#1
What is the primary purpose of a real estate listing agreement?
To specify the terms and conditions under which the agent will represent the seller
ExplanationClarifies agent's representation terms for the seller.
#2
Which type of real estate listing agreement gives the agent the exclusive right to sell the property?
Exclusive right-to-sell listing agreement
ExplanationGrants sole selling rights to the agent.
#3
What is the duration of a typical real estate listing agreement?
6 months
ExplanationStandard agreement length.
#4
In a real estate transaction, what does 'MLS' stand for?
Multiple Listing Service
ExplanationDatabase for property listings.
#5
Which type of real estate listing agreement allows the seller to work with multiple agents but only pay a commission to the one who sells the property?
Open listing agreement
ExplanationAllows multiple agents, commission to selling agent only.
#6
What is 'comparative market analysis' (CMA) used for in real estate?
To determine the value of a property by comparing it to similar properties that have recently sold
ExplanationAssesses property value based on recent sales.
#7
What is the purpose of an 'escalation clause' in a real estate offer?
To automatically increase the buyer's offer by a specified amount if competing offers are received
ExplanationAutomatically increases buyer's offer in competition.
#8
In a real estate transaction, what does 'fiduciary duty' refer to?
The duty of the agent to act in the best interests of their client
ExplanationAgent's obligation to prioritize client's interests.
#9
What is the key difference between a seller's agent and a buyer's agent?
The seller's agent represents the seller's interests, while the buyer's agent represents the buyer's interests.
ExplanationDistinguishes representation roles based on client interests.
#10
What is the purpose of the 'safety clause' in a real estate listing agreement?
To ensure the agent receives their commission even after the listing agreement expires
ExplanationSecures agent's commission post-expiration.
#11
Which party typically pays the commission to both the seller's and buyer's agents in a real estate transaction?
The seller
ExplanationSeller is responsible for agent commissions.
#12
In a real estate listing agreement, what does 'termination clause' specify?
The circumstances under which the agreement can be terminated before its expiration
ExplanationConditions for early termination of agreement.
#13
What is 'dual agency' in real estate?
When an agent represents both the buyer and the seller in the same transaction
ExplanationAgent represents both buyer and seller.
#14
In a real estate transaction, what is 'contingency'?
A condition that must be met before the contract becomes binding
ExplanationCondition for contract's binding nature.
#15
Under what circumstance might a real estate agent use a 'net listing agreement'?
When the agent wants to minimize their risk and guarantee a minimum commission
ExplanationUsed to ensure minimum commission while minimizing risk.
#16
What does 'procuring cause' refer to in the context of a real estate transaction?
The agent's role in bringing about the sale of the property
ExplanationAgent's contribution to property sale.
#17
What is the purpose of a 'listing presentation' in real estate?
To provide potential sellers with an overview of the agent's qualifications and marketing plan
ExplanationHighlights agent's qualifications and marketing.
#18
What does 'due diligence' entail in a real estate transaction?
The period during which the buyer inspects the property and investigates its condition
ExplanationBuyer's property inspection and investigation period.
#19
What is a 'pre-approval letter' in real estate?
A letter from the buyer's lender confirming their ability to obtain a mortgage loan
ExplanationLender's confirmation of buyer's mortgage eligibility.