Which of the Following Is True of Real Estate Commissions

question 4

Multiple Choice

Which of the following is true of real estate commissions?

• A) If the seller has not given the broker a specific closing date, the broker can assume a reasonable closing date and can also claim a commission for an incomplete sale.
• B) If the seller has not given the broker specific terms on price, the broker can sell the property on his own terms and claim a commission.
• C) If the seller has not given the broker a specific closing date, the law assumes the contract to end 30 days after the creation of the contract, but the broker will not be entitled for a commission.
• D) If the seller has not given the broker specific terms of price or closing date, then the commission is not earned until the contract of purchase has been made.

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Definitions:

Liability

The legal responsibility to settle debts or obligations, which may arise from contracts, torts, or statutory duties.

Management Duties

The responsibilities and tasks assigned to the management of an organization, including decision-making, planning, staffing, directing, and controlling.

Limited Partners

Individuals in a partnership who invest money but are not involved in day-to-day management, and whose liability is limited to the amount of their investment.

General Partnership

A business structure where two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a venture.