Unit 10: Client representation agreements

Question 1

Automatic extension clause

Answer 1

A listing agreement clause stating that the agreement will continue automatically for a certain period of time after its expiration date. In many states, use of this clause is discouraged or prohibited.

Question 2

broker protection clause

Answer 2

Clause in a contract the protects a broker from losing a commision in the vent a transaction is not completed or is intentionally delayed until after the listing xpires.

Question 3

buyer’s representative

Answer 3

A residential real estate professional who represents the prospective purchaser in a transaction, often thruogh a sales associate of the broker. The buyer’s representative who acts as a buyer’s agent owes the buyer-principal the common-law or statutory agency duties.

Question 4

comparative marker analysis (CMA)

Answer 4

A comparison of the prices of recently sold homes that are similar to a listing seller’s home in terms of location, style, and amenities

Question 5

employment contract

Answer 5

A document evidencing formal employment between employer and employee or between principal and agent or representative. In the real estate business, is generally takes the form of the agreement between broker and sales associate, client representation agreement or buyer representation agreement, or property management agreement.

Question 6

exclusive agency listing

Answer 6

A listing contract under which the owner appoints a real estate professional as her exclusive agent for a designated period of time to sell the specified property, on the owner’s stated terms, for a commission. The owner reserves the right to sell the property without paying anyone a commission if the sale is to a prospect who has not been introduced or claimed by the real estate professional.

Question 7

exclusive buyer representation agreement

Answer 7

Agreement in which the buyer works with only one broker, although the broker is free to represent other buyer clients.

Question 8

exclusive right-to-sell listing

Answer 8

A listing contract which the owner appoints a real estate professional as his exclusive agent for a designated period of time to sell the specified property on the owner’s stated terms and agrees to pay the real estate professional a commission when the property is sold , whether by the real estate profesional ,the owner, or another real estate professional .

Question 9

listing broker

Answer 9

The broker from whose office a listing agreement is initiated

Question 10

multiple listing clause

Answer 10

A provision in an exclusive listing for the authority and obligation on the part of the listing agent to distribute the listing to other real estate professionals in a multiple listing organization.

Question 11

net listing

Answer 11

A listing base on the next price the seller will receive if property is sold. Under a net listing, the real estate professional can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal in many states.

Question 12

open listing

Answer 12

A listing contract under which the real estate professional’s compensation is contingent on the real estate professional prodicing a ready, willing, and able buyer before the property is sold by the seller or another real estate professional