Typical Residential K and Transaction

Question 1

For Sale by Owner

Answer 1

Owner sells own property
Unwritten rule: industry does not like ppl trying to sell on their own; will find great opposition by real estate community
Typically get an agent and pay 6% commission

Question 2

K Exclusive Right to Sell

Answer 2

K btwn broker and seller
Prevents seller from selling property with another broker or on his own (or if he does, he is req’d to still pay the commission)

Question 3

Multiple Listing Service

Answer 3

Virtually every broker belongs to this and will show anyone’s property but remain biased towards their own listings b/c can get full 6% (otherwise have to split 50/50)

Question 4

When buyer calls # on front of property, the # contacts…

Answer 4

The agent will also help the buyer
- conflict of interest?
K typically acknowledges and buyer is aware

Question 5

Salespersons License

Answer 5

Shows good character and pass easy exam

Allows to work for a broker but not on your own

Question 6

Licensed Broker

Answer 6

Harder to get than Salespersons license
Need sales experience and pass more challenging exam; more qualified
As an attorney, already qualified as a broker

Question 7

TX does not have ______ on how far a broker may go before he crosses the line into the law.

Answer 7

Authority

Question 8

Cause of Action against Brokers in TX

Answer 8

Subject to Texas Deceptive Trade Practices Act