Types of Listings

Question 1

Definition of a listing

Answer 1

• contractual relationship between the agent/sales
  person and owner

Question 2

Types of listings

Answer 2

• Open Listing Contract
• Exclusive
• Exclusive Right-To-Sell
• Joint-Sole Agency Contract

Question 3

Open Listing Contract

Answer 3

• Who ever brings in the deal first gets the commission
• very competitive

Question 4

Advantage of open listings:

Answer 4

• gives seller greatest freedom
• seller only need to pay whoever who seals the deal

Question 5

Disadvantage of open listing

Answer 5

• little incentive for salesperson
• expenses may not be compensated
• competition between owner & salesperson
• competition between salesperson & salesperson
• owner may be influenced into making a certain sale by buyer to avoid paying commission to salesperson

Question 6

Exclusive Right-To-Sell Listing Contract (Sole Agency) Definition

Answer 6

• Estate agent/salesperson are entitled to commission regardless of who sells the property during the listing period.

Question 7

Advantage for Estate agent/salesperson in Exclusive Right-To-Sell Listing

Answer 7

• Efforts and money spent on advertising and showing the property are not wasted.

Question 8

Advantage for Owner

Answer 8

• Increased effort from the salesperson in selling the property.

Question 9

Multiple Listing Systems (MSL) Exclusive Right-to-Sell Listings

Answer 9

• Seller can place property in MLS
• Purpose: Maximum exposure with other participating salespersons.
• Responsibility: Salesperson covers advertising expenses and cooperates with other salespersons.

Question 10

Challenges in Managing Good Listings in MLS

Answer 10

• Salesperson may attempt to discourage placing a “good listing” in MLS to avoid sharing the commission.
• Seller can agree to a limited time (e.g., 90 days) before listing in MLS if the property hasn’t sold.

Question 11

Joint-Sole Agency Contract

Answer 11

• Developer appoints a sole agent & gives the Estate Agency (company) to sell together with the developer

Question 12

Advantages for Developer in joint sole agency listing

Answer 12

• Access to an expert for handling sales inquires, showflats, co-broking, legal docs, and administration.
• Offloads various responsibilities to the joint-sole agent

Question 13

Advantages for Estate Agent in joint sole listing

Answer 13

• Portfolio Boost: Adds a notable project to agency’s marketing records
• Steady Income: Provides consistent income stream for agency’s salespersons.