Ch 6 CA RE Practice Types of Listing

Question 1

What is a contract in which each party promises to do something?

Answer 1

Bilateral Contract

Question 2

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested act.

Answer 2

Unilateral Contract

Question 3

__A__ is bilateral agreement between broker and seller (not the agent).

Answer 3

listing agreement

Question 4

What listing is given to as many brokers willing to list it? Chances are 95% not going to find a broker willing to list it. The seller is not represented by an agent, the buyer agent will have to do 2 times the work for half the commission. The seller agent does not get pay unless they find the buyer and do twice the work. not really a listing. Similar to FSBO, you get pay if you bring the buyer and do twice the work. Rare in CA.

Answer 4

Non-exclusive listing (Open listing)

Question 5

What listing is where the agent gets compensated after all sums received over and above a net price to the owner? Never going to use it. Illegal in most states. There is no set commission. They are subject to lawsuit. Easy to take advantage of seller that are elderly.

Answer 5

Net listing

Question 6

What listing is a contract within a contract that the broker may exercise to buy the property? In CA it’s forbidden for the broker to profit secretly at the expense of seller. Rarely used listing.

Answer 6

Option listing

Question 7

What listing when the seller lists with an exclusive broker, who is entitled to a commission if they find a buyer, but if the seller finds a buyer, the seller does not have to pay a commission to the broker? Wasting time Never really happens.

Answer 7

Exclusive agency listing

Question 8

What’s authorization and right to sell

Answer 8

exclusive agreement aka exclusive right to sell listing agreement

Question 9

What is a contract in which a property owner employs a real estate broker to market the property described in the contract?

Answer 9

listing agreement

Question 10

What is a listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property?

Answer 10

Non-Exclusive Listing (Open Listing)

Question 11

What is a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.

Answer 11

option listing

Question 12

What is a listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract?

Answer 12

exclusive agreement

Question 13

What is exclusive agreement aka?

Answer 13

Exclusive Right to Sell Listing Agreement

Question 14

Authorization or right to sell listing means even when seller’s friend buys the house, the agent/broker gets the commission. This ensure you get pay for your work.

Answer 14

exclusive listing

Question 15

What is signed before listing agreement?

Answer 15

agency contract

Question 16

What do you sign to solidify that you are an agent of your broker and representing your client on behalf of your broker?

Answer 16

agency contract

Question 17

Many are putting their property in the trust of Sam Jones even when the property title is only Sam Jones. In trust listing agreement is located in the __a__, stating the person signing is authorized and will be part of the escrow process.

Answer 17

zip forms

Question 18

How to handle showing short sell home objecting to lock box?

Answer 18

Most sellers are not excited about moving. Not the easiest to show the home. Need to work harder. They feel violated and by appt only. Sensitive subject.

Question 19

Fill out AVID form at __a__ appt, first casual walk around the house for the price range, then sit down with seller to discuss comps.

Answer 19

listing

Question 20

How to discuss the benefits of having lock box with seller?

Answer 20

Explain in order to sell the property quickly we need to have a lock box for the agent to show the home. when the seller owner occupied they are nervous. Showing between 9 to 5pm no appt needed when at work. When you are home, showing 5-7pm and call seller’s number first before showing. For weekend call for appt.

Question 21

What is the risk of doing for sale by owner (FSBO)?

Answer 21

Risking by not having lock box. Anyone calling will show the home. Will not know what bad person you are showing. No security factor. Also limit the agent in show to their clients.

Question 22

How to set up listing showing for Million dollar home or luxury home >700k?

Answer 22

By appt showing due to valuable assets. Takes longer to sell. More money more work.

Question 23

What do you fill out in the AVID form?

Answer 23

Bring clip board write down stain on living room carpet, broken lack sliding door, crack in master wall. If hand writing is mess go back to office to type up and email to client to sign or bring to client later.

Question 24

After getting the 3 forms (agency agreement,

listing agreement, AVID form signed) what are the next steps before uploading to MLS?

Answer 24

• give a copy of all 3 form to seller
• put lock box
• install for sell sign
• go back to office to give them a copy above
• upload to MLS and pending broker to approve

Question 25

What is a seller’s attempt to sell the real estate whereby the liens are greater than the value of the property?

Answer 25

short sell

Question 26

What are the 2 reasons to do short sell?

Answer 26

The seller has a hardship or tired paying on a house and that's not going to catch up on value.

Question 27

In short sell, do your comps and commission is paid by the __a__. Don't need to negotiate the price with seller. Most commission is higher. FHA and VA are __b__ commission with short sell and will not negotiate down. Once approved, then 30 days escrow process. The seller will need to find a new place to live. If the buyer backs out of the deal while the bank is going through the approval process, just re-list to get another buyer where you have or don't have to go through the bank approval process.

Answer 27

a) bank | b) 6%

Question 28

What is your closing convincing FSBO to list with you?

Answer 28

I understand that you want to sell your own home. Do you know that most buyers have an agent showing them homes and that it does not cost them anything for the representation. The seller usually pays for the commission. Most agents will show their clients the MLS home that will pay them a commission.

Question 29

What are the 2 reasons to do short sell?

Answer 29

The seller has a hardship or tired paying on a house that's not going to catch up on value.

Question 30

What are the criteria to provide for short sell listing: must write a letter showing a __1__ , last __2__ months paystub, last 2 months bank statement, last 2 years tax returns; and write a letter explaining the reason i.e. health issues, lost job. Short sell is negative on credit and to avoid foreclosure. Foreclosure is when the owner stops making payment. Doing a responsible thing. Be understanding and ask when they last made a payment. If missed more than 3 payments, then you can do short sell. If there is no missed payments, then there is no hardship. Lock box sell the home faster. Most seller do not know where they are going to move. Sooner they sell, the sooner the nightmare can be behind them.

Answer 30

1) hardship | 2) 3

Question 31

After you sign a buyer broker agreement with a couple, the next day the couple puts an offer in at an open house without saying you were their agent? Who gets the commission?

Answer 31

You do. Just call up the listing agent and tell them you have a buyer broker agreement. That way it is your transaction and commission.

Question 32

FSBO seller wants to save __a__. Most FSBO are past RE agent or knows someone that's an agent to help them. Do not call them to unless you have a buyer. Ask willing to pay commission if bring a buyer. Ask to preview the property and discuss with seller. What commission are you willing to pay? Ask anyone even thinking about FSBO. Most brokerage will hire agents if they belong to local MLS, local, state, and nat'l association. Is the seller willing to do open house? Most home buyers prefer to be with __b__without owner presence. Before open house, remove __c__ to allow buyers to envision themselves living there.

Answer 32

a) commission b) professional c) personal pictures and certificates,

Question 33

Most licensed agent will have __a__ list his property that may affect the buyers' opinion, emotional attached to home, so list with commission split with the agent.

Answer 33

a) another agent

Question 34

Most licensed agent will have __a__ list his property that may affect the buyers' opinion, emotional attached to home, so list with another agent and do __b__commission.

Answer 34

a) another agent | b) split