Unit 10 - Client Representation Agreements Flashcards
What is a Listing Agreement
An employment contract between a broker and a real estate seller.
What are the 3 types of listing agreements
- Exclusive Right to Sell
- Seller employs one broker
*Listing broker is paid regardless who sells
- Seller employs one broker
- Exclusive Agency
- Seller employs one broker
- Listing broker is paid only if procuring
cause of the sell - Seller retains right to sell without
obligation to listing broker
- Open Listing
- Seller employs multiple brokers
- Only successful listing broker is paid
- Seller retains right to sell without
obligation to listing broker
What is a Net Listing
Seller receive a net amount of money from any sale, with the excess going to the listing broker as a commission. Illegal in many states
What is a multiple listing clause
Written consent by a seller to include their property in the Multiple Listing Service (MLS)
When can agreement between buyer and seller be terminated
Same seven reasons that can terminate Agency
Does a listing have to have a time period of employment of broker
All exclusive listing should specify a definite perido during which the broker is to be employed. Grounds for suspension or revocation of license if not done.
What is an automatic extension clause
A clause in the agreement that automatically extends the agreement after a specific period of time. Illegal in Indiana
What is a Broker Protection Clause
Propery owner 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 orignally introduced to the owner. Two exceptions: 1. House no longer for sale. 2. relisted with different broker
What is a Comparative Market Analysis (CMA)
Used to discuss the range of value in which the property is likely to fall, as well as the charges that will affect the amount the seller will receive. Value of homes sold within 1 mile and within 6 months.
What is difference in asking price and sales price
Asking price is the proposed sals price (listing price) Sales price is what the seller will actually receive.
What is an Exclusive Buyer Representation Agreement
Buyer works with only one broker, although the broker is free to represent other buyer clients
What is Nonexclusive Representation
Buyer is considering a purchase in more than one geopgraphic area; each broker’s familiarity with a particular area will help find the property or properties that best match the buyers needs.
