Real Estate Practice Unit 9

Front 1

Listing appointment

Back 1

Salesperson’s opportunity to get the listing from the prospective seller. Where each salesperson gives a listing presentation to persuade the prospective seller that he or she is the specialist who will sell the home

Front 2

Listing package

Back 2

Include information about the seller’s property, professional details about you and your brokerage, samples of your advertising and marketing pieces, and all the forms necessary for listing the property

Front 3

Property profile

Back 3

Report about a specific piece of property, include; short legal description and property characteristics (lot size, year built, square footage, number of bedrooms and bathrooms), most recent grant deeds, any open deeds of trust, an Assessor’s Parcel Number (APN), map, current taxes, and the assessed value

Front 4

Property marketing plan

Back 4

Detailed schedule that shows them everything you will do to market their property

Front 5

Comparative market analysis (CMA)

Back 5

A comparison analysis that real estate brokers use while working with a seller to determine an appropriate listing price for the seller’s house

Front 6

Listing price

Back 6

The amount of money a seller agrees to accept from a buyer. It is stated in the listing agreement but may be negotiable during the listing period

Front 7

Principle of substitution

Back 7

Value of a property is set by the cost of acquiring an equally desirable and valuable substitute

Front 8

Sales comparison approach

Back 8

This approach is best for single-family homes or condominiums and vacant lots because sales information is readily available and easily compared. The sales comparison approach uses the principle of substitution to compare similar properties by looking at the current selling price of a similar property and adjusting it for any differences to determine the market value for the subject property

Front 9

Selling price

Back 9

The price a buyer actually pays for a property that may or may not be the same as the listing price

Front 10

Market value

Back 10

The highest price a property would bring if freely offered on the open market, with both a willing buyer and a willing seller

Front 11

Comparables, or Comps

Back 11

Similar properties sold on the open market and offered for a reasonable length of time that are used to prepare a CMA for a subject property

Front 12

Comparable categories

Back 12

Neighborhood location, view, size (comparable number of bedrooms/bathrooms as well as square footage), age, architectural style, financing terms, and the general price range

Front 13

Net sheet

Back 13

Shows the approximate net amount of money sellers can expect to receive for a specified sales price. It is a line-by-line description of the fees associated with the sale of their home, including commission

Front 14

Buyer’s market

Back 14

If there is more supply than demand- a seller may have to price a property lower

Front 15

Seller’s market

Back 15

If there is more demand than inventory (listed properties), the seller could consider pricing the home at the top of the range of value or higher

Front 16

Procedure to follow when asking for the listing

Back 16

1. Present the Agency Disclosure Statement
2. Present the Listing Agreement
3. Present the Seller’s Advisory

Front 17

Steps in the Disclosure Regarding Real Estate Agency Relationships

Back 17

1. Disclose the Relationship
2. Elect the Agency
3. Confirm the Agency

Front 18

Disclose the Relationship

Back 18

Describe and disclose the obligations of an agent. A written disclosure must be presented by a listing agent (or his or her sales associate) who must deliver the form to the seller before entering into a listing agreement

Front 19

Elect the Agency

Back 19

The second part of the agency disclosure form requires all parties involved to confirm that they understand the agent’s role.

Front 20

Confirm the Agency

Back 20

Finally, all parties to the transaction (buyer, seller, and agents) acknowledge that they understand who is representing whom, and sign the agency confirmation form. One more time, the relationship will be confirmed in the sales contract, which is signed by all parties

Front 21

Listing agreement

Back 21

A written contract by which a principal, or seller, employs a broker to sell real estate

Front 22

Bilateral contract

Back 22

Contract where a promise is given in exchange for a promise (seller promises to pay a commission upon presentation of a ready, willing, and able buyer who meets all terms of the listing)

Front 23

4 Types of Listing Agreements used in California

Back 23

Residential Listing Agreement—Exclusive (Form RLA)
Residential Listing Agreement—Agency (Form RLAA)
Residential Listing Agreement—Open (Form RLAN)

Front 24

Residential Listing Agreement—Exclusive (formerly named Exclusive Authorization and Right to Sell Agreement)

Back 24

An exclusive contract that obligates the seller to pay the listing broker a commission if the property is sold within the time limit by the listing broker, any other broker, or even by the owner. If the broker brings the seller a mirror offer, or an offer that matches all terms in the listing exactly, the seller does not have to accept the offer. However, under the terms of the listing, the seller must pay the broker a commission

Front 25

Residential Listing Agreement—Agency (formerly named Exclusive Agency Listing Agreement)

Back 25

An exclusive contract that obligates the seller to pay the listing broker a commission if any broker sells the property. However, the seller has the right to sell the property without a broker and pay no commission

Front 26

Residential Listing Agreement—Open (formerly named Non-Exclusive Open Agency Residential Listing Agreement)

Back 26

A listing agreement that gives any number of brokers the right to sell a property. May be given to any number of agents at the same time. The first broker to obtain a buyer who meets the terms of the listing, and whose offer is accepted by the seller, earns the commission. That agent is known as the procuring cause of the sale. Unlike an exclusive listing agreement, an open listing does not require a specific termination date.

Front 27

Procuring cause

Back 27

Refers to a broker who produces a buyer ready, willing, and able to purchase the property for the price and on the terms specified by the seller, regardless of whether the sale is completed

Front 28

Net listing

Back 28

A listing agreement in which the commission is not definite. Instead, the broker receives all the money from the sale of the property that is in excess of the selling price set by the seller. The broker must disclose the selling price to both buyer and seller within 30 days after closing the transaction

Front 29

Seller’s Advisory form

Back 29

A form that is now mandatory to present when a broker or sales associate takes a listing. This form advises the seller of legal requirements and practical matters that may arise during the selling process. At the same time it protects the sales associate and broker by providing evidence of advising the seller of required disclosures

Front 30

Top Reasons Homes Fail to Sell

Back 30

Price, Condition, Location, Listing Salesperson

Front 31

NAR Code of Ethics—Listings
Article 1

Back 31

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant, or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. (Amended 1/01)

Front 32

NAR Code of Ethics—Listings

*Standard of Practice 1-9

Back 32

The obligation of REALTORS® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law.

Front 33

NAR Code of Ethics—Listings

*Article 2

Back 33

REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts that are confidential under the scope of agency or non-agency relationships as defined by state law. (Amended 1/00)

Front 34

NAR Code of Ethics—Listings

*Standard of Practice 2-1

Back 34

REALTORS® shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. Article 2 does not impose upon the REALTOR® the obligation of expertise in other professional or technical disciplines. (Amended 1/96)

Front 35

NAR Code of Ethics—Listings

*Article 9

Back 35

REALTORS®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations, and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing. (Amended 1/04)

Front 36

NAR Code of Ethics—Listings

*Article 12

Back 36

REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. (Amended 1/08)

Front 37

NAR Code of Ethics—Listings

*Standard of Practice 12-4

Back 37

REALTORS® shall not offer for sale/lease or advertise property without authority. When acting as listing brokers or as subagents, REALTORS® shall not quote a price different from that agreed upon with the seller/landlord. (Amended 1/93)

Front 38

NAR Code of Ethics—Listings

*Article 16

Back 38

REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients. (Amended 1/04)