Client Representation Agreements

Question 1

Exclusive Right to Sell Listing

Answer 1

one broker is employed as the seller’s sole representative; the seller must pay the broker a commission regardless of who sells the property

Question 2

Exclusive Agency Listing

Answer 2

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

Question 3

Open (Nonexclusive) Listing

Answer 3

the seller retains the right to employ any number of brokers as agents; only obligated to pay a commission to the listing broker who successfully produces a ready, willing and able buyer

Question 4

Net Listing

Answer 4

provision specifies that the seller will receive a net amount of money from any sale with the excess going to the listing broker as commission - generally illegal and/or discouraged

Question 5

Termination of Seller Representation

Answer 5

fulfillment, expiration, destruction of property or change of use by a force outside the owner’s control, transfer of title as operation of law, mutual agreement, breach, death or incapacitation

Question 6

Comparative Market Analysis (CMA)

Answer 6

the range of value in which the property is likely to fall, as well as the charges that will affect the amount that the seller will receive

Question 7

Listing Presentation

Answer 7

a description of the marketing efforts that the brokerage will make to sell the property as quickly as possible

Question 8

Buyer Agency

Answer 8

any type of buyer-broker relationship