Listing Agreements

Question 1

Listing Agreement

Answer 1

legally-binding contract authorizing a broker to serve as an agent for a principle in a real estate transaction

Question 2

Exclusive Right-to-Sell

Answer 2

Listing agreement btwn a broker and seller where the broker is owed a commission no matter who finds a buyer for the property

Question 3

Exclusive Agency Agreement

Answer 3

Listing agreement btwn a broker and seller where the broker is not owed a commission if the seller themselves finds a buyer

Question 4

Open Listing

Answer 4

A non-exclusive contract authorizing a broker to serve as an agent for either the sale or purchase of property

Question 5

Net Listing

Answer 5

an agreement where an owner sets a minimum amount that they want to receive from the sale and the broker keeps the difference in profit as commission if the property is sold at a higher price than the minimum stated

Question 6

Multiple Listing

(hint: MLS = Multiple Listing Service)

Answer 6

An organization of brokers within a specified geographical area who agree to distribute and share listing information

Question 7

Due Diligence

Answer 7

Verifying the accuracy of the statements in the listing

Question 8

What does a ‘Procuring Cause’ do?

Answer 8

clarifies who qualifies for commission

Question 9

What’s an important thing to remember about the enforceability of listing agreements?

Answer 9

They must be in writing to be enforceable

Question 10

What does “effecting a completed transaction” mean?

Answer 10

Finding a customer who is not only ready, willing, and able, but one who makes an acceptable offer

i.e finding a buyer to complete a transaction

Question 11

What’s the most desirable way to terminate a listing?

Answer 11

fulfillment of the contract

Question 12

What form states how the agent will be compensated? (buyer side)

Answer 12

Buyer Tenant Rep Agreement

Question 13

What section of the listing agreement outlines the broker’s rights to a commission if the seller later sells the property to one of the broker’s prospects after the contract expires?

Answer 13

Protection Period

Question 14

In what section of the listing agreement does the seller agree to hold the broker not liable for personal injury, loss or damage to the property?

Answer 14

Limitation of Liability (Paragraph 14)

Question 15

What’s the name of the addendum to the exclusive right-to-sell agreement that makes it an exclusive agency listing?

Answer 15

Exclusive Agency Addendum to Listing

Question 16

What is required if a property is subject to a private transfer fee?

Answer 16

seller must notify the buyer in writing

Question 17

If the seller fails to provide the buyer with a signed statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of the contract, the seller may owe ______________________.

Answer 17

$5,000 in damages after closing

Question 18

In which section of a disclosure form do the buyers check a box indicating they waive their right to conduct a risk assessment?

Answer 18

Buyer’s Rights