Wk2. Listing Agreements

Question 0

EXCLUSIVE RIGHT TO SELL

Answer 0

One Broker
Broker receives commission no matter who sells
Must sell during listed period … may close anytime

Question 1

LISTING CONTRACT … Types

Answer 1

Exclusive Right to Sell
Exclusive Agency
Open Listing
Net Listing

Question 2

EXCLUSIVE AGENCY

Answer 2

One Broker
Broker receives commission unless owner sells
Must sell during listed period … May close anytime

Question 3

OPEN LISTING

Answer 3

Many brokers as seller wants

Only the broker who was procuring cause receives a commission unless owner sells

Must sell during listing period … May close anytime

Question 4

NET LISTING

Answer 4

Broker receives any and all monies over a set selling price of the seller

Usually illegal

LEGAL in NV

Question 5

7 ways to terminate Listing Agreements

Answer 5

Agreement … Bankruptcy either B/S … Death either B/S …
Insanity either B/S … Broker loses license …
May terminate if realty materially destroyed … Realty sells

Question 6

SHERMAN ANTI TRUST ACT

Answer 6

No set commission fees fro brokerage on listings

Question 7

PROCURING CAUSE

Answer 7

An agent may receive a commission without actually selling the realty, provided they were the reason the buyer bought the realty

Question 8

PROTECTION CLAUSE

Answer 8

If realty gets sold to someone who saw it during listing period, but buys it after the listing expires the listing agent may get paid after listing ends if they notified seller prior to end of the listing of prospective buyers

Question 9

PUFFING

Answer 9

An opinion, not made as a representation of fact

Puffing is legal

Question 10

PAROLE EVIDENCE RULE

Answer 10

Only written contract is valid, anything orally must be in written contract or not valid

Question 11

REALTORS and MLS

Answer 11

MLS listing service provided by board of Realtors
Sharing of all things that occur regarding the realty to all members
REALTORS should never litigate only mediate

Question 12

OPTIONS

Answer 12

Seller gives buyer right to buy the realty within a certain time frame

Buyer usually pays a fee for this right … Does not have to complete transaction

Seller cannot force it

Unilateral contract

Question 13

OPTIONOR

Answer 13

Seller

Question 14

OPTIONEE

Answer 14

Buyer

Question 15

Parties to INSTALLMENT/LAND/DEED CONTRACT

Answer 15

Vendor … Vendee

Question 16

VENDOR

Answer 16

Seller

Retains legal title of realty until Vendee pays money owed on realty

Question 17

VENDEE

Answer 17

Buyer
Takes possession of realty upon signing land contract
Periodic payments over length of time
Has equitable title during this period

Question 18

Parties/Parts to … OFFERS

Answer 18

Offeror … Offeree … Counter Offer

Question 19

OFFEROR

Answer 19

Anyone who makes an offer

Brings about M&M’ (meeting of the minds)

Question 20

OFFEREE

Answer 20

Anyone who receives an offer

Question 21

COUNTER OFFER

Answer 21

Voids original offer

Switches position of original OFFEROR and OFFEREE

Question 22

FRAUD

Answer 22

An intentional misstatement of fact

Question 23

MISREPRESENTATION

Answer 23

Unintentional misstatement of fact

Question 24

EARNEST MOMEY

Answer 24

Not a requirement for a realty contract to be valid - usually provided by buyer to show good faith

Question 25

MEETING OF THE MINDS

Answer 25

M&M’s
Parties involved in a realty contract agree and put it in writing
Commission is earned when communicated to everyone, equitable title passes

Question 26

COE

Answer 26

Close of Escrow

Question 27

TIME IS OF THE ESSENCE

Answer 27

Certain things must be done for realty contract to be completed, doesn’t mean right now. You, the professional, get it done in time

Question 28

LATENT DEFECTS

Answer 28

Owner is aware of defect on the realty, but agent and buyer cannot see with the naked eye
Illegal
Owner must disclose

Question 29

PATENT DEFCTS

Answer 29

Everyone can see a defect on the realty

Question 30

CABEOT EMPTOR

Answer 30

Buyer beware

No loner apples, all material facts on the rally must be disclosed

Question 31

E&O’S

Answer 31

Errors and Omissions insurance for the real estate agents

Usually will not cover acts of discrimination

Question 32

AUCTIONS

Answer 32

Auctioneers are only taking offers at an auction of realty

Only time an auction would be final is when it is an absolute auction

Question 33

IRREVOCABLE OFFER

Answer 33

No such thing

All offers on realty can be revoked until there is a meeting of the minds

Question 34

COMMISIONS

Answer 34

Mutually agreed upon by client and broker
Usually paid a percentage of sale/leas price
Paid only to licensed broker
Comision due if client backs out or contract cancelled due to fraud on client’s part
Broker can only share commission with own salespeople and othie licensed brokers clients in NV
Salespeople can never share a commission between themselves
Commission split between salespeople and broker is a separate agreement between the two
Commission not paid from broker to salespeople is normally a civil matter
Commissions legally earned as broker, but not paid by client is a civil matter
The salesperson cannot use the client for commission because agreement is between broker and client
If broker does not use the salesperson cannot collect
Bonuses must be paid through the broker
All offers must be presented, oral and written
All ads must include the brokerage name
All monies must be given to broker by the next business day
The broker must do something with the money one business day after meeting of the minds