EXCLUSIVE-AUTH-AND-RIGHT-TO-SELL CONTRACT

Question 1

Under which paragraph in the Exclusive-Right-To-Sell contract are brokers, sellers and termination dates, along with locations located?

Answer 1

in paragraph 1

Question 2

What falls under Sub paragraph B in paragraph 1 of an exclusive right to sell contract?

Answer 2

Sub Para B covers items leased or not owned by seller and liened items.

Question 3

What falls under Paragraph 2 : “Listing price and terms?” in an exclusive right to sell contract?

Answer 3

the price that the home is being offered at.

Question 4

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract what is in boldface and required for listings of residential properties?

Answer 4

That commission is negotiable and not set by law.

Question 5

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. Sub Para A states what?

Answer 5

the rate or amount of commission agreed upon if the home is sold.

Question 6

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. What is stated in Sub Para A-1?

Answer 6

Sub Para A-1 states that commission is due regardless of who actually produces the buyer. The offer just has to meet the terms agreed upon in Paragraph 2 or any other offer acceptable to the seller. The offer also must be made during the listing period stated in Paragraph 1.

Question 7

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. What is the safety clause in Sub Para A-2 for?

Answer 7

Unpaid commission. The listing agent will be paid even after the listing has expired (within a specified number of days) if a prospective buyer who was produced by the agent closes on the house. The agent should produce a list of buyers he/she talked to 3 days prior to expiration of the listing and any buyers who were shown/ entered the property.

Question 8

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. What does the seller agree to in Sub Para A-3?

Answer 8

The seller agrees to pay commission if they sell, lease or rent the property, basically taking the property off the market in whatever way without consent of the Broker. This would have to happen before the listing expired.

Question 9

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. Stated in Sub Para B, How will things be solved if a sell cannot be completed due to the buyer’s shortcomings?

Answer 9

if the buyer can’t close for whatever reason then the seller can collect damages. Out of the money collected for damages the seller must pay commission to the Broker. Either ½ of the damages minus the expenses or a price lesser than the commission agreed upon.

Question 10

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. What is stated in Sub Para C?

Answer 10

This just talks about other fees the seller may have pay like MLS fees, other broker expenses, etc.

Question 11

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. What is a Broker allowed to do according to Sub Para D?

Answer 11

Brokers can work with other Brokers and split commissions anyway they want.

Question 12

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. What is the seller assigned to in Sub Para E?

Answer 12

The seller assigns to paying the Broker’s commission from out of their proceeds.

Question 13

In Paragraph 3: “Compensation to Broker” of an exclusive right to sell contract. What is so important in Sub Para F?

Answer 13

Sub Para F is the owner’s warranty, stating that they are not obligated to pay any other broker should the property be sold during the listing period.

Question 14

In Paragraph 4: “Items Included and Excluded” of an exclusive right to sell contract. What is agreed upon in Sub Para A?

Answer 14

The items that will be excluded and included in the purchase of the property. Listing items of real and personal property, example, Drapes and major appliances.

Question 15

In Paragraph 5: “Multiple listing service” of an exclusive right to sell contract. What must the agent and principal agree to in Sub Para 1.

Answer 15

The owner must agree / allow the agent to post the property for sale on the MLS. Without permission to do so the agent will not have the opportunity to work with other agents and pass along sales information.

Question 16

In Paragraph 5: “Multiple listing service” of an exclusive right to sell contract. What does Sub Para B reiterate that was stated in the Sub Para before.

Answer 16

It explains the procedures that will be taken if the owner chooses to not put the property on the MLS.

Question 17

In Paragraph 5: “Multiple listing service” of an exclusive right to sell contract. What is the owner opting out of in Sub Para C?

Answer 17

The owner would be opting out of providing the address, website, data, viewer comments and value estimate on the MLS.

Question 18

In Paragraph 6: “Seller Representations” of an exclusive right to sell contract. What is the seller disclosing that is so important to the sale of the home?

Answer 18

The seller is signing that they are unaware of any liens, defaults, bankruptcies, delinquent loans, pending litigation, insolvency, and anything else that could affect the sale of the home.

Question 19

In Paragraph 7: “Broker’s and Seller’s duties” of an exclusive right to sell contract. What are the seller’s duties and the buyers duties?

Answer 19

The broker promises to use diligence in finding a buyer and the seller promises to consider offers in good faith, pay for presale reports and hold the broker harmless for any misinformation given to the Broker by the buyer.

Question 20

What is Paragraph 8: “Deposit” of an exclusive right to sell contract about?

Answer 20

The owner gives the listing agent the authorization to accept the deposit. Without it the agent taking a deposit could be doing it as the buyer’s agent.

Question 21

In Paragraph 9: “Agency Relationships” of an exclusive right to sell contract. What is stated in Sub Para A?

Answer 21

The seller signs that they have received the disclosure regarding RE agency relationships.

Question 22

In Paragraph 9: “Agency Relationships” of an exclusive right to sell contract. What are the two topic covered in Sub Para B and Sub Para C?

Answer 22

Sub Para B just says that the broker will represent the seller and Sub Para C discusses the possibility of dual agency.

Question 23

In Paragraph 9: “Agency Relationships” of an exclusive right to sell contract. What is reiterated in Sub Para D that is stated elsewhere?

Answer 23

this just confirms the agency again before the execution of any purchase agreement.

Question 24

In Paragraph 9: “Agency Relationships” of an exclusive right to sell contract. What is explained in Sub Para E?

Answer 24

The broker explains that they represent other sellers and buyers.

Question 25

In Paragraph 10: “Security and Insurance” of an exclusive right to sell contract. Who is protected by this paragraph?

Answer 25

The broker is protecting himself in this paragraph. Acknowledging that the broker is not responsible for any damages or loss of personal property and advising the seller to obtain insurance for risks involved.

Question 26

In Paragraph 11: “Photographs and Internet Advertising” of an exclusive right to sell contract. What is covered here?

Answer 26

The owner agrees or refuses to allow photos to be used on MLS and advertising. Owner acknowledges that photos may be taken by buyers but has the option to include on MLS posting that no photos may be taken.

Question 27

What is Paragraph 12: “Key Safe / Lockbox” of an exclusive right to sell contract about?

Answer 27

Getting the authorization to install a lockbox. The owner should understand that the number of showings are very low when a lockbox is not installed.

Question 28

What is Paragraph 13: “Sign” of an exclusive right to sell contract about?

Answer 28

Putting up a sign outside the house to promote the property, the agent needs authorization.

Question 29

What is Paragraph 14: “Equal Housing Opportunity” of an exclusive right to sell contract about?

Answer 29

Basically explaining to the owner the antidiscrimination laws and no one can be denied the right to purchase the property.

Question 30

What is Paragraph 15: “Attorney Fees” of an exclusive right to sell contract about?

Answer 30

The agent and principal acknowledge that the loser in any court case between the two (seller and broker) must pay the attorney fees of the other party. This typically reduces lawsuits.

Question 31

In Paragraph 19: “Dispute Resolution” of an exclusive right to sell contract what are the broker and seller agreeing to do in Sub Para A?

Answer 31

The broker and Seller are agreeing to mediate any disputes first, but they are not required to solve in mediation.

Question 32

In Paragraph 19: “Dispute Resolution” of an exclusive right to sell contract what is talked about in Sub Para B?

Answer 32

Broker and principle set forth what items are excluded from mediation.

Question 33

In Paragraph 19: “Dispute Resolution” of an exclusive right to sell contract what other ways can a broker and principal solve a dispute if agreed upon in Sub Para C?

Answer 33

an arbitration agreement.

Question 34

What is Paragraph 21: “Ownership Title Authority” of an exclusive right to sell contract about?

Answer 34

The seller warrants that they own title to the property (unless indicated otherwise) and can execute the sale because of it.