Kinds of listings Flashcards
(16 cards)
What is an open listing?
Owner pays commission to the first broker that secures a buyer who is ready, willing, and able to purchase the property
Open listings allow multiple brokers to market the property, but only the one who brings in a buyer gets paid.
What happens if there is an open listing and the owner sells the property?
No commission is due to any broker
This means the owner can sell the property independently without owing any fees.
What kind of contract is an open listing? (unilateral/bilateral)
Unilateral contract
Only the seller has obligations; brokers have no obligation to sell.
What is an exclusive-agency listing?
The seller gives exclusive rights to one broker
This means only one broker has the authority to sell the property, but the seller can still find a buyer independently.
What happens if there is an exclusive-agency listing and the seller secures a buyer prior to the broker?
No commission is due
The seller retains the right to sell without paying the broker if they find the buyer themselves.
In an exclusive-agency listing, what are the requirements for commission to be paid to the broker?
The buyer was found by broker or an agent employed by the broker
This ensures that the broker earns their commission only when they contribute to the sale.
What kind of contract is an exclusive-agency listing? (unilateral/bilateral)
Bilateral contract
Both parties have obligations; the broker agrees to try to sell, and the seller agrees to pay a commission if the broker finds a buyer.
What level of protection does an exclusive right-of-sale listing provide to the broker?
The greatest degree
This is because the broker is guaranteed a commission regardless of who sells the property.
What is an exclusive right-of-sale listing?
Seller gives to one broker, who becomes the exclusive agent of the owner
This listing type ensures that the broker has the sole right to earn a commission.
When does a broker get commission in an exclusive right-of-sale listing?
Commission is paid to the broker, regardless of who sells the property during the contract period
What kind of contract is an exclusive right-of-sale listing? (unilateral/bilateral)
Bilateral contract
Both parties (the seller and the broker) have mutual obligations.
What is a net listing?
A net listing is when a seller agrees to sell a property for a stated acceptable minimum amount (seller’s net)
The broker earns any amount above this net as commission.
How do they arrive at a listing price for a net listing?
Broker & seller jointly arrive at a listing price
This collaborative approach helps set a price that meets the seller’s needs.
Who retains the proceeds in excess of the seller’s net?
The broker
This incentivizes brokers to maximize the selling price.
What is the formula for a net listing?
Seller’s net + broker’s commission & closing costs = total sales price
This formula outlines how the final selling price is determined.
Can a net listing be with an open, exclusive-agency, or exclusive right-of-sale listing?
Can be any of them, actually
