Chapter 6: Listing Contracts Flashcards
What is an important thing to remember about listing agreements?
They must be in writing to be enforceable.
Describe an open listing.
An open listing is a non-exclusive listing that allows a seller or buyer to engage a number of different brokers to sell or help purchase property. The broker who brings the buyer or finds the suitable property gets the commission. If the owner sells the property or the buyer finds his or her own property, no commission is owed to any broker.
What is the major difference between an exclusive-authorization-and-right-to-sell listing and an exclusive-agency listing?
With exclusive-right-to-sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer. With exclusive agency, the owner retains the right to find a buyer and sell the property and owe the exclusive broker no commission.
What is the agreement that a broker can enter into with a buyer?
Exclusive-Authorization-to-Acquire-Property agreement authorizes the broker to work as the agent for the buyer rather than the seller.
What does the safety clause in the listing agreement do?
Allows the broker to receive a commission under certain conditions if he or she sells the property within a specified number of days after the listing contract expires.
What does the security and insurance clause of the listing agreement address?
This section states that the broker is not responsible for loss or damage to the property, even with a lockbox present. The seller must take steps to safeguard any valuables and obtain insurance to cover the risks.
What does the paragraph in the listing agreement titled “Entire Contract” deal with?
This paragraph states that the agreement supersedes all previous discussions, negotiations and agreements between the seller and the broker. Therefore, anything that is not written into the agreement is not part of the agreement.
What does the Water Heater Statement of Compliance address?
It’s a mandatory seller disclosure dealing with the law requiring water heaters to be strapped, braced or anchored to resist earthquake motion.
Which of the following forms is non-standard and should be prepared by a broker to give to sellers?
Natural Hazards Disclosure
Water Heater Compliance
Estimated Seller’s Proceeds
Defective Furnaces in California
Defective Furnaces in California
The Lead-Based Paint Disclosure is required for homes built:
Before 1978
Before 1976
After 1980
After 1975
Before 1978
Which of the following statements is not true about a net listing?
Sets a limit on the commission a broker can earn.
Is generally viewed as unprofessional.
Is illegal in many states.
Allows a broker to have as a commission anything above the minimum the seller sets.
Sets a limit on the commission a broker can earn.
Which of these documents is for sellers only and not for buyers?
Smoke Detector Statement of Compliance
Real Estate Transfer Disclosure
Residential Listing Agreement
Seller’s Affidavit of Nonforeign Status and/or California Withholding Exemption
Residential Listing Agreement
Which is true of an exclusive-authorization-to-acquire-property agreement?
The buyer must pay the broker a commission.
The broker will owe fiduciary responsibilities to the seller as well as the buyer.
It must specify a definite termination date.
Commission is never involved.
It must specify a definite termination date.
Which kind of listing gives one broker the right to sell, but allows the owner to sell the property and not owe a commission to the broker?
Non-exclusive agency
Exclusive agency
Exclusive-right-to-sell
Net
Exclusive agency
In the listing agreement, a seller can choose to decline/disapprove all but which of the following items?
Sign in yard
Broker compensation to other brokers
Posting to MLS
Lockbox
Broker compensation to other brokers
