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
A broker took a listing on a property and shortly thereafter discovered that the seller/client has been previously declared incompetent by the court. The listing agreement is now?
Still valid
The type of listing agreement that provides for the payment of the commission to the listing broker even though the owner makes the sale without the aid of the broker is called?
Exclusive right to sell listing
A property owner list his property for sale with the broker. During the negotiations, the owner told the broker that the owner wanted $238,000 for the property, and anything above that amount the broker to keep us his commission. The listing within this type of provisions is known as?
Net listing
What listing agreement can the owner of the listed property sell the property on his or her own without having to pay the listing broker a commission?
Open and exclusive agency listing
A property owner signed a 90-day listing agreement with a broker. The owner was killed in an accident before the listing expire. The listing is now?
Terminated automatically upon the death of the principal
A listing agreement in which the brokers commission is contingent on the broker being able to produce a buyer before the property is sold by the owner or another broker is called?
An open listing
A broker who represents the seller under an exclusive listing received two offers for the property at the same time, one from one of the sales people and one from a sales person of the cooperating broker. What should the broker do?
Submit both offers at the same time
A managing broker listed house for sale under an exclusive right to sell agreement. One of the managing brokers license these obtained an offer to purchase the property along with the certified check for 5% of the purchase price as earnest money. The offer was excepted. What should the managing broker do with the earnest money check?
Put it in the brokerage account
What are three typical provisions of a listing agreement?
Price the seller is asking for the property
Commission rate to be paid to the listing broker
Responsibilities of the broker
The type of listing agreement that provides the least protection for the listing broker is?
Open listing
A seller refused to pay a commission to the broker even though there was a valid the scene agreement and the broker procured a buyer for the property. What can the broker do?
Sue the seller in court for the commission
Under an exclusive agency listing, the listing broker would not be entitled to a commission if?
The seller exchanges the property with a neighbor across the street who has her property listed with another broker
A listing agreement can be terminated for?
Mutual agreement
Operation of law
Impossibility of performance
A broker enters into a listing agreement with the seller in which the seller will receive $80,000 from the sale of the lot and the broker will receive any sale proceeds over this amount. This type of listing is?
Net listing
And owner list her property for sale with the broker. Another broker, however, finds a buyer for the house. The listing broker did not receive a commission from the sale. The type of listing contract between the owner and the broker could have been?
Open listing
An owner who is interested in selling his house is usually concerned about how much money he can get when it sells. A comparative market analysis may help the seller determine a realistic listing price. What is true of a comparative market analysis?
A comparative market analysis contains a compilation of other similar properties that have sold
Two different brokerage companies claimed they were entitled to a commission from the sale of a property that was listed by one of the firms under an open listing agreement. The broker who is entitled to the commission is the one who?
Was the procurring cause of the sale
