Client Representations Flashcards
an employment contract between a real estate broker and a property seller.
Listing agreement
must be in writing to be enforceable in court.
Exclusive listing agreement
general agent of the broker and can carry out listing services only in the name of and under the supervision of the broker.
Sales Associate
one broker is appointed as the seller’s sole agent, and if the property is sold while the listing is in effect, the broker is entitled to a commission, no matter who sells the property.
exclusive right-to-sell listing,
authorizes one broker to act as the sole agent of the seller but allows the seller to retain the right to sell the property without obligation of payment to the broker.
exclusive agency listing
the seller retains the right to employ any number of brokers; the seller is obligated to pay a commission only to the broker who successfully produces a ready, willing, and able buyer; and the seller is not obligated to pay a commission if the seller personally sells the property without the aid of a broker.
open listing (also known as a nonexclusive listing)
the excess over the seller’s desired net from the sale is paid to the broker as compensation may be prohibited by state law
Net listing
permits cooperation with other brokers in the multiple listing service (MLS)
multiple listing clause
preserves a broker’s right to compensation if, within a certain number of days after the listing agreement expires, the owner transfers the property to a purchaser who was brought to the seller by the listing broker.
Brokers Protection Clause
usually made by a sales associate of the broker and is the job interview with a prospective client—the property owner.
Listing presentation
will identify the property owner(s) and the property, describe the property improvements, list any loans held by the owner and their current status, itemize loan and other payments on the property, and provide the details of a short sale, if the lender is willing to accept one.
Listing agreement
seller provides a policy for the buyer.
Home-warranty
an employment contract in which a prospective property buyer employs a broker for the purpose of finding a suitable property.
Buyer representation agreement
the buyer works with only one broker, but the broker is free to represent other buyer clients
Exclusive buyer representation
will be compensated by a retainer, a flat fee for services, an hourly rate, a percentage of the purchase price, or some combination of these methods.
Buyers broker
Who are the parties to a listing agreement?
Seller and broker
A real estate broker working with a seller should transmit all offers to the
seller
A sales associate who was working on a listing died. What is the present status of the listing?
still in effect
A way to provide the widest possible marketing of a property that is the subject of a listing agreement is by including in the agreement
Multiple listing clause
What are a broker’s responsibilities to a buyer?
Be fair with the seller but responsible to the buyer
Explain important documents to buyer
Negotiate on the buyer’s behalf
In most states, a broker’s license can be suspended or revoked if the broker
takes a listing that does not include a date on which the listing expires.
An agreement for a brokerage to list real estate for sale must be signed by
all individuals who have a legal interest in the property.
Which person should make the final determination on a property’s asking price?
the seller
By executing a listing agreement with a seller, a real estate broker becomes
agent of the seller
A prospective buyer signs an agreement with a broker to find a property for the buyer, and the buyer agrees to work only with that broker. While this agreement is in effect.
The broker can represent other buyers at the same time.
In a contract to list real estate for sale, personal property
should be identified if it is to be included in the sale.
An employment contract that establishes the rights and obligations of the broker as agent and the seller as principal is
listing agreement
The listing broker about to present an offer to a seller receives a message that the seller has died. Due to the seller’s death,
both the listing agreement and the offer are terminated.
What information is needed for a listing agreement?
The dimensions of the lot
The most recent property taxes
The possibility of seller financing
An exclusive agreement to list property for sale should include all of the following
expiration of listing period.
broker protection clause.
multiple listing clause.
What kind of listing agreement is illegal in many states because of the potential for conflict of interest between a broker’s fiduciary responsibility to the seller and the broker’s profit motive?
Net listing
What wont terminate a listing agreement?
An offer to purchase
In an agreement to represent the seller in a sale of real estate, the listing broker’s ability to place a sign on the property, advertise it for sale, and show the property to prospective buyers should be
specified in the listing agreement.
The listing agreement is
broker’s contract of employment by the seller.
