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Flashcards in Types of listings Deck (39)
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Buyer Representation Agreement:

A document that creates agency between a broker and a buyer



A conflict resolution technique that requires a third party in the room to make a final decision on the best method of resolving the conflict


Open Listing:

An agreement that allows multiple real estate brokers (and the owners themselves) the right to sell the property with the individual considered the procuring cause of the sale of the property getting the commission


Exclusive Right to Sell Listing:

A listing agreement which gives the agent the sole right to sell the property and guarantees that the broker receives a commission if the property is sold, even if the seller brings the buyer themselves


Exclusive Agency Listing:

A listing agreement in which the owner retains the right to sell the property themselves without paying a commission, or the commission will be paid to the named broker if the broker or any other party sells the property


The most widely used listing agreement form, titled Residential Real Estate Listing Agreement Exclusive Right to Sell, comes from the

the Texas Association of REALTORS®


It should also be noted that a lot of brokerages don't allow

Open listings


most brokers will not spend any of their funds on an open listing due to

The fact that the company might not receive a commission.


Open listings allow a seller to list their property concurrently with a number of

competing brokers or offer to pay anyone bringing them a buyer.


Open listings allow a seller to list their property concurrently with a number of competing brokers or offer to pay anyone bringing them a buyer. It also gives them the option to

sell the property on their own without facing liability for a commission payment.


an open listing may be terminated at

any time before performance and releases the seller from any obligation to inform the other listing brokers when the property goes under contract or is closed.


MLS systems do not allow agents to put open listings

In their system


Then there are pocket listings, or listings that

do not appear on the MLS.


It can get a little more complicated than that, though. A listing is also considered a pocket listing in the time between when it is

secured by the sellers' agent and when it shows up on the MLS.


A pocket listing can also happen when an owner wants

to privately sell their house.


An exclusive right to sell listing agreement also grants the broker

the authority to advertise the property for sale.


By creating exclusive right-to-sell listing, the agent's brokerage has the one true claim to a commission on the sale. Someone else could technically sell the place, but they would only receive

part of the commission if the listing broker agrees to it.


Exclusive Right to Sell Listings

It doesn’t matter if the listing company sells the place or if the owner does or if the agent down the street ends up selling it. According to the agreement,

the seller would still owe the listing company a commission.


Real estate professionals generally prefer exclusive

right to sell listings over other listing agreements.


An agent with an exclusive right to sell listing is more

incentivized to find the highest bid possible for the seller because they are guaranteed a commission (which is most likely a percentage of the sales price).


The Texas Association of REALTORS® has created an addendum to the exclusive right to sell listing agreement (appropriately named the Exclusive Agency Addendum to Listing) that would turn the document into an

Exclusive agency listing


Exclusive agency listings combine elements of

open listing agreements and exclusive right to sell agreements.


As with open listings, exclusive agency listings release

the owner from any obligation to pay a commission in the event the owner secures the sale of their property.


As with an exclusive right to sell listing, the seller agrees to list the property with

Only one broker


The distinguishing characteristic of exclusive agency listings is that the

named listing broker is owed commission only if the property is sold by someone other than the owner — including the listing broker.


In a net listing, the seller names an amount they want the property to sell for, and the broker tries to sell it for more than that. This is because

the broker receives the difference, or net (the dollar amount above what the owner wants) as their commission.


Net listings should only be taken if

the client insists on it and is familiar with current market values.


Most brokers would likely be more comfortable if the sales agent could turn net and open listings into

Exclusive rights to sell listings


TREC Rule on Net Listings

§535.16 Listings; Net Listings
1. A broker is obligated under a listing contract to negotiate the best

possible transaction for the principal the broker has agreed to represent.


TREC rules on net listings

2. A "net listing" is a listing agreement in which the broker's commission is the difference ("net") between

the sales proceeds and an amount desired by the owner of the real property.