Client Representation Agreements Flashcards
(20 cards)
Listing Agreement
an employment contract between a real estate broker and a property seller
exclusive listing agreement must be
in writing to be enforceable in
court
Broker is a ____________ of the seller
special agent
As an agent, the broker is authorized to:
represent the principal and the principal’s real estate to consumers
sales associate
s a general agent of the broker and can carry out listing services only in the name of and under the supervision of the broker.
exclusive right-to-sell listing
one broker is appointed as the seller’s sole agent, and if the property is sold while the listing is in effect, the broker is entitled to a commission, no matter who sells the property
exclusive agency listing
authorizes one broker to act as the sole agent of the seller but
allows the seller to retain the right to sell the property without obligation of payment to the broker.
Open Listing/Nonexclusive Listing
eller retains the right to
employ any number of brokers; the seller is obligated to pay a commission only to the broker
who successfully produces a ready, willing, and able buyer; and the seller is not obligated to
pay a commission if the seller personally sells the property without the aid of a broker.
Net Listing
the excess over the seller’s desired net from the sale is paid to the broker as compensation.
may be prohibited by state law.
Multiple Listing Clause
permits cooperation with other brokers in the multiple listing
service (MLS)
Ways a listing agreement terminates
agreement’s purpose is fulfilled,
agreement’s term expires,
the property is destroyed,
title to the property is transferred by operation of law (e.g., bankruptcy),
the broker and the seller mutually agree to end the agreement,
either the broker or the seller breaches the contract, or
either party dies or becomes incapacitated.
Listing Presentation
made by a sales associate of the broker and is the job interview with a prospective client—the property owner. The sales associate presents information about the firm, the market, and how the firm can provide the best service to the owner
exclusive listings have:
a definite termination date
Broker Protection Clause
preserves a broker’s right to compensation if, within a certain number of days after the listing agreement expires, the owner transfers the property to a purchaser who was brought to the seller by the listing broker.
exclusive listings cannot have:
an automatic extension provision.
Listing agreements identify:
the property owner(s) and the property, describe the
property improvements, list any loans held by the owner and their current status, itemize loan and other payments on the property, and provide the details of a short sale, if the lender is willing to accept one.
Listing agreements MUST specify:
- any personal property that will be included in the sale of the real estate
- any fixtures or other items that will be excluded from the sale.
- Leased equipment also should be identified.
Buyer representation agreement
an employment contract in which a prospective
property buyer employs a broker for the purpose of finding a suitable property.
Exclusive buyer representation agreement
buyer works with only one broker, but the
broker is free to represent other buyer clients
