Module 5 Brokerage Flashcards
Define: Brokerage
The bringing together of parties interested in making a real estate transaction for consideration (For commission you are being paid. 133
Define: Law of agency
The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions. 152–153
Single Agency
single agency Agency relationship in which the agent represents only one party to a transaction. Only one side of the Transaction 162
Dual Agency
The listing broker or agent represents both sides of the transaction.
What is an open listing?
Receiving a commission based on producing a ready, willing, and able buyer before the property is sold by the seller or another real estate professional. 177
What is an exclusive office listing?
A listing that if you, your office or any other office brings a buyer a commission will be paid, but the seller is still reserving the right to sell the property on his own and if he sells the property no commission will be paid.
Define: Exclusive right to sell
If the house sells you will get a commission no matter who brought the buyer
Define: Net Listing
A Net Listing in Massachusetts is illiberal.
net listing A listing based on the net price the seller will receive if the property is sold. Under a net listing, the real estate professional can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states. 177
What is the Multiple listing service (MLS)?
A marketing organization composed of member real estate professionals who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most multiple listing services accept exclusive right-to-sell or exclusive agency listings from their member real estate professionals. 136
What are an agents Fiduciary Responsibilities? Hint OLD CARD
O= Obedience L= Loyalty D= Disclosure
C= Confidentiality A= Accountability R= Reasonable Car / Diligence
Define: Agent
One who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent. A prospective property buyer may authorize a real estate broker to act as the buyer’s agent to find a suitable property. 153
Define: Subagent
A sales associate acting as an agent of a broker and who therefore owes fiduciary duties to the broker’s client. 162
What can Terminate Agency?
- Completion of the objective
- Expiration of Time
- Mutual consent
- Revocation of either party. There could be damages involved
- Death of one of the parties
- Destruction of the subject property
- Bankruptcies
Define: Commissions
Payment to a real estate professional for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property. 136
Define: procuring cause
The effort that brings about the desired result. Under an open listing, the real estate professional who is the procuring cause of the sale receives the commission. 137