Unit 6 - Brokerage Agreements Flashcards
Buyer Agency Agreement
A principal-agent relationship in which the sponsoring broker is the agent for the buyer, with fiduciary responsibilities to the buyer.
Comparative Market Analysis (CMA)
A comparison of the prices of recently sold homes that are similar to a listing seller’s home in terms of location, style, and amenities.
Contemporaneous Offers
When a buyer’s agent is acting as designated agent for more than one prospective buyer who the designated agent has reason to believe is making or preparing to make contemporaneous offers to purchase the property located at a specific address, the buyers have the option of being referred to another designated agent who will serve as the agent of the buyer.
Exclusive-agency Listing
A listing contract under which the owner appoints a broker as his exclusive agent for a designated period of time to sell the property on the owner’s stated terms for a commission. The owner reserves the right to sell without paying anyone a commission if he sells to a prospect who has not been introduced or claimed by the sponsoring broker.
Exclusive Right-to-sell Listing
A listing contract under which the owner appoints a designated broker as his exclusive agent for a designated period to sell the property on the owner’s stated terms. The owner agrees to pay the designated broker a commission when the property is sold, whether by the designated broker, the owner, or another broker.
Market Value
The most probable price that property would bring in an arm’s-length transaction under normal conditions on the open market.
Minimum Services
A provision of the Real Estate License Act of 2000 that requires licensees to perform a minimum level of service to clients.
Multiple Listing Service (MLS)
A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most MLSs accept exclusive-right-to-sell or exclusive-agency listings from their member brokers.
Net Listing
A listing based on the net price the seller will receive if the property is sold. Under a net listing the sponsoring broker can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is legal in Illinois, though it is discouraged.
Open Listing
A listing contract under which the sponsoring broker’s commission is contingent on the sponsoring broker producing a ready, willing, and able buyer before the property is sold by the seller or another sponsoring broker.
Option Listing
Listing with a provision that gives the listing sponsoring broker the right to purchase the listed property.
Statute Of Frauds
The part of a state law that requires that certain instruments, such as deeds, real estate sales contracts, and certain leases, be in writing to be legally enforceable.
exclusive buyer agent
a real estate agent who works for a company that does not ever represent sellers in real estate transactions. Exclusive buyer agents(and their clients) avoid the conflict of interest of working with an agent who promotes their listings or their firm’s listings.
The organization with primary authority to administer The Real Estate License Act in Illinois is:
The Illinois Department of Financial and Professional Regulation
Real Estate in Illinois is overseen by many state-level organizations. The Illinois Department of Financial and Professional Regulation has primary authority to administer The Real Estate License Act of 2000 and other licensing acts in the state.
Ostensible authority
When a third-party is allowed to believe there is agency relationship between an agent and a principal through the actions of the principal. If a broker acts like a seller’s agent and the seller doesn’t say otherwise, but the broker’s actions result in a sale, the broker will most likely be considered to have an ostensible authority.
