BROKER CONTRACT LAW NEWEST EXAM 2025 WITH
MULTIPLE CHOICE OF QUESTIONS AND DETAILED
CORRECT ANSWERS ALREADY GRADED A+ AND 100%
GUARANTEE PASS (JUST RELEASED!!!!!!)
An owner lists a house with a broker for $72,000. Two days later the broker
brings an offer for $70,000. At this time, which of the following statements
is true?
a. the broker has found a buyer and earned his commission
b. a ready, willing, and able buyer has been found and a commission is due
c. a ready willing and able buyer has been found but no commission is due
d. none of the above - CORRECT ANSWER-D
In order to earn a commission, the broker must find a ready, willing, and
able buyer, on the terms of the seller. The offer was lower than the listed
price. while the buyer is ready and willing, there is no evidence that the
buyer is financially able, therefore no commission is due.
A property owner, after death of his wife, lists his property with a broker.
Two days later he sells the property himself but is not obligated to pay the
broker a commission. What type of listing agreement did he most likely
sign?
a. multiple
b. exclusive authorization to sell
c. exclusive right to sell
d. general - CORRECT ANSWER-D
,The widower probably signed a general (also called an open) listing which
specifies that the listing agent must sell the property for the owner to pay a
commission. Exclusive authorization to sell and exclusive right to sell are
the same and the broker gets paid regardless of who sells the property. An
exclusive agency would also allow the owner to sell and not pay a
commission but that is not one of the choices
A broker lists a property. A buyer submits a written offer and the seller
accepts it. On the day of scheduled for closing, the seller refuses to sign any
of the papers. The broker is entitled to:
a. a full commission because the fully performed
b. one-half of the agreed upon commission
c. out of pocket expenses only
d. nothing until or unless the sale closes - CORRECT ANSWER-A
A listing agreement will automatically terminate:
a. if the selling agent changes brokers
b. on the date specified on the listing agreement
c. if the owner abandons the property
d. all of the above - CORRECT ANSWER-B
The only true statement is that a listing agreement will terminate on the
date specified in the agreement. There are other reasons why a listing
would terminate but they are not offered as answers. That the owner
abandoned the building is not a reason to terminate a listing, he may still
enlist a broker to attempt to sell his abandoned property. However if the
BROKER abandoned the listing, the seller would be justified in terminating
the listing
,Dan and Daisy enter into a buyer/broker agreement. Dan believes that
Daisy is in breach. May Dan terminate the contract?
a. yes, but Dan waives his right to specific performance
b. no unless there is a mutual agreement between Dan and Daisy
c. yes, but Dan risks causing a breach himself
d. no, so long as Daisy is willing and able to perform - CORRECT ANSWER-C
Dan has no right to specific performance because this is a personal service
contract. One may terminate a contract without mutual consent regardless
of whether the other party is willing and able to perform. However, any
time you terminate a contract, you risk a breach- it could turn out that
Daisy was not in breach in which case Dan's termination would cause a
breach
A property management contract could exist between the property manger
and:
a. his or her employees
b. the property owner
c. the tenants
d. both a and b - CORRECT ANSWER-B
There is no contract between the property manager and the tenants. Any
contract between the property manage and his employees would be an
employment contract, not a property management contract
Susan and Sally enter into a buyer/broker agreement. However Sally
subsequently falls on hard times. Susan gets nervous and terminates the
contract. Is Susan in breach?
a. yes, if Sally is the Broker
b. no, so long as Sally takes no action
, c. no if Sally filed for bankruptcy
d. yes, if both parties agreed - CORRECT ANSWER-C
It makes no difference if Sally was the client or the broker, or whether
Susan takes action (a breach is a breach even if it is not penalized).
However, where a party dies, suffers from insanity, or enters bankruptcy,
the contract may be terminated without penalty
The legal relationship between a broker and seller is generally:
a. special agency
b. general agency
c. universal agency
d. none of the above - CORRECT ANSWER-A
As a general rule a listing agreement between the seller and agent is a
special or specific agency. The agent is authorized to do one act and one act
only (sell property). A listing agreement could, depending on the wording,
create something other than a special agency
A seller hires a broker to sell her property for $75,000. The broker knows
the property is worth considerably more as zoning has changed to
commercial. the broker buys the property and resells it himself two weeks
later for $125,000. which of the following is true?
a. the broker cannot work for someone out of state unless he has a license
in that state
b. this may be unethical, but the agent got the asking price and therefore
the seller suffered no loss
c. the broker can buy the property only after informing the seller of the
zoning change
MULTIPLE CHOICE OF QUESTIONS AND DETAILED
CORRECT ANSWERS ALREADY GRADED A+ AND 100%
GUARANTEE PASS (JUST RELEASED!!!!!!)
An owner lists a house with a broker for $72,000. Two days later the broker
brings an offer for $70,000. At this time, which of the following statements
is true?
a. the broker has found a buyer and earned his commission
b. a ready, willing, and able buyer has been found and a commission is due
c. a ready willing and able buyer has been found but no commission is due
d. none of the above - CORRECT ANSWER-D
In order to earn a commission, the broker must find a ready, willing, and
able buyer, on the terms of the seller. The offer was lower than the listed
price. while the buyer is ready and willing, there is no evidence that the
buyer is financially able, therefore no commission is due.
A property owner, after death of his wife, lists his property with a broker.
Two days later he sells the property himself but is not obligated to pay the
broker a commission. What type of listing agreement did he most likely
sign?
a. multiple
b. exclusive authorization to sell
c. exclusive right to sell
d. general - CORRECT ANSWER-D
,The widower probably signed a general (also called an open) listing which
specifies that the listing agent must sell the property for the owner to pay a
commission. Exclusive authorization to sell and exclusive right to sell are
the same and the broker gets paid regardless of who sells the property. An
exclusive agency would also allow the owner to sell and not pay a
commission but that is not one of the choices
A broker lists a property. A buyer submits a written offer and the seller
accepts it. On the day of scheduled for closing, the seller refuses to sign any
of the papers. The broker is entitled to:
a. a full commission because the fully performed
b. one-half of the agreed upon commission
c. out of pocket expenses only
d. nothing until or unless the sale closes - CORRECT ANSWER-A
A listing agreement will automatically terminate:
a. if the selling agent changes brokers
b. on the date specified on the listing agreement
c. if the owner abandons the property
d. all of the above - CORRECT ANSWER-B
The only true statement is that a listing agreement will terminate on the
date specified in the agreement. There are other reasons why a listing
would terminate but they are not offered as answers. That the owner
abandoned the building is not a reason to terminate a listing, he may still
enlist a broker to attempt to sell his abandoned property. However if the
BROKER abandoned the listing, the seller would be justified in terminating
the listing
,Dan and Daisy enter into a buyer/broker agreement. Dan believes that
Daisy is in breach. May Dan terminate the contract?
a. yes, but Dan waives his right to specific performance
b. no unless there is a mutual agreement between Dan and Daisy
c. yes, but Dan risks causing a breach himself
d. no, so long as Daisy is willing and able to perform - CORRECT ANSWER-C
Dan has no right to specific performance because this is a personal service
contract. One may terminate a contract without mutual consent regardless
of whether the other party is willing and able to perform. However, any
time you terminate a contract, you risk a breach- it could turn out that
Daisy was not in breach in which case Dan's termination would cause a
breach
A property management contract could exist between the property manger
and:
a. his or her employees
b. the property owner
c. the tenants
d. both a and b - CORRECT ANSWER-B
There is no contract between the property manager and the tenants. Any
contract between the property manage and his employees would be an
employment contract, not a property management contract
Susan and Sally enter into a buyer/broker agreement. However Sally
subsequently falls on hard times. Susan gets nervous and terminates the
contract. Is Susan in breach?
a. yes, if Sally is the Broker
b. no, so long as Sally takes no action
, c. no if Sally filed for bankruptcy
d. yes, if both parties agreed - CORRECT ANSWER-C
It makes no difference if Sally was the client or the broker, or whether
Susan takes action (a breach is a breach even if it is not penalized).
However, where a party dies, suffers from insanity, or enters bankruptcy,
the contract may be terminated without penalty
The legal relationship between a broker and seller is generally:
a. special agency
b. general agency
c. universal agency
d. none of the above - CORRECT ANSWER-A
As a general rule a listing agreement between the seller and agent is a
special or specific agency. The agent is authorized to do one act and one act
only (sell property). A listing agreement could, depending on the wording,
create something other than a special agency
A seller hires a broker to sell her property for $75,000. The broker knows
the property is worth considerably more as zoning has changed to
commercial. the broker buys the property and resells it himself two weeks
later for $125,000. which of the following is true?
a. the broker cannot work for someone out of state unless he has a license
in that state
b. this may be unethical, but the agent got the asking price and therefore
the seller suffered no loss
c. the broker can buy the property only after informing the seller of the
zoning change
