Module 11 Flashcards
Listing Agreement
A contract between a landowner (as Principal) and a licensed real estate broker (as Agent) by which the Broker is employed to sell real estate on the owner’s terms within a given time, for which service the landowner agrees to pay a Commission
Exclusive Right to Sell
A listing contract under which the owner appoints a real estate Broker as his or her Exclusive Agent for a designated period of time to sell the property on the owner’s stated terms and agrees to pay the broker a Commission when the property is sold, whether by the broker, the owner or another broker
Comparative Market Analysis
CMA - A range of market values for a property given to prospective buyers/sellers by a real estate license holder (not an actual appraisal)
Deceptive Trade Practices Act
Part of the Federal Consumer Protection Act, originally passed in 1973 and made specifically applicable to real estate in 1975; prohibits a lengthy number of false, misleading, or deceptive acts or practices
Open Listing
A listing contract under which the Broker’s Commission is contingent on the broker producing a ready, willing, and able buyer before the property is sold by the seller or another broker
Net Listing
A listing based on the net price the seller will receive if the property is sold. Under a net listing the Broker is free to offer the property for sale at the highest price he or she can get in order to increase the Commission. This type of listing is outlawed in many states (it is not recommended in Texas)
Broker’s Price Opinion
An analysis of price used by a broker and typically requested by an attorney, a relocation company, or by a lender
Puffing
Exaggerated or superlative comments/opinions not made as representations of fact, and thus not Misrepresentation.
Exclusive Agency
A listing contract under which the owner appoints a real estate Broker as his or her Exclusive Agent for a designated period of time to sell the property, on the owner’s stated terms, for a Commission. The owner reserves the right to sell, without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker.
Multiple Listing Service
An Exclusive Listing (generally an Exclusive Right to Sell) with the additional authority and obligation on the part of the listing Broker to distribute the listing to other brokers in the multiple-listing organization (not a separate type of listing)
Procuring Cause of Sale
The effort that brings about the desired result. Under an Open Listing, the Broker who is the procuring cause of the sale receives the Commission. The broker is providing a ready, willing and able buyer at a price and terms acceptable to the seller
Mold
Fungi that can be found both indoors and outdoors
The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract
Procuring cause of sale
Marketing that uses adjectives and opinions rather than details or facts
Puffing
The broker is the only listing broker, and a commission is paid even if the property is sold by the owner
Exclusive right to sell
Gives the seller the right to list the property with multiple competing brokers and to sell the property personally without liability for payment of a commission
Open listing
The broker’s commission is the difference between the seller’s established net and the price that the buyer is willing to pay
New listing
Agency agreements are employment contracts, should be
in writing, and establish the Principal-Agent relationship
All listings must be in _______________ to be enforceable.
writing
The listing is taken in the name of the _______________ , and all commissions and fees must be paid directly to the broker.
Broker
The listing agreement establishes the _______________ relationship between the client and the broker.
Principle-agent
_______________are not enforceable against the client.
Oral agreement
Listing agreements are _______________ between a seller or landlord and the broker.
employment contracts
_______________are the lifeblood of any real estate operation.
Listings
The listing agreement is a _______________ relationship between the broker and the client.
special agency
The real estate broker’s commission is the difference between
the minimum net established by the seller and the price that the buyer is willing to pay
A benefit of the Exclusive Right to Sell listing agreement is that it helps to avoid the problem of
procuring cause lawsuits because the listing broker is the only one with the right to sell the property
Under ______________, the seller establishes a minimum acceptable net price
Net Listings
Listings terminate at any time by
Mutual Recission
True or False: The open listing gives the seller the right to list the property with multiple competing brokers and to sell the property personally, without liability for payment of a commission.
T
True or False: In an exclusive agency listing, the seller agrees to list the property with only one broker during the listing term, with the provision that the seller can sell the property independently, without paying a commission.
T
True or False: Under a net listing, the seller establishes a minimum acceptable net price. The real estate broker’s commission is the difference between the minimum net established by the seller and the price that the buyer is willing to pay.
T
True or False: Net listings should be qualified so as to assure the principal of not less than his desired price, and to limit the broker to a specified maximum commission.
T
True or False: The exclusive right to sell and exclusive agency listing agreements usually call for the broker to place the listing into one or more net listings.
F
True or False: The listing agreement is not an employment contract between a seller or landlord and the broker.
F
The broker must have a(n) ______________ in writing to enforce payment of commission in court.
employment agreement
The ______________ prevents brokers from price-fixing and setting standard commission rates across the industry.
Sherman Anti-Trust Act
Only a ______________ can earn a commission.
Broker
Commission rates, according to anti-trust laws are always ______________
Negotiable
The ______________ is the individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract.
Procuring cause of sale
Only a broker can sue to collect a ______________
commission
Exceptions to Giving a Seller’s Disclosure Notice include
sales by a bankruptcy trustee, from one co-owner to another, and to/from any government entity
A property where there has been a murder or an alleged haunting is called a
Stigmatized Property
______________ are fungi that can be found both indoors and outdoors.
Mold
Latent or hidden defects such as _______________ or zoning or deed restrictions must be disclosed.
Enroachments
_______________ can suspend or revoke an agent’s license if the license holder is found guilty of making a material misrepresentation or failing to disclose.
TREC
In Texas, the state consumer protection law that affects the brokerage business the most is the _______________.
DTPA
The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract is called the _______________.
Procuring Cause of Sale
_______________ is a federal law requiring all states to release information to the public about know convicted sex offenders.
Megan’s Law
Mold remediators must provide a _______________ no later than 10 days after completion of mold removal.
Certificate of mold remediation
Certain sellers must provide a _______________ before a buyer signs a contract or the buyer may back out of the agreement.
Seller’s Disclosure Notice
A type of listing that allows the seller to list with as many brokers as the seller chooses or seller the property himself or herself.
Open Listing is a type of listing that allows the seller to list with as many brokers as the seller chooses or seller the property himself or herself
A listing is terminated by all of the following except:
Death of the Sales Agent
Bankruptcy of the Seller
Fulfillment of purpose
Death of the Broker
the death of the sales agent
Consumer protection law that allows the purchaser of a good or service to sue the provider for monetary loss due to misrepresentation of the condition of the good or service.
DTPA is a consumer protection law that allows the purchaser of a good or service to sue the provider for monetary loss due to misrepresentation of the condition of the good or service
In Texas, a seller uses a certain document to tell prospective buyers the seller’s knowledge of the condition of the property.
In Texas, a seller uses a Seller’s Disclosure Notice to tell prospective buyers the seller’s knowledge of the condition of the property
Which of the following seller is exempt from disclosing the known condition of the property?
An estate sale
A trustee in a foreclosure sale
A builder
none, all must disclose
All sellers must disclose.
Which listing allows the seller to list with only one broker and the broker gets paid even if the seller sells the property himself or herself?
Exclusive Right to Sell allows the seller to list with only one broker and the broker gets paid even if the seller the property himself or herself.
When a listing is terminated, the listing agent must do all of the following except:
Terminate the listing in the MLS
Remove signs and lockboxes
Cease all marketing activities
Withdraw the listing in the MLS
When a listing is terminated, the listing agent must do all of the following, except withdraw the listing in the MLS.
Procuring cause is determined by
by a series of uninterrupted events
An agent describes a property in an advertisement as having “The best view of downtown!” This is an example of:
puffing
Commission rates are
negotiable
