Ch. 11 Client Representation Agreements

Question 1

Buyer Representation Agreement

Answer 1

an employment contract, the broker is employed by the buyer and the purpose of the agreement is to find a suitable property

Question 2

Comparative Market Analysis (CMA)

Answer 2

A comparison of the prices of recently sold homes that are similar to a listing seller’s home in terms of location, style, and amenities

Question 3

Exclusive Agency Listing

Answer 3

One broker is authorized to act as the exclusive agent, but the seller retains the right to sell the property w/o the obligation to pay the broker

Question 4

Exclusive Buyer Representation Agreement

Answer 4

the buyer works with one broker only, although the broker is free to represent other buyer clients

Question 5

Exclusive Right-To-Sell Listing

Answer 5

One broker is employed as the seller’s sole representative/exclusive right to market the seller’s property, Listing Broker is paid regardless of who sells the property

Question 6

Multiple Listing Service (MLS)

Answer 6

Marketing organization whose broker members make their own exclusive listings available through other brokers who participate in the MLS and gain access to other brokers’ listed properties

Question 7

Net Listing

Answer 7

seller will receive a net amount of money from any sale, with the excess going to the listing broker as commission-illegal

Question 8

Open Listing

Answer 8

also known as nonexclusive listing, the seller may employ any number of brokers as agents, the Listing brokers market the property simultaneously, the seller is obligated to pay commission only to the listing broker who successfully produces a ready, willing, and able buyer

Question 9

Retainer Fee

Answer 9

The broker may require at the time the agreement is signed to cover initial expenses