Listing & Buyer Contracts Flashcards
What kind of agency is created by a listing agreement?
A SPECIAL AGENCY between the property owner and the broker.
What is an agency agreement?
An EMPLOYMENT CONTRACT for the personal services of the broker.
A BUYER REPRESENTATIVE AGREEMENT establishes the rights and responsibilities of the broker as agent for the buyer-principal.
AGENCY AGREEMENTS are not contracts for the transfer of real estate or a real estate interest.
6 Items Every PA Written Agreement Must Contain
1) NEGOTIATION STATEMENT covering broker’s fee and contract duration
2) DESCRIPTION OF NATURE AND EXTENT OF BROKER’S SERVICES
3) REPRESENTATION STATEMENT advising broker or licensee may provide services to more than one consumer in a transaction
4) COOPERATION & COMPENSATION STATEMENT
5) REAL ESTATE RECOVERY STATEMENT
6) CONFLICT OF INTEREST STATEMENT
Types of Listing Agreements
1) EXCLUSIVE RIGHT-TO-SELL
2) EXCLUSIVE AGENCY
3) OPEN LISTING
4) MULTIPLE LISTING
5) NET LISTING
Hierarchy of listings
1) OPEN LISTINGS
2) EXCLUSIVE AGENCY
3) EXCLUSIVE RIGHT-TO-SELL
Exclusive Right-to-Sell
One broker is appointed as the sole (EXCLUSIVE) agent of the seller with the exclusive right to market the seller’s property. The seller pays the broker regardless of who sells the property.
Exclusive Agency Listing
One broker is authorized to act as the exclusive agent of the principal and only received compensation if he is the procuring cause.
The seller retains the right to sell the property himself without obligation to the broker.
Open Listing
Seller retains the right to contract with any number of brokers as agents and are not obligated to pay a commission if they sell the property without the aid of any of the brokers.
Broker is compensated only if they successfully produce a READY, WILLING AND ABLE BUYER.
Multiple Listing
A listing service for member brokers used to expand their inventory of available houses to sellers.
Net Listing
A listing where the broker is entitled to any amount exceeding the seller’s net proceeds. The broker can offer the property at any price above the net amount.
6 Reasons for Listing Termination
1) AGREEMENT’S PURPOSE FULFILLED
2) TERM EXPIRED
3) TITLE TRANSFER BY OPERATION OF LAW
4) MUTUAL CANCELLATION
5) DEATH OF BROKER OR SELLER
6) PROPERTY DESTROYED OR USE CHANGED BY OUTSIDE FORCE
NB- too high a price is always the underlying reason why a property does not sell/listing is terminated
Comparative Market Analysis
Compares location, size, age, style and amenities of properties that are comparable to the seller’s property.
Requirements of Exclusive Right-to-Sell contracts
1) ALL REQUIREMENTS FOR WRITTEN CONTRCT
2) BOLDFACE STATEMENT notifying seller of broker’s right to earn commission regardless of who sells property
3) SELLER’S ASKING PRICE
4) ESCROW EXPLANATION
5) AGREEMENT DURATION
Types of Buyer Agency Agreements
1) EXCLUSIVE BUYER AGENCY
2) EXCLUSIVE AGENCY BUYER AGENCY
3) NON-EXCLUSIVE BUYER AGENCY
Exclusive Buyer Agency
A completely exclusive agency agreement where the buyer is legally bound to compensate the broker if the buyer purchases a property as described in the contract and within the agreed-upon time frame.
