Chapter 06 Flashcards
Listing Agreement
A written contract between the broker and principal
Exclusive Right-to-Sell Listing
A listing agreement that guarantees the broker receives a commission no matter who finds the buyer. As long as the property is sold while the contract is in effect, the broker receives commission
Exclusive-Agency Listing
The Broker is in titled to act as the exclusive agent. However, the seller retains the right to sell the property without having to pay a commission
Open Listing ( non-exclusive listing)
The seller retains the right to list property with multiple brokers, only paying the one who finds a buyer.
Seller also retains the right to sell themselves without paying a commission
Net Listing
When a broker promises the principal a certain price and gets to keep everything after that price is meet.
Illegal in most states
Reason for termination of listing agreement
- When agreement is fulfilled
- When the terms expire
- If the property is destroyed or altered
- bankruptcy or foreclosure
- if broker or seller dies or becomes incapacitated ( if salesperson dies, listing remains active)
Expiration of listing period
- Most states will suspend or revoke a license if expiration is not included in listing agreement
- Courts discourage “automatic extension clauses” in exclusive listings
Information needed for listing agreement
- Names of owners
- Address and legal description
- Size type age and improvements
- Number of rooms and sizes
- Dimensions of lot
- Loan info
- Possible seller financing
- Outstanding assessments ( who pays)
- Zoning classification
- Property taxes
- neighborhood a amenities
- Required disclosure
- Any additional info that would make property more appealing
Broker protection clause
- Included in some listing contracts
- states that if seller sells to a buyer introduced by broker after listing agreement expires, broker is still owed a commission. This is only valued for a stated specific amount of days
