Real Estate Practice - Chapter 16 - The Law Of Agency

Party wanting representation is known as the principal.
Party giving representation is known as the agent.

The agent would be the LISTING BROKER.

An open listing is a type of real estate listing agreement in which the owner of the property allows multiple brokers to market and sell the property, with the commission being paid only to the broker who successfully finds a buyer. In this scenario, the owner has informed all the brokers that the commission will be paid only to the broker who finds a buyer, which aligns with the definition of an open listing. Therefore, the correct answer is true.

There are 2 types of Exclusive Agency listings:

The Exclusive Agency Listing is NOT recommended. This type of a listing does not provide a commission if the SELLER finds a buyer who purchases the property.

Exclusive Right to Sell is the most COMMON type of listing used in residential real estate. In the Exclusive Right to Sell Listing, there is also only ONE broker, however, this type of listing offers full protection of the real estate fee (commission) since the broker will receive a commission no matter who sells the property during the listing period, including the owner. The agreement includes a statement in bold face type that states this fact.

The most common type of listing is The Exclusive Right to Sell Listing.

The listing described above is known as a Net Listing.

In an Open Listing: the property owner, principal, can have any number of real estate offices working simultaneously to find a ready, willing, and able buyer. Typically arranged by oral agreement, ONLY the broker who FINDS the BUYER will receive a commission.

Is known as an Associate Broker.

The explanation for the given correct answer is that the Multiple Listing Service (MLS) is indeed a common name for a system where brokers agree to collaborate and sell each other's listings. In an MLS, brokers share information about their listings with other brokers who are members of the service. This allows for increased exposure and cooperation among brokers, ultimately benefiting both sellers and buyers in the real estate market.

It is www.realtor.com

The explanation for the correct answer is that according to the law of agency, when one agent represents two or more competing parties simultaneously in a business or legal transaction, it is referred to as dual agency. This means that the agent has a duty to act in the best interests of both parties, while also maintaining confidentiality and avoiding any conflicts of interest. Dual agency can occur in various industries, such as real estate, where an agent may represent both the buyer and seller in a transaction.

The most recent law that protects consumers was passed in 2000 was called Act 47 - Amendments to the Agency Act. (It was an add on to the 1999 Agency Act 112 - that requires licensees to give consumers of real estate services a Consumer Notice). The Act 47 law passed in 2000 concerns inquiries about real estate that come through telephone calls. The licensee must provide an oral disclosure to the consumer if it is not done in person.

The Real Estate Seller's Disclosure Act, passed in 1996, mandates that sellers must disclose any known material defects in a home to potential buyers. This ensures that buyers are fully informed about the condition of the property they are considering purchasing. By requiring sellers to disclose such defects, the act aims to protect buyers from unknowingly purchasing a property with significant issues. Therefore, the statement "True" is correct as it accurately reflects the requirement of the Real Estate Seller's Disclosure Act.

This is known as puffling.

It is Errors and Omissions Insurance.

It is the disclosure that is on the first page of a CMA.