General Principles of Agency 5

Question 1

When does a Listing Agreement become legally binding?

Answer 1

When it is signed both by the seller and the broker.

Question 2

Who must sign the Listing Agreement?

Answer 2

Anyone who has ownership interest in the property must sign

Question 3

Listing agreements must be executed by who?

Answer 3

The broker on record

Question 4

If an agent leaves does the agent leave with the listing?

Answer 4

No, the broker owns the listing unless the independent contractor agreement states otherwise

Question 5

Exclusive Right to Sell

Answer 5

Seller employs one broker

The listing broker is paid regardless of who sells the property.

Question 6

Exclusive Agency

Answer 6

Seller employs one broker

The listing broker is paid only if they are procuring cause.

Seller retains the right to sell without any obligation to compensate the listing broker.

Question 7

Open Listing

Answer 7

Seller employs multiple brokers

Only the successful listing broker is compensated.

Seller retains the right to sell without obligation to compensate any of the listing brokers.

Question 8

What is Cooperation?

Answer 8

Cooperation is the agreement to share information as well as an agreement to pay compensation.