Unit 10 Flashcards

1
Q

What is an agreement the same as?

A

a contract

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2
Q

4 types of listing contracts

A
  1. Exclusive Right to Sell Listing
  2. Exclusive Agency Listing
  3. Open listing
  4. Net Listing
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3
Q

What’s the best type of listing

A

exclusive right to sell

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4
Q

What type of listing is best for all parties

A

exclusive right to sell

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5
Q

Exclusive Right-To-Sell

A

Seller promises to pay commission to broker regardless of who finds buyer

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6
Q

Exclusive Agency

A

seller promises to pay broker commission unless seller finds their own buyer

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7
Q

Open Listing/Non-exclusive listing

A

can list property with multiple brokerages and the one who sells the property is the one who will get the commission

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8
Q

Net Listing

A

the broker is entitled to any amount of commission exceeding the seller’s stated net proceeds

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9
Q

Are net listings legal in TN?

A

No

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10
Q

What type of listing will the MLS not accept?

A

Open listing

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11
Q

Multiple Listing Service

A

where we offer cooperation with other real estate companies to share commission

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12
Q

Who uses the multiple listing clause?

A

members of the MLS

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13
Q

Reasons to terminate listings

A
  1. Purpose is fulfilled
  2. Agreement’s term expires
  3. Property is destroyed
  4. Property use is changend by force outside th eowner’s control
  5. titled transferred by operation of law
  6. Mutually agree to cancel agreement
  7. Breech of contract
  8. Broker or seller dies
  9. Abandonment
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14
Q

Do TN courts allow automatic extension clauses?

A

Yes, but they strongly discourage

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15
Q

What happens if you don’t put a definite beginning and ending date in your contract?

A

Can have your license revoked

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16
Q

Broker Protection Clause

A

provides that the property ower will pay the listing broker a commission if, within a specified number of days after the listing expires, the owner transfers the property to someone the broker originally introduced to the owner

17
Q

What is a Broker Protection clause called in TN?

A

Carry over Period

18
Q

Comparative Market Analysis (CMA)

A

similar to an appraisal but not as precise and exact; finding a probably sales price ranged based on owners of similar ares and listings are offering and getting

19
Q

Listing Presentation

A

first oppertunity that a property owner has to learn what a real estate brokerage can do to bring about a sale of the owner’s propertly as well as the marketing efforts that the brokerage will make to sell the property ASAP

20
Q

Underwater

A

owe more money on their loan than their property is worth

21
Q

Listing Agreement Provisions

A
  1. Names of all parties to the contract
  2. Brokerage Firm
  3. Description of the premises
  4. Listing Price
  5. Broker’s authority and responsibilities
  6. Broker’s compensation
  7. Real Property and personal property
  8. Leased equipment
  9. Proposed Dates for closing and buyer’s possessions
  10. Closing
  11. Evidence of ownership
  12. Encumbrances
  13. Home warranty program
  14. Termination of Contract
  15. Broker Protection Clause
  16. Warranties by the owner
  17. Indemnification (hold harmless) wording
  18. Nondiscrimination (equal opportunity) wording
  19. Antitrust wording
  20. Signatures of parties
  21. Date the contract is signed
22
Q

Listing price

A

what seller is asking

23
Q

Commission formula

A

sales price * commission rate

24
Q

Sales Price Formula

A

commission / commission rate

25
Q

Commission rate formula

A

commission / sales price

26
Q

Net to seller

A

sales price * (1 - commission rate)

27
Q

Preclosing occupancy agreement

A

agree to lease for property before closing

28
Q

Antitrust working

A

Any commission we say we are charging is our own company’s commission

29
Q

Nonexclusive/open buyer representation contract

A

Multiple brokers represent buyer and only the brokerage that finds the purchased property gets share of deal

30
Q

Buyer representation agreement

A

broker is employed by the buyer for the purpose of finding a suitable property

31
Q

Exclusive buyer representation agreement

A

the buyer works with only one broker although the broker is free to represent other buyer clients

32
Q

Reasons to terminate a buyer representation

A
  1. purpose of agreement was fulfilled
  2. agreement term expires
  3. mutually agree to cancel contract
  4. broker or buyer breaches contract
  5. broker or buyer dies or becomes incapacitated