General - Chapter 5 Lesson 2

Question 1

Listing agreement

Answer 1

written agency employment contract between a seller and broker (stipulates conditions which broker is paid commission)

Question 2

Special Agent

Answer 2

under agency law, listing broker

Question 3

Soliciting offers

Answer 3

listing agreement isn’t seller promising to sell, merely…

Question 4

promising to pay commission for…

Answer 4

finding a ready, willing, and able buyer

Question 5

Types of listing agreements

Answer 5

exclusive right to sell, exclusive agency, open listing, and net listing

Question 6

exclusive right to sell listing agreement

Answer 6

gives broker sole right to represent the seller, gives greatest opportunity to receive a commission

Question 7

bilateral

Answer 7

both parties promise to perform (broker - RW+A buyer seller - pay)

Question 8

Exclusive agency listing agreement

Answer 8

broker sold right to represent the seller, compensated only if someone other than the seller finds the buyer (can exclude buyers)

Question 9

Open Listing

Answer 9

nonexclusive listing given to as many brokers as seller choses, only broker who procures buyer is entitled to commission

Question 10

Procuring cause

Answer 10

primarily responsible for bringing about a sale

Question 11

start a chain of events

Answer 11

must be done by the procuring cause

Question 12

unilateral contract

Answer 12

(open listing) only seller makes a binding promiseL

Question 13

Local zoning ordinances may limit…

Answer 13

of brokerage signs placed on a property

Question 14

net listing agreement

Answer 14

not technically listing rather a method of compensation (rare)

Question 15

Multiple listing service (MLS)

Answer 15

database which broker members agree to cooperate by sharing listings and offering to share commissions

Question 16

Selling agent

Answer 16

broker who procures a buyer

Question 17

How does MLS benefit sellers

Answer 17

exposes prop to larger market w/o contracting w/ multiple brokers

Question 18

How does MLS benefit Listing Agents

Answer 18

Engages other brokers to market the property and identify prospective buyers

Question 19

How does MLS benefit Buyers

Answer 19

provides opportunity to avoid paying buyer’s agent if listing broker shares commission

Question 20

How does MLS benefit other licensees

Answer 20

offers access to many more properties they can sell with an opportunity to earn a commission

Question 21

Listing agreements must be…

Answer 21

in writing and signed to be enforceable in court (+ indicate type of agreement)

Question 22

Required Elements in a Listing Agreement

Answer 22

• Parties to the contract
• Description of the property
• Asking price (list price)
• Term of the contract (including an end date)
• Compensation
• Scope of activities required
• Disclosure statements and other clauses

Question 23

Parties

Answer 23

Sellers and the listing brokerage firm

Question 24

Must confirm…

Answer 24

who owns the property and ensure party whom you are dealing is authorized to engage your brokerage

Question 25

Confirming ownership: Married

Answer 25

both spouses should be named, even if only one spouse owns the property

Question 26

Confirming ownership: Legal Entity

Answer 26

use the entity's legal name (corporation, limited liability company, or trust)

Question 27

Confirming ownership: Deceased

Answer 27

will determines the sellers or state law if there's no will

Question 28

unless signing an open listing...

Answer 28

confirms they do not have an active listing agreement with another brokerage firm (do not interfere)

Question 29

Description of the Property

Answer 29

listing agreement must contain it to identify it (street address or may require legal description)

Question 30

Asking Price

Answer 30

Seller responsible for approving, CMA, develop range of probable sales prices

Question 31

Comparative Market Analysis (CMA)

Answer 31

method of determining the probable selling price of a property by comparing i9t to similar properties that have sold, are presently for sale, or did not sell in a given area

Question 32

Term of the Contract

Answer 32

must indicate a specific ending date, negotiable

Question 33

Automatic renewal clause

Answer 33

listing agreement cannot include...

Question 34

Compensation

Answer 34

clearly explain commission, negotiated (% or flat fee)

Question 35

Seller must indicate...

Answer 35

whether they allow broker to pay other brokers % of commission for finding a buyer and how much, negotiable (offer of cooperation)

Question 36

Racial discrimination...

Answer 36

always against the law

Question 37

Anti-discrimination/fair housing clause...

Answer 37

must be contained in listing agreement

Question 38

Property Condition

Answer 38

usually included as disclosure

Question 39

Residential Lead-Based Paint Hazard Reduction Act

Answer 39

requires disclosure of known lead paint hazards, houses built before 1978

Question 40

Signatures

Answer 40

all parties with an ownership interest in prop must sign listing agreement as sellers

Question 41

Brokers signatures

Answer 41

most cases, employing broker allows agents to sign on their behalf

Question 42

Personal property

Answer 42

clarify what goes/stays

Question 43

Leases

Answer 43

clarify what current owner leases

Question 44

Advertisment

Answer 44

most cases, you cannot advertise property without owner's express written consent

Question 45

Optional in listing agreement: Broker Protection Clause

Answer 45

listing broker entitled to commission if prop sold to someone the broker introduced to the prop during certain time frame after agreement

Question 46

Optional in listing agreement: Indemnification Clause

Answer 46

seller will hold the broker harmless for things the seller does not disclose

Question 47

Optional in listing agreement: Conflicts of interest Disclosure

Answer 47

broker will disclose any conflicts of interest

Question 48

Optional in listing agreement: Exclusive right to sell

Answer 48

statement that the seller won't enter into listing contract w/ another broker during term of agreement

Question 49

Optional in listing agreement: Seller Financing Arrangement

Answer 49

whether seller is willing to enter into any sort of seller financing arrangement

Question 50

Optional in listing agreement: Earnest Money Deposit

Answer 50

person holding buyer's earnest money deposit to keep uncashed check until seller accepts the offer

Question 51

Optional in listing agreement: Mediation

Answer 51

resolve disputes before resorting to litigation

Question 52

Of these, which is LEAST likely to be negotiable in a listing agreement in most states?

Answer 52

Whether there is a specific ending date