CHAPTER FIVE: LISTING CONTRACT Flashcards
___ CONTRACT- t is also called a listing agreement and it acts as a contract between a real estate
broker and a seller who is the owner of real property. The listing contract gives the broker the
authority to act on behalf of the seller as an agent in the sale of real property included in the
agreement.
listing contract
Anatomy of a Listing Contract
- ____ of listing contract
- ___ price
- ___ commission
- ____-to commission
duration
sales
sales
exceptions to commissions
The length of the contract can be three months, six months,
a year, or any other period you choose. The seller will want to keep this as short as possible in
order to be able to terminate the relationship if no sale occurs. The broker will need to ensure
the period is long enough to cover the time and effort as well as the expense of marketing the
home.
. Duration of the Listing Contract
___ price- This is the desired price of the seller, which should reflect a realistic amount a buyer
would be willing to pay.
. Sales Price
Sales ____- The commission is always negotiable between the principal and broker.
If the commission rate is too low, a listing broker may fail to push the house in all effective
advertising channels. The selling broker may concentrate on other prospects with a higher
commission potential
Sales Commission.
____ to ___- This absolves the seller in whole or part from paying commission
if they find a buyer themselves. Generally, if the seller finds their own buyer, they had to have
listed them in the listing agreement as a potential buyer
Exceptions to commission
___ ___ to ___ agreement- is a listing agreement wherein a broker agrees to act as agent
for the seller of real property, where under the terms of the agreement, the broker is entitled to a
commission if the property is sold during the time the agreement is in effect. This includes any
buyers brought in by the seller or another broker with or without the services of an agent.
- most commonly used agreement
- can be broken if you don’t act upon your client.
Exclusive Right to Sell Agreement
___ ___ ___- the seller employs a broker as the sole agent for the seller of real
property. In this role, the broker will receive a commission if the property is sold through another
broker, but the broker receives no commission if the sale is negotiated by the owner without the
services of an agent.
Exclusive Agency Agreement
____ listing - g is an authorization by the owner of real property to a real estate agent that gives
the agent the nonexclusive right to secure a purchaser. Open listings may be given to any number of
agents without liability to compensate any except the one who first secures a buyer ready, willing,
and able to meet the terms of the listing, or secures the acceptance by the seller of a satisfactory
offer
Open Listing
An open listing is a ____, ____ real estate contract. This means that more than one
broker may be employed to sell a single property, and the owners may act on their own behalf to
procure a buyer without being liable for commissions to the listing brokers. In an open listing,
the owner of the home agrees to pay a commission to whoever procures a ready and willing buyer
first. Therefore, it offers brokers the lowest level of protection when compared to other types of listing
agreements.
non-exclusive, unilateral
____ contract- t is a legally-enforceable promise, entered into by competent parties, that
obligates one party to do as specified legal service for another. A unilateral contract specifies the
conditions under which one person pays the other to perform a certain duty. If and when the duty
is fulfilled, funds are exchanged. In the case of real estate, this means that the listing broker who
secures the buyer gets paid, but that no listing broker is obligated to secure a buyer.
unilateral contract
______ contract- means two parties are entering agreement that services will be
performed, but more than one party may be contracted to perform the same services.
non-exclusive agreement
___ ____- An open listing might be viable for a broker if the property will be very easy to sell or in a superheated market, where buyers are willing to pay higher prices, and when finding a buyer is not an
issue.
Open listing
____ listing- the seller tells the real estate agent what price they want to get out of the listing.
The agent then adds their desired commission to the net price. Net listings are fraught with peril
and are illegal in some states.
Net Listing
_____- has a legal and binding relationship with the Agent or Broker. There is a signed agreement
called a Buyer Representation Agreement that governs the relationship when a buyer’s agent works to
obtain a property listed by another agent on behalf of the client. Conversely, the Listing Agreement
for Sellers documents the relationship when an agent lists a property for sale.
Client
