unit 3 Flashcards
What is an important thing to remember about listing agreements?
They must be in writing to be enforceable.
Describe an open listing.
An open listing is a non-exclusive listing that allows a seller or buyer to engage a number of different brokers to sell or help purchase property. The broker who brings the buyer or finds the suitable property gets the commission. If the owner sells the property on their own, or the buyer finds their own property, no commission is owed to any broker.
What is the major difference between an exclusive right to sell listing and an exclusive agency listing?
With exclusive right to sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer. With exclusive agency, the owner retains the right to find a buyer and sell the property and owe the exclusive broker no commission.
Give an example of a compensation agreement that is not a listing agreement.
An agreement that a broker signs with an unrepresented seller (an FSBO) in which that seller agrees that if they enter into a purchase contract with the buyer named in the agreement within a specified time period, the seller will pay a specified commission to the broker’s firm at closing.
Most states require what four components to be on a listing agreement?
An identification of the property
A promise of compensation to the broker
The specifics of that compensation
Written document with signatures of the seller or sellers
How can an agent determine who has title to a property they are listing?
Ask the seller for a copy of the deed or other title document.
Call and check with a title company in the area where the property is located.
Call or visit the county tax office and check the records.
When must the seller receive a copy of the listing agreement?
The seller must receive a copy of the document at the time the signatures are obtained.
Licensee Tim works for Broker Marty. Tim lists Seller Gary’s home, fills out all the paperwork and signs the agreement. The listing agreement is a contract between whom?
The contract is between Broker Marty and Seller Gary. As an employee of Marty, Tim is acting as a subagent.
What is an MLS?
An organization of member brokers who agree to cooperate in the sale of properties listed by other brokers in exchange for a share of the broker’s resulting commission
Give some examples of the kind of site information you might collect to submit to the MLS. (Other correct answers can be found on page 25.)
Lot dimensions
Waterfront footage
Zoning code and jurisdiction
Topography, such as level or pasture
View, such as golf course or mountain
What are the two most common changes to an original listing agreement?
Price changes and extensions to the listing period
When an amendment is made to a listing agreement, what happens to the terms of the original listing agreement?
All other terms and conditions of the original listing agreement remain unchanged.
When is a seller typically required to provide a copy of the Property Disclosure Statement to a buyer?
Usually within some specified number of days of acceptance of a purchase and sale agreement
List two types of transfers that are exempt from the Property Disclosure Statement requirement.
A foreclosure or deed-in-lieu of foreclosure.
A transfer made by the personal representative of the estate of the decedent, or by a trustee in bankruptcy.
If a transaction doesn’t complete, under what circumstances would the broker still be entitled to a commission?
The broker is still entitled to receive the commission if the transaction does not complete due to the seller’s or buyer’s default.
Broker Sara has lost her license for unprofessional conduct. What will happen to her listings?
The state licensing authority can choose to appoint a temporary broker to close any of Sara’s pending transactions. Otherwise, all Sara’s listings will terminate.
