Real Estate(((Ch. 8))) Principal-Broker Relationship: Employment

Front 1

Real Estate Listing Agreement

Back 1

An Employment contract between a property owner (the seller) and a real estate broker. The broker only purpose is to find a buyer.

Front 2

Sales associates

Back 2

Licensed salespersons or brokers who work for a broker.

Front 3

What are the basic components of a simplified exclusive right-to-sell listing?

Back 3

1.Desription of the property 2. Price 3. Terms 4. Broker promises to make a resonalbe effort to find a buyer 5. Period of time the listing is to be in effect is shown. 6. Owner agrees not to list the property with any other brokers. 7. Wording states that the broker will earn a commision no matter what price and terms the owner ultimately accepts.

Front 4

Exclusive agency listing

Back 4

Similar to simplified exclusive right-to-sell listing except that the owner may sell the property himself during the listing period and not owe a commission to the broker.

Front 5

Open listing

Back 5

carry no exclusive rights

Front 6

Net listing

Back 6

created when an owner states the price she wants for her property and then agrees to pay the broker anything above that price as the commission

Front 7

Multiple listing service

Back 7

Organizations enable a broker with a listing to make a blanket offering of sub-agency and/or compensation to other member brokers, thus broadening the market exposure for a given property.

Front 8

When has the broker earned his commission?

Back 8

When he has met the foregoing statutory requirements and produces a ready, willing, and able buyer

Front 9

Agency is terminated when

Back 9

1. When the contract is fulfilled (qualified buyer produced)
2. If the bulk of the contract isn't produced.
3. Mutual agreement of owner and broker to terminate. No money damage will be ensued.

Front 10

Agency Relationship is Created

Back 10

When a property owner gives a real estate broker a listing authorizing the broker to find a buyer or a tenant and promising compensation if he does.

Front 11

Principal

Back 11

The person who empowers another to act as his or her representative.

Front 12

Agent

Back 12

The Person who is empowered to act.

Front 13

Laws of Agency

Back 13

Duties of the principal, the agent , and the persons (called third parties) with whom they deal.

Front 14

What are the three agencies divided into three categories

Back 14

1. Universal agency
2. General agency
3. Specific agency

Front 15

Universal Agency

Back 15

This Agent has very broad in scope, as the principal gives the agent the legal power to transact matters of all types. Also Power of Attorney

Front 16

General agency

Back 16

This agent has the power to bind the principal in a particular trade or business.

Front 17

Special agent

Back 17

This agent may not bind the principal by his actions.

Front 18

Third parties

Back 18

The people whom the principle and agent negotiate with.

Front 19

Broker's Customer

Back 19

What third parties are referred to sometime.

Front 20

Broker's Client

Back 20

What the principal is sometime referred to.

Front 21

Principals only

Back 21

Property is for sale by owner with out a broker

Front 22

Ostensible authority

Back 22

Conferred when a principal gives a third party reason to believe that another person is his agent even though that person is unaware of the appointment

Front 23

agency by ratification

Back 23

agency established after the fact

Front 24

agency by estoppel

Back 24

can result when a principal fails to maintain due diligence over his agent and the agent exercises powers not granted to him.

Front 25

fiduciary relationship

Back 25

This requires that the agent exhibit trust and honesty and exercise good business judgment when working on behalf of the principal whether the principal is a buyer or a seller.

Front 26

fiduciary relationship is created

Back 26

When a real estate broker accepts a listing

Front 27

Faithful performance (also referred to as obedience)

Back 27

means that the agent is to obey all legal instructions given by the principal and to apply best efforts and diligence to carry out the objectives of the agency

Front 28

Loyalty to the principal

Back 28

Means that when seeking a buyer or negotiating a sale, the broker must continue to protect the owner’s financial interests

Front 29

Duty of reasonable care

Back 29

implies competence and expertise on the part of the broker

Front 30

Commingling

Back 30

If a broker places money belonging to a client or customer in a personal account

Front 31

Trust account

Back 31

For the purpose of holding clients’ and customers’ money, the law requires a broker to maintain a

Front 32

Seller disclosure statements

Back 32

a detailed disclosure of house defects (or lack thereof) on a form often produced by a real estate trade association.

Front 33

Buyer’s brokerage

Back 33

gives the buyer representation, which some people feel the buyer is entitled to or needs in many circumstances

Front 34

dual agency

Back 34

When the same broker represents two or more principals in the same transaction, it is a dual agency, and a conflict of interest results

Front 35

Principal's duties to the agent.

Back 35

These include compensation, reimbursement, indemnification, and performance.

Front 36

Indemnification

Back 36

means that the agent will suffer no damages if a misrepresentation is passed from principal to agent.

Front 37

Performance

Back 37

means that the principal is expected to do whatever he can reasonably do to help effect the sale.

Front 38

Procuring Cause

Back 38

the ones whose effort originated the procuring of the sale.