Unit 6 - Brokerage Agreements Flashcards
Define Statues of Frauds
Part of a state law that requires that certain instruments to be in writing, such as deeds, real estate sales, leases
Define Exclusive Rights to Sell Listing
One authorized broker receives a commission regardless of who sells the property
Define Exclusive Agency
Owner appoints a broker as their exclusive agent but reserves the right to sell to a prospect without paying a commission
Define Open Listing
There are multiple brokers, only the selling broker is entitled to a commission & the seller retains the right to sell independently
Define Net Listing
The broker is entitled to any amount exceeding the sellers stated net
Define Option Listing
Gives the buyer the right to purchase the listed property at some point in the future
Define a Multiple Listing Service (MLS)
A marketing organization whose members make their listings available for showing & sale through all other members
Define a Comparative Marketing Analysis (CMA)
A tool to analyze properties similar in size, location and amenities
Define Market Value
Most probable price a property would bring in under normal conditions
What are the 5 types of Disclosure?
Material Facts Interest Special Compensation Earnest Money & Purchaser Default Property Condition
Define Disclosure of Material Facts
A broker must not withhold material facts concerning a property of which they have knowledge from
Define Disclosure of Interest
Broker must disclose in writing to the parties any direct or indirect interest in the property
Define Disclosure of Special Compensation
A broker is prohibited from accepting any finder fees, commissions, discounts, kickback or other compensation
Define Earnest Money
If a purchaser defaults & is not entitled the refund of the earnest money, wording must be included in the listing in bold
Define Disclosure of Property Condition
A seller disclosure of property condition is required by Illinois law through a property disclosure statement
A listing agreement must address what?
Brokers Authority Names of all parties Brokerage Firm Listing Price Real Property
Define Minimum Services
Provision of the Real Estate Licensee Act of 2000 that requires licensees to perform a minimum level of service to clients
Define Broker Protection Clause
Clause that allows the broker to receive a commission if the owner sells the property to someone who looked at the property while it was listed with the broker
Define Buyer Agency Agreement
An employment contract that gives the buyer a degree of representation
Define Exclusive Buyer Agency Agreement
The buyer is legally bound to compensate the broker if the buyer purchases a property as described in the contract
Define Exclusive Agency Buyer Agency Agreement
Brokers are only entitled to a commission if they locate the property the buyer ultimately purchases
Define an Open Buyer Agency Agreement
Permits the buyer to enter into similar agreements with an unlimited amount of brokers
What are the buyer broker service?
Needs Assessment Property Selection Viewing Properties Negotiation Follow-Up
Whats considered during the buying process?
Property Condition Length of Time on the Market Supply & Demand Sellers Motivation Terms & Contigencies
Define Contemporaneous Offers
When a buyer agent is acting as designated agent for more than one prospective buyer interested in the property
