Chapter 2: Types of Listing Agreements - INCOMPLETE Flashcards
What are the 3 different types of listing agreements?
1) Open listing
2) Exclusive agency listing
3) Exclusive right to sell listing
Is an open listing exclusive or non-exclusive
non-exclusive
T/F: The seller of an open listing can only have one agent
False
In an open listing, who is the procuring cause of sale
Whichever agent finds the buyer
If a seller of an open listing has more than one agent, who receives the commission?
Only the agent who is the procuring cause of sale receives the commission
Procuring cause
the person primarily responsible for bringing about the purchase agreement between the parties
The purchasing agent must find the buyer and ___ the sale
negotiate
Open listings are ___ used
a) usually
b) rarely
b) rarely
Exclusive agency listing
Seller pays agent a commission if anyone other than the seller finds a buyer
T/F: In an exclusive agency listing, the seller owes the listing agent a commission if a buyer found the house by seeing a sign out front
True
T/F: In an exclusive agency listing, the seller pays the listing agent a commission even if the seller finds the buyer
False
In an exclusive agency listing, the seller still owes their listing agent the commission even if an agent from a different brokerage finds the buyer
True
T/F: In an exclusive agency listing, if the seller finds the buyer without the help of any real estate agent, she doesn’t owe the listing agent a commission
True
What is the major problem with exclusive agency listings?
The potential for a dispute between the seller’s broker and the seller over who procured the buyer
What is a listing period?
the period of time residential property is listed for sale with a licensed real estate broker
T/F: In an exclusive agency listing, the seller retains right to sell without obligation to pay commission
True
Once the listing period of an exclusive agency listing agreement w/ a protection period clause ends, the owner is liable for the commission during the protection period if the property sells to a party that the broker procured UNLESS
the seller already listed the property with another broker
Important difference from an open listing agreement and an exclusive agency listing agreement?
The exclusive agency listing agreement includes a clause stating that compensation will be paid if any agent procures a ready, willing, and able buyer whose offer is accepted by the seller
T/F: In an exclusive agency agreement listing, if any real estate agent - you or another agent - finds a buyer for the property, the seller owes your broker the commission
True
T/F: In exclusive agency agreement listings, if the seller finds the buyer, the seller does not need to compensate the broker
True
What type of listing is most commonly used in residential sales?
The exclusive right to sell listing
What type of listing assures a broker of compensation for procuring a customer, regardless of the procuring party
Exclusive right to sell listing
In an exclusive right to sell listing, the seller has 1 agent
True
T/F: During the term of an exclusive right to sell listing, the seller’s listing agent earns a commission regardless of who sells the property (the seller’s agent, another agent, or the seller)
True
In an exclusive right to sell listing, if the seller finds the buyer, does the listing agent still get a commission?
Yes
In an exclusive right to sell listing, if the seller finds the buyer, does the listing agent still get a commission?
Yes
When does the listing period start?
On the date the residence is first listed for sale
When does the listing period end (list all 3 possible scenarios)?
1) the date the sale of the residence is closed;
2) the date the residence is taken off the market; or
3) the date the listing contract with the real estate broker expires
