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Real estate > chapter 6 > Flashcards

chapter 6 Flashcards

1
Q

what is exclusive right to sell listing?

A

one authorize broker receives a commission regardless of who sell the property

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2
Q

what is exclusive right to sell listing agreement?

A

one broker is appointed as the seller’s sole agent. the listing broker is given the exclusive right to market the seller’s property

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3
Q

what is exclusive agency listing?

A
  1. there is one authorized broker
  2. broker receives a commission only if she is procuring cause
  3. seller retains the right to sell without obligation
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4
Q

what is exclusive agency listing agreement?

A

one broker is authorized to act as the exclusive agent to the seller. However, the retains the right to sell the property without obligation to the broker. the seller is obligated to pay to the broker only if the listing broker or cooperating broker has been procuring the sale

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5
Q

what is a open listing?

A
  1. there are multiple brokers
  2. only the seller broker is entitled to a commission
  3. seller retain the right o seller independently to sell independently without obligation
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6
Q

Is net listing legal in IL?

A

they are legal but not recommend due the potential for fraud

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7
Q

what is option listing?

A

the broker has the right to purchase the property

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8
Q

What should be be writing in IL?

A

all exclusive listing agreement must be in writing and is subject to other legal requirement

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9
Q

what is guaranteed sales agreement?

A

the broker agrees to buy the listed property if it fails to sell before the end of the listing period.

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10
Q

What is multiple listing or MLS?

A

this is marketing organization whose members make their listing available for showing and sale through all the other members.

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11
Q

how do you terminate a listing agreement?

A
  1. when the agreement purposed is fulfilled
  2. when agreement term expires
  3. if property is destroyed
  4. if title to property is transferred by operation of law
    5 mutual agree to cancel the brokerage agreement
  5. eight the sponsor or the seller dies or becomes incapacitated
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12
Q

What should all broker agreement must have?

A

they must have a end date

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13
Q

what is broker protection?

A

this provides that property owner will pay the listing broker a commission if the within specified time period after the listing agreement expires, the owner transfer property title to someone who saw the property while it was listed with the broker.

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14
Q

what is price the property?

A

brokers can help sellers determine a listing price for the property by using cooperative market analysis.

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15
Q

What is cooperative market analysis?

A

this analyzes property similar to the subject property in size, location and amenities. this is deferent from an appraisal report

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16
Q

What is CMA is based on?

A
  1. recent closed property
  2. property currently on the market
  3. properties that did not sell
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17
Q

what is sold property?

A

this represent what buyer have been willing pay for similar properties in area

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18
Q

what is current asking price?

A

these price of similar properties on the market indicates the trend asking prices lower than the “sold” indicate a slow declining market.

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19
Q

what is seller’s return?

A

is how much money the seller will get after the property is sold

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20
Q

what is disclosure?

A

agency relationship and property conditions has become the focus of consumer safeguard in recent years.

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21
Q

what does IL require brokers are to disclose?

A

IL: requires disclose whose interest they legally represent if the other party has no agent. is important that the seller be informed of the brokerage company’s policies about cooperating with other broker. seller disclosure of property conduction is also required by IL

22
Q

what is the law requires that the following disclosures be included with listing contract?

A
  1. disclosure of material facts
  2. disclose of interest
  3. disclosure of special compensation
  4. disclosure of property conduction
23
Q

what are the requirements for exclusive listing agreements?

A
  1. the list price of property
  2. the agreed upon amount of commission and the time of payment
  3. the duration of the agreement with definite termination date clear set forth
  4. the name of the broker and seller
  5. signatures of both and seller
  6. the identification of the property involved
  7. the duties of the listing broker
  8. a statement of nondiscrimination
  9. a statement of regarding antitrust
24
Q

what is broker’s authority and responsibility?

A

the contract should whether the broker may place a sign on the property and advertise and market the property or utilize social media through Facebook or other. another major consideration is whether the broker is permitted to authorize buyer broker though the MLS and internet. it should also address whether or not the broker may accept earnest money on behalf of the seller and the responsibility for the holding the funds.

25
Q

If you are married who should sign the contract?

A

both spouse sign the listing even if only one owns the property, in order to release homestead right

26
Q

who should be name in the contract?

A

the brokerage come name, the spinor and designed agent of the spinor must all be identified in the contract.

27
Q

what happen with real property and personal property in the contract?

A

any property to be removed for the premies by the seller and any personal property to be included int he sale for the buyer should be noted and be explicitly identified in subsequence purchase contract

28
Q

what is happen with leased equipment in the contract?

A

it must determined if lease equipment will be left with property or not

29
Q

what is description of the premises in the contract?

A

the legal description, lot size and tax parcel number (property index number or PIN) may be required for future insertion into purchase offer.

30
Q

what is proposed dates for closing and the buyer will take possession?

A

these dates should based on on an anticipated closing date.

31
Q

What is a closing?

A

an attorney, title company, or escrow company should be considered and attended as soon as possible

32
Q

what is evidence of ownership?

A

a warranty deed, title insurance policy or abstract of title with an attorney option can be used for proof to title.

33
Q

What should happen with encumbrances before the closing?

A

all lien must be paid by the seller or be assumed by the buyer at closing.

34
Q

What is zoning?

A

this denitrify current zoning for the property

35
Q

what is home warranty program?

A

the circumstance under which commission will be paid must be specifically state in the contract

36
Q

Can you change commission in the contract?

A

In IL a written listing agreement in IL must stew that no change in the amount of the commission or time of payment, be valid or binding unless the changes is made in writing and signed by all parties

37
Q

what is antitrust wording in a contract?

A

any assertion that a “set or standard” commission exists violate antitrust laws

38
Q

what is termination of the contract?

A

a contract provide some way for the parties to end it

39
Q

what is the law for termination of the contract in IL?

A

if listing agreement provides that in the event of default by a buyer, the broker’s full commission or fee will be paid out of earnest money deposit, with the remainder of the earnests money to be paid to the seller, the provision shall appear in listing agreement in letter larger than generally used in the listing

40
Q

what is broker protection clause in a contract?

A

brokers are will avoided to their interest against possible fraud or reluctant buyer’s change of heart. there various circumstances under which a broker is entitled to commission, for a special amount of time, after an agreement is terminated

41
Q

what is home warranties by the owner in the contract?

A

the owner is responsible for certain assurances an disclosure that are vital to agents ability to market the property

42
Q

What is a client liable for in IL under the contract?

A

a client shall not be liable for the act or omission of a broker in providing brokerage services for or on behalf for the client

43
Q

What should be clearly state in a contract in IL?

A

written agreements must clearly star that is is illegal for either the owner or the broker refuse to sell or show property to any persons because of race, color, religion, national origin, sex, familiar status, ancestry, citizenship status, age 40, and over, martial status, physical or marital disability, military service, unfavorable military discharge, sexual orientation and order of protection status.

44
Q

what is minimum services in a contract?

A

all exclusive brokerage agreement must specify that the sponsor, through is sponsoring broker, must provide

  1. accept delivery and present to the client all offers and counteroffers to buy, sell, or lease the property
  2. assist the client in developing, communicating, negotiating present offers, counteroffers and notices that relate to the offered and counteroffers until lease or purchase agreement is signed and all contingencies are satisfied or waived
  3. answer the clients questions relating to the offers counteroffers and notices and contingencies
45
Q

what is the types of buyer agency agreements?

A
  1. exclusive buyer agreement
  2. exclusive agency buyer agency
  3. open buyer agency
46
Q

what is exclusive buyer agreement?

A

the true exclusive agency, the buyer is legally bound to compensate the broker whenever the buyer purchases a property the type described in the contract. the broker is entitled to payment regardless

47
Q

what is exclusive agency agreement?

A

like exclusive buyer agreement. this is an exclusive contract between the buyer and broker. however, they limit the broker right to payment. broker are only entitled to payment if they locate the property the buyer ultimately purchase. the buyer retains the right to locate and buy the property without payment obligation to the broker.

48
Q

what open buyer agency agreement?

A

this agreement is nonexclusive to a broker or spinor. who every sells the proper get the commission

49
Q

What is qualifying buyer services?

A
  1. needs assessment- determine and evaluate the needs and wants of the buyer
  2. property selection- locate the property
  3. viewing property
  4. negotiate
  5. follow up- resolve any issues that could prevent a closing
50
Q

what is the buying process when the broker prepare a CMA factors?

A
  1. property condition
  2. length of time on the market
  3. supply and demand
  4. seller motivation
  5. term and contingencies
51
Q

how is termination of broker employment agreement?

A
  1. when the agreement purpose is filled
  2. when it expires without successful transfer
  3. if the property is transferred by operation of law
  4. if title of the property is transferred by operation of law
  5. broker and client want it
  6. breach of contract

Real estate (19 decks)

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