Listing Agreements Flashcards
When is commission earned in a listing?
When a ready, willing and able buyer is found during the listing period. If a buyer makes an offer that meets the seller’s terms the seller is required to pay commission, even if the seller decides not to accept the buyer’s offer.
What is an open listing?
A non-exclusive listing, given to as many brokerages as the seller chooses. Commission is due to the procuring cause, and a brokerage should keep a list of prospects so that it has evidence of being the procuring cause.
This is a unilateral contract so only the seller needs to sign.
Under what circumstances does the seller owe commission in a listing if it doesn’t close?
- Seller change of heart
- No marketable title
- Failure to deliver possession
- Termination by agreement (seller and buyer mutually agree)
What is an exclusive agency listing?
A listing agreement that entitles the brokerage to a commission if anyone other than the seller sells the property.
What is an exclusive right to sell listing?
A listing that entitles the brokerage to a commission if anyone (including the seller) sells the property. This is preferred by brokerages.
This is a bilateral contract so all parties need to sign.
What are the elements of a listing agreement?
- In writing, signed by seller
- Property description
- Promise to compensate broker
- Other elements: brokerage’s authority, termination date, terms of sale
If there are deed conditions, such as fee simple defeasible, this should be desvribed in the agreement.
What is a net listing?
The seller specifies what they’d like to receive from the sale and the brokerage keeps anything in excess. This is discouraged because an agent can take advantage of a seller.
