RP UNIT10 Flashcards
What is a listing agreement?
An employment contract between a broker and seller.
What is required for an exclusive listing agreement to be enforceable in court?
It must be in writing.
Define exclusive right-to-sell listing.
One broker is the sole agent for the seller and is entitled to a commission regardless of who procures the buyer.
Define exclusive agency listing.
One broker is the sole agent for the seller and is entitled to a commission unless the seller procures the buyer.
Define open (nonexclusive) listing.
Any number of brokers and the seller can procure the buyer, with only the procuring broker entitled to a commission.
What is a net listing?
Broker receives a set amount above the seller’s proceeds; illegal in many states.
What is a multiple listing service (MLS)?
An organization of brokers who market listings to MLS members and share commissions with cooperating brokers.
How has technology enhanced MLS benefits?
It has made property listings available to consumers, allowing them to narrow searches online.
List reasons for termination of seller representation.
- Fulfillment of the purpose of the listing
- Expiration of the time period
- Destruction of the property
- Change in property use
- Transfer of title by operation of law
- Mutual consent
- Death or incapacity of either party
- Breach or cancellation by one party
What must a contract state regarding the expiration of the listing period?
It must state a definite termination date.
Are automatic extension clauses allowed in some jurisdictions?
No, they are specifically prohibited.
What does a broker protection clause do?
Protects a broker from losing a commission if the transaction is completed after the listing expired.
What is a comparative market analysis (CMA)?
A valuation of the property based on sales and listings of similar properties.
What information is needed for a listing agreement?
- Names and relationship of owners
- Street address and legal description
- Size and type of improvements
- Age and type of construction
- Number and size of rooms
- Size of the lot
- Possibility of seller financing
- Amount of outstanding special assessments
- Zoning classification
- Current property taxes
- Neighborhood amenities
- Real property to be removed or included
- Additional appealing information
- Required disclosures regarding property condition
What do state laws specify regarding disclosures?
Disclosures regarding agency relationship and property condition.
List provisions of the listing agreement.
- Names of all parties
- Brokerage firm
- Description of premises
- Listing price
- Broker’s authority and responsibilities
- Broker’s compensation
- Real and personal property included/excluded
- Leased equipment
- Proposed closing dates
- Closing
- Evidence of ownership
- Encumbrances
- Home warranty program
- Termination of the contract
- Broker protection clause
- Warranties by the owner
- Indemnification wording
- Nondiscrimination wording
- Antitrust wording
- Signatures of the parties
- Date signed
What are the buyer representation provisions?
- Determine type of representation
- Parties’ rights and responsibilities
- Compensation (flat fee, hourly rate, percentage, retainer)
- Source should be specified
- Always negotiable
List reasons for termination of buyer representation.
- Purpose fulfilled
- Term expires
- Mutual agreement
- Breach of agreement
- One party dies or becomes incapacitated
