Chapter Six Flashcards
a listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property, on the owner’s stated terms, for a commission. Owner reserves the right to sell without paying anyone a commission if the sale is to a prospect who has not been introduced or claimed by the broker. 89
exclusive agency listing
a principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency. 47
buyer agency agreement
a listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owner’s stated terms and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner, or another broker. 88=89
exclusive right to sell listing
a marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most accept exclusive right to sell or exclusive agency listing from their member brokers. 68
multiple listing service (MLS)
a listing based on the net price the seller will receive if the property is sold. Under a net listing, the broker can offer the property for sale at the highest price obtainable to increase the commission. The type of listing is illegal in many states. 90
net listing
a listing contract under which the broker’s commission is contingent on the broker’s producing a ready, willing, and able buyer before the property is sold by the seller or another broker. 89
open listing
in addition to the street address, the legal description, lot size, and tax parcel number may be required for future purchase offers. 98
description of the premises
a warranty deed, title insurance policy or abstract of title with an attorney’s opinion can beused for proof of title. 99
evidence of ownership
all liens will be paid in full by the seller or be assumed by the buyer at the closing. 99
encumbrances
brokers may be well advised to protect their interests against possible fraud or a reluctant buyer’s change of heart. 99
broker protection clause
the seller and the broker may agree to hold each other harmless (not to sue one another) for any incorrect information supplied by one to the other. 99
indemnification (hold harmless)
The owner is responsible for certain assurances and disclosures. Is the property suitable for its intended purpose? Does it comply with the appropriate zoning and building codes? Will it be transferred to the buyer in essentially the same condition as it was originally presented, considering repairs or alterations to be made as provided for in a purchase contract? Are there any know defects? 99
warranties by the owner
