Chapter 11 Yellow Text-- Client Representation Agreements

Question 1

Exclusive Right to sell listing

Answer 1

one broker is employed as the seller’s sole representative.

If the property is sold during the listing period the seller must pay the broker a commission.

Question 2

Exclusive Agency

Answer 2

Seller employs one broker.
Listing broker is paid only if procuring cause of sale
seller retains the right to sell without obligation to listing broker.

Question 3

Open Listing

Answer 3

Seller employs multiple brokers
Only successful listing broker is paid.
Seller retains the right to sell without obligation to any listing broker.

Question 4

Net Listing

Answer 4

Is Illegal in MA

the broker is entitled to any amount exceeding the seller’s stated net proceeds.

Question 5

Multiple listing clause

Answer 5

used by brokers who are members of the MLS. The broker must have written consent of the seller to include the property in an MLS

Question 6

Broker Protection Clause

Answer 6

provides that the property owner will pay the listing broker a commission if, within a specified number of days after the listing expires, the owner transfers the property to someone the broker originally introduced to the owner.

Question 7

CMA

Answer 7

Competitive Market Analysis A comparison of the prices of recently sold homes that are similar to a listing seller’s home in terms of location, style and amenities.