Listing and Buyer Agency Agreements Flashcards
What is a contract of employment between a broker and a principal who is the property owner?
A listing
The _____ obligates the owner to pay the broker a _______ when the broker brings a ready, willing, and able buyer who is willing to buy at the listing terms.
Listing agreement; comission
True or False: In most states, a listing must be in writing and does not need an expiration date.
False; it must have a fixed expiration date
What is the general term range for a listing?
60 - 120 days
Who do listings belong to?
Broker, even when they are procured by a salesperson
If a salesperson leaves the employment of a broker, what happens to their listing?
The listing remains the property of the broker
What is an open listing?
The owner reserves the right to engage additional brokers. The one who sells the property earns the commission.
When are open listings typically used?
In commercial property
What is the term for a listing where only one broker earns the commission?
Exclusive agency.
True or False: In exclusive agency, an owner cannot sell a property by their own efforts without paying a commission.
False
True or False: In exclusive right o sell listings, the brokers only gets a commission from a sale if they sell the property.
False. The broker gets the commission no matter who sells (even the owner).
What type of listing is illegal or unethical, depending on the state?
Net listings
In net listings, the owner receives a stated net amount from a sale, and the broker commission is what amount?
The excess price over the stated net amount
In multiple listings, the broker who has the _____ shares the commission in a sale with a cooperating broker who brings ______.
listing; the purchaser
In what type of listing do brokers provide minimal work, such as helping the seller or buyer complete a contract-of-sale form, for a fixed fee?
Limited service
True or False: The listing price is determined by the broker with market information.
False: It is established by the property owner, with market information provided by the broker.
Where are rates of commission specified? How are they determined?
In the listing. They are negotiated with the owner.
What does the Sherman Antitrust Act protect against?
Fixed commissions by different brokers in the local market because they are anticompetitive
Who collects the commission at closing? What happens to it?
The listing broker collects the commission. That broker shares or splits the commission with the salesperson who procured the listing and with the cooperating broker who brought the buyer.
What is a buyer agency agreement?
The buyer agrees to be represented by a broker who seeks a suitable property and owes fiduciary duties to the buyer.
Explain dual agency
The same broker represents both parties. All parties must be aware that this arrangement exists and understand that the broker cannot provide loyalty to both parties. A broker may require that different salespersons within the same firm represent buyer and seller.
A separate broker is brought in to assist a party in a sale instead of having both buyer and seller represented within the same firm. This is called _____.
Designated Agency
A broker does not bring either buyer or seller, but a buyer or seller asks a broker to provide certain services, This is an example of _____.
Transaction brokerage
What are the two categories of ways a listing is terminated?
By the parties or by operation of law
True or false: A broker may revoke a listing
True, but they may be liable for damages.
When both parties agree to terminate a listing, this is called?
Mutual consent
True or False: When a property is sold, this is considered termination of a listing by parties.
True
When a listing period expires, this is considered termination of a listing by law.
False. It is termination by parties.
Can a principal revoke a listing?
Yes, but they may owe commission.
What are the four types of termination of a listing by law?
1) Death of either party
2) Bankruptcy of either party
3) Insanity of either party
4) Destruction of the property
True or False: a listing may be terminated by law if a party goes bankrupt.
True
True or False: Insanity is not a valid reason for termination of a listing by law
False
