Chater 10 - Listing Agreements Flashcards
Exclusive-agency listing
Only one broker is specifically authorized to act as the exclusive agent of the principal. If any other broker brings a buyer, the listing agent is still due a commission which she/he then splits with the selling broker. However, under this form of agreement, if the seller find a buyer with no help from any broker , the seller retains the right to sell the property without obligation to the broker.
Comparative market analysis (CMA)
A comparison of the prices of recently sold homes that are similar in location, style, and amenities to the property of the listing seller. The CMA includes information on properties that failed to sell, days on market (DOM). License laws dictate that a CMA must never be called a free appraisal. Statement must be in large type on the predominant size type in the CMA. The broker should convey to the seller that the eventual selling price is set by the buying public through the operation of supply and demand in the open market.
Exclusive right-to-sell listing
One broker is appointed as sole agent of the seller and given a commission regardless of who sells the property if it it is sold during the listing is in effect. If the seller finds a buyer without the brokers assistance, the seller must still pay the commission to the broker.
Multiple listing service (MLS)
?Organized by a group of brokers within a geographic area or board of REALTORS*, for the purpose of sharing listings. The multiple listing agreement is in effect an exclusive-right-to sell or exclusive-agency agreement with an additional authority to distribute the listing to other brokers who belong to the MLS. The listing broker states in the listing how the listing is offered (that is to subagents, buyer brokers, or transaction brokers) as well as what compensation is offered to the selling broker.
Net listing
This type of listing is illegal in New Jersey. Based on the amount of money the seller will receive if the property is sold. The broker is free to offer the property at any price and if the property is sold, the seller pays only the net amount.
Open listing
A seller agrees to pay a broker a commission only if he or she procures a buyer for the property. Seller can enter into open listings with any number of brokers, all acting as agents. If the seller personally sells the property without the aid of any of the brokers, he or she is not obligated to pay any pf the brokers. Because an open listing does not restrict the seller, it does not have to include a termination date. A subsequent exclusive listing with another broker would automatically terminate an open listing.
