Chapter 3: Agency and the Listing Agreement Flashcards
The relationship between principal and agent wherein the agent is employed by the principal to do certain acts, like negotiating with third parties.
Agency
This is earned when you have produced a buyer who is “ready, willing, and able” to purchase at the price and under the terms agreed to by both seller and buyer, whether or not escrow closes.
Commission
A non-listing broker with whom the listing broker agrees to share a commission if the non-listing broker produces a buyer.
Cooperating broker
In California, this type of contract must be in writing to be enforceable.
Employment contract
Entitles the broker to commissions on all sales during the life of his or her agreement with the owner, even when the owners themselves sell the property.
Exclusive Right To Sell listing
An employment contract between an owner and a licensed real estate broker entered into for the purpose of the broker providing service to find a ready, willing, and able person to buy, rent, or lease a property.
Listing
An appointment with a prospective seller with the intent of persuading that seller to list a property with you at a fair market price.
Listing interview
This contains the property’s keys and greatly facilitates the showing process.
Lockbox
A group of brokers banding together to share listings and commissions.
Multiple Listing Service (MLS)
This type of listing provides that the agent is to retain all money received in excess of a predetermined net price to the owner.
Net listing
A written contract authorizing one or more brokers to act as agent(s) in the sale of the principal’s property for a fixed commission.
Open listing
This person is prepared to buy a property before that property is actually listed with a broker.
Pocket buyer
Supplemental attachments to signs, like “Three Bedrooms.”
Riders
A negotiated period after the termination of the listing during which the listing broker may still be entitled to a commission if the property is sold to a buyer who was shown the property during the listing period.
Safe harbor clause
How much cash the seller will receive after payment of all liens and expenses.
Seller’s proceeds
A contract by which a principal employs an agent/broker to do certain things for the principal, usually finding a buyer for his or her property, is called a:
a) court order.
b) purchase offer.
c) purchase contract.
d) listing.
d) listing.
In California, a listing agreement:
a) is an employment contract.
b) must be in writing to be enforceable.
c) both a and b.
d) is neither a or b.
c) both a and b.
Although agents ordinarily represent owners and sellers, they may be employed occasionally to represent buyers in:
a) negotiating leaseholds.
b) obtaining mortgage loans.
c) purchasing business opportunities.
d) all of the foregoing activities.
d) all of the foregoing activities.
The type of listing in which the owners would be held liable for a commission even if they themselves sold the property is called a(n):
a) exclusive agency listing.
b) exclusive right to sell listing.
c) multiple listing.
d) open listing.
b) exclusive right to sell listing.
The listing which is most likely to give rise to charges of misrepresentation or fraud is the:
a) multiple listing.
b) open listing.
c) net listing.
d) exclusive listing.
c) net listing.
A “pocket buyer” refers to a buyer:
a) with deep pockets, meaning lots of money.
b) who is prepared to buy a property before it’s listed with a broker.
c) who is a friend or relative of the broker.
d) all of the above.
b) who is prepared to buy a property before it’s listed with a broker.
A “safe harbor” clause is usually found in the most preferred type of listing, which is the:
a) open listing only.
b) exclusive right to sell listing.
c) net listing.
d) multiple listing.
b) exclusive right to sell listing.
If you leave the employ of a broker and go to work for another broker:
a) your listings stay with your old broker.
b) your listings are your own and go with you to your new brokerage.
c) you must split your commissions between your old and new broker.
d) none of the above.
a) your listings stay with your old broker.
A commission is earned by the broker when all terms of the contract have been fulfilled and he or she has produced a buyer who is:
a) ready to buy.
b) able to buy.
c) willing to buy.
d) all of the above.
d) all of the above.
How a house appears when compared to the rest of the neighborhood is called:
a) landscape lookability.
b) curb appeal.
c) comparative shopping rating.
d) paint and plaster appeal.
b) curb appeal.
