Vocabulary: Chapter 13-Listing Agreements and Buyer Representation

Question 1

Buyer Agency agreement

Answer 1

A principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency

Question 2

Exclusive-Agency Listing

Answer 2

A listing contract under which the owner appoints a real estate broker as his or as his or her 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 the sale is to be a prospect who has not been introduced or claimed by the broker

Question 3

Exclusive-right-to-sell listing

Answer 3

A listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owner’s stated terms and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner, or another broker

Question 4

Multiple Listing Service (MLS)

Answer 4

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 multiple listing services accept exclusive-right-to-sell or exclusive-agency listing from their member brokers

Question 5

Net Listing

Answer 5

A listing based on the net price the seller will receive if the property is sold. Under a net listing, the broker can offer the property for sale at the highest price obtainable to increase the commission. This type of listing is illegal inn many states.

Question 6

Open Listing

Answer 6

A listing contract under which the broker’s commission is contingent on the broker’s producing a ready, willing, and able buyer before the property is sold by the seller or another broker