In city zoning ordinances, a planned unit development creates

neighborhoods of cluster housing and business establishments

parks and community recreation areas

standards of minimum setbacks for property lines

rules and regulations regarding municipal utilities and services

neighborhoods of cluster housing and business establishments

A brokerage firm holds an open listing on a seller's house, along with three other firms. A licensee learns that zoning changes will allow a shopping center to be built nearby. Does the licensee have a responsibility to pass the information to the seller

No, because the licensee does not have a fiduciary responsibility to the seller

Yes, because the licensee would have to do so to be considered a procuring cause of any sale

Yes, because the licensee should keep any principal informed of changes in market conditions

No, because the licensee does not have a fiduciary responsibility to the seller

No, because the licensee owes such vital information only to those principals who have signed exclusive listing agreements with the firm

Illinois Real Estate Exam Study Guide PDF

Q 1 / 100 00:00

00:00 Elapsed

Question 1

In order to collect a commission, which of the following is a requirement for a broker with an open listing

Your Answer: Option(s)

Correct Answer: Option(s) C

Rationale

The broker or one of the broker's licensees must be the procuring cause for the sale.

In order for a broker to collect a commission from an open listing, they must demonstrate that they or one of their licensees was the procuring cause of the sale, meaning they played a significant role in bringing about the transaction.

A) The broker must put the listing in the MLS.
While listing a property in the Multiple Listing Service (MLS) can help enhance visibility and attract buyers, it is not a requirement for a broker to collect a commission on an open listing. Open listings are typically not exclusive and do not necessitate MLS inclusion for commission eligibility.

B) The listing must have a protection clause.
A protection clause in a listing agreement ensures that the broker will be compensated if a buyer they introduced purchases the property within a specified period after the listing expires. However, for open listings, which are non-exclusive, such a clause is not necessary for the broker to earn a commission based on their role in the transaction.

D) The broker must notify any other broker with an open listing on the property of the sale within 2 days after acceptance of an offer.
Although it is good practice to communicate with other brokers involved in an open listing, there is no legal obligation for a broker to notify them within a specific timeframe after accepting an offer. This requirement does not affect the broker's right to a commission.

Conclusion
In the context of an open listing, the key requirement for a broker to receive a commission is to establish that they, or one of their licensees, were the procuring cause of the sale. Other options such as MLS listing, protection clauses, and notification timelines do not serve as prerequisites for commission entitlement. Understanding this distinction is crucial for brokers operating under open listings to ensure their entitlement to compensation.

Select an answer to continue →

0% score

0/0 correct

Answered 0/100

Correct 0

Wrong 0

100 left

Unlock Full Access

All questions, explanations & stats

Subscribe Now

The broker or one of the broker's licensees must be the procuring cause for the sale.

An agency has most likely been created when a prospective buyer of real estate authorizes a licensee to find a property.

In city zoning ordinances, a planned unit development creates neighborhoods of cluster housing and business establishments.

No, because the licensee does not have a fiduciary responsibility to the seller.

The amount of the new buyer’s equity in the home is $78,000.

Free Preview Ended

Unlock Full Access

The broker or one of the broker's licensees must be the procuring cause for the sale.

An agency has most likely been created when a prospective buyer of real estate authorizes a licensee to find a property.

In city zoning ordinances, a planned unit development creates neighborhoods of cluster housing and business establishments.

No, because the licensee does not have a fiduciary responsibility to the seller.

The amount of the new buyer’s equity in the home is $78,000.

Free Preview Ended

Unlock Full Access

You are leaving this quiz

You're in the middle of a quiz

Report an Issue

Rate this Practice Test