Client Reoresentation Agreements Flashcards
Exclusive right to sell
One broker is employed and given the right to market the sellers property. If property is sold while listing agreement is in effect, the seller must pay broker commission regardless of who sells the property.
Exclusive agency listing
One broker is authorized to act as the exclusive agent of the principal, but the seller retains the right to sell the property without the obligation to pay the broker.
Open listing
A.k.a. non-exclusive listing. The seller retains the right to employ any number of brokers as agents. The seller is obligated to pay a commission only to the listing broker who successfully prettiest of the ready, willing, and able buyer.
Net listing
A net listing provision specifies that the seller will receive a net amount of money from any sale, with the excess going to listing broker as commission. The broker is free to offer the property at any price greater than the net amount.
Multiple listing clause
This may be added to an exclusive listing. It is used by brokers who are members of the multiple listing service. Must have written consent of the seller.
A brokers agreement to represent a property seller may be terminated for the following reasons:
- The agreements purpose is for filled by the transfer of title to the buyer
- the agreements terms expires
- the property is destroyed, or its use is changed by some force outside the owners controls such as zoning changes or condemnation by eminent domain.
- title to the property is transferred by operation of law, and as in the case of the owners bankruptcy or foreclosure
- The broker and seller mutually agreed to cancel the agreement.
- either the broker or the seller breaches the agreement, such as by the sellers refusal to consider an offer or the broker’s refusal to present an offer to the seller
- either the broker or the seller dies or becomes incapacitated. If a sales associate dies or becomes incapacitated, the agreement is still valid.
Automatic extension clause
Prohibited or discouraged use. A clause providing for a bass period of 90 days that “continues there after until terminated by either party here to buy 30 days notice in writing”.
Broker protection clause
Some listings contain this. This clause provides that the property owner will pay the listing broker a commission if, within a specified number of days after the listing expires, the owner transfers the property to someone the broker originally introduced to the owner.
Comparative Market Anslysis CMA
Aka competitive market analysis
Not a formal appraisal but looks at properties on the market that are similar to the property the seller owns in size, location, and amenities.
Listing agreement provisions
Names of all parties to the contract
- brokerage firm
- description of the premises
- listing price
- brokers authority and responsibilities
- brokers compensation
- real property and personal property
- leased equipment
- proposed dates for closing and buyers possession
- closing
- evidence of ownership
- encumbrances
- home warranty program
- termination of the contract
- broker protection clause
- warranties by the owner
- indemnification (hold harmless) wording
- non-discriminations (equal opportunity) wording
- antitrust wording
- signatures of the parties
- date the contact is signed
Evidence of ownership
Warranty deed, title insurance policy, abstract of title with an attorneys opinion,or other documentation customary in the area
Indemnification (hold harmless) wording
The seller and the broker may agree to hold each other harmless (not sue) for any incorrect information supplied by one to the other.
Exclusive buyer representation agreement
Buyer only works with one broker.
Retainer fee
Signed to cover initial expenses. May be applied as a credit towards any fees due at closing.
Buyer representation agreement
An employment contract
