Chapter 6 - Listing Agreements

Front 1

Exclusive-right-to-sell listing

Back 1

-one authorized broker-agent receives a commission.

-seller pays broker-agent regardless of who sells property.

Front 2

Listing agreement

Back 2

is an employment contract for the professional services of the broker; it may be written or oral.

Front 3

Salesperson

Back 3

is a general agent of the broker and can carry out listing services only in the name and under the supervision of the broker.

Front 4

Exclusive-agency listing

Back 4

-authorizes one broker to act as the sole agent of seller, but
-allows the seller to retain the right to sell the property without obligation to the broker.

Front 5

Open Listing
(also known as a nonexclusive listing, general listing, or simple listing)

Back 5

-seller retains the right to employ any number of brokers as agents

-seller is obligated to pay a commission to only the broker who successfully produces a ready, willing, and able buyer

-seller is not obligated to pay a commission if the seller personally sells the property without the aid of any broker

-open listing is the default relationship if the listing agreement does not specifically create an exlusive-right-to-sell listing or an exclusive-agency listing.

Front 6

Multiple listing clause
(may be included in an exclusive listing agreement with the seller's consent, and it.....)

Back 6

-permits cooperation with other brokers in the MLS

-requires that the MLS rules for publication of a listing be followed

-explains that membership in the MLS ususally provides that a participating broker has to make a unilateral offer of cooperation and compensation to other member brokers

-requires that a buyer's broker who is member of MLS must notify the listing broker before any communication with the seller takes place

Front 7

Net listing

Back 7

-the seller is to receive a net amount of money from any sale.

-the excess over the net from the sale will go to the listing broker as commission.

-the broker is free to offer the property at any price greater that the net amount.

-net listings may be prohibited by state law, and are prohibited in Georgia

Front 8

Option listing

Back 8

gives the broker the right, but not the obligation, to purchase the listed property within a certain period of time.

Front 9

Listing agreement may be terminated when......

Back 9

-agreement's purpose is fulfilled

-agreement's term expires without a successful transfer

-property is destroyed or its use changed by factors outside the owner's control

-title to the property is transferred by operation of law

-broker and seller mutually agree to end the listing

-listing is unilaterally ended by one party, in which case the terminating party may be liable for damages.

-either party dies or become incapacitated

-either broker or seller breaches the contract

Front 10

Broker protection clause

Back 10

preserves a broker's commission if, within a certain number of days, the owner transfers the property to someone the broker introduced to them.

Front 11

Competitive market analysis (CMA)

Back 11

-compare prices of properties similar to the seller's property that recently sold, those that are currently on the market, and those that did not sell

-determine market value

-derive a range of value

Front 12

Market value

Back 12

the most probable price the property would bring in an arm's length transaction under normal conditions on the open market

Front 13

Disclosures

Back 13

are important consumer safeguards and may be required by state law.

Front 14

Three types of agency agreements....

Back 14

Exclusive buyer agency agreement

Exclusive-agency buyer agency agreement

Open agency agreement

Front 15

Buyer's Broker's compensation

Back 15

may be a flat fee for services, an hourly rate, or a percentage of the purchase price, a retainer fee, or a share of commission being paid by the seller.

Front 16

Exclusive buyer agency agreement
(exclusive right to represent)

Back 16

-it is a completely exclusive agency agreement

-buyer must compensate agent whenever buyer purchases a property of the type described in the agency agreement

-broker is entitled to paymnet regardless of whether he or she locates the property

-broker is entitled to payment even if buyer finds a property independently

Front 17

Exclusive-agency buyer agency agreement

Back 17

-it is an exclusive contract between buyer and agent

-broker is entitled to payment only if broker locates the property the buyer ultimately purchases

-buyer is free to find a suitable property without obligation to agent

Front 18

Open agency agreement

Back 18

-it is a nonexclusive agency contract between broker and buyer

-buyer is permitted to enter into similar agreements with unlimited number of brokers

-buyer is obligated to compensate only broker who locates the property the buyer ultimately purchases

Front 19

Brokerage engagement
(also known as a listing or agency agreement)

Back 19

is a written contract in which the seller or buyer becomes the client of the broker and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another for producing a ready, able, and willing prospective buyer or seller, or performing other brokerage services.

Front 20

TRUE OR FALSE
Each exclusive brokerage agreement must fully set forth its terms and an expiration date. At the time of securing a brokerage engagement, the licensee must funish copies of the engagement to each person signing it.

Back 20

TRUE

Front 21

MLS
(Multiple listing service)

Back 21

is a marketing organization whose broker members make their own exclusive listings available through other brokers and gain access to other brokers' listed properties as well.

Front 22

TRUE OR FALSE
In Georgia, seller disclosures are not required, although they are widely used.

Back 22

TRUE

Front 23

A listing taken by a real estate salesperson is technically an employment agreement between the seller and the ....

Back 23

broker

Front 24

A seller has listed a property under an exclusive-agency listing with a broker. If the seller sells the property personally during the term of the listing to someone who learns about the property through the seller, the seller will owe the broker....

Back 24

no commission

Front 25

Under a listing agreement, the broker is entitled to sell the property for any price, as long as the seller receives $85,000. The broker may keep any amount over $85,000 as a commission. This type of listing is called a(n)...

Back 25

net listing

Front 26

The final decision on a property's listed price should be made by the....

Back 26

seller

Front 27

A seller hired Lana, a broker, under the terms of an open listing. While that listing was still in effect, the seller----without informing Lana---hired Frank under an exclusive-right-to-sell listing for the same property. If Lana produces a buyer for the property whose offer the seller accepts, then the seller must pay a..

Back 27

full commission to both Lana and Frank.

Front 28

Most states requre that listing agreements contain a...

Back 28

definite contract termination date.

Front 29

A seller has sold property to a neighbor without services of a real estate broker. However, the seller still owes the broker a commission because the seller signed a(n)

Back 29

exclusive-right-to-sell listing

Front 30

The contract by which a client hires a real estate broker in Georgia is known as a(n)...

Back 30

brokerage engagement

Front 31

A written agreement between a broker and a client includes the following language: "In return for the compensation agreed upon, Broker will assist Client in locating and purchasing a suitable property. Broker will rexeive the agreed compensation regardless of whether Broker, Client, or some other party locates the property ultimately purchased by Client." What kind of agreement is this?

Back 31

Exclusive buyer agency agreement