CHAPTER 5 QUIZ

1. A sponsoring broker’s Licensee lists a unit for sale in a condominium building. The Licensee in this transaction:

2. A real estate sponsoring broker was responsible for a chain of events that resulted in the sale of one of his client’s properties. This is referred to as a:

3. A Licensee may advertise a property for sale only if he or she:

4. Wilia is a Licensee working for Sponsoring broker Vic. Willa sells a $150,000 home listed by Vic’s office. The listed commission is 6.5 percent of the selling price. Sponsoring broker Vic and Willa agreed that Willa would receive 55 percent of any commission that she generated for the office. Willa is entitled to receive:

5. To be entitled to collect a real estate commission, a sponsoring broker must be able to prove all of the following EXCEPT that he or she:

6. A Licensee may not receive compensation or commission from anyone EXCEPT:

7. Which of the following is NOT prohibited under the antitrust laws?

8. A property owner signed a 90-day listing agreement with a sponsoring broker. The owner was killed in an accident before the listing expired. Now the listing is:

9. The type of listing agreement that provides for the payment of a commission to the sponsoring broker even though the owner makes the sale without the aid of the sponsoring broker is called an:

10. Under which of the following listing agreements can the owner of listed property sell the property on his or her own without having to pay the listing sponsoring broker a commission?

11. An owner lists her property for sale with a sponsoring broker. Another sponsoring broker, however, finds a buyer for the house. The listing sponsoring broker did not receive a commission from the sale. The type of listing contract between the owner and the sponsoring broker could have been a(n):

12. Sponsoring broker Juanita was accused of violating antitrust laws. She was probably
accused of:

13. While an agent was showing a house to a potential buyer, the agent said, “I don’t think there’s a better view in the city!” Was this statement by the agent permissible?

14. Unless some other written agreement has been made, the sponsoring broker will usually receive the sales commission from the seller when:

15. A real estate agent who is an independent contractor receives:

16. In a typical agency relationship between the sponsoring broker and the client, the sponsoring broker’s commission is determined by:

17. A sponsoring broker lists a property for sale at $200,000 with a 5 percent commission, and he later obtains a verbal offer to purchase the property from a prospective buyer. The seller indicates to the sponsoring broker that the offer would be acceptable if it were submitted in writing. Before it can be put in writing, the buyer backs out and revokes the verbal offer. In this situation, the sponsoring broker would be entitled to:

18. The type of buyer agency agreement that best protects the buyer.

19. The Illinois court decision in Chicago Bar Association et al. v. Quinlan and Tyson, Inc., held that:

20. A listing agreement may be terminated for any of the following reasons EXCEPT the:

21. By executing a listing agreement with a seller, a real estate sponsoring broker has become:

22. The provision in a listing agreement that gives additional authority to the sponsoring broker and obligates the sponsoring broker to distribute the listing to other sponsoring brokers is a(n):

23. Sponsoring broker Wayne took a listing on a property and shortly thereafter discovered that his client had been previously declared incompetent by the court. The listing now is:

24. A property owner lists his property for sale with a sponsoring broker. During the negotiations, the owner told the sponsoring broker that the owner wanted $238,000 for the property, and anything above that amount the sponsoring broker could keep as his commission. The listing with this type of provisions is known as a:

25. A listing contract in which the sponsoring broker’s commission is contingent on the sponsoring broker being able to produce a buyer before the property is sold by the owner or another sponsoring broker is called a(n):

26. A sponsoring broker who represents a seller under an exclusive listing receives two
offers for the property at the same time, one from one of his agents and one from an agent of a cooperating sponsoring broker. What should the sponsoring broker do?

27. Sponsoring broker Paul listed the Kennedy’s property for sale under an exclusive-right-to-sell agreement. One of Paul’s agents, Tanya, obtained an offer to purchase the property along with a certified check for 5 percent of the purchase price as earnest money. What should Tanya do with the earnest money check?

28. All of the following are typical provisions of a listing agreement EXCEPT the:

29. The type of listing agreement that provides the least protection for the listing sponsoring broker is the:

30. A seller refused to pay a commission to the sponsoring broker even though there was a valid listing agreement and the sponsoring broker procured a buyer for the property. What can the sponsoring broker do?

31. Under an exclusive agency listing, the listing sponsoring broker would NOT be entitled to a commission if:

32. All of the following are types of listing contracts EXCEPT a(n):

33. A listing agreement may be terminated by all of the following EXCEPT:

34. The sponsoring broker enters into a listing agreement with a seller in which the seller will receive $12,000 from the sale of a lot and the sponsoring broker will receive any sale proceeds over this amount. This type of listing is a(n):

35. An owner who is interested in selling his house is usually concerned about how much
money he can get when it sells. A comparative market analysis may help the seller determine a realistic listing price. Which of the following is true?

36.Two different sponsoring brokerage companies claimed they were entitled to a commission from the sale of a property that was listed by one of the firms under an open listing agreement. The sponsoring broker who is entitled to the commission is the one who:

37. In Illinois, if a sponsoring broker is taking a listing and asks the seller to complete a disclosure of property conditions, which of the following statements is true?

38. 614 Stevenson Street in Peoria is owned by Walter. Walter lives in Chicago, and the house in Peoria is occupied by married couple, Chris and Debbie. If Walter wants to sell the property, who is required by law to sign the listing agreement?

39. All of the following must appear in a written Illinois listing agreement EXCEPT:

40. Kendra is an Illinois real estate licensee and the listing agent for a home. After one month of the three-month listing has gone by without any offers on the property, Kendra becomes concerned. At the time the listing agreement was signed, Kendra and the sellers orally agreed that if no offers were received after one month, the price of the property would be reduced by ten percent. Because the sellers are out of town, Kendra crosses out the old listing price, writes in the new one, and then updates the information on the computerized listing service. Three days later, a prospective buyer comes into Kendra’s office to make an offer on the property. Based on these facts, which of the following statements is true?

41. Which of the following is true of listing agreements in Illinois?

42. Which of the following constitutes grounds for the suspension or revocation of a real estate license?