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16 Cards in this Set
- Front
- Back
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Fiduciary Employment Contract |
a) owner/seller hired a brokerage firm to act as a special agent b) purpose is to find a buyer who is ready, willing, and able to buy according to the terms of the contract |
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Seller = Brokerage Firm = |
Principal/ client Agent/fiduciary firm |
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Commissions are always negotiable, as required by the... |
Sherman Antitrust Act |
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Listing Contracts have definite ____________ date. |
Beginning and expiration dates a) contract must be amended to extend listing past expiration date. b) automatic renewal clause is NOT ALLOWED |
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Listing broker licensee represents the _________. Buyer’s brokerage licenses represents the __________. |
Seller Buyer |
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Listing Contracts are signed by ____________. |
All property owners |
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Types of Listings |
1. Exclusive right to sell 2. Exclusive Agency 3. Open/Nonexclusive |
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Exclusive right to sell |
1. Brokerage gets paid if the property sells, regardless of who finds the buyer 2. Maximum protection to brokerage; broker will give max effort 3. Bilateral Contract |
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Exclusive Agency |
1. Seller has no liability to pay brokerage if the seller finds the buyer 2. Bilateral Contract 3. Co-op firms will be paid if they procure the buyer |
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Open/Nonexclusive |
1. Only the brokerage that procures the buyer gets paid 2. Seller can sign open contract w/ more than one brokerage firm 3. Unilateral Contract 4. Sale to a buyer automatically terminates all other open listings w/ or w/out notice |
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Obligation of Brokerage under Listing Contract |
1. Presents all written offers promptly 2. Pay fees to licensed brokerages only a) can not pay broker associates or salespersons from other firm 3. Failure to fulfill the obligations results in sellers ability to terminate the listing upon written notice to the brokerage (breach creates a voidable contract) |
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Buyer representation contract parties: Buyer = __________ Brokers Firm = ________ |
Principal/client Agent/Fiduciary |
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Termination of Agency Contracts |
1. Full performance, closing, or expiration of the contract 2. Death or bankruptcy of principal or brokerage firm (not sales person) 3. Destruction of improvements (house burns down) 4. Mutual rescission 5. Breach by either party |
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2 types of Warranties |
Home Warranty Plan - Existing home New Home Construction warranties |
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Home Warranty Plan |
1. Terms & length are determined by the contract w/ the warranty company 2. Real estate professional should make buyers aware that warranties are available a. Should not recommend just to obtain a referral fee |
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New Home Construction |
1. Required by state statute 2. Covers defects due to faulty installation 3.Does not cover damage from outside force 4. Builder warranties are determined by state or local ordinances |
