Chapter 8: Listing Agreements

Question 1

Elements of a valid listing agreement

Answer 1

identify the property,
authorize the brokerage to sell the property and provide for the compensation, and
be in writing and signed by the seller.

Question 2

Listing Requirements

Answer 2

In Washington, a listing agreement must meet three requirements. It must:

identify the property,
include a promise to compensate the brokerage, and
be in writing and signed by the selle

Question 3

Brokerages Authority

Answer 3

A listing agreement authorizes the brokerage to market the property, present offers to the seller, and accept earnest money deposits on the seller’s behalf.

The firm isn’t authorized to sell the property or enter into a contract for the seller.

Question 4

Extender Clause

Answer 4

An extender clause (sometimes called a “safety,” “protection,” or “carryover” clause) helps remove the incentive for a seller to delay acceptance of a buyer’s offer until after the listing expires in order to avoid paying a commission.

Question 5

Net Listing

Answer 5

A net listing is a listing agreement in which the seller sets a net amount she is willing to accept for the property.

If the sales price is more than that set amount, the brokerage is entitled to keep the excess.

Question 6

Distressed home conveyance

Answer 6

A distressed home conveyance is one in which a buyer purchases property from a distressed homeowner (that is, one facing foreclosure), allows the homeowner to occupy the property, and promises either to convey the property back or to convey a portion of the sale proceeds.

The Washington Distressed Property Law strictly regulates these transactions.