Chapter 5 - Listing Agreements

Question 1

What is a listing agreement

Answer 1

• CONTRACT for services between sell and broker (both sign
• TERMS | Broker and broker’s agent can only off the property for sale at price and terms of agreement
• BUYER’S NEEDS | agent must follow owner’s instructions (no illegal instructions)
• ACCURACY | agent has to verify accuracy of info given by seller

Question 2

Open Listing

Answer 2

Seller can list with multiple brokers
Only broker who finds buyer gets paid
If seller finds buyer - no broker gets paid

Question 3

Exclusive Agency Listing

Answer 3

Seller contracts with one broker

Seller retains right to sell on own without paying a commission

Question 4

Exclusive Right-to-sell Listing

Answer 4

Seller lists with on broker

Broker gets paid no matter who finds buyer

Question 5

Net Listing

Answer 5

Seller lists with broker
Lists property for certain value
If property is sold for higher, all extra money is owed to broker

Question 6

Who does the contract for a listing belong to?

Answer 6

Principal Broker

Question 7

Elements of a Listing Contract

Answer 7

Must be in writing
Signed by both parties
Identify the property (legal description or address) 
List Price
Expiration Date
Commission
Type of listing 
Ts & Cs

Question 8

What terminates a listing?

Answer 8

Sale of Property 
Expiration of listing 
Death of party (broker or seller) 
Destruction of property 
Condemnation, Foreclosure, Bankruptcy
Mutual Agreement to cancel 
One party withdraws (possible recourse) 
Insanity

Question 9

What is a protective period clause?

What’s another name for it?

Answer 9

Period of time broker is protected from having seller cheat buyer out of commission due.
Must have presented buyer at time of listing.
Clause not valid if they re-list with another broker
*Safety Clause

Question 10

Multiple Listing Service

Answer 10

marketing organization where brokers share listings to procure buyers more quickly. brokers agree on compensation for finding buyers.