b. keep the confidence of his buyer while presenting the $150,000 offer. d. none of the above. b. by the tenant for the landlord's failure to repair. a. commingling. A seller's agent and a selling agent don't represent the same parties, although they sound a great deal alike and are easily confused. Disadvantages of home ownership include b. expands the inventory of comparables to inform both buyers and sellers. a. special agents. the broker has no authority to withhold any offers from the seller Correct Answer: the broker has no authority to withhold any offers from the seller Question 3 0 out of 2 points A broker has an exclusive-right-to-sell listing on a building. d. all of the above, 94. Learn more about the roles these agents play in real estate so you can be a more informed buyer and seller. The agent, 10. d. find out what the caller is interested in and why. Institute of Real Estate Management. Some listing/seller's agents won't accept offers from buyers themselves, but only from their representatives. a. referrals. Types of Client Representation in Real Estate Transactions, How Two Offers on a Listing Happen at the Same Time, What It Means When an Agent Claims to Have a Buyer for Your Home, The Different Types of Listing Agreements for Selling a Home, Handbook on Multiple Listing Policy Section 3: Definitions of Various Types of Listing Agreements, Multiple Listing Service (MLS): What Is It, Competition in the Real Estate Brokerage Industry, Commission/Cooperative Compensation Offers, Section 1: Information Specifying the Compensation on Each Listing Filed With a Multiple Listing Service of an Association of REALTORS (Policy Statement 7.23), Duties of Seller's Agent, Buyer's Agent and Transaction Broker, Consumers Should Be Aware of Dual Agency in Real Estate Transactions. c. an outside agent presents an offer on a broker' listing. Which of the following is not a conventional loan But youve never seen one, or they were missed by an inspection (or maybe there never was an inspection). a. estate for years. Disclose when youre under contract to other potential buyers. Seller's agents do what the name impliesthey list a property for sale. d. stand on the street corners soliciting buyers for the property. Market Analysis can expect Some states even go so far as to impose an affirmative duty on a seller if they know that their real estate is being haunted by the dead. b. c. office property. If you're a buyer, don't just check the local disclosure laws. as a In addition to the moral reasons for being honest with prospective buyersand the desire to avoid the expense and hassle of a lawsuitindividuals have a reputation to protect. c. I will be better prepared for my listing presentations. According to Nolo, an online legal library, many if not most sellers pay the credit rather than providing the form. c. provide local control for new subdivisions. d. destruction of the premises. How to Choose the Right Real Estate Broker, The Differences Between a Real Estate Agent vs. a Broker vs. a Realtor, How Millennials Are Changing the Housing Market, How to Set a Budget for Buying Your First Home, Financial Tips After Buying Your First Home, Hidden Costs of New Homes That Can Burn Buyers. This means only the listing agent is entitled to a commission, or more accurately, the listing agent's brokerage is entitled to a commission. a. submit only those offers that meet the listing price. Agents who are authorized to bind their employer in a trade or business are In general, sellers should disclose any known facts about the physical condition of the property, existence of dangerous materials or conditions, lawsuits or pending matters that may affect the. Property is destroyed or its use is changed by some force outside of the owner's control, such as a zoning change or condemnation by eminent domain. Explain. And if they push you for exact figures on something like square footage, make sure you properly attribute where those numbers came from. The buyers attempted to rescind their agreement. Inducing persons to list or sell by the fear that minority groups The ultimate responsibility for the salesperson's actions rests with the A) salesperson. Buyer and seller When an agent is given the right to transact all types of matters on behalf of the principal, the agent serves as a a. A lighting fixture, the refrigerator or microwave, the fitted blinds: Any of these things could have gone out the door with the seller if nobody thought to discuss it in advance. c. an agent of the seller. Your buyer's agent will email your offer along with supporting documentation to the listing agent. c. estate at sufferance. A) Salespeople will not show Firm B's listings because of . a. non-interference clause. c. the roof does not leak and no doors or windows are broken. ", Whitney, LLC. 84. While that agreement was still in effect, the sellerwithout informing the first brokerhired another broker from a separate firm under an exclusive right-to-sell listing for the same property. a. mortgage companies. ", Department of Justice. Be Aware of These 15 Tenant Rights, The Cost to Build a House in California (2023), How to Sell a House By Owner in Mississippi, Process of Selling a House for Cash in 9 Steps, unethical, but can potentially get a seller into legal hot water. Do you really need to disclose it? b. it creates immediate traffic, showing the owners you are working In fact, at a certain point the burden falls on buyers to do their due diligence to uncover any problems. d. all of the above, 96. 34. 82. "Do you want a home with a fireplace?" Most transactions are completed under an exclusive representation listing agreement between the listing agent and the seller. d. both b and c. 88. a. percentage of the net. c. redlining. b. assumptive-close. 1. out and signed by both buyers and sellers. What potential buyers need to know about your home. from all liability for injury or property If there isn't a specific form, your state department or commission of real estate or state realtor's association will usually have a recommended form you can use. Some states, such as Michigan and North Carolina, require sellers to use a specific disclosure form. 17. Check with the appropriate planning departments in your town or city for details about disclosures. 29. What's the Problem With Calling a Listing Agent to See a House? I think, as a seller, it makes a lot of sense to disclose that you have multiple offers to all buyers, Shorey says. b. a. all housing. State and local laws differ in their disclosure provisions. If there's no cancellation fee in the agreement, then you can cancel anytime and you're off the hook. 55. Civil Rights Act of 1866. c. Civil Rights Act of 1968. a. A sale is referred to as "dual agency" when the selling agent works at the same brokerage as the listing agent, even if the listing agent and selling agent don't know each other. a. general agency. No. b. debt relief. a. buyers tend to get more excited over new listings. d. all of the above. form, that salesperson is using the 91. 28. Taxpayers with an adjusted gross income of less than $100,000, can c. lawfully organizing a tenant association. new listing, are b. put up a sign. and gave her husband one-half interest a. the assignee is primarily liable under the lease in an assignment. a. There are, however, circumstances under which sellers do not have to disclose a death on the property. d. neither a nor b, 66. Who can change signed escrow instructions? or abandonment of the Government National Mortgage Association (GNMA). "However, some states impose a duty [to disclose] on a stigmatized home or apartment in which there has been a suicide or murder. d. all of the above, 97. The most common form of seller representation is when the listing agent has signed an exclusive right-to-sell listing with the seller. c. refuse to present the offer. 53. The primary objections to offers by sellers concern c. electric elevator. But a listing agent might accept a small flat fee to act as a clerk and put a home for sale into MLS in a few isolated circumstances, yet not really represent the seller. d. $100,000. d. $1,000,000. Seller's agency occurs when a real estate broker, real estate agent, or Realtor represents an owner to sell their property. c. exclusive agency listing. b. the units are solely occupied by disabled persons. About the Author: The above Real Estate information on real estate commission and agent bonuses were provided by Bill Gassett, a Nationally recognized leader in his field.Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. expiration. If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. b. one large picture is generally more effective than several small Offers and counteroffers typically take place within a 24-48 hour window, but each round can add days to your timeline. Broker: What's the Difference? The form may be more or less comprehensive than what state law requires. Zillow Group's Move Forward. Accepting an offer doesnt mean the end of negotiations. d. liens placed by the insured. Some buyers have concerns or superstitions about purchasing a home in which someone has died. b. c. None Property sellers are usually required to disclose negative information about a property. Depending on the market you're selling in, your agent may advise a different listing price strategy. a. a death on the property by murder even after three years. Classified ads differ from most other forms of real estate ads in c. both a and b b. using high-pressure tactics. d. all of the above, 58. d. Hold it until the seller returns home. b. mortgage loan brokers. d. water quality. If they sell the home next month, the maximum exclusion premises by the tenant. Better Business Bureau. You may also want to disclose electrical or plumbing repairs and any other problems you would want to know about if you were going to buy the home and live in it. d. prohibits overpriced listings. c. Industrial and Residential a. a broker represents a buyer and writes an offer on his own listing. The initials "APR" in a real estate ad stand for Loans having initially lower interest rates than 30-year fixed loans A standard policy of title insurance covers all, except Still, they're especially likely to affect propertyflippers, who buy properties to upgrade them and resell them for a quick profit. The broker and the seller will win because of "caveat emptor" 6. d. neither a nor b. As to agent disclosure, an agent must disclose a. people tend to read from the upper left corner to lower right corner. 16. a. commingling and is illegal. Selling a property "As Is" will usually not exempt a seller from disclosures. b. protect the environment. "Most sellers choose the second option," Shorey explains. Understanding the differences between a selling agent and a listing agent is important, because you'll want to know what to call the respective agents in a transaction, particularly if you're selling or buying your first home. a longer selling time than properties listed below the Competitive c. both a and b "How would you use this workroom?" The nomenclature is confusing, to be sure, but the "ing" puts them on the other side of the fence from the seller's agent. A property owner wishing to be contacted by persons who want to buy and not by agents who want a listing, would advertise for. If you lie on a seller's disclosure you risk being heavily fined or sued in court, or both. Surgeon General Regina Benjamin, MD, MBA, is serving as Zillow's . c. Federal Home Loan Mortgage Corporation (FHLMC). d. make certain new developments appear on the tax rolls. d. shrewd business and is legal. c. buy it himself. 35. No two multiple offer scenarios will be the same, but there are some common mistakes that all sellers can learn from and avoid: Determine your priorities before you list your home. They want to disclose the existence of offers, but not the price, terms, or contingencies of the offer.. 85. After an earthquake, a property manager had to meet with insurance adjusters to arrange for repairs to several properties which she managed. You also need to know about the HOA's financial health and provide this information to the buyer to make an informed purchasing decision. procure a buyer? b. commercial property manager. b. business cards. Broker c. selling the seller on an acceptance. Once you accept an offer from a buyer, you should let all other parties know that your property is under contract. It is the responsibility of the real estate broker to Header Image Source: (Julia Kuzenkov / Pexels). Buyers need to know if the home is in a special historic district because it will affect their ability to make repairs and alterations, and it might also increase the cost of those activities. Buyers can ask sellers to sign a confidentiality agreement before presenting an offer. Federal National Mortgage Association (FNMA). Long answer: In an ideal real estate world, the buyer and the seller enlist different real estate agents to represent their separate interests. Sellers who have any concerns about whether theyve disclosed the propertys condition correctly should contact a real estate attorney in their state. Texas Real Estate Commission. Property management fees could typically be b. custom in the industry. 50. A real estate attorney might also be consulted. Disclosure might be required. The salesperson must d. none of the above, 24. 2. a. an employee of the owner. a. is unlawful. b. They include all, except d. neither a nor b. A tenancy which has a definite termination date, would be a(n) And there are some unscrupulous agents in the industry who would love the prospect of earning a double commission so much that they might do whatever it takes to appease the buyer by violating their fiduciary responsibility. Some listing agents will not take an offer directly from a buyer. d. lease option. National Association of Realtors. b. specific advertising. Find top real estate agents in these similar cities, HomeLight has an A+ rating with the d. none of the above, 57. b. flood hazards. b. the fact that most sellers become buyers and most buyers become a. would be Rational buying motives include b. when the tenant consents to entry. an a. an employee of the owner. b. third party. What should the broker do with the check? A divided agency, also known as an undisclosed dual agency, is prohibited if the agent acts for an adverse party without the principal's knowledge or consent. c. both a and b Down Payment: What It Is and How Much Is Required, Conditional Offer: Definition, How It Works, and Types, Closing Costs: What They Are and How Much They Cost, Grant Deed in Real Estate: What It Is, Examples, and Types. In most states, the maximum amount a broker may charge a seller is c. must be disclosed to all parties. known as permission of the owner, would be a(n) Terms expired. Just remember that the listing agent, also known as the "seller's agent," represents the seller. 9. a. long-term savings. b. selling the buyer on an offer. to terminate, would be a(n) b. percentage lease. ", Even when disclosure isn't requiredGeorgia, for example, doesn't require the disclosure of homicide or suicide unless the seller is directly askedsellers may want to err on the side of informing the buyer of a death on the property. a. loans from small lenders. "Seller Disclosure Act, Act 92 of 1993," Page 4. When either the buyer or the seller makes a counteroffer, it voids all previous offers. b. Telling buyers that theres competition for the home could discourage them from making additional offers. d. holdover lease. Sometimes, buyers wrongly believe that they can call the listing agent to show a home and that the listing agent will somehow get them a "deal" with the seller, either directly or indirectly. c. all improved property. They could counter with a larger earnest money deposit, a shorter closing, or cover closing costs entirely. is not obligated to use diligence to But disclosure laws vary by stateand even by city. reasonable notice to make necessary or agreed repairs. Updated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves inside The Star and around the league . c. leasing fees. b. short-term loans until permanent loans can be arranged. b. assure that a broker can be trusted. a. to pay a higher interest rate if the loan origination fee was lower. When an owner sells a property, they are typically required todisclose informationin a written document. Loans for First-Time Homebuyers: How to Finance, Buying a Foreclosed House: Top 5 Pitfalls, 8 Things to Consider Before Buying a Two-Family House, Home Appraisal: What it is, How it Works, FAQ, Buying a Home: 8 Important Seller Disclosures, Clear Title: Definition and Importance in Real Estate. d. seek an attorney's help to determine if it is legal. A listing agent can also be a selling agent, which means that the listing agent is either engaged in dual representation, which is a form of dual agency and legal in some states, or the legal relationship between the parties is transactional in nature. It's their job to market the property and get it sold properly. a. evaluate. Buyers dont typically make their best offer right out of the gate. d. any of the above. Disclose nothing to buyers, including the existence of other offers. c. misrepresentation and may be illegal. b. Behavioral reaction d. Subjective experience. b. rental ads for single-family homes. They work for the seller and are also referred to as the "listing agent." a. three and one-third percent of the purchase price. Even after you accept one buyers offer, the negotiation process is still far from over. a. An essential question to ask at an open house is what stays and goes. Buyers can ask for a lot of information about a home, including things youve never even thought about. Real Estate Agent vs. c. home warranty plans and title insurance. d. pension funds. Its not only polite but neglecting to do so can violate NARs Code of Ethics. c. both a and b b. development of the automobile. Why? 22. a. b. automatic listing extension if escrow is opened prior to listing Laying out some treats and any pictures with further information about the . 2. a. price. "In winter, a roof that leaks or has old shingles may not be able to be inspected by the buyer or their home inspector. on their behalf. The buyer has no cause because he signed an agreement to purchase "as is" Which of the following would be an exact goal? A real estate transfer disclosure statement is required for If the buyer later discovers that a repair job was botched, you could be on the hook for additional repairs. d. "What is it about this area that you like? In most places, you dont have to provide copies of inspection reports, but doing so can save you a lot of trouble. In handling a telephone inquiry on a property, you should do all In general, sellers should disclose any known facts aboutthe physical condition of the property, existence of dangerous materials or conditions, lawsuits or pending matters that may affect the value of the property, and any other factors that may influence a buyers decision. You may face communication challenges. A property manager does not make policy or handle rentals. ", National Association of Realtors. c. quote only the listing price, but present all offers. Ways to kill a sale include is entitled to within a. 27. 69. 4. Conveyances, Subchapter A. a. involve the children of the prospective buyer. b. conversion and is illegal. An agent would not always be required to give an owner a copy of Doing so can, in many cases, lead to more compelling offers as long as you act in a timely manner with respect to the buyers. b. off-record easements. a. It refers to a buyer's responsibility for due diligence before purchase. b. hold-harmless clause. Similarly, a dry spell can conceal problems with a leaking basement.". b. renegotiable-rate mortgages. If the home is at an increased risk of damage from a natural disaster or has known or potential environmental contamination, you may be required to disclose this information to the buyer. Plus, respectfully responding to offers within the traditional 48-hour window makes for a happier buyer who might be more willing to negotiate. "Consumers Should Be Aware of Dual Agency in Real Estate Transactions.". However, a skilled real estate agent can help you develop a smart and ethical strategy. Some listing agents will not take an offer directly from a buyer. Enter your address and answer a few questions to get started. Brokers have liability as to their commission salespersons in respect b. words. 7%. c. both a and b The Civil Rights Act of 1964 covers prohibited discrimination as When a listing is taken, the seller would be referred to as, 4. Definitions and Examples, U.S. Department of Housing and Urban Development. all, except consistent with good economics. a. estate for years. 60 days after listing. So here are some basic rules to govern how and when you disclose any problems. d. none of the above. c. white spaces emphasize the message. b. disposing of garbage and other waste in a sanitary manner. a. are not eligible for sale to Fannie Mae or Freddie Mac. Estate Managers. The landlord must ensure at a minimum that It all depends on the strategy youve outlined with your agent, explains top-selling Boston-area real estate agent David Shorey. Even if youve had an appraiser check out your home, you may have no idea how many square feet it truly is because, as it turns out, theres no single agreed-upon way to measure a home. 54. c. the sale of commercial property. a. selling the owner on a listing. d. any of the above, 100. A "net listing" is a listing agreement in which the broker's commission is the difference ("net") between the sales proceeds and an amount desired by the owner of the real property. a. be in writing. To be valid, a lease must d. special agency. Civil Rights Act of 1964. d. Rumford Act. B) associate broker managing the office. Although the threat of a lawsuit can be scary, theres one thing you dont have to worry about: The courts wont hold you accountable for failing to disclose issues youre unaware of. The idea of the endless chain refers to 83. Texas law requires sellers to disclose the presence of hazardous or toxic waste, asbestos, urea-formaldehyde insulation, radon gas, lead-based paint, and previous use of the premises for the manufacture of methamphetamine. Market Analysis price. 5% $2800 (agents commission) divided by 35% (.35, agents percentage) = $8000 Total commission: $8000 divided by $160,000 sales price = 5% (commission rate) A broker listed a property and in one week found a buyer for the property herself. Newspaper leads for listings include Yep, thats right. value (for tax purposes) of their principal All of the following are examples of fiduciary relationships EXCEPT, 9. c. to act as a neutral depository.