Unit 12 Flashcards
Distinguish the different types of listing agreements and their terms.
Listing agreements vary in terms of the rights and obligations they place on both the broker and the seller. These include open listings, exclusive agency listings, exclusive right-to-sell listings, and net listings.
Explain the listing process, the parts of the listing agreement, and the ways in which a listing may be terminated.
The listing process involves gathering detailed information about the property, signing an agreement, and marketing it. Listings can terminate through fulfillment, expiration, mutual consent, or other legal circumstances like the destruction of the property.
Describe the required property disclosures, the circumstances under which each one must be given to the buyer, and the ramifications to the seller or the real estate agent for nondisclosure.
Property disclosures ensure that buyers are informed of any material defects or issues with a property. Nondisclosure can result in legal ramifications for both the seller and the real estate agent.
Exclusive agency listing
A listing agreement where one broker is authorized to sell the property, but the seller retains the right to sell the property themselves without owing a commission to the broker.
Identify the limitations on an agent’s placing cold calls or sending fax and email advertisements to market real estate.
Real estate agents must comply with federal and state regulations, including no-call lists and anti-spam laws, which limit their ability to make unsolicited contact via telephone, fax, or email.
Exclusive right-to-sell listing
A listing agreement where the broker is entitled to a commission regardless of who sells the property during the listing period.
Multiple listing contract
A listing agreement that allows the property to be listed with multiple brokers, with the broker who procures a buyer earning the commission.
Net listing
A listing agreement where the broker’s commission is the difference between the sale price and a minimum amount set by the seller.
Open listing
A non-exclusive listing agreement where multiple brokers may sell the property, and only the broker who brings a ready, willing, and able buyer is paid a commission.
Seller’s Disclosure Notice
A form required by Texas law that sellers must provide to buyers disclosing the known condition of the property, including any defects or material issues.
Which statement is TRUE of a listing contract?
A. It is an employment contract for the personal and professional services of the broker.
B. It obligates the seller to convey the property if the broker procures a ready, willing, and able buyer.
C. It obligates the broker to work diligently for both the seller and the buyer.
D. It is a TREC-promulgated form.
Answer: A. It is an employment contract for the personal and professional services of the broker.
Reasoning: A listing contract establishes an employment relationship between the broker and the seller, where the broker provides real estate services in exchange for compensation.
Which statement describes a similarity between an exclusive agency listing and an exclusive right-to-sell listing?
A. Under both types of listings, the sellers retain the right to sell their real estate without the broker’s help and without paying the broker a commission.
B. Both are open listings.
C. Both give the responsibility of representing the seller to one broker only.
D. Under both, the seller authorizes only one particular sales agent to show the property.
Answer: C. Both give the responsibility of representing the seller to one broker only.
Reasoning: Both exclusive agency listings and exclusive right-to-sell listings authorize only one broker to represent the seller, though the payment of commission differs between them.
A multiple listing
A. involves more than one parcel of real estate.
B. is the same as an open listing.
C. allows the broker to distribute the listing information to other brokers for cooperation and compensation.
D. allows the broker to offer the property for sale at the highest price possible and retain as the commission any amount over and above the amount requested by the seller.
Answer: C. allows the broker to distribute the listing information to other brokers for cooperation and compensation.
Reasoning: A multiple listing allows the listing broker to share the listing with other brokers in a multiple listing service (MLS), offering cooperation and the possibility of splitting commissions.
Which statement describes a similarity between an open listing and an exclusive agency listing?
A. Under both, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure.
B. Both listings grant a commission to any licensed broker who finds a buyer for the seller’s property.
C. Both are net listings.
D. Under both, the broker earns a commission regardless of who sells the property, as long as it is sold within the listing period.
Answer: A. Under both, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure.
Reasoning: In both open listings and exclusive agency listings, the seller is not required to pay a commission if they find a buyer independently without the broker’s assistance.
All of the following would terminate an agency relationship EXCEPT
A. expiration of the time period stated in the listing.
B. death or incapacity of the broker.
C. nonpayment of the commission by the seller.
D. destruction of the improvements on the property.
Answer: C. nonpayment of the commission by the seller.
Reasoning: Nonpayment of commission does not automatically terminate the agency relationship, but destruction of property, expiration of the agreement, or death/incapacity of the broker would.
