Real Estate 84 Chapter 2 Real Estate Practice Quiz.1. If a listing agreement contains a safety clause, this offers the broker protection in the event of:
A. the sale of the property in the period after the listing expir
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Real Estate 84 Chapter 2 Real Estate Practice Quiz.1. If a listing agreement contains a safety clause, this offers the broker protection in the event of:
A. the sale of the property in the period after the listing expires
B. a suit against the broker by the buyer resulting from misinformation provided by the seller
C. the theft of property from the seller's house when it is being shown
D. an agreement to purchase the seller's home before the buyer has sold his property
Correct Answer: A
Explanation: A safety clause protects the broker's right to a commission if the property sells
during a specified period after the expiration of the listing. It applies if the buyer was shown the
property or made an offer during the listing period.
2. All of the following are legal requirements of a valid listing agreement EXCEPT:
A. adequate property description
B. in writing
C. signed by seller
D. words of conveyance
Correct Answer: D
Explanation: A valid listing agreement must adequately identify the property (usually through a
legal description) and must be in writing and signed by the seller. Words of conveyance are
required in a deed but not a listing agreement.
3. Which of the following persons is not authorized to sign a listing agreement?
A. An attorney in fact whose power of attorney has been recorded in the county where the
property is located
B. An officer of a corporation who has been authorized by the corporate board of directors to
list the property
C. Any partner in a general partnership
D. A real estate broker on behalf of an out-of-state seller
Correct Answer: D
Explanation: A broker is not ordinarily authorized to sign a listing agreement on behalf of the
seller. To do so, she would need to receive power of attorney from the seller.
4. Which of the following is not a way in which a listing agreement may terminate?
A. Upon the death of the broker
B. Mutual agreement between the parties
C. Abandonment
D. Renunciation by broker
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