Different Types of Listing Agreements

Question 1

What is a listing agreement?

Answer 1

It’s a legally-binding contract that creates an agency relationship authorizing a broker to serve as their agent for a principal in a real estate transaction

Question 2

What is the most widely used agreement?

Answer 2

The exclusive right-to-sell listing agreement

Question 3

What is the exclusive right-to-sell listing agreement?

Answer 3

Under this agreement, the broker has the exclusive right to market the property for a specified period of time. If the property sells while the broker has the listing, the seller must pay the agreed upon commission. That is the case regardless of who actually procured the buyer or who was the procuring cause

Question 4

What is an exclusive agency listing agreement?

Answer 4

It gives the broker the right to market and sell a property for a specified time period, while the owner retains the right to find a buyer and sell the property w/o owing the broker a commission

Question 5

An open listing is a _

Answer 5

Non-exclusive contract

Question 6

Explain an open listing

Answer 6

It gives the seller or buyer the right to engage any number of brokers as agents. But only the one broker who brings the ready, willing, and able buyer to the seller or who finds the right property for a buyer will receive the commission

Question 7

Is a net listing a type of listing agreement?

Answer 7

Yes

Question 8

Explain a net listing

Answer 8

In a net listing, an owner sets a minimum amount that he/she wants to receive from the sale of the property. They let the broker have as commission any amount above the set minimum

Question 9

Is a multiple listing a listing type?

Answer 9

No

Question 10

Explain a multiple listing

Answer 10

It refers to a multiple listing service. MLS. That is an organization of brokers within a specified geographical area who agree to distribute and share listing info