Listing Contracts

Question 1

Listing Agreement

Answer 1

The document that puts an agent or broker in business. A legally enforceable real estate agency agreement between a real estate broker and a client, authorizing the broker to perform a stated service for compensation. The unique characteristic of a listing agreement is that it is governed both by agency law and by contract

Question 2

Exclusive Right

Answer 2

A listing agreement which pays the listing broker a commission if anyone at all procures a customer

Question 3

Exclusive Agency

Answer 3

A listing agreement which pays the listing broker a commission if anyone other than the property owner procures a customer

Question 4

Open Listing

Answer 4

A non-exclusive listing which pays an agent a commission only if the agent is procuring cause of a ready, willing, and able customer

Question 5

Net Listing

Answer 5

A listing which states a minimum sale or lease price the owner will accept, with any excess going to the broker as a commission. Professionally discourage, if not illegal

Question 6

Buyer and Tenant Representation

Answer 6

A broker’s listing with a buyer to locate a suitable property for purchase or lease

Question 7

Multiple Listing

Answer 7

Multiple listing is a significant feature of brokerage practice. Multiple listings is an authorization to enter a listing in a multiple listing service

Question 8

Due Diligence

Answer 8

Due diligence in the listing context refers to verifying the accuracy of the statements in the listing regarding the property, owner, and the owner’s representation. Especially important facts for a broker or.agent to verify are:
the property condition; the ownership status; and the clients authority to act

Question 9

Procuring Cause

Answer 9

A party who was first to obtain a ready, willing, and able customer, or a party who expected the effort to induce the customer to complete the transaction