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159 Cards in this Set

  • Front
  • Back
Commission
Is an amount paid, usually as a percentage of the selling price, to a broker for services.

(Page 4)
Property or Bundle of Rights
Rights and interest that a person has in the thing owned.

Bundle of rights include Possession, Enjoyment, Control and Disposition.

(Page 5)
Bundle of Rights
1. Possession - the right to occupy, rent or keep others out.

2. Enjoyment - the right to "Peace and Quiet" without interference from past owners and others.

3. Control - the right to physically change or keep the property the way you like it.

4. Disposition - The right to transfer all or part of your property to others as you see fit.

(Page 5)
Real Property
is the right or interest that person has in the land or anything attached to the land.

Legally define as:
1. Land
2. Anything permanently attached or affixed to the land
3. Anything incidental or appurtenant to the land
4. Immovable by Law

(Page 6)
Land Ownership
is commonly thought of as owning the surface of the earth; in other words, the ground we walk and build upon. But ownership also gives us right to the space that is above or land and extends below our feet to the center of the earth.

(Page 6)
Airspace Right
is the right of the use of the airspace above the surface of the earth.

(Page 6)
Mineral Rights
are the rights to unmined minerals (solids), such as gold silver, and borax, that are part of the real property, but can be removed.

(Page 7)
Riparian Right
is the right of a landowner to reasonable use of moving, free flowing water on, under, and adjacent to his/her land (like a river or stream within the watershed), provided that its use does not infringe on the rights of any neighboring landowners.

Riparian rights can be served by condemnation or prescription

Riparian rights refer to moving water (rivers and streams)

(Page 7)
Littoral Right
is the right of a landowner to the reasonable usage of a none flowing body of water (with a shoreline) abutting his/her land.

Littoral rights refer to bodies of water with a shoreline (oceans and lakes)

(Page 7)
Appropriation of water (Doctrine of Appropriation)
is the private taking and use of water flowing on public domain from it's natural course.

Riparian rights include the right to reasonably "appropriate" water as needed.
Percolating water
refers to underground water not found in a defined channel (natural water course)

Example: A spring that originates underground and seeps up through the soil.

(Page 7)
Allocation
(taking) by the state (not city or county) of surplus underground water for beneficial use of non-owners is also referred as APPROPRIATION

(Page 7)
Potable Water
refers to water that is suitable for human consumption.

(Page 7)
Surface Water Rights
prohibit the diversion of runoff from rain unless confined to a channel (river or stream) to the property of another.

(Page 7)
Improvements (attached to the land)
Anything attached to the land, such as buildings, fences, walls, walks and shrubs, are called IMPROVEMENTS, and become REAL PROPERTY when they are permanently incorporated, integrated in, affixed or attached to the land.

(Page 7)
Appurtenant
means ownership transfers with the land automatically without the need of a separate conveyance. (runs with the land)

Certain things that are a part of the land must be sold with the land or else the usefulness of the land is reduced.

(Page 7-8)
Personal Property
is any property that is movable and cannot be properly classified under the definition of real property.

Items such as clothes, furniture, and automobiles are tangible and easily movable.

Minerals, oil, and gas, when extracted are also considered personal property.

(Page 8)
Emblements
are planted growing crops that are cultivate annually by a tenant farmer on leased land.

Unlike landscaping, these crops belong to the tenant even after the expiration of the lease.

(Page 8)
Bill of Sale
states that the goods have been paid for and that no outstanding loans exist on the personal property.

(Page 8-9)
Fixtures
are items of personal property that are attached to, or incorporated into, the land in such a manner as to become real property.

The courts use these five test to determine if an item is a fixture:
1. Method of attachment
2. Adaptability
3. Relationship of the parties
4. Intention
5. Agreement

Acronym M.A.R.I.A

(Page 9)
Trade Fixtures
are personal property used in the normal course of business, such as shelving or refrigeration units.

(Page 10)
Metes and Bounds (surveyor's Maps) (Measuring boundaries)
is the method of identifying (describing) property by its boundaries, distances, and angles from a given staring point.

In the past surveyors often used natural objects as staring point in their descriptions. MONUMENT is a fixed object and point set in the earth by surveyors to establish land locations.

Example: "Starting at the old oak tree at the stream, go 300 feet north along the river bed, then amok a 90 degree right turn and proceed 100 feet…"

(Page 10-11)
Base Line
is a horizontal line that runs East and West from any lone of the three starting points in California (Humboldt, Mt. Diablo, and San Bernardino)

Six-Mile Increments

Six-mile Increments are called Range

(Page 13)
Meridian Lines
are vertical lines that run North and South from any one of the three starting points in California. (Humboldt, Mt. Diablo, and San Bernardino)

Six-Mile Increments

Six-mile Increments are called Township or Tier

(Page 13)
Tier Lines
The east-west lines (running parallel to the base line) are called TIER LINES.

(Page 13)
Range Lines
The north-south lines (running parallel to the principal meridian) are referred to as RANGE LINES.

(Page 13)
Tiers
Township lines divide the land into a series of east-west strips, called TIERS.

(Page 13)
Range
Range lines divide the land into north-south strips called RANGES.

(Page 13)
Township
Where a their intersects with a range, the result is a six-mile by six-mile square of land known as a TOWNSHIP.

(Page 13)
Section
is one square mile of land consisting of 640 acres. There are 36 sections in a township.

(Page 14)
Acre
is an area of land that contains 43,560 square feet.

(Page 17)
Estates
is an interest, share, right or equity in real estate that varies from the minimal right of a renter to the maximum right of a full owner.

Estates are either 1. FREEHOLD or 2. LESS-THAN-FREEHOLD, depending upon the degree of ownership and the duration of interest.

(Page 23)
Freehold Estates
are real property

(Page 23)
Fee Simple
means an owner has transferred all rights of a property to a new owner for an in definite duration of time (perpetual)

(Page 24)
Fee simple defeasible Estate (or qualified free estate)
is a fee estate that is subject to particular limitations imposed by the grantor of the estate.

Breaking any condition of the transfer may be grounds for termination or revoking the property transfer.

Example: Duke sold his property to Jane with the condition that Jane must never use it for any purpose other than as a private residence. However, after owning the property for several years, Jane decided to start a board and care facility for handicapped adults. The estate by revert to Duke because it is a fee simple defeasible estate.

Example: a buyer agrees not to sell alcoholic beverage on the property. This condition is included in the deed. The buyer has take fee simple defeasible title to the property. If a person takes subject to a condition (subsequent) that liquor not be sold on the premises, and then turns around and breaks this promise, the previous title holder has grounds to reclaim title throughout a court action.

(Page 25)
Life Estate
is an ownership interest in real property that only exists for the life of any designated person or person (often the grantee.)

Example: John owns a life estate based upon his own life. he leases the property to a tenant on a five-year lease. John the life tenant, dies two years later, the least is terminated.

(Page 26)
Less-than-freehold Estates
are personal rights to the use of real property for a period of time.

they are more commonly referred to as LEASES or rental agreements, which give tenants various rights to use real property for a specified period.

(Page 27)
Estate for years
is a lease for a fixed period of time, agreed to in advance. This period can be from a few days up to 99 years. No notice to terminate is necessary.

(Page 27)
Estate from period-to-period (Periodic Tenancy)
Estate from Period-to-Period is a renewable agreement to rent or least a property for a period of time, where the rental or lease amount is fixed at an agreed to sum per week, month, or year. A notice to terminate must be given (usually 30 days)
Estate at Will
is a rental agreement that can be terminated by either party (lessor or lessee) at any time, although by California law, there bust be at least 30 day notice to vacate (so there is no true "estate at will" in California).

(Page 27)
Estate at Sufferance
occurs when the person renting or leasing a particular property remains after the expiration of the stated term without the landlord's consent.

(Page 27)
Tenancy by Sufferance
occurs when a tenant remains in the property after expiration of a lease without the owner's consent.

(Page 27)
Transfers 7 Basic Ways
1. Deed
2. Will
3. Probate
4. Intestate Succession (no will)
5. Accession
6. Occupancy
7. Dedication

(Page 28)
Conveyance
is the document used to effect the transfer of title to property from one person to another. This is usually accomplished by a simple written document known as a DEED.

(Page 28)
Deed
is a written instrument that conveys and evidence title

(Page 28)
Grantor
is the person who grants property or property rights (Seller)

(Page 28)
Grantee
is the person to whom the grant is made (buyer)

A grantee cannot be a fictitious person (i.e., Batman or Catwoman, but it can be a person with a fictitious name (i.e. Microsoft, Inc.).

(Page 28)
Grant Deed
is a document that transfers title (evidence of property ownership, with the key word being "grant"

The grant(or warranty) aspect of the deed is a promise that:
1. The owner (grantor) has not conveyed title to the property to any other person (grantee)
2. the property is free of any encumbrances (liens or other restrictions) other than those already disclosed to the grantee.

(Page 29)
Implied warranties
because they are not expressed in writing, bur are present.

(Page 29)
Quitclaim Deed
is a deed that conveys all the present rights or interest that a person may have in property, without any warranty, title, or interest.

(Page 29)
Cloud on Title
is a claim, encumbrance or condition that impairs the title to real property until disproved or eliminated, as, for example, through a quitclaim deed or a quiet title legal action.

(Page 29)
Quiet Title Action
is a court proceeding to remove a cloud on title to real property. .

Example: For three generations the Mendez family has owned the mining rights to mine gold on Diego's land. Last month, Diego sold his land to a developer who promptly enclosed the land with a large chain-link fence that had only one access, a locked gate. The Mendez family should institute a quiet title action.

(Page 29)
Valid Deed has all the following essential elements:
1. Must be in writing
2. The parties (grantee and grantor) must be properly named and have legal capacity.
3. The property must be adequately described (need not be legal description).
4. There must be a granting clause (action clause)
5. It must be signed by the granting party (grantor)

(Page 32)
Will
is a document, created by a person, stating who that person's property is to be conveyed to distributed upon his or her death.

(Page 33)
Testate
which means having made and left a valid will.

(Page 33)
Testator or Testatrix
is one who makes a will

(Page 33)
Bequeath
is to transfer personal property by will

(Page 33)
Devise
is to transfer real property by will.

(Page 33)
Witnessed Will
is a typed document usually prepared by an attorney, dated, signed by the property owner and declared to be a will by at least two witnesses (tree signature total)

(Page 33)
Holographic Will
is entirely handwritten by the owner, dated, and signed.

(Page 33)
Codicil
is a change in a will before the marker's death.

(Page 33)
Revocable living trust
is a trust that is effective during the life of the owner, rather than upon his or hear death.

(Page 33)
Probate
is a Superior Court procedure to determine a will's validity, any creditor's claims, and establish the identity of the beneficiaries.

(Page 33)
Intestate Succession (no will)
if there is no will, the procedure used for transferring the deceased's property to his or her heir is called INTESTATE SECESSION.

Separate property: If the decedent has no will and leaves a spouse and one child, property is divided equally, 50-50. If there is a surviving spouse ad two or more children, 1/3 goes to the spouse and 2/3 to the children. if there is no surviving spouse, property is divided equally among the children.

(Page 34)
Escheat
is the term used if there is no will ad there are no heirs; the property will go to the state of California. This is not automatic. There is a five-year period during which heirs can make claims to the state for the property.

(Page 34)
Accession
occurs when an owner acquires title to additional land by natural causes, that is additions to the property by natural growth. The addition to land from natural causes, such as earthquakes, volcanos, or the action of moving water is known as ACCRETION.

Example: a river, over times may slowly deposit soil on one of it's banks. These deposits of earth made through the natural action of water, called ALLUVIUM, become the real property of the landowner who holds title to the river bank.

AVULSION is the sudden, violent tearing away of land, by for example, a river.
(Page 34)
Encroachment
Placement of improvements and permanent fixtures on property that do not legally belong to the person who placed them is called ENCROACHMENT.

A fence built over the property line onto a neighbor's lot is a form of encroachment. The neighboring landowner has three years from discovery to take action for it's removal.

(Page 34)
Abandonment
is the relinquishing of a right or interest with the intention of never again reclaiming it.

when a tenant voluntarily moves out of an apartment and ever returns, this is called abandonment or vacating.

(Page 35)
Adverse Possession
is acquiring title to another's property through continuous and notorious occupancy for five years under a claim of title.

It is a legal way of acquire title without a deed. Title may be obtained through adverse possession only if certain conditions are met:
1. Open and notorious occupancy - the adverse possessor must live on, or openly use, the property in such a way that the titled owners might easily detect his or her presence.
2. Hostile and adverse - the adverse possessor must posses the property hostile to the legal owner, without his or her permission or any rental payment (consideration)
3. Uninterrupted use for five years - The adverse possessor must use the property continuously for at least five consecutive years.
4. Right or color of title - The adverse possessor must have some reasonable claim of right or color of title (perhaps a defective written instrument) as a basis for his or her assertion. For example, a person could claim that his uncle gave the property to him before he died, but the deed is missing.
5. Property taxes - the adverse possessor must have paid all taxes levied and assessed on the property for five consecutive years.

(Page 35)
Prescription
is an easement, or the right to use another's land, which can be obtained through five years of continuous use.

(Page 35)
Dedication
is a gift (appropriation) of land, by it's owner, for some public use.
Title
is the right to ownership of land and the evidence of that ownership.

(Page 36)
Vesting
is the placing of a person's (or persons') name on the deed and the description of the method by which that person will hold title.

(Page 36)
Severalty
(Methods of Holding Title (vesting) Concurrently or in Severalty)
is the sole and separate ownership of property by one individual or by a corporation.

(Page 36)
Corporation
(Methods of Holding Title (vesting) Concurrently or in Severalty)
is a body of persons treated by law as a single "legal person," having a personality and existence distinct from that of its shareholders.

(Page 36)
Tenancy in Common
(Unity of Possession)
(Methods of Holding Title (vesting) Concurrently or in Severalty)
When two or more people own property together with the right to will or sell it (however, without survivorship rights or community property rights), it is called TENANCY IN COMMON.

(Page 37)
Unity of Possession (Methods of Holding Title (vesting) Concurrently or in Severalty)
All tenants in common have UNITY OF POSSESSION which means they each have the right to occupy the property.

(Page 37)
Partition Action (Methods of Holding Title (vesting) Concurrently or in Severalty)
When the courts have the responsibility of physically dividing or selling the property, it is referred to as a PARTITION ACTION.

(Page 37)
Joint Tenancy (Methods of Holding Title (vesting) Concurrently or in Severalty)
occurs when two or more people have identical interests in the whole property with the same right of possession and the right of survivor ship. If one of the join tenancy owners should die, his or her interest is then split evenly with the surviving owners. Joint Tenancy can never be willed.

Example: Dick and Jane, brother and sister, own an apartment building in joint tenancy. Dick needs $10,000 to cover unexpected medical expenses, so he borrows the money from a lender, signing a trust deed on the property that was soon recorded in the public records. Forty-Five days later, Dick dies. Jane now owns the apartment free and clear of the brother's $10,000 debt.

Example: Al and Betty are brother and sister and own an apartment building in joint tenancy. Al having a trust deed or mortgage recorded against his 1/2 interest in the property would not terminate this joint tenancy.

(Page 37)
Tenancy in Partnership (Methods of Holding Title (vesting) Concurrently or in Severalty)
refers to two or more people who are co=owners in a business.

(Page 38)
General Partnership
the partners share all profits and losses and share management responsibilities.

(Page 38)
Limited Partnership
(tax shelter) is one consisting of one or more general partners and limited partners.

(Page 39)
Community Property
refers to all the property acquired by a husband and wife during their marriage other than separate property.

As a salesperson, you should make certain that both husband and wife sign all real estate documents, such as listings, purchase agreements, and escrow instructions. If the property being transferred is community property. Both signatures are required when selling, borrowing money, or leasing community property for more than one year.

(Page 39)
Separate property
any property obtained by either the husband or wife before marriage may remain as SEPARATE PROPERTY.

However, any proceeds from the property held separately, such as rents or profits, cannot be commingled with community property, as this would cause them to become community property.

(Page 39)
Community property with right of survivorship
transfers ownership to the spouse at death, with income tax benefits.

(Page 40)
Recording
is the legal process of making an instrument an official part of the recording of a county, after it has been acknowledged.

(Page 40)
Constructive Notice
is notice of documents presumed by law to have been acquired by a person whether or not they have actually examined them. It can be accomplished by recording a deed or taking possession of the property.

(Page 40)
Actual Notice
is knowing (or one's responsibility for knowing) that a transaction has take place.

(Page 40)
Acknowledgment (or Notary)
refers to a signed or verbal statement by the named person that he/she has signed that document of his/her own free will. In other words, that person "acknowledges" his or her signature.

(Page 41)
Notary Public
is a person who is authorized by the Secretary of State to witness the acknowledgment of documents.

All notarized comments must be stamped with a notary seal. The seal must contain the following information:
1. The word "Notary Public"
2. The name of the county
3. The name of the notary
4. The state Seal
5. The expiration date

(Page 42)
Verification
is an oath or affirmation made before a notary public that the content of an instrument is true.

(Page 42)
Affirmation
is a solemn and legally biding declaration made under penalty of perjury by a person whose religious or other beliefs prohibit the taking of an oath.

(Page 42)
Affidavit
is a verified written statement of facts.

(Page 42)
Encumbrance
is a right or interest in real property other than an ownership of tenancy interest.

(Page 49)
Blanket Encumbrance/Blanket Trust Deed
is voluntary lien (for money owed) place over more than one parcel.

(Page 49)
Release Clause
release portion of the property.

(Page 49)
Lien
is a document that uses a property to secure the payment of a debt or the discharge of an obligation.

Liens are either:
1. Voluntary or
2. Involuntary; and
3. Specific or
4. General

(Page 49)
Voluntary Liens
are money debts that owner agrees to pay.

(Page 51)
Involuntary Liens
are money obligations that creat a burden on a property by government taxes or legal action because of unpaid bills.

(Page 51)
Specific Liens
are liens against just one property.

(Page 51)
General Liens
are liens on all the property of the owner, not just one.

(Page 51)
Trust Deed (Deed of Trust)
is a written instrument that makes real property collateral for a loan.

(Page 51)
Mortgage
is a lien that secures real property for the payment of a promissory note (debt).

(Page 51)
Mechanic's Lien
are liens that maybe be filed against a property by a person who was not paid after furnishing labor or materials for construction work on that property.

(Page 51)
Preliminary Notice
is a written notice that must be given before filing a mechanic's lien and written 20 days of supplying labor or services.

(Page 52)
Scheme of Improvements
A mechanic's lien (labor or materials) dates back to the beginning (commencement) of work on the project.

(Page 52)
Notice of Non-Responsibility
is posted on the property stating that the owner is not responsible for the work being done.

(Page 54)
Special Assessments
Local improvements are paid by the property owners in a given district through SPECIAL ASSESSMENTS.

(Page 54)
Judgment (Involuntary and General Liens)
is a country decision determining the rights of parties involved and the amount of compensation.

(Page 55)
Abstract of Judgment
or formal filing of the judgment.

(Page 55)
Judgment is Satisfied
by the payment of money or the return of property.

(Page 55)
Attachment (Lien)
is a process of the law that creates a lien. It gives custody of real or personal property to the court to assure payment of a pending lawsuit in that county.

(Page 55)
Plaintiff
is the person filing a court action to obtain an attachment lien.

(Page 55)
Defendant
is the person who is being sued.

(Page 55)
Lis Pendens
is the recording of a notice with the county recorder's office warning all person that a certain type of lawsuit is pending concerning a particular property,. ("Lawsuit Pending")

(Page 56)
Writ of Execution
(sale) is a court order requiring the sale of certain property to satisfy a judgment.

(Page 56)
Sheriff's Sale
is the forced sale a debtor's property to satisfy a judgment under a writ of execution.

(Page 56)
Injunction
is a court order which can restrict a party from doing an act such as violating private deed restrictions.

Example: Mr. Crawford has been burring rubbish on his own property. The neighbors have complained and have secured a court order, ordering Mrs. Crawford to stop the offending practice. The court order is called and INJUNCTION.

(Page 56)
Items that Affect Physical Use
are non-money encumbrances that affect the physical use of real property.

(Page 56)
Easement
is an interest in land owned by another person consisting of the right to use or control the land, or an area above or below it, for a specific, limited purpose.

(Page 57)
Ingress and Egress
The right to enter is called INGRESS ad the right to exit is EGRESS.

(Page 57)
Easement Appurtenant
is an easement "created for and beneficial to" the owner of adjoining or attached lands.

(Page 57)
Dominate Tenement
is the land that obtains the benefits of an easement

(Page 57)
Servient Tenement
is the land that gives the easement (use of the land) for the benefit of another.

(Page 58)
Easement in Gross
is not attached to any particular land or dominant tenement. It is an easement created for the benefit of other who do not own adjoining or attached lands. It is personal property right.

An example of an easement in gross would be a utility company pr person obtaining the right to run natural gas lines across your land. In this instance your land would become a Servient tenement.

(Page 58)
Unlocated Easement
a property owner could give the right to cross his or her land and not limit how or where a person would have to cross. This is known as an UNLOCATED EASEMENT.

(Page 58)
Creation of an Easements (3 ways)
1. Express Grant (in Writing)
2. Implication of Law (implied easement)
3. Long Use (prescription)

(Page 59)
Express Grant (in writing), as in a Deed or Contract
if a property is transferred as part of the deed, an easement appurtenant to the land would be included in the grant.

(Page 59)
Implication of the Law (Implied Easement)
If an easement is implied in a transfer, or if it is necessary for the use of the land, then the easement is said to be implied by law.

(Page 59)
Easement by Necessity (land lock)
is an easement granted by the court if it is absolutely necessary for access.

(Page 59)
Long Use (Easement by Prescription)
PRESCRIPTION is an easement to continue using land by virtue of having used it for a long period of time.

Possession for five continuous years can create a prescriptive easement, as long as the use is:
1. Open and notorious;
2. Uninterrupted for five years;
3. Under a claim of right or color title, and
4. Hostile (without permission of the owner)

(Page 59)
Transfer of an Easement
Easement are transferred automatically if they are easement appurtenant. Easements in gross can be transferred only by express agreement, providing the easement is not made to a specific individual.

(Page 60)
Termination of an Easement (5 Ways)
1. Express Release.
2. Merger of Dominant and servient tenements
3. Excessive Use
4. Abandonment and Non-Use.
5. Destruction of Servient Tenement.

(Page 60)
Private Deed Restrictions
limit the use or occupancy of the land.

(Page 60)
Covenant
is a promise to do or not do a certain thing.
Condition
is a future and uncertain event which must happen to create an obligation to extinguish an exiting obligation.

The penalty for not following the set conditions is a reversion of the property to the grantor.

(Page 61)
Public Restrictions
are limits made by governmental agencies, usually by cities and counties, in the form of zoning.

(Page 61)
Zoning
is the restriction on the use of private property by the local government agency.

(Page 61)
Encroachment
is the wrongful, unauthorized placement of improvements or permanent fixtures on property by a non owner of that property.

Example: if your neighbor builds a driveway over your property, it is considered an encroachment, which is a form of "trespass". You have three years to sue your neighbor to have the encroachment removed.

(Page 62)
Homstead
is a special provision of the California law that allows homeowners to protect their homes from forced sale to satisfy their debts, within certain limits.

(Page 62)
Declaration of Homestead.
is the recorded document that protects a homeowner from foreclosure by certain judgment creditors.

(Page 63)
Agency
is the authority (or power) to act in place of another, a principal (person who hires) to do a specified act for a stated period of time.

(Page 71)
Agent
is one who act for and with authority from another, called the principal.

(Page 71)
Principal (Client)
is a person who hires or employs an agent to work for him or her.

(Page 71)
Third Party
is the other person in contractual negotiation, other than the principal and his or her agent.

(Page 73)
Ostensible or Implied Authority
is the authority that a third person reasonably believes agent possesses because of the acts or omissions of the principal.

Example: as an owner, if you tell a prospective buyer to see Agent Ramos about seeing your property even though the listing has expired and Ramos sells the house, the buyer has every reason to believe that Miss Ramos had the authority as your agent to sell the home.

(Page 73)
Estoppel
prohibits the principal from denying that a person is his or her agent if the principal has misled another to his prejudice into believing that person is the agent.

(Page 75)
Ratification
is approval (confirmation) of a transaction which has already taken place.

For example, when you authorized a broker to act for you after he or she has already done so, the action is called RATIFICATION.

(Page 75)
Fiduciary
is a person acting in a position of trust and confidence in a business relationship.

(Page 76)
Fiduciary Relatinship
requires the highest good faith from the agent to his or her principal.

An agent must act as though he or she is the principal and always seek to represent the principal's best interest.

(Page 76)
Open Listing
is an authorization to sell a property. it may be given to several brokers or property maybe sold by the owner.

(Page 81)
Exclusive Agency Listing
is a listing providing that only one agent (the listing broker) has the right to be the only person, other than the owner, to sell the property during a specified period and earn a commission.

(Page 81)
Exclusive Right to Sell Listing
entitles the listing broker named in the agency contract to commission even if the owner sells the property.

(Page 82)
Safety Clause (Broker Protection Clause)
in a listing a negotiated period (any agreed to time period) after the termination of a listing which the listing broker may still be entitled a commission.

If s a seller signs, for example, a 90-day exclusive right to sell listing with one broker, cancel it two weeks later, and give an open listing to another broker who brings in an offer that is accepted, both brokers are entitled to a full commission.

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Net Listing
is an agreement providing that the agent agrees to sell the owner's property for a set minimum price, any amount over the minimum being retained by the agent as commission.

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Option Listing
gives the listing broker the right to purchase the property.

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Multiple listing Service (MLS)
is an association of real estate broker that provides a pooling of listing, recent sales, and the sharing of commission on a specified basis.

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Multiple listing
is a listing, usually an exclusive right to sell, taken by a member of a multiple listing service, with the provision that all members of the multiple listing service have the opportunity to find an interest buyer.

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Subagent
is a licensed broker or salesperson upon whom some of the powers of an agent have been conferred, not by the principal, but by the agent with the principals authorization.

Example: Real estate broker Brown, acting as a sub agent of the seller, has a fiduciary duty to the seller and the agent who appointed him a sub agent.

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