Unit 10

Question 1

Listing agreements

Answer 1

An employment contract between a real estate broker and a property seller

Question 2

Exclusive right-to-sell listing

Answer 2

One broker is appointed as seller’s sole agent, and if the property is sold while the listing is in effect, the broker is entitles to a commission, no matter who sells the property

Question 3

Exclusive agency listing

Answer 3

Authorizes one broker to act as sole agent of the seller but allows the seller to retain the right to sell the property without obligation of payment to the broker. Should define termination date.

Question 4

Open listing/ Nonexclusive listing

Answer 4

Seller retains the right to employ any number of brokers; seller is obligated to pay a commission only to the broker who successfully produces a ready, willing and able buyer; and not obligated to pay commission if seller personally sells the property without aid of a broker

Question 5

Net listing

Answer 5

Excess over the seller’s desired net from the sale is paid to the broker as compensation may be prohibited by state law

Question 6

Multiple listing clause

Answer 6

Permits cooperation with other brokers in the MLS

Question 7

An agreement to represent a seller may be terminated when

Answer 7

-Purpose is fulfilled
-Term expires
-Property is destroyed
-Title is transferred by operation of law (bankruptcy)
-Broker and seller mutually agree to end
-Breach of contract
-Either party dies or become incapacitated

Question 8

Broker Protection Clause

Answer 8

Preserves a broker’s right to compensation if, within a certain number of days after the listing agreement expires, the owner transfers the property to a purchaser who was brought to the seller by the listing broker

Question 9

Listing presentation

Answer 9

Usually made by the sales association of the broker and is the job interview with a prospective client. Presents info about the firm, the market, and how to provide great service.

Question 10

Comparative Market Analysis (CMA)

Answer 10

Helps seller have a realistic idea of the price range in which the subject property falls

Question 11

Listing Agreement contains

Answer 11

Identifies the owners, describe improvements, list any loans and current status, payments, personal property, fixtures, details of a short sale, and if lender is willing to accept one.

Question 12

Buyer representation agreement

Answer 12

Employments contract in which a prospective property buyer employs a broker for the purpose of finding a suitable property

Question 13

Exclusive buyer representation

Answer 13

Buyer works with only one broker, but the broker is free to represent other buyer clients