Unite 10: Client Representation Agreements

Question 1

The employment contract between a broker and a real estate seller is commonly called the:

Answer 1

Listing agreement

Question 2

What are the three types of listing agreements

Answer 2

1. Exclusive Right to Sell
2. Exclusive Agency
3. Open Listing

Question 3

In this type of listing, one broker is employed as the sole representative and given exclusive right or authorization to market the seller’s property. The listing broker is also paid regardless of who sells the property

Answer 3

Exclusive right to sell listing

Question 4

In this listing one broker is authorized to act as the exclusive agent of the principal, but the seller retains the right to sell the property without the obligation to pay the broker. Broker gets commission only if he sells it.

Answer 4

Exclusive agency listing

Question 5

In this listing the seller retains the right to employ any number of brokers as agents. Only the selling agent gets the commission.

Answer 5

Open listing

Question 6

This listing specifies that the seller will receive a net amount of money from any sale, with the excess going to the listing broker as commission. Illegal in MA.

Answer 6

Net listing

Question 7

This is a marketing tool consisting of an association of real estate agents and if a sale results, they share the commission

Answer 7

MLS (Multiple Listing Service)

Question 8

A broker’s agreement to represent a property seller may be terminated for the following reasons

Answer 8

1. The agreement’s purpose is fulfilled by the transfer of title to the buyer
2. The agreement’s term expires.
3. The property is destroyed, or its use is changed by some force outside the owner’s control.
4. Title to the property is transferred by operation of law as by bankruptcy or foreclosure.
5. The broker and seller mutually agree to cancel the agreement.
6. Either the broker or seller breaches the agreement.
7. Either the broker or seller dies or becomes incapacitated.

Question 9

How do you properly price the property?

Answer 9

Comparative market analysis- look at similar properties in a similar neighborhood that sold in the recent time period (gathered from the MLS).

Question 10

What does the listing contract include

Answer 10

1. Names of all parties to the contract
2. Brokerage firm
3. Description of the premises
4. Listing price
5. Broker’s authority and responsibilities
6. Broker’s compensation
7. Real property and personal property
8. Leased equipment (hot water tank; cable etc)
9. Proposed dates for closing and buyers possession
10. Closing
11. Evidence of ownership
12. Encumbrances (all liens will be paid in full by the seller or be assumed by the buyer at the closing.

Question 11

This type of employment contract, the broker is employed by the buyer to find suitable property

Answer 11

Buyer representation agreement

Question 12

In MA, a real estate broker may provide services as one who does not represent the buyer or seller in a transaction and more importantly does not act in an agency capacity.

Answer 12

Facilitator

Question 13

MA does not require the seller to complete this form which details toe condition of the property. It helps protect the agent.

Answer 13

Seller’s statement of property condition