MRE_Chapter6

Question 1

What is Listing Agreements

Answer 1

1. Listing Agreement is an employment contract between a broker and seller 2. Most states require that they must be in writing to be enforceable in court

Question 2

Types of Listing Agreements

Answer 2

1. Exclusive-Right-to-Sell Listing 2. Exclusive-agency listing 3. Open Listing (nonexclusive listing)

Question 3

Exclusive-Right-to-Sell Listing

Answer 3

One broker is appointed as the sole agent for the seller and entitled to a commission regardless of who procures the buyer, including the seller

Question 4

Exclusive-Agency Listing

Answer 4

One Broker Broker is paid only if the broker is procuring cause Seller retains the right to sell the property without the obligation to pay the broker

Question 5

Open-LIsting

Answer 5

Multiple Broker Only selling broker is paid Seller retains the right to sell without obligation

Question 6

Special Listing Provisions

Answer 6

Multiple Listing Net Listing

Question 7

Multiple Listing

Answer 7

An organization of brokers that pool listings and distributes them to its members, who then share commissions on co-operating sales.

Question 8

Net Listing

Answer 8

A Net Listing provision specifies that the seller receive a net amount of money from any sale, with the excess going to the listing broker commission. Broker is free to offer property at any price grater than that amount

Question 9

Termination of Listings Reasons

Answer 9

1. Fulfillment of the purpose of the listing 2. Expiration of the time period stated in the agreement 3. Destruction of the property 4. A change in property use by outside forces (such as Zoning or condemnation under eminent domain) 5. Transfer of the title to the property by operation of law (like Bankruptcy) 6. Mutual Consent 7. Death or incapacity of either party 8. Breach or cancellation by one of the parties

Question 10

Expiration of Listing Period

Answer 10

1. Contract must state definite termination date 2. Automatic extension clauses are specifically prohibited by licensing authorities in some jurisdictions 3. Some contracts contain a broker protection clause; protects a broker from losing a commission if transaction completed after the listing period

Question 11

Information Needed for Listing

Answer 11

1. Names & relationships 2. Street address & legal description of the property 3. Size & type of the improvements 4. Age of the improvements and their type of construction 5. Number and sizes of the rooms 6. Size of the lot, including its dimensions 7. Existing Loans on the property 8. Possibility of seller financing 9. Amount of any outstanding special assessments and who will pay them 10. Zoning classification of the property 11. Current Property taxes 12. Neighborhood Amenities (school, parks, etc) 13. Any real property to be removed from the premises by the seller and any personal property to be included in the sale for the buyer 14. Any additional information that would make the property more appealing and marketable 15. Any required disclosures concerning property condition

Question 12

Buyer Agency Agreements

Answer 12

Like a listing agreement, a buyer agency agreement is an employment contract

Question 13

Buyer Representation Issues

Answer 13

Number of issues to be discussed between Broker and Buyer: 1. Explain agency agreement 2. Parities rights and responsibilities 3. Compensation4