Chapter 11 - Client Representation Agreements

Question 1

An EXCLUSIVE RIGHT-TO-SELL is a type of listing agreement where….?

Answer 1

ONE broker is employed as the seller’s SOLE representation. The broker is given the exclusive right, or authorization, to market the seller’s property.
(best you can have) Also call an ER

Question 2

An EXCLUSIVE AGENCY LISTING is a type of listing agreement where…?

Answer 2

ONE broker is authorized to act as the exclusive agent of the principal, BUT THE SELLER RETAINS THE RIGHT TO SELL THE PROPERTY WITHOUT THE OBLIGATION TO PAY THE BROKER. He receives a commission only if the procuring cause.
for the broker…its risky cause he could spend time and money only to be in competition with the client to find a buyer.

Question 3

An OPEN LISTING (also known as a nonexclusive listing) is a type of listing agreement where…?

Answer 3

The seller retains the right to employ any number of brokers as agents. Only the selling agent is entitled to a commission. Seller retains the right to sell independently without obligation.

Question 4

A NET LISTING is a type of listing where…?

Answer 4

the seller will receive a net amount of money from any sale, with the excess going to the listing broker as commission. It is ILLEGAL IN TN.

Question 5

All exclusive listings should specify a_____ _____during which the broker is to be employed.

Answer 5

DEFINITE PERIOD
Some listing contracts contain a BROKER PROTECTION CLAUSE. This clause provides that the property owner will pay the listing broker a commission if, within a specified number of days after the listing expires, the owner transfers the property to someone the broker originally introduced to the owner. (like within 60 days)

Question 6

Like a listing agreement a ______ ______ _____ is an employment contract.

Answer 6

BUYER REPRESENTATION AGREEMENT

Question 7

In an EXCLUSIVE BUYER REPRESENTATION AGREEMENT, the buyer work with only ….

Answer 7

ONE broker, although the broker is free to represent other buyer clients.

If the representation is NOT EXCLUSIVE, the buyer can work with 2 or more brokers, which could create a problem if more than 1 broker suggests the same property to the buyer.

Question 8

A NONEXCLUSIVE representation agreement may work if the buyer is considering a purchase…

Answer 8

in more than one geographic area. Each broker’s familiarity with a particular area will help find the property that best match the buyer’s needs.