Chapter 12 - Listing Agreement (REPI)

Question 1

Chapter 12 Objectives

Answer 1

1) List at least three types of listing contracts in order from most beneficial for a broker to least beneficial.
2) Identify at least three components of an Exclusive Right to Sell Agreement.
3) Provide at least two examples of how an Addendum is used with a Listing Contract.

Question 2

Listing Contract

Answer 2

A contract in which a property owner employs a real estate broker to market the property described in the contract.

Question 3

Exclusive Agreement (Exclusive Right to Sell Listing Agreement)

Answer 3

A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract.

The seller agrees to pay the broker commission regardless of who sells the property (usually the most popular form among brokers)

Question 4

Exclusive Agency Agreement

Answer 4

A listing given to only one broker (exclusive) who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker.

The owner retains the right to sell the property themselves w/o obligation to pay the broker (this is the difference between Exclusive Right to Sell)

Question 5

Non-Exclusive Listing Agent (Open Listing)

Answer 5

A listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property. (Unilateral Contract)

can be multiple listing agents and only the successful agent gets the commission (the seller can also sell themselves)

Question 6

Net Listing

Answer 6

A listing which provides that the agent may retain as compensation for agent’s services all sums received over and above a net price to the owner.

the owner sets a benchmark amount of desired receivables - the rest goes to broker

Question 7

Four Types of Listing Agreements

Answer 7

1) Exclusive Right to Sell
2) Exclusive Agency
3) Non-Exclusive Listing Agent
4) Net Listing

Question 8

Components of Exclusive Right to Sell Agreement (PDF)

Answer 8

10 page agreement divided into paragraphs

Question 9

Addenda in Listing Contract

Answer 9

• Seller disclosure notice - lists everything contained in the property and the condition of those items (must be completed by the seller)
• Lead-Based Paint - list whether or not there any records around this for the property (1978)
• Residential real prop affidavit (T-47) - seller provides the existing survey.
• MUD/Water District - utility district information
• Request for Mortgage Information