Unit 10 Client Representation Agreements

Question 1

What is an exclusive-right-to-sell listing?

Answer 1

1-One authorized broker sole agent of the seller.

2-Seller pays broker regardless of who sells property.

Question 2

What is an exclusive-listing?

Answer 2

1-Sole authorized agent.
2-Brokers receive commission only if they are the procuring cause.
3-Seller retains the right sell without obligation.

Question 3

What is an open listing?

Answer 3

aka non-exclusive listing
1-Multiple agents.
2-Only the broker who brings a ready, willing, and able buyer is entitled to a commission.
3-Seller retains the right to sell independently without obligation.

Question 4

<p>What is a multiple listing clause?</p>

Answer 4

<p>Allows the broker to place the property on the MLS.</p>

Question 5

What is a net listing?

Answer 5

The broker is entitled to any portion of the purchase price above a sellers stated net (illegal in most states)

Question 6

How can a listing be terminated?

Answer 6

1-Completion
2-Term expires
3-Property destroyed, or zoning use changed.
4-If title is changed because operation of law ie bankruptcy.
5-Mutual agreement.
6-Broker or seller dies or is incapacitated.
7-Broker or seller breaches contract

Question 7

What is a buyer agency agreement?

Answer 7

An employment contract. The broker is employed by the buyer. The broker is a fiduciary to the buyer.

Question 8

<p>What is the broker protection clause?</p>

Answer 8

<p>Preserves the brokers commission fi within a certain number of days the owner transfer the property to someone the broker introduced to them.</p>

Question 9

What must exclusive listings have?

Answer 9

A definite termination date, and should not have automatic extensions.

Question 10

What is the broker protection clause?

Answer 10

If after the listing expiration the seller sells the property to someone who was brought through the brokers listing.

Question 11

What things will the listing agreement include?

Answer 11

Identify the property owners, the property, describe the property improvements, list any loans held by owner, and their current status, itemize loan and other payments on the property.

Question 12

What is an important consumer safeguard and may be required by state law?

Answer 12

Disclosures.

Question 13

When is a buyers representation terminated?

Answer 13

1-Completion
2-Term Expires
3-Mutually agree
4-broker or buyer breaches
5-broker or buyer becomes incapacitated.