Practice Quiz 2 Flashcards
Unilateral Employment Agreement
An oral or written employment agreement obligating the broker to use their best-efforts to fulfill the client’s real estate goals without imposing a due diligence duty on the broker until a match is located, commonly called an open listing.
Exclusive Right-to-Buy Listing Agreement
A written employment agreement by a broker and a prospective buyer of real estate employing and entitling the broker to a fee when property is purchased during the listing period.
Withdrawal-from-Sale Clause
A provision in an exclusive listing agreement which calls for a broker fee to be earned and payable when the seller withdraws the property from sale, makes the property unmarketable, transfers ownership or, without the broker’s consent, further leases the property.
Referral Fee
A fee paid illegally by one service provider to another, both rendering services in a real estate transaction, in exchange for the referral of a principal when the buyer’s mortgage financing subjects the transaction to RESPA Regulation X rules.
Cooperating Broker
A broker or their agent acting as a subagent of the seller’s broker with specific affirmative duties of care owed the seller, but not the buyer.
Safety Clause
A provision in an exclusive listing agreement earning the broker a fee during an agreed safety period after expiration of the employment for marketing efforts with identified buyers, tenants or property, if the client sells the listed property to an identified buyer or purchases or leases an identified property during the safety period.
Safety Period
An agreed period commencing on expiration of a broker’s employment during which a broker earns a fee under safety clause conditions.
Advance Costs
Funds deposited with a broker to cover out-of-pocket costs incurred on behalf of the depositor while performing brokerage services.
Broker Cooperation Provision
A clause in employment agreements entered into by brokers and their clients enabling brokers, when acting on behalf of their clients in a transaction, to share fees between themselves at the brokers’ discretion.
Advance Cost Sheet
An itemization of the costs incurred to properly market a property for sale which are to be paid by the owner.
Trust Funds
Items which have or evidence monetary value held by a broker for a client or others when acting in a real estate transaction.
Bilateral Employment Agreement
A written exclusive employment agreement obligating the broker to exercise due diligence to fulfill the client’s real estate objectives in exchange for the promise to pay a fee under various circumstances.
Procuring Cause
A continuing series of negotiating activity performed by a broker or their agents during their employment by a client that, without break in continuity, results in a completed sale or purchase of the property by the client.
Covenants, Conditions, and Restrictions (CC&Rs)
Written rules, limitations and restrictions on use agreed to by all property owners in a subdivision or common interest development.
Fee Sharing Agreement
An agreement, written or oral, between different brokerage operations to share fees earned on a transaction which are typically paid by the property owner.
Marketing Package
A property information package handed to prospective buyers containing all the disclosures compiled by the seller’s agent on the listed property.
Quantum Meruit
Compensation paid to a broker on termination of a listing agreement set as the value of the time, effort and money the broker expended acting on the employment, not based on the lost opportunity of the employment.
Kickback
A fee improperly paid to an transaction agent by another provider as compensation for rendering no service for the provider beyond the referral of a principal in a transaction the agent is to be paid a fee for the service they provide.
Affiliated Business Arrangement (ABA)
Referral of a client to a financially controlled business whose earnings are shared with the broker.
Subagent
An individual who has been delegated agency duties by a broker employed by a client, not the client themselves.
Exclusive Agent
An agent who is acting exclusively on behalf of only one party in a transaction.
Real Estate-Owned Property (REO)
Property acquired by a mortgage holder through foreclosure.
Restraint on Alienation
A limit placed on a property owner’s ability to sell, lease for a period exceeding three years or further encumber a property, as permitted by federal mortgage policy.
Release and Cancellation of Employment Agreement
A form used by a broker when employed by a client under an existing listing agreement that is terminated by mutual agreement, to document the agreed-to termination of the employment, cancel the listing agreement and liquidate any claims that may have arisen due to the employment.
Termination-of-Agency Clause
A provision in an exclusive listing agreement which calls for a broker fee to be earned and payable when the client cancels the employment without cause.
