Real Estate Principles 24-30

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LISTING AGREEMENT

Back 1

-WRITTEN EMPLOYMENT AGREEMENT

-USED BY BROKERS/AGENTS WHEN A CLIENT RETAINS A BROKER TO RENDER REAL ESTATE TRANSACTIONAL SERVICES AS THE AGENT OF THE CLIENT

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EMPLOYMENT RELATIONSHIP

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SCOPE OF ACTIVITIES THE BROKER/AGENT UNDERTAKE IN THE EMPLOYMENT OF THE CLIENT

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AGENCY RELATIONSHIP

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SCOPE OF ACTIVITIES IMPOSED ON THE BROKER BY LAW

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FIDUCIARY DUTY

Back 4

-DUTY OF AGENT TO ACT IN HIGHEST GOOD FAITH TOWARD THE PRINCIPAL

-NOT OBTAIN ANY ADVANTAGE OVER THE PRINCIPAL BY THE SLIGHTEST MISREPRESENTATION, CONCEALMENT, DURESS OR UNDUE INFLUENCE

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EXCLUSIVE RIGHT-TO-SELL LISTING

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-AN AGREEMENT EMPLOYING A BROKER TO ACT AS AGENT FOR THE SELLER OF PROPERTY

-SELLER PROMISES TO PAY A FEE IF THE PROPERTY IS SOLD DURING THE TIME THE BROKER IS EMPLOYED

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OPEN LISTING

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-BROKER ENTERS INTO EMPLOYMENT OF CLIENT TO RENDER REAL ESTATE FOR A FEE

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FULL LISTING OFFER

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-BUYERS OFFER TO BUY/LEASE THAT IS THE SAME TERMS AS THE OWNERS LISTING WITH THE BROKER

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NET LISTING

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-TYPE OF LISTING

-AGENTS FEE IS SET AS ALL SUMS RECEIVED EXCEEDING A BET PRICE ESTABLISHED BY THE OWNER

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OPTION LISTING

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-SELLER GRANTS BROKER AN OPTION TO BUY PROPERTY AT PRE DETERMINED PRICE IF THE PROPERTY DOES NOT SELL DURING THE LISTING PERIOD

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GUARANTEED SALE LISTING

Back 10

-BROKER AGREES TO BUY PROPERTY IF IT DOES NOT SELL DURING THE LISTING PERIOD

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EXCLUSIVE RIGHT-TO-BUY LISTING AGREEMENT

Back 11

-WRITTEN EMPLOYMENT AGREEMENT BETWEEN BROKER AND BUYER

-ENTITLES BROKER TO A FEE WHEN PROPERTY IS PURCHASED DURING LISTING PERIOD

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REO

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REAL ESTATE OWNED PROPERTY

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REAL ESTATE OWNED PROPERTY

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PROPERTY ACQUIRED BY A MORTGAGE HOLDER THROUGH A FORECLOSURE

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BILATERAL EMPLOYMENT AGREEMENT

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-WRITTEN AGREEMENT

-OBLIGATES THE BROKER TO EXERCISE DUE DILIGENCE IN EXCHANGE FOR A FEE

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UNILATERAL EMPLOYMENT AGREEMENT

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-ORAL OR WRITTEN AGREEMENT

-OBLIGATING THE BROKER TO USE BEST-EFFORTS

-DOES NOT IMPOSE DUE-DILIGENCE DUTY ON BROKER UNTIL A MATCH IS LOCATED

-"OPEN LISTING"

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SAFETY CLAUSE

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-PROVIDES ADDED PROTECTION AGAINST A LOST FEE FOR SERVICES IN REGARDS TO A SPECIFIC PROPERTY LISTED

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FIDUCIARY DUTY

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-DUTY OWED TO AN AGENT TO ACT IN HIGHEST GOOD FAITH TOWARD THE PRINCIPLE

-NOT OBTAIN ANY ADVANTAGE BUT SLIGHTEST MISREPRESENTATION, CONCEALMENT, DURESS OR UNDUE INFLUENCE

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FINDER

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-UNLICENSED INDIVIDUAL WHO REFERS POTENTIAL CLIENTS TO THE BROKER, AGENTS OR PRINCIPAL IN EXCHANGE FOR A FEE

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RESPA

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REAL ESTATE SETTLEMENT PROCEDURES ACT

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REAL ESTATE SETTLEMENT PROCEDURES ACT

Back 20

-LEGISLATION PROHIBITING BROKERS FROM GIVING OR ACCEPTING REFERRAL FEES IF THE BROKER/AGENT IS ALREADY ACTING AS A TRANSACTION AGENT IN THE SALE OF A PROPERTY THAT IS:

A one-to-four unit RESIDENTIAL property that is:

-BEING FUNDED BY A PURCHASE-ASSIST, FEDERALLY-RELATED CONSUMER MORTGAGE

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FEE-SPLITTING

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-WHEN FEES MADE TO A BROKER ARE SPLIT VERTICALLY WITH EMPLOYED AGENTS OR

-SPLIT HORIZONTALLY AMONG OTHER BROKERS

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FINDER'S FEE

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FEE PAID TO INDIVIDUAL WHO SOLICITED, IDENTIFIED OR REFERRED A CLIENT TO A BROKER, AGENT OUR PRINCIPAL

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PURCHASE AGREEMENT

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PRIMARY DOCUMENT USED AS A CHECKLIST TO NEGOTIATE REAL ESTATE SALES TRANSACTION BETWEEN A BUYER AND SELLER

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EP

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EQUITY PURCHASE AGREEMENT

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EQUITY PURCHASE AGREEMENT

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DOCUMENT USED TO NEGOTIATE SALE OF OWNER-OCCUPIED FORECLOSURE TO AN INVESTOR

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AGENCY CONFIRMATION PROVISION

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PROVISION IN ALL PURCHASE AGREEMENTS AND COUNTEROFFERS

-DISCLOSES THE AGENCY OF EACH BROKER IN THE TRANSACTION

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ASSOCIATE LICENSEE

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SALES AGENT EMPLOYED BY A BROKER

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DUAL AGENT

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A BROKER WHO REPRESENTS BOTH PARTIES IN A REAL ESTATE TRANSACTION

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DOUBLE-END

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WHEN SELLERS AGENT RECEIVES THE ENTIRE FEE IN THE REAL ESTATE TRANSACTION

(THERE IS NO BUYERS AGENT FOR FEE SPLITTING)

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APPRAISAL

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AN INDIVIDUALS OPINION OF PROPERTY VALUE ON A SPECIFIC DATE

-DOCUMENTED IN AN APPRAISAL REPORT

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APPRAISAL REPORT

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DOCUMENTATION OF AN APPRAISERS FINDINGS

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FMV

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FAIR MARKET VALUE

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FAIR MARKET VALUE

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THE PRICE A REASONABLE UNPRESSURED BUYER WOULD PAY FOR A PROPERTY ON THE OPEN MARKET

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COMPARISON APPROACH

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A METHOD OF COMPARING A GIVEN PROPERTY WITH SIMILAR/COMPARABLE SURROUNDING PROPERTIES

-"MARKET COMPARISON"

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COST APPROACH

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-APPRAISAL METHOD

-FIND A PROPERTIES VALUE BASED ON PRESENT COST OF IMPROVEMENTS AND AQUISITION OF THE LAND

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INCOME APPROACH

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-IN THE APPRAISAL PROCESS

-INCOME PRODUCING PROPERTY TO DEVELOP THE APPRAISERS OPINION OF VALUE

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ESCROW

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THE GATHERING OF INSTRUMENTS AND FUNDS TO TRANSFER REAL ESTATE INTERESTS BETWEEN TWO PERSONS

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ESCROW OFFICER

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INDIVIDUAL LICENSED TO PERFORM ESCROW SERVICES

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ESCROW INSTRUCTIONS

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-DIRECTIONS GIVEN BY A BUYER, SELLER, LENDER OR BORROWER TO AN ESCROW OFFICER

-COORDINATES THE CLOSING ON A PURCHASE AGREEMENT OR MORTGAGE ORIGINATION

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STATUTE OF FRAUD

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-CA STATE LAW

-REQUIRES SPECIFIC TYPES OF CONTRACTS BEFORE THEY ARE ENFORCEABLE BY A COURT

-EG: PURCHASE/LEASE AGREEMENTS FOR A TERM GREATER THAN A YEAR

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PRORATION

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-PROVISIONS ENTITLING A SELLER TO A CREDIT FOR PREPAID SUMS

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GOOD FAITH DEPOSIT

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-MONEY DEPOSIT MADE BY A BUYER TO EVIDENCE THEIR GOOD FAITH INTENT TO BUY WHEN MAKING AN OFFER ON A PROPERTY

-"ERNEST MONEY"