the seller, Wilson's commission would be paid to
his estate.
C. The listing agreement terminated at Wilson's death.
D. Any commission from the sale of the property would be paid to Wilson's
heirs. - ANSWER ✔✔C. The listing agreement terminated at Wilson's death.
Page 3 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
, A listing may be terminated by death of the broker or seller, bankruptcy of the
broker or seller, destruction of the property, performance (producing a ready,
willing and able buyer), mutual consent of the broker and seller, or expiration of
the listing period. Because listings create agency relationships, death of either
party will terminate the listing and the heirs are not bound to the contract.
In a usual listing agreement, the broker is authorized to
A. convey the real property listed.
B. promise a buyer that any offer on the listed terms will be accepted.
C. find a purchaser and bind his principal to a contract.
D. find a purchaser and accept a deposit. - ANSWER ✔✔D. find a purchaser and
accept a deposit.
Page 4 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS
A salesperson newly licensed in this state, takes a listing on real property. Who
does the listing belong to?
A. The salesperson only.
B. The salesperson and the broker.
C. The broker only.
D. Neither, until a sale is made. - ANSWER ✔✔C. The broker only.
All listings are considered to be contracts between the seller and the broker.
The salesperson is only a representative of the broker. The listing employs the
broker to seek a buyer for the seller. If the salesperson leaves the employment
of the broker, the listing stays with the broker. If the seller does not pay the
commission when due, only the broker can sue the seller.
A listing agreement is essentially
Page 1 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
,A. an employment contract.
B. a purchase contract.
C. an option to sell.
D. all of these. - ANSWER ✔✔A. an employment contract.
Correct. A listing agreement is an employment contract. It authorizes the broker
to try to find a buyer for the seller's property. It is not a sales contract.
A licensed real estate broker took an exclusive agency listing from an owner for
a 90-day term. After the broker had expended considerable time and expense in
trying to locate a buyer, the owner sold the property himself during the listing
period. Under these circumstances, the broker was entitled to
A. a full commission.
B. no commission.
C. half of the agreed commission.
D. his advertising expenses. - ANSWER ✔✔B. no commission.
Page 2 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
,An exclusive agency listing provides that the broker is entitled to a commission
if any agent sells the property. This allows the owner to sell the property
himself and not be liable for a commission.
Broker Wilson, a sole proprietor of a real estate firm, obtained an exclusive
right-to-sell listing on a property. Five days later, he died. Ten days after his
death, an offer was made on the property to a cooperating broker. Which of the
following statements is TRUE concerning this situation?
A. Wilson's wife could assume the listing contract and present the offer to the
seller.
B. If the offer was accepted by the seller, Wilson's commission would be paid to
his estate.
C. The listing agreement terminated at Wilson's death.
D. Any commission from the sale of the property would be paid to Wilson's
heirs. - ANSWER ✔✔C. The listing agreement terminated at Wilson's death.
Page 3 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
, A listing may be terminated by death of the broker or seller, bankruptcy of the
broker or seller, destruction of the property, performance (producing a ready,
willing and able buyer), mutual consent of the broker and seller, or expiration of
the listing period. Because listings create agency relationships, death of either
party will terminate the listing and the heirs are not bound to the contract.
In a usual listing agreement, the broker is authorized to
A. convey the real property listed.
B. promise a buyer that any offer on the listed terms will be accepted.
C. find a purchaser and bind his principal to a contract.
D. find a purchaser and accept a deposit. - ANSWER ✔✔D. find a purchaser and
accept a deposit.
Page 4 of 35
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
