MTRES Montana Real Estate Salesperson - Set 4 - Part 3

A multiple listing service is a cooperative organization whose broker members pool their exclusive listings, gaining access to one another's inventory and agreeing to share commissions when a participating broker sells another member's listing.
Option a is incorrect because a net listing is a compensation formula in which the broker keeps sale proceeds above the seller's stated net; it governs a single seller-broker deal and says nothing about brokers pooling and sharing listings among a membership.
Option b is incorrect because an open listing describes one seller hiring several brokers directly and paying only the successful one; it is a type of employment contract between owner and brokers, not a cooperative network through which member firms exchange their listings.
Option c is incorrect because a buyer representation agreement employs a broker to locate property for a purchaser; it defines a single client relationship rather than an interbroker system for sharing seller listings and splitting commissions, so it does not fit here.

The owner-occupied building exemption, applying to dwellings of up to four units where the owner lives in one, is nicknamed the "Mrs. Murphy" exemption; it requires no broker and no discriminatory advertising.
Option b is incorrect because the name Jones points to a Supreme Court case, Jones v. Mayer, which upheld the 1866 act on race; it is not the label for the owner-occupied rental exemption, so this choice confuses a case with a nickname.
Option c is incorrect because a homestead exemption protects a portion of home equity from certain creditors; it belongs to property and debtor law, not to fair housing, so it has nothing to do with the owner-occupied rental rule.
Option d is incorrect because no fair housing exemption goes by this name; good faith appears in the Housing for Older Persons Act regarding senior housing damages, so this label is invented and misapplied to the owner-occupied building rule.

An open listing lets a seller employ any number of brokers simultaneously; only the broker who produces a ready, willing, and able buyer earns a commission, and the seller who sells personally owes no broker anything.
Option a is incorrect because an exclusive right-to-sell listing uses a single broker who is paid even when the seller finds the buyer; the several competing brokers and the fee-free personal sale described here are inconsistent with that one-broker, always-paid design.
Option c is incorrect because an exclusive agency listing also names only one broker, though the seller may sell without paying; hiring many brokers at once, as this owner did, contradicts the single-agent requirement at the heart of an exclusive agency.
Option d is incorrect because a multiple listing service is a cooperative marketing network among member brokers, not a category of listing a seller signs; it describes how brokers share listings, so it cannot name the owner's employment arrangement with those brokers.

The seven federal protected classes are race, color, religion, national origin, sex, disability, and familial status; marital status is not among them, although some state and local fair housing laws do protect it separately.
Option a is incorrect because familial status protects households with children under 18 and pregnant persons and was added in 1988; it is squarely one of the seven federal classes, so it cannot be the characteristic left off the list.
Option b is incorrect because national origin has been protected since the act's original passage in 1968 and bars bias tied to a person's country of ancestry; because it is one of the seven classes, it is not the exception sought.
Option c is incorrect because disability was added by the 1988 amendments and requires reasonable accommodations for tenants; as a listed federal protected class it clearly belongs among the seven, so it is not the item that falls outside the group.

In an exclusive right-to-sell listing one broker is the seller's sole agent and is owed a commission if the property sells during the term regardless of who produces the buyer, including the seller, giving the broker strong protection.
Option a is incorrect because an exclusive agency listing also names one broker, but it lets the seller sell personally without owing any commission; since this seller owes a fee even for a self-produced buyer, the fuller right-to-sell label fits better here.
Option b is incorrect because an open listing lets the seller hire many brokers and pays only the one who produces the buyer, while a seller who sells alone owes nothing; that structure is far weaker than the single-agent, always-paid arrangement described here.
Option d is incorrect because a net listing is defined by how the fee is computed, letting the broker keep proceeds above the seller's stated net; it says nothing about who pays when the seller finds a buyer, a different distinction entirely.

Title Eight of the Civil Rights Act of 1968 is the Fair Housing Act; it prohibits discrimination in most housing transactions and is enforced by the Department of Housing and Urban Development, or HUD.
Option b is incorrect because the Equal Credit Opportunity Act governs discrimination in extending credit, not the broad range of housing sale and rental practices; it is a separate lending statute and is not the popular name for Title Eight.
Option c is incorrect because the Civil Rights Act of 1866 is a different, earlier statute that addresses race alone; the 1968 law carries its own popular name and covers several protected classes, so 1866 is not the answer here.
Option d is incorrect because the Americans with Disabilities Act addresses accessibility in employment and public accommodations rather than housing generally; it is not a renaming of Title Eight, and it postdates the 1968 statute by more than twenty years.

The Civil Rights Act of 1866 prohibits all racial discrimination in selling or renting real property, with no exceptions, and the Supreme Court later grounded it in the Thirteenth Amendment through Jones v. Mayer.
Option a is incorrect because religion became a protected characteristic only later, under the Fair Housing Act of 1968; the 1866 law reaches race alone, so a religion-based claim must be pursued under that separate, more recent statute.
Option b is incorrect because national origin is covered by the 1968 Fair Housing Act, not the 1866 statute; although courts read race broadly to include some ethnic traits, the older law itself names only race.
Option c is incorrect because familial status did not enter federal fair housing law until the 1988 amendments, more than a century after the 1866 act; the 1866 statute never addressed households with children in any form.

Although real estate professionals may fill in the blanks on preprinted forms, only a licensed attorney may draft original legal documents or clauses; composing a custom provision constitutes practicing law, which a nonattorney broker is prohibited from doing.
Option a is incorrect because filling in the blanks of a standard preprinted purchase form is a routine, permitted task in most states; because this act uses established language rather than composing new terms, it does not amount to practicing law at all.
Option b is incorrect because showing a listed property to prospective buyers is core brokerage work that the license itself authorizes; this marketing activity involves no legal drafting or advice, so it falls squarely within what a broker may lawfully perform.
Option d is incorrect because presenting a buyer's offer to the seller is a duty every listing broker owes the client; conveying an offer is ordinary agency service and requires no attorney, so it cannot be the unauthorized practice of law.

Puffing is an exaggerated opinion or sales talk about a property's qualities that no reasonable buyer would rely on as fact; because it states opinion rather than a false material fact, it is generally not actionable.
Option a is incorrect because fraud requires an intentional misstatement of a material fact made to deceive, on which the buyer justifiably relies to their harm; a gushing opinion about views involves no false fact, so it does not rise to fraud.
Option c is incorrect because negligent misrepresentation is stating a false fact carelessly without verifying its truth; an obvious opinion about scenic beauty asserts no verifiable fact, so there is nothing false to have been negligently confirmed or denied here.
Option d is incorrect because actual misrepresentation involves communicating a false statement of material fact that misleads the buyer; praising the views expresses subjective taste, not a factual claim, so the exaggeration does not meet the definition of a misrepresentation.

A broker is the procuring cause when the broker starts an uninterrupted chain of events, such as advertising and showing the property, that results in the sale; producing the eventual buyer this way entitles the broker to compensation.
Option b is incorrect because a ready, willing, and able buyer is the purchaser who is prepared to buy on the seller's terms, not the broker who generated the sale; this label names the buyer's readiness, not the broker's causative role.
Option c is incorrect because a subagent is a cooperating broker who represents the seller through the listing broker; the term describes an agency status, not the chain-of-events causation that earns a commission, so it does not answer what produced this sale.
Option d is incorrect because a volunteer is a broker who acts without a contract or a promise of payment and therefore cannot claim a commission; that describes the opposite of this scenario, where the broker's efforts under agreement produced the sale.