Unit 10 Flashcards
What is an agreement the same as?
a contract
4 types of listing contracts
- Exclusive Right to Sell Listing
- Exclusive Agency Listing
- Open listing
- Net Listing
What’s the best type of listing
exclusive right to sell
What type of listing is best for all parties
exclusive right to sell
Exclusive Right-To-Sell
Seller promises to pay commission to broker regardless of who finds buyer
Exclusive Agency
seller promises to pay broker commission unless seller finds their own buyer
Open Listing/Non-exclusive listing
can list property with multiple brokerages and the one who sells the property is the one who will get the commission
Net Listing
the broker is entitled to any amount of commission exceeding the seller’s stated net proceeds
Are net listings legal in TN?
No
What type of listing will the MLS not accept?
Open listing
Multiple Listing Service
where we offer cooperation with other real estate companies to share commission
Who uses the multiple listing clause?
members of the MLS
Reasons to terminate listings
- Purpose is fulfilled
- Agreement’s term expires
- Property is destroyed
- Property use is changend by force outside th eowner’s control
- titled transferred by operation of law
- Mutually agree to cancel agreement
- Breech of contract
- Broker or seller dies
- Abandonment
Do TN courts allow automatic extension clauses?
Yes, but they strongly discourage
What happens if you don’t put a definite beginning and ending date in your contract?
Can have your license revoked
Broker Protection Clause
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
What is a Broker Protection clause called in TN?
Carry over Period
Comparative Market Analysis (CMA)
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
Listing Presentation
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
Underwater
owe more money on their loan than their property is worth
Listing Agreement Provisions
- Names of all parties to the contract
- Brokerage Firm
- Description of the premises
- Listing Price
- Broker’s authority and responsibilities
- Broker’s compensation
- Real Property and personal property
- Leased equipment
- Proposed Dates for closing and buyer’s possessions
- Closing
- Evidence of ownership
- Encumbrances
- Home warranty program
- Termination of Contract
- Broker Protection Clause
- Warranties by the owner
- Indemnification (hold harmless) wording
- Nondiscrimination (equal opportunity) wording
- Antitrust wording
- Signatures of parties
- Date the contract is signed
Listing price
what seller is asking
Commission formula
sales price * commission rate
Sales Price Formula
commission / commission rate
Commission rate formula
commission / sales price
Net to seller
sales price * (1 - commission rate)
Preclosing occupancy agreement
agree to lease for property before closing
Antitrust working
Any commission we say we are charging is our own company’s commission
Nonexclusive/open buyer representation contract
Multiple brokers represent buyer and only the brokerage that finds the purchased property gets share of deal
Buyer representation agreement
broker is employed by the buyer for the purpose of finding a suitable property
Exclusive buyer representation agreement
the buyer works with only one broker although the broker is free to represent other buyer clients
Reasons to terminate a buyer representation
- purpose of agreement was fulfilled
- agreement term expires
- mutually agree to cancel contract
- broker or buyer breaches contract
- broker or buyer dies or becomes incapacitated
