Chapter 12 - Listing Agreements

Question 1

Listing Agreement (definition)

Answer 1

a speciality agency agreement between the seller and the broker promising to pay a commission if the broker can bring forth a buyer who is willing and able to meet the sellers conditions

Question 2

Full Service Listing Agreement

Answer 2

When the broker provides all services provided by law

Question 3

Limited Service Listing Agreement

Answer 3

When the broker provides less than full services

Question 4

Seven Requirements of a Listing

Answer 4

1, Must identify the parties
2. Must have a accurate description of the property
3. must have a beginning and end date
4. must have specific terms and conditions
5. must have a non discrimination clause
6. Must have signatures of all parties
7, Must state the broker fee

Question 5

Exclusive Right to Sell

Answer 5

Property is listed with just one broker and seller promises to pay commission no matter who finds the buyer

Question 6

Exclusive Agency Listing

Answer 6

Property is listed with one broker and the seller reserves the right to find their own buyer and not pay the broker commission

Question 7

Open Listing

Answer 7

Property can be listed with more then one broker at the same time and seller reserves the right to find their own seller and not owe commission

Question 8

Net Listing

Answer 8

ILLEGAL IN MICHIGAN

commission is based on difference between what that seller wants to net and what the property sells for

Question 9

Seller Disclosure Statement

Answer 9

Michigan law requires that sellers must disclose all known defects in a written sellers discloser statement (only applies to residential property)

Question 10

Radon Gas

Answer 10

Oder-less, Colorless gas that naturally occurs from decaying rock

2nd leading cause of lung cancer

Question 11

Lead

Answer 11

Seller must provide lead based paint disclosure form if the house was built before 1978

Question 12

Asbestos

Answer 12

Originally used as fire retardant - do not remove encapsulate