Unit 10 - Client Representation Agreements

Question 1

Under the ______, the seller is permitted to sell the house and is not obligated to pay a commission.

Answer 1

Open listing

Question 2

A listing agreement is

Answer 2

A listing agreement is an employment contract rather than a real estate contract.

A listing agreement is a personal services agreement between the seller(s) and broker.

Question 3

is an employment contract rather than a real estate contract.

Answer 3

A listing agreement

Question 4

Colorado, a listing agreement (seller or buyer) must be ________ to be enforceable

Answer 4

in writing

Question 5

The listing agreement in Colorado is between the ____ and the _____ with the principal designating an agent(s) with the brokerage.

Answer 5

The listing agreement in Colorado is between the principal and the brokerage with the principal designating an agent(s) with the brokerage.

Question 6

What is the exclusive right to sell?

In colorado, who’re responsible for marketing the property, preparing documents, and negotiating on behalf of the seller in the transaction.

The seller agrees to pay the brokerage a commission if he property sells within __________

Answer 6

The principal gives the brokerage the exclusive right to represent them in the sale of the property.

In Colorado, the brokerage and the designated agent are responsible for marketing the property, preparing documents and negotiating on behalf of the seller in the transaction.

The seller agrees to pay the brokerage a commission if the property sells within the time the listing agreement is in effect.

Question 7

What is an Exclusive Agency Listing:

What is an exclusive agent authorized to act as?

Answer 7

An exclusive agent is authorized to act as the agent for the seller but the seller retains the right to sell the home on their own without any obligation to the broker.

If the seller has a potential buyer, it is possible to make a provision in the exclusive right to sell excluding the potential purchaser.

This type of listing agreement is created by all parties executing an Exclusive Right to Sell and an Exclusive Agency Listing Addendum

Question 8

What is an Open Listing:

Answer 8

Also known as a non-exclusive listing agreement.

The seller retains the right to employ any number of brokers as agents.

The brokers can act simultaneously and the seller is only obligated to pay a commission to the broker who successfully produced a ready, able and willing buyer.

If the seller can also sell on his/her own without any obligation to any of the brokers.

This type of listing agreement is created by all parties executing an Exclusive Right to Sell and an Open Listing Addendum

Question 9

What is Also known as a non-exclusive listing agreement.

Answer 9

Open Listing agreement

Question 10

What type of listing agreement is created by all parties executing an Exclusive Right to Sell and an Open Listing Addendum

Answer 10

Open Listing Agreement

Question 11

What is Net Listing:

Answer 11

The seller receives a net amount of money from the sale and the excess above that is commission to the broker.

The broker chooses a list price anywhere above the net price.

This type of listing agreement can be considered a conflict of interest.

Question 12

What is the Listing that the seller receives a net amount of money and excess belongs to the broker

Answer 12

Net Listing

Question 13

A listing agreement is or can be terminated under the following circumstances:

Answer 13

1. The property sells and closes
2. The listing agreement expires
3. Mutual agreement of the seller(s) and brokers

Question 14

In Colorado, are listings irrevocable… What does that mean?

Answer 14

If you listed a property that expired in 6 months.

Agreement is in place until that date, unless a seller decides to not move, etc

Question 15

How are listing agreements extended?

Answer 15

Listing agreements are extended with an Agreement to Amend/Extend with Broker

Question 16

What are the steps in The Listing Process

Answer 16

Note that it is the Seller that must choose the listing price of the property.

There are several steps in the listing process:
1. Meet with the seller to conduce a listing presentation during which you will present yourself, your company, your marketing program and how your services will assist the seller with the marketing and sale of their home

2. Present the Comparative Market Analysis (CMA) and discuss your opinion of fair market value and the considerations of the seller with respect to pricing.
3. Present an estimated proceeds net sheet showing the seller an approximation of how much cash they may expect to receive at the closing on their home at a given sale price.
4. Present a Listing Agreement (Seller) and explain the terms of the agreement, agency, etc.
   Note: you may need to add some items to the listing agreement if you don’t know certain items before the listing presentation eg. some inclusions.
5. Present copies of all disclosures and a blank purchase agreement so the seller(s) can review a purchase agreement at their leisure.
6. Ask for the listing. If the seller is ready to list with you, you may get the listing documents signed, have the seller work on disclosures, finalize showing instructions, take measurements, schedule a time to take photos for marketing and answer any other questions the seller asks.

Question 17

The Listing Process working with a Buyer

Answer 17

Listing a Buyer is slightly different in that you will have had a detailed discussion with the buyer as to what criteria they are looking for in a property.

Present copies of all disclosures and a blank purchase agreement so the buyer(s) can review a purchase agreement at their leisure.

Ask for the buyer to work with you exclusively.