Agency and Listings

Question 1

What is agency and how is it created?

Answer 1

When the principal delegates an agent to act on their behalf; listing

-a “special” agency allows the broker to act on their behalf in a specific transaction

Question 2

What are the requirements to become a real estate agent?

Answer 2

U.S. citizen, show you reside in a state, 19 years old, GED or better, not a felon, not have license revoked, have education and pass exam

Question 3

What is the difference between a broker and a salesperson?

Answer 3

A broke pays the bills and makes more money; a realtor works under them

Question 4

What is a listing and who gives it?

Answer 4

Recognition of property going for sale, maximum exposure (MLS); the broker or realtor gives the listing

-other realtors can try and sell the listing

Question 5

What is included on the listing agreement?

Answer 5

Assignment for the client- duration, price, buy or rent
Form of payment- commission
Announcement to the world- of who is representing

Question 6

Agent definition and types

Answer 6

Broker- the entity acting on behalf of the client in negotiating contracts for sale; ex. listing agent, selling agent, leasing agent

Types of agency- seller, buyer, single (easier), dual (no conflict of interest)

Question 7

Agent responsibilities

Answer 7

Obedience to buyer/seller, accountability for any money that is part of the deal, disclosure, confidentiality, loyalty to clients they contact, reasonable care/knowledge

Question 8

What are the types of listings?

Answer 8

Exclusive right to sell, exclusive agency, open listing, net listing

Question 9

Define exclusive right to sell

Answer 9

The listing broker always gets the commission

Question 10

Define exclusive agency

Answer 10

The homeowner finds the buyer themselves and doesn’t have to pay commission

Question 11

Define open listing

Answer 11

Every realtor can sell the property, and the first one to sell it gets the commission

Question 12

Define net listing

Answer 12

The property is listed for a given price and any amount over that price is given as commission (inflation)

Question 13

What is FSBO?

Answer 13

For Sale By Owner- put a sign in your yard by getting a contract from a lawyer

Not beneficial to the owner because the realtor won’t show it, so less market exposure

Question 14

What is required for the collection of fees?

Answer 14

The agent must have a valid real estate license for the state, have a listing agreement at the time of sale, and the agent must have a procuring cause if the selling agent is different than the listing agent (found them on their own)

Question 15

Typical items included on the listing agreement

Answer 15

Agency, price, commission, representation, title, possession, apportionments, maintenance, discrimination, signatures

Question 16

**How much is charged for commissions for each type of property?

Answer 16

Residential = 6 or 7%
New construction = 5% (more demand and volume)
Commercial or land = 10%
Flat fee or discount brokers = $400 to list on internet

Question 17

**Who is the commission split between?

Answer 17

The broker and the realtor 50/50

Question 18

How is agency (listing) ended?

Answer 18

Expiration of agreement, death of principal or agent, agent conviction of felony, completion of the contract, mutual agreement, agent loss of license