Types of listing Flashcards
What is an open listing?
An open listing allows the seller to list property with many competing brokers, OR to be able to sell the property themselves.
Who collects commission on an open listing?
Commission is paid to whoever secured the sale, or to no one if the seller sells the property themselves.
Why are open listings not advised?
Because sometimes it is difficult to identify the procuring cause of the sale, and the client can claim to not owe commission to anyone.
What is procuring cause?
Procuring cause is the person responsible for making the sale happen.
What is exclusive agency?
The seller chooses one broker but can still sell the property themselves without owing a commission.
What is exclusive right to sell? (Hint: the most ideal form of listing)
The broker receives a commission even if the client sells the property. This offers the most protection for the agent and broker that they receive commission.
What is a net listing?
A net listing lets a seller establish a minimum dollar amount for their proceeds at closing. This makes the broker’s commission whatever the difference is between the minimum and the actual net earnings
Despite being outlawed in most states, it is allowed in Texas. What are the two stipulations of Net Listings in TX?
1.) Only accept a Net Listing if the client insists.
2.) the amount accepted should NEVER be less than the principal’s desired price and a specified maximum commission should limit the broker.
(so as to not put the agent’s interest over the client’s)
