Chapter 6: Brokerage Agreements Flashcards
There is one authorized broker. The broker receive the commission only if she is the procurring cause. The seller retains the right to sell without obligation.
Exclusive agency listing
There are multiple brokers. Only the selling broker is entitled to commission. The seller retains the right to sell independently without obligation.
Open listing
It’s the broker the right to purchase the listed property at some point in the future
Option listing
The licensee must have a what of the seller to include the property and an MLS
Written consent
Who determines the listing price for a property
The seller
What is a comparative market analysis based on?
Recently closed properties
Properties currently on the market
Properties that did not sell
The most probable price a property would bring in an arms length transaction under normal conditions on the open market
Market value
Buyer is legally bound to compensate the broker whenever the buyer purchases the property of the type described in the contract
Exclusive buyer agency agreement
Brokers are only entitled to payment if they locate the property the buyer ultimately purchases
Exclusive agency buyer agency agreement
The buyer is obligated to compensate only the broker who locates the property the buyer ultimately purchases
Open buyer agency agreement
Contracts to purchase or lease the same property
Contemporaneous offers
A listing taken by the real estate licensee is an agreement between the seller and?
Sponsoring broker
What is the similarity between an exclusive agency listing and an exclusive right to sell listing?
All types of listings give the responsibility of representing the seller to one broker only
The listing agreement expires on March 2. What event would not terminate the listing?
On April 15, the seller tells the broker that he is dissatisfied with the brokers marketing effort.
The seller has listed his property under an exclusive agency listing with the broker. If the seller sells the property himself during the term of the listing to someone introduced to the property by the seller, he will owe the broker?
No commission
What is the similarity between an open listing and an exclusive agency listing?
Under both, the seller avoids paying the broker commission if the seller sells the property to someone the broker did not procure.
What is true of the listing contract?
It obligates the seller to convey the property if the broker procures a ready, willing, and able buyer
A salary listed her residence with the broker. The broker brought an offer at full price and terms of the listing from buyers who were ready, willing, and able to pay cash for the property. However, the seller changed her mind and rejected the buyers offer. In this situation the seller?
Owes the commission to the broker
A comparative market analysis?
Can help the seller price the property.
A broker enters into an agreement with the client. The agreement states, and return for the condensation agreed-upon, broker will assist client in locating in purchasing a suitable property. Broker will receive the agreed compensation regardless of whether broker, client, or some other party locates the property ultimately purchased by the client. What kind of agreement is this?
Exclusive buyer agency agreement
One broker receives the commission regardless of who sells the property
Exclusive right to sell listing
A listing agreement may be terminated for?
Changing the listing price
By signing a listing agreement with a seller,, the managing real estate broker has become?
An agent of the seller
The provision in a listing agreement that gives the broker authority to distribute the listing information to other brokers is?
A MLS clause