Level 9 - Agency Contracts (Sales) & Related Practices Flashcards
What are 5 requirements for agency contracts?
- be in writing
- have a defined expiration date
- contain the anti-discriminatory language prescribed by Commission rule
- be signed by all parties
- include the listing broker’s individual license number
What must a listing broker do in order to get paid?
- have current NC license
- have a valid written listing contract with the seller
- procure a “ready, willing, and able” buyer
What must a buyer broker do in order to get paid?
- have current NC license
- have a valid buyer agency contract
- must locate a property that the buyer agrees to purchase.
ready, willing, and able buyer
a buyer who is ready and wiling to purchase the property and is financially and legally able to do so
procuring cause
the defining action or actions that brought a buyer or buyers to purchase a property
retainer fee
a non-refundable, specified fee paid by the buyer after entering into an oral or written buyer agency contract.
success fee
a specified amount in the buyer agency contract that the buyer’s broker will earn upon the closing of the transaction
net listing
an agreement in which the seller names a minimum sales price they will accept for a property, with any excess paid to the broker as commission
protection period
a limited time frame after an agency agreement ends where an agent can be owed compensation if certain situations occur.
exclusive agency
an agreement in which the seller has an exclusive relationship with a broker but retains the right to sell the property to named prospects.
exclusive right to sell
an agreement in which the seller guarantees the named broker receives a commission if the property is sold, regardless of who brings the buyer
limited services model
a type of listing agreement that allows the client to select brokerage services for a flat fee
open listing
a nonexclusive listing agreement that gives multiple brokers (and owners themselves) the right to sell the property.
boycotting
an agreement between two or more competitors to NOT do business with another competitor for the purpose of inducing the other competitor to change its business practices or fail altogether.
Do Not Call Registry
regulates telemarketing calls from commercial organizations (such as brokerages)
FSBO (for sale by owner)
a property owner who is selling their own home.
price fixing
any effort made by competitors to jointly establish a fixed rate, price, or commission; considered an antitrust violation
Sherman Antitrust Act
a landmark law passed in 1890 that prohibits the formulation of trusts, or monopolies in the marketplace; this law governs business by regulating anti-competitive conduct to promote fair competition on behalf of American consumers,
tortious interference with contractual relations
wrongful interference in a business relationship.
gross profit
the profit that remains after deducting the purchase price from sales price
marketing plan
a plan created to secure the other party needed to carry out a real estate transaction that includes sales and advertising.
“net cash-in-hand” proceeds
the seller’s net profit that deducts the remaining principal balance from the sales price rather than the original purchase price of the property.
net profit
the profit that remains after closing costs are taken into account.
above-grade
space on any level of a dwelling that has living area and no earth adjacent to any exterior wall on that level.
