SU # 51__Listing Agreements Flashcards
What is an important thing to remember about listing agreements?
They must be in writing to be enforceable.
Describe an open listing.
An open listing is a non-exclusive listing that allows a seller or buyer to engage a number of different brokers to sell or help purchase property. The broker who brings the buyer or finds the suitable property gets the commission. If the owner sells the property or the buyer finds his or her own property, no commission is owed to any broker.
What is the major difference between an exclusive right to sell listing and an exclusive agency listing?
With exclusive right to sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer. With exclusive agency, the owner retains the right to find a buyer and sell the property and owe the exclusive broker no commission.
How does a net listing create a conflict of interest for a broker?
It violates the broker’s responsibility of putting the client’s interests above his or her own.
What four components should be on every listing agreement?
An identification of the property
A promise of compensation to the broker
The specifics of that compensation
Written document with signatures of the seller or sellers
The listing agreement is a contract between whom?
The agreement is a contract between the managing broker and the seller.
What are the two most common changes to an original listing agreement?
Price changes and extensions to the listing period
Broker Sara has lost her license for unprofessional conduct. What will happen to her listings?
The Department of Licensing can appoint a temporary broker to close any of Sara’s pending transactions. Otherwise, all Sara’s listings will terminate.
What type of listing allows the distribution of the listings to all other brokers?
Shared Listing
Open Listing
Multiple Listing
Dual Listing
Multiple Listing
Seller Jim wants to walk away with $175,000 in his pocket after the sale. Jim agrees to a net listing. The property sells for $212,000. How much money is Jim entitled to?
$175,000
212,000
$212,000 minus 5% commission.
175,000 minus a 5% commission.
$175,000
When a seller signs a listing agreement, who are the actual contract parties?
Seller and Licensee
Seller and MLS Association
Broker and Licensee
Seller and Managing Broker
Seller and Managing Broker
When must a seller receive a copy of the listing contract?
When an offer is accepted.
When the first offer is presented.
At the time of closing
At the time of signing.
At the time of signing.
Which of these listing agreements is considered a unilateral contract?
Open
Exclusive Agency
Net
Exclusive Sale and Listing
Open
Which of these statements is true?
Once a listing agreement is signed by all parties it cannot be changed.
The seller can change the listing agreement whenever he or she wants.
A listing agreement can be modified, but only if all parties agree in writing.
A listing agreement can change by the mutual verbal agreement of all parties.
A listing agreement can be modified, but only if all parties agree in writing.
Which type of listing provides the most incentive for a broker to market a property?
Exclusive Agency
Open
Net
Exclusive Right to Sell
Exclusive Right to Sell
Which of these sources would not be a way to determine who holds title to a property?
Seller’s Deed
Title Company
County Tax Office
MLS Data Bank
MLS Data Bank
Net listings are _______________________
Illegal in Illinois
Encouraged
Viewed as unprofessional
Subject to excise taxes
Viewed as unprofessional
Which type of listing is least attractive to a broker?
Exclusive right to sell
Open
Exclusive agency
MLS listing
Open
To be valid, a listing agreement
a. must be in writing.
b. may be oral or written.
c. must be an express agreement.
d. must be enforceable.
b. may be oral or written.
The type of listing that assures a broker of compensation for procuring a customer, regardless of the procuring party, is a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing
a. exclusive right-to sell agreement.
An owner agrees to pay a broker for procuring a tenant unless it is the owner who finds the tenant. This is an example of a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing.
b. exclusive agency agreement.
A landlord promises to compensate a broker for procuring a tenant, provided the broker is the procuring cause. This is an example of a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing.
c. open listing.
A property owner agrees to pay a broker a commission, provided the owner receives a minimum amount of proceeds from the sale at closing. This is an example of a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing.
d. net listing.
The most significant difference between an owner representation agreement and a buyer representation agreement is
a. the client.
b. the commission amount.
c. agency law applications.
d. contract law applications
a. the client.
