Listings

Question 1

What is a listing?

Answer 1

Bilateral employment contract between principal and broker whereby the broker is employed by the principal to find a buyer and accept a deposit.

Question 2

Who does a seller hire?

Answer 2

A broker who will find a buyer. Not to sell a house.

Question 3

What does MLS stand for?

Answer 3

Multiple Listing Service

Question 4

What is the MLS?

Answer 4

Database of available properties listed by real estate agents.

Question 5

What is a listing agreement?

Answer 5

Personal service contract. Meaning the person and the property must still be around otherwise the contract will be terminated.

Question 6

What is a material change?

Answer 6

Something that would affect the value of the listed property (Ex. zoned residential but then changed to commercial)

Question 7

What should a listing contract contain?

Answer 7

Name of parties to the contract, they type of agency created, the broker’s authority and responsibility, the location of the property (which may be a street address), legal description of tax parcel number, the listing price, beginning and ending dates, real and personal property included, the commission to be paid, authorization to advertise including the placement of a For Sale sign on the property, type of deed used for conveyance, the terms for termination of the contract, an indemnification clause, fair housing and anti trust information, the signatures of parties authorized to perform, the protection period clause.

Question 8

What is the protection period clause?

Answer 8

Purpose of the clause is to able to close deals with buyers you found during the term of the listing. (Also known as an safety clause, extender or carry - over clause)

Question 9

What is listing with an option?

Answer 9

When a broker is interested in buying a property that she or he has listed, (this provision needs to be included in the listing agreement)