1.Ted Richardson owns a large industrial building in your city that he wishes to sell. As a real estate broker, you would be delighted to obtain the listing on this property. You have worked with Richardson on two other transactions in which he was the buyer; therefore, you approach Richardson to request that he consider listing his property with you. Richardson agrees to do so but indicates that he will not give you an exclusive right of sale listing because he wants to retain the right to sell the property himself without owning a real estate commission. He will, however, give you an exclusive agency listing.
a.What should you do? Should you accept such a listing from Richardson?
b.What provisions, if any, would you include in the listing contract to give yourself some protection?
2i. You are a real estate salesperson working for Good Earth Realtors, Inc. You receive 50 percent of all commissions received by the firm (net of MLS fees) for which you were either the listing agent or the selling agent. The firm receives 40 percent of commissions for sales of properties it lists and 45 percent of commissions for sales of properties it sells in cooperation with other firms. Fifteen percent of all commissions for properties sold through the multiple listing service must be paid to the MLS. If you are both the listing and selling agent in a transaction, you receive 60 percent of the firm’s proceeds. If you are either the listing agent or the selling agent for a transaction in which another member of Good Earth is the selling agent or the listing agent, your split remains the same as when another firm cooperates in the transaction. Recently, you were the selling agent for a property that sold for $127,250. Another salesperson associated with Good Earth had listed the property two months previously for $135,000. The property was in the MLS, and the commission rate was 6 percent.
a.How much in total commission, net of the MLS fee, will your firm receive?
b.What will be your split of the commission?
2ii. One of the most effective ways that salespersons or brokers can distinguish themselves as a preferred agent in a particular specialization of real estate brokerage is to:
a.Obtain a license to practice.
b.Take related courses.
c.Read related books.
d.Engage in personal advertising.
e.Obtain a related industry designation.
3.If you owned your own real estate brokerage firm, how could you establish a niche in the market for your firm? How could you set your firm apart from other brokerage firms and create a unique image for your firm?
4i.How do you think the real estate marketing function will change in the future? Do you believe that real estate brokers will play a more important or a less important role in the selling and buying process? Why?
4ii.Real estate salespersons can lose their licenses for:
a.Using aggressive sales techniques.
b.Not showing buyers all available properties in an area.
c.Commingling escrow (trust) money with personal funds.
d.Not using modern sales methods.
e.All of the above.
5.The state real estate commission is responsible for:
a.Setting fees for brokerage services.
b.Marketing data on real estate transactions.
c.Establishing education requirements for licensees.
d.Overseeing the activities of mortgage lenders.
e.Setting up multiple listing systems.
6i. You decide to open a real estate office in your community, but you know you would face stiff competition from established firms. You believe that one method of drawing attention to your firm and obtaining clients who would otherwise go to the established brokers is to advertise that you will sell any house in town and charge a commission of only $2,000. Do you believe such a marketing tactic would be successful? Why or why not?
6ii. Real estate brokers are paid commissions primarily for:
a.Having an inventory of properties.
b.Having many contacts.
c.Providing a service.
d.Knowing how to close a transaction.
e.Having specialized education.
7.A real estate broker is what type of agent for his or her principal?
e.All of the above.
8.The sub-agency relationship that traditionally has characterized multiple listing services (MLS) has tended to result in the widespread danger of:
b.Deliberate dual agency.
c.Unintended dual agency.
9.How are commission rates that real estate brokers charge determined?
a.By agreement among local Realtors.
b.By rule of the local Board of Realtors.
c.By state real estate commissions.
d.By agreement between broker and principal.
e.By state law.
10.According to most listing contracts, a broker has earned a commission when:
a.A contract for sale is signed by the buyer.
b.The transaction closes.
c.The broker finds a buyer who is ready, willing, and able to buy on the terms specified in the listing contract.
d.The seller signs a listing contract.
e.The broker sends a bill for services rendered to the principal (usually the seller).