Chapter 18 Flashcards
Listing Agreements and Buyer Representation Agreements (20 cards)
Written Agreement
sets forth duties, services, and compensation
Consumer Notice
identifies types of services; makes consumer aware
Listing Agreement
creates a special agency; between broker and client
Types of listing agreements (4)
Exclusive right to sell
Exclusive agency
Open listing
Net listing
Exclusive Right To Sell
no matter who the procuring cause of the sale is, the listing broker will make his commission on the sale; best protection for the broker and best assurance for the seller
Exclusive Agency
no matter who the procuring cause of the sale is, with the exception of the owner, the listing broker will make his commission on the sale
Open Listing
whoever is the procuring cause of the sale, earns the commission; needs written memorandum for the broker
Net Listing
seller will receive $xxx.xx net of commission; anything above $xxx.xx becomes the commission
Pocket Listing
seller signs a listing agreement, but you don’t tell anyone about it and find a buyer quickly to make both listing and selling commission; not illegal, but unethical; illegal in offices participating in MLS
Multiple Listing Service
allows brokers to pool their listings with other brokers
Competitive Market Analysis
how you determine the listing price of a property; not an appraisal
Fair Market Value
The most probable price a property would bring in an arm’s length transaction under normal conditions on the open market
OPT
Overpriced Listing
Commission Formulas
Rate x Base
Part/Base
Closing Price Formula
Part/Rate
Seller’s Net Formula
Part/Base=Rate
Material Defect
A problem with the property or any portion of it that would have a significant adverse impact on the value of the residential real property or that involves an unreasonable risk to people on the land
Exclusive Buyer Agency
buyer legally bound to compensate agent whether property located by buyer, agent or another licensee
Exclusive agency buyer agency
broker entitled to payment only if broker locates property that buyer purchases (allows FSBOs)
Open Buyer Agency
non-exclusive agency contract, buyer only compensates broker who finds buyer property
