UNIT 18 LISTING AGREEMENTS & BUYER REPRESENTATION CONTRACTS

Question 1

TRUE/FALSE?
- Agency agreements are EMPLOYMENT CONTRACTS for the personal professional services of the broker and are NOT contracts for the transfer of Real Estate or Real Estate interest
(PG 345 & ALSO ON PG 346)

Answer 1

TRUE

Question 2

The PENNSYLVANIA LICENSING LAW requires a written agreement between a broker and a consumer when the consumer is or maybe obligated to ____________the broker for services
(PG 345)

Answer 2

• compensate

Question 3

The licensing law RELRA (section 608.1) requires written agreements to contain statements that:
(A statement for each)
(PG 345-346)

Answer 3

– a statement that lists of BROKERS FEES and the
duration of the contract
– a statement describing the nature and extent of the
brokers services to be provided and the fees that
will be charged
– any possibility that the broker or any licensee
employed by the broker may provide
services to more than one consumer in a
single transaction
– the brokers policies regarding cooperation in
compensation arrangements with
subagents, buyers agents, and listing agents and
a potential for dual agency
– the purpose of the real estate recovery fund and
the telephone number
– any possible conflicts of interest and ongoing duty
to disclose conflicts in a timely manner

Question 4

*****Even though the real estate sales person
may perform most, if not all of the listing
services, THE LISTING REMAINS WITH THE
______
- EVEN THOUGH the real estate sales person’s
authority to provide __________services originate
with the __________, the lusting remains with
the________
(PG 346)

Answer 4

• BROKER
• BROKERAGE SERVICES
• BROKER
• BROKER
  “The real estate sales person’s authority to provide brokerage services originates WITH THE BROKER.
  Even though the real estate sales person may perform most, if not all, of the listing services, the listing remains with the broker”.

Question 5

****Under both the ______OF AGENCY AND _________ _________ ______laws only a ______can act as an agent to list, sell, rent, or purchase another persons real estate and provide other services to a principal. A SALESPERSON WHO PERFORMS THESE ACTS DOES SO ONLY IN THE ____________ and under the ________of a broker
(PG 346)

Answer 5

-LAWS
-MOST STATE
- ONLY A BROKER CAN ACT AS AN AGENT
to LIST,SELL,RENT or PURCHASE
-NAME
-SUPERVISION

Question 6

List & describe three types of LISTING AGREEMENTS (LISTINGS FOR THE SELLER)
(PG 346-348)
Describe a NET listing (PG 348)

Answer 6

-EXCLUSIVE RIGHT TO SELL LISTING
- one authorized broker-agent receives a
commission
– seller pays broker-agent REGARDLESS of who
sells the property, EVEN IF the seller finds a buyer
without the brokers assistance, the seller STILL
MUST pay the broker a fee
- this BENEFITS THE SELLERS because the
broker FEELS FREER to spend the TIME
AND MONEY to actively market the property,
making a timely and profitable sale more likely.
– Brokers feel that an EXCLUSIVE RIGHT TO SELL
LISTING offers the GREATEST OPPORTUNITY
to RECEIVE COMPENSATION
THE AGREEMENT MUST ALSO CONTAIN:
– the sellers asking price
– the brokers expected commission on the sales
price
– explanation that payments of money received by
the broker will be held by the broker in an escrow
account
– duration of the agreement

-EXCLUSIVE AGENCY LISTING
One broker is authorized to act as the exclusive
agent of the principle
– unlike the exclusive right to sell listing, the
EXCLUSICE AGENCY listing the SELLER
RETAINS THE RIGHT TO SELL THE PROPERTY
***WITHOUT OBLIGATION TO THE BROKER
(The broker may not get paid for their time and
effort)
– the exclusive agency listing must contain the same
provisions as an exclusive right to sell listing
EXCEPT for the boldface type about the sellers
obligation regarding payment of
compensation

-OPEN LISTING (AKA in some areas as a
non-exclusive listing)
– there can be any number of brokers as
agents
– the brokers can act simultaneously, and the seller is
obligated to compensate only the broker who
successfully produces a ready, willing, and able
buyer.
– If the seller sells the property without the aid of a
broker then the seller is not obligated to pay a
commission
-The terms of an open listing must still be negotiated
– that should be in writing to protect the brokers
ability to collect and agreed on fee from
the seller
– The Regulations require any broker taking an oral
open listing to give the seller a written
memorandum stating all the terms of the
listing agreement

NET LISTING
– The broker is entitled to any amount exceeding the
sellers stayed at net proceeds, with the excess
going to the listing broker as commission
– the broker is free to offer property at any price
greater than the net amount
– it may appear to be advantageous for the seller, it
can create a conflict of interest between the
brokers fiduciary responsibility to the seller and
the brokers profit motive
– for this reason, that listings are ILLEGAL IN MANY
STATES AND DISCOURAGED IN OTHERS.

Question 7

In the case of an exclusive right to sell agreement, the REAL ESTATE COMISSION’S RULES AND REGULATIONS requires that an EXCLUSIVE RIGHT TO SELL or EXCLUSIVE RIGHT TO LEASE agreement contain a statement in boldface type:
what does this statement say?
(PG 347)

Answer 7

“The BROKER (don’t confuse w/ RE AGENT, seller or licensee) earns a commission on the sale (or lease) of the property, REGARDLESS OF WHO, INCLUDING THE OWNER, makes sale (or lease) during the listing period”.

Question 8

Under the provisions of the MLS, a
participating broker must make a unilateral
offer of COOPERATION AND COMPENSATION to
other __________ ______________
– The broker must have the __________ ___________of
the ___________to include the property in the
MLS
– if the broker chooses to be an agent for the buyer
of the property in the MLS, that broker must notify
the __________ ___________before any
communication with the __________takes place.
- all brokers must determine the appropriate way to
proceed to protect their clients.
(PG 348)

Answer 8

-MEMBER BROKERS
- WRITTEN CONSENT OF THE SELLER
-LISTING BROKER Before any
communication with the SELLER TAKES PLACE

“Under the provisions of the MLS, a participating broker makes a unilateral offer of cooperation and compensation to other member brokers. The broker must have the written consent of the seller to include the property in an MLS. If a broker chooses to be an agent for the buyer of a property in the MLS, that broker must notify the listing broker before any communication with the seller takes place. All brokers must determine the appropriate way to proceed to protect their clients”.

Question 9

Because the brokers services are unique, the
listing CAN OR CANNOT be assigned to
another broker without the principles written
consent?
- If the broker fails to work diligently towards fulfilling
the contract terms this can constitute
abandonment of the listing.
-In the event the broker cancel the listing, the owner
is entitled to blank______ _________ __________
( PG 349)

Answer 9

-The listing CANNOT be assigned to another
broker without the principles written
consent.
-SUE FOR DAMAGES

Question 10

TRUE/ FALSE?
The property owner could be held liable for
damages to the broker by refusing to cooperate
with the brokers reasonable requests, such as not
allowing the broker to show the property to
prospective buyers, or who refuses to proceed
with a complete sales contract.
(PG 349)

Answer 10

TRUE

Question 11

A listing agreement may terminate for the following reasons:

PG 349

Answer 11

– the agreements purpose is fulfilled, a ready,
willing, and able buyer was found
– agreement term expires
– if title to the property is transferred by operation of
law, owners bankruptcy or foreclosure
– if the broker and seller mutually agreed to cancel
the listing
– if either the BROKER OR SELLER DIES or
BECOMES INCAPACITATED;
***if the SALES PERSON DIES OR BECOMES
INCAPACITATED, the listing is STILL VALID
– if the property is destroyed or it’s use is changed
by some force outside of the owners control such
as a change in zoning or condemnation by
eminent domain.

Question 12

All listings must specify a definite period of time during which the broker is to be employed
– in most states, failing to specify a definite termination date in a listing is grounds for the ___________or _____________of a ___________
(PG 349)

Answer 12

-IS GROUNDS FOR SUSPENSION OR

REVOCATION OF A R.E. LICENSE

Question 13

• PENNSYLVANIA REAL ESTATE COMMISSIONS states that the listing period cannot exceed ______ months
  -an automatic renewal provision and the requirement to serve a cancellation notice to terminate an exclusive agreement at the end of the listing period are _______
  An example of an automatic renewal is a listing that provides for the base period of 90 days and “continues there after until terminated by either party hereto by 30 days notice in writing. “
  (PG 349)

Answer 13

-The listing cannot exceed 12 months
-And AUTOMATIC RENUAL PROVISION and
the requirement to serve a CANCELLATION
NOTICE to terminate an exclusive agreement at
the end of listing PERIOD ARE PROHIBITED.
(there has to be a definitive date, not to exceed 12 months as to when the listing ends. It cannot be a “rollover“ type of situation, nor can the is the seller allowed to give a 30 day notice to terminate, it is illegal) IT’S PENNSYLVANIA R.E. COMMISSIONS

Question 14

What is a broker protection clause?

PG 349

Answer 14

If a broker had a listing and the broker and a
prospective buyer we’re negotiating during
the original term of the listing, and the listing
expires. After the listing expires, the owner
transfers the property to that prospective buyer,
the broker protection clause protects the broker
who was the procuring cause from losing
commission because the transaction was
completed after the listing expired

Question 15

The broker and seller must discuss a variety of issues, including the _____________of the property and the ______________.
– In PENNSYLVANIA the broker must present the _____________notice
-this is the brokers opportunity to explain the __________

Answer 15

-SELLING PRICE and the NET PROCEEDS
-CONSUMER NOTICE
It is the brokers opportunity to explain:
- VARIOUS TYPES OF LISTING AGREEMENTS
- RAMIFICATIONS OF DIFFERENT AGENCY
RELATIONSHIPS
- MARKETING SERVICES THE BROKER
PROVIDES

Question 16

TRUE/ FALSE
Both the LISTING CONTRACT and the SUBSEQUENT PURCHASE CONTRACT should be exclusive about any REAL PROPERTY to be removed from the premises by the seller, or any PERSONAL PROPERTY to be included in the sale for the buyer
(PG 350)

Answer 16

TRUE

Question 17

Ultimately, who determines the listing price for the property the real estate licensee, or the seller?
(PG 351)

Answer 17

THE SELLER

Question 18

TRUE/FALSE
Not all estimates of value are made by professional appraiser’s
(PG 351)

Answer 18

TRUE

Question 19

PRICING THE PROPERTY
Explain the difference between appraisals and
comprehensive market analysis, CMA
- In reference to the CMA, what does it compare with
to other sold properties?
(PG 351)

Answer 19

Appraisals compares ONLY recently sold
properties
– a COMPARATIVE MARKET ANALYSIS, CMA (AKA
a competitive market analysis), compares:
-location
- size
-age
-style
- amenities of the properties that are
COMPARABLE to the sellers property as follows

-Properties that are comparable to the sellers
property as follows:
– recently sold properties, what buyers WERE
WILLING to pay for a similar property and what
LENDERS CONSIDERED to be a value on which
they made the lending decision
– properties currently on the market, the
COMPETITION to the SELLERS PROPERTY
– properties that were listed but did not sell, generally
what buyers HAVE BEEN UNWILLING to pay for a
similar property

Question 20

“IN PENNSYLVANIA”. (PG 351)
Because a CMA
IS OR IS NOT not an appraisal?,
PENNSYLVANIA LICENSING LAW REQUIRES that the following statement be printed conspicuously and without change on the first page of the CMA, (comparative market analysis):
-WHAT MUST BE PUT ON THE CMA, IT IS IN
REFERENCE TO?

Answer 20

-A CMA IS NOT AN APPRAISAL
- “THIS ANALYSIS HAS NOT BEEN PERFORMED IN ACCORDANCE WITH the UNIFORM STANDARDS OF PROFESSIONAL APPRAISERS
- unbiased
-disinterested third-party’s with impartiality
- objectivity
- independence and without accommodation of
personal interest
-PENNSYLVANIA LICENSING LAW requires that the following statement be printed conspicuously and without change on the first page of the CMA:
“this analysis has not been performed in accordance with the uniform standards of professional appraisal is practice which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity, and independence and without accommodation of personal interest.
It is not to be construed as an appraisal and may not be use for such as search for any purpose”.

Question 21

MATH
1) To figure COMISSION RATES

2) TO FIGURE OUT WHAT THE SALES PRICE OF THE HOME USING THE COMMISSION RATE (%) & THE ACTUAL DOLLAR AMOUNT OF THE COMMISSION THAT WAS PAID YOU WOULD

3) to figure out what the COMMISSION RATE is using the DOLLAR AMOUNT of the commission you would
(PG 352)

Answer 21

1) MULTIPLY
take the TOTAL PRICE OF THE HOUSE it’s being listed for and MULTIPLE by the commission rate example 200,000×6% = 12,000

2) THE ACTUAL DOLLAR AMOUNT OF THE COMMISSION WAS 13,500, & the % rate was 7%
13,500 DIVIDED by 7%
13,500.00 (commission rate) divided by commission % = 192,857.00 was the SELLING PRICE OF THE HOME

3) DIVIDE the dollar amount of the COMMISSION RATE by the SALES PRICE of the home
8,200.00 DIVIDED by 164,000 = 0.05 or 5%

Question 22

REAL ESTATE DISCLOSURE ACT
Real estate licensees should caution sellers to make truthful disclosures to avoid ___________

PENNSYLVANIA REAL ESTATE DISCLOSURE ACT Requires sellers of residential real properties, (an individual, partnership, corporation, trustee, or combination) who intend to transfer an interest in a ___________to ________family residential property to disclose to the buyer all ________
(PG 352)

Answer 22

• LITIGATION ARISING FROM FRAUDULENT CARELESS MISREPRESENTATION
• Who intend to transfer an interest in a 1 TO 4 FAMILY residential property to disclose to the buyer all MATERIAL DEFECTS (PENNSYLVANIA LAW)

Question 23

SELLERS DISCLOSURE STATEMENT
As stated in the sellers property disclosure statement a material defect is what?
(PG 353 & PG 363)

Answer 23

The LAW defines a material defect as a problem with the residential real property or any portion of it that would have a SIGNIFICANT ADVERSE IMPACT on the value of the property, or that involves an UNREASONABLE RISK to people on the property

Question 24

SELLERS DISCLOSURE STATEMENT
“Any nonexempt seller is obligated to complete the disclosure form even if the seller does not occupy or has never occupied the property“
(PG 353)

-LIST SOME OF THE EXEMPTIONS (PG 362)

Answer 24

(Basically covers court order, foreclosures, divorce, willed or deeded, unimproved property, property that is to be demolished converted to non-residential use, liquidations, transfers from a spouse to a direct descendent etc.
In dealing with condominiums only refers to the condominium unit or units that are being sold by the owner, it does not refer to any of the common grounds)
-transfers that are a result of court order
- “ “ to a mortgage lender that result from
the default or foreclosure
- transfers from a co-owner to one or more other
co-owners
- transferred to a spouse or direct descendent that
- transfers between spouses that result from
divorce, legal separation, or property settlement
- transfers by a corporation, partnership or other
association to its shareholders, partner or other
equity owner as part of the plan of liquidation
-transfers of a property to be demolished or
converted to non-residential use
- transfers of unimproved real property
- transfers by a fiduciary during the administration of
a descendent estate, guardianship,
conservatorship or trust
- transfers of new construction that is never been
occupied when:
-the buyer has received a one-year warranty
covering the construction;
- the buyer has been inspected for compliance
with the applicable building codes or if none
in nationally recognized model building code:
- and a certificate of occupancy or certificate of
code compliance has been issued for the
dwelling
***-in addition to these exceptions, disclosures for condominiums and co-ops are limited to the sellers particular unit/s. Disclosure regarding common areas or facilities are not required, as you say elements are already addressed in the laws that govern the real state of condominium and cooperative interests.

Question 25

SELLERS DISCLOSURE STATEMENT
-questions that are covered in the disclosure statement
(PGS 353-361)

Answer 25

-sellers expertise, (what do they know about
selling, contracting, engineering,
architecture, environmental assessments or other
areas related to construction and conditions of
the property etc.)
-ownership/ occupancy
– condominium/planned communities/other homeowners association‘s
– roof and attic
– basement in crawlspaces
– termites wood deteriorating insects, dry rot, pests
– structural items
– additional alterations
- water supply and what type of water supply
– sewage system
– plumbing system
– domestic water heating
– heating system
– system type and the status
– heating fuel tanks
– air-conditioning system
-electrical system (and other equipment and
appliances)
-Land/soil’s
– flooding, drainage, and boundaries
– hazardous substance and environmental issues
(covering mold, radon, lead paint)
– miscellaneous referring to deed restrictions and
title, financial, legal, and any additional material
defects)
– any attachments

Question 26

-A signed and dated disclosure statement must be presented to WHO before they signed an agreement of sale?

Answer 26

A signed and dated disclosure statement must be presented to PROSPECTIVE BUYERS before they can sign an agreement of sale.

Question 27

PAY ATTENTION TO DIFFERENCES BETWEEN SELLERS DISCLOSURE STATEMENT AND THE LISTING CONTRACT FROM

Answer 27

👍🏻👍🏻

Question 28

THE LISTING CONTRACT FORM

-What are the BROKERS AUTHORITY AND
RESPONSIBILITIES in reference to:
-Placing a sign on the property and advertise
-in reference to showing the property, what should
be specified?
- in reference to earnest money
-In reference to the broker having the authority to
sign legal documents
(PG 363)

Answer 28

-The contract should SPECIFY whether the
broker can PLACE A SIGN ON THE
PROPERTY AND ADVERTISE
-In reference to showing the property the CONTRACT SHOULD STATE WHEN the property can be shown allowing REASONABLE NOTICE to the seller.
-whether the broker MAY EXCEPT EARNEST
MONEY on behalf of the seller AND
responsibilities for HOLDING THE FUNDS
-The broker DOES NOT have the authority to SIGN
ANY LEGAL DOCUMENTS/CONTRACTS
WITHOUT FIRST OBTAINING POWER OF
ATTORNEY from the SELLER OR THEIR
REPRESENTATIVES

Question 29

THE LISTING CONTRACT FORM
In reference to
THE NAMES OF ALL PARTIES ON THE CONTRACT
- Who should sign the listing?
-If one or more of the owners is married, what else
should be on the contract?
- TRUE/FALSE if the property is in the possession of
a tenant, that does not have to be disclosed?

Answer 29

• anyone who has an OWNERSHIP INTEREST
  MUST BE IDENTIFIED IDENTIFIED and
  SHOULD SIGN the listing to validate it.
  If the property is owned under some form of
  co-ownership that fact should be clearly
  established
• If one or more of the owners is married the
  SPOUSES CONSENT and SIGNATURE on the
  contract to RELEASE ANY MARITAL RIGHTS is
  required in most states.
  -FALSE: IF IN THE POSSESSION OF A TENANT
  THAT DOES HAVE TO BE DISCLOSED ON THE
  LISTING CONTRACT, along with the TERM OF
  THE TENANCY and instructions should be
  included on how the property is to be shown to
  perspective buyers.

Question 30

THE LISTING CONTRACT FORM
- In reference to the BROKERAGE FIRM what
needs to be identified?

Answer 30

• BROKERAGE COMPANY NAME
• EMPLOYING BROKER
• IF “APPROPRIATE” THE SALESPERSON TAKING
  THE LISTING

Question 31

THE LISTING CONTRACT FORM
THE SELLERS CONTRACT
“EXCLUSIVE RIGHT TO SELL R.E.” CONTRACT
PARTS OF THE CONTRACT
-LIST SOME OF THE THINGS THAT ARE IN THE
SELLING AGREEMENT
(PGS 364-369 BUYER/ TENANT AGENCY CONTRACT)

Answer 31

- brokers/licensees name 
– seller/seller’s (info) mailing address, phone, 
     fax, email
- listed price 
– property 
– starting and ending dates of listing contract, also 
     called a term 
– dual agency 
– designated agency 
– brokers fee 
– brokers fee if settlement does not occur 
– cooperation with other brokers 
– duties of broker and seller
– brokers service to buyer 
– broker not responsible for damages 
– deposit money 
– other properties 
– additional offers 
– seller will reveal defects and environmental hazards – if property was built before 1978 
– H.O. warranties
– recovery fund 
– noticed to persons offering to sell or rent housing in 
     PENNSYLVANIA 
– transfer of this contract 
– no other contracts
– Conflict of interest 
– entire contract 
– changes to this contract 
– marketing of properties 
– publication of sale price 
– copyright 
– fixtures and personal property 
– tax and special assessments 
– title and possession 
– buyers financing 
– special instructions 
– special clauses

Question 32

THE LISTING CONTRACT:
(Explanations of some of the wording in the listing contract)
(THIS JUST LISTS A FEW)

Explain
- INDEMNIFICATION (HOLD HARMLESS) 
     WORDING: 
-LEASED EQUIPMENT 
-PROPOSED DATES FOR CLOSING AND THE BUYERS POSSESSION
-BROKERS PROTECTION CLAUSE

Answer 32

• INDEMNIFICATION (HOLD HARMLESS) WORDING:
  The seller and broker may agree to hold each other harmless ex. not to sue one another for any incorrect information supplied by one to the other. Indemnification maybe offered, regardless of whether in accuracies are intentional or unintentional.
  -LEASED EQUIPMENT It must be determined whether leased equipment, such as security systems, cable television boxes, water softeners, special antennas, etc. will be left with the property. If so the SELLER is responsible for notifying the equipments Lee sore of the change of property ownership.
  -PROPOSED DATES FOR CLOSING AND THE BUYERS POSSESSION
  -Based on an anticipated closing date. – Listing agreement should allow adequate time for the paperwork involved including the buyers qualifications for any financing, and the move-in date to be arranged by the seller and the buyer.
  -BROKERS PROTECTION CLAUSE
  Brokers often seek to protect their interests against possible fraud or a reluctant buyers change of heart. It is important to know the circumstances under which the broker will be entitled to a commission after the agreement terminates.

Question 33

BUYER AGENCY AGREEMENT
An agency agreement gives the BUYER a degree of representation possibly only as a ________relationship.
A buyer‘s broker must protect the buyers interest at all points in the transaction.
(PG 371)

Answer 33

FIDUCIARY RELATIONSHIP

Question 34

BUYER AGENCY AGREEMENT
PARTS OF THE CONTRACT FOR THE BUYER
“THE BUYER (TENANT) AGENCY CONTRACT”

Answer 34

-broker company/licensees name 
– buyer
– buyers mailing address 
– phone fax email 
– starting and ending date of buyer agency contract
       also called “TERM“
– brokers fee 
– dual agency 
– designated agency 
– conflict of interest 
– brokers services to seller 
– other buyers 
– no other contracts 
– entire contract 
– changes to this contract 
– transfer of this contract 
– confidentiality 
– expertise of real estate agents 
– deposit money 
– Civil Rights Act 
– notice regarding convicted sex offender, 
      Megan’s law 
– buyer inspections 
– recovery fund 
– special clauses 
– signatures

Question 35

BUYER REPRESENTATION ISSUES:
This is the licensees opportunity to explain what?
(Several issues that may arise or need awareness)
(PG 375)

Answer 35

– Explain the forms of agency available and
the parties rights and responsibilities under
each type
– specific services provided to buyer and
client should be clearly explained
– discuss the brokers policy regarding relationships
with other parties who might be involved in the
transaction;
- for instance if the broker also represents
seller– clients
- if the company’s policy includes the appointing
designated agents
-COMPENSATION ISSUES:
** buyers agents are USUALLY compensated by the
listing agent sharing commissions paid by the
seller….. but not always negotiable
- buyers agents may be compensated in the form of
a FLAT FEE for services, and HOURLY RATE, or a
PERCENTAGE of the purchase price.
- the agent MAY REQUIRE A RETAINER FEE at the
time of the agreement is signed to cover INITIAL
EXPENSES.
- The retainer fee MAY BE APPLIED as CREDIT
toward any fees due at the closing
- It’s important to note that as in any agency
agreement, the SOURCE OF COMPENSATION
DOES NOT DETERMINE THE RELATIONSHIP.
- In other words, BUYERS AGENTS MAY BE
COMPENSATED BY EITHER THE BUYER OR THE
SELLER.
- Issues of COMPENSATION IS ALWAYS
NEGOTIABLE

Question 36

-what are three TYPES OF BUYERS AGENCY AGREEMENTS
(*****DON’T CONFUSE WITH THE SELLERS LISTING AGREEMENTS)
(PG 375)

Answer 36

-EXCLUSIVE BUYER AGENCY
- Completely exclusive AGENCY agreement
– the buyer is LEGALLY BOUND TO
COMPENSATE THE BROKER if the BUYER
purchases a property of the type described their
contract within the agreed-upon time frame
– broker is ENTITLED TO COMPENSATION
REGARDLESS of whether the property is
LOCATED BY THE BROKER, THE BUYER OR
ANOTHER LICENSEE
*****(It is SIMILAR to the EXCLUSIVE RIGHT TO
SELL LISTING (FOR THE SELLER), as this is the
EXCLUSIVE “BUYERS” AGENCY AGREEMENT
where IN EITHER CASE the broker gets paid
regardless if they found the seller/buyer or not)

-EXCLUSIVE AGENCY BUYER AGREEMENT
-Exclusive contract BETWEEN BUYER AND ONE
BROKER
- LIMITS THE BROKERS RIGHTS to compensation
– brokers are ENTITLED TO PAYMENT ONLY IF they
locate the property the buyer ultimately purchases
- The BUYER RETAINS THE RIGHT to locate a
suitable property on their own WITHOUT
obligation to compensate the broker.
*****(SIMILAR TO THE EXCLUSIVE AGENCY
LISTING FOR THE SELLER, BUT THIS IS FOR THE
BUYER)

• NONEXCLUSIVE BUYER AGENCY
• OPEN AGENCY contract between a broker and a
  buyer
  – permits the buyer to enter into similar agreements with an UNLIMITED NUMBER OF BROKERS
  – the buyer is obligated to compensate ONLY THE
  BROKER who locates the property the buyer
  ultimately purchases
  ***(SIMILAR TO THE OPEN LISTING FOR THE
  SELLER, BUT THIS IS FOR THE BUYER)

Question 36

THE LISTING CONTRACT
Before any substantive issues can be discussed when listing a house, the licensee must provide the perspective BUYER with what?
(PG 375)

Answer 36

• CONSUMER NOTICE

Question 36

KEYPOINT REVIEW
-A listing agreement is a _____contract between a broker and seller
-TRUE/FALSE in all states the agreement must be in writing to be enforceable in court
-A R.E. Sales person is a __________of the broker
-exclusive right to sell listing is what?
-exclusive agency listing is what?
-an open listing is what?
- A net listing is what?
-The broker protection clause does what?
-What are the three types of BUYER agency
agreements?
- TRUE/FALSE
PENNSYLVANIA Requires sellers to prepare a
statement disclosing property conditions.

Answer 36

• an employment contract
• TRUE/all states require the contract to be in writing to be enforceable in court

-GENRAL AGENT of the broker

-An EXCLUSIVE RIGHT TO SELL LISTING, one broker was appointed as the seller’s ONLY agent.
If the property sells WHILE THE LISTING IS STILL IN EFFECT, the broker IS ENTITLED TO A COMMISSION no matter WHO sells the property

• an EXCLUSIVE AGENCY LISTING authorizes one broker to act as the ONLY agent for the seller, but allows the SELLER TO RETAIN THE RIGHT TO SELL THE PROPERTY WITHOUT OBLIGATION OF PAYMENT TO THE BROKER.
• AN OPEN LISTING the seller is permitted to contract with ANY NUMBER of brokers and is obligated to compensate ONLY THE BROKER who produces the ready, willing, and able buyer
• A NET LISTING based on the net price the seller will received if the property is sold.
• THE BROKER PROTECTION CLAUSE preserves a brokers commission if WITHIN a certain number of days, the owner transfers the property to someone the broker introduced to the property.
• 3TYPES OF BUYER AGENCY AGREEMENTS
  
  • exclusive buyer agency agreement
  • exclusive agency buyer agreement
  • a non-exclusive buyer agency agreement.

-TRUE Pennsylvania require sellers to prepare a statement disclosing property conditions.