Real Estate Unit 11

Front 1

What format do All states require that an exclusive listing agreement be in

Back 1

Writing

Front 2

Exclusive right to sell listing

Back 2

Broker Is appointed as the sellers sole agent, and if the property is sold while the listing is in effect, the broker is entitled to a commission, no matter who sells the property.

Front 3

Open listing

Back 3

The seller retains the right to employ any number of brokers, the seller is obligated to pay a commission only to the broker who successfully produces a ready willing and able buyer and the seller is not obligated to pay a commission if the seller personally sells the property without the aid of any broker

Front 4

Exclusive agency listing

Back 4

Authorizes one broker to act as the sole agent of the seller but allows the seller to retain the right to sell the property without obligation of payment to the broker

Front 5

Net listing

Back 5

Is the excess over the sellers desired net from sale is paid to the broker as compensation may be prohibited by state law

Front 6

What maybe included in an exclusive listing

Back 6

Multiple listing clause

Front 7

Multiple listing clause

Back 7

Permits cooperation with other broker in the multiple listing service

Front 8

A broker's agreement to represent a property seller may be terminated for the following reasons:

Back 8

The agreement's purpose is fulfilled by the transfer of title to the buyer.

The agreement's term expires.

The property is destroyed, or its use is changed by some force outside the owner's control, such as a zoning change or condemnation by eminent domain.

Title to the property is transferred by operation of law, as in the case of the owner's bankruptcy or foreclosure.

The broker and the seller mutually agree to cancel the agreement.Either the broker or the seller breaches the agreement, such as by the seller's refusal to consider an offer or the broker's refusal to present an offer to the seller.Either the broker or the seller dies or becomes incapacitated. If a sales associate dies or becomes incapacitated, the agreement is still valid.

Hint 8

5

Front 9

Expiration of Listing Period

Back 9

All exclusive listings should specify how long a broker will be employed

If there is not a termination date in a listing is grounds for the suspension or revocation of a real estate license.

Front 10

Listing presentation

Back 10

Is made by the sales associate. This is the first opportunity that a property owner has to learn what a real estate brokerage can do to bring about a sale of the owner's property. The sales associate will describe the marketing efforts that the brokerage will make to bring about a sale of the property

Front 11

Common questions property owners ask

Back 11

1. How quickly will the property sale

2. What services will the broker provide during the listing period.

3. The property owner will also like to know if the property is suitable for showing or does it need improvement.

Front 12

What does a listing agreement identify

Back 12

Identify the property owner(s) and the property,

Describe the property improvements

List any loans held by the owner and their current status

itemize loan and other payments on the property,

provide the details of a short sale, if the lender is willing to accept one.

Hint 12

IDLIP

Front 13

The listing process in a real estate transaction

Back 13

1. Real estate professional meets with sellers and answers questions

2. Real estate professional explains various types of listing agreements agency and services

3. Seller provides information about the property and any personal concerns

4. Real estate professional accepts listing and obtains information and disclosures for marketing

Hint 13

4

Front 14

Listing agreement provisions

Back 14

1. Names of all parties to the contract

2. Brokerage Firm

3. Description of the Premises

4. Listing price

5. Brokers authority and responsibilities

6. Broker's compensation

7. Real property and personal property

8. Lease Equipment

9. Proposed Dates for closing and Buyers possession

10. Closing

11. Evidence of ownership

12. Encumbrances

13. Home warranty program

14. Termination of contract

15. Broker protection clause

16. Warranties by the owner

17. indemnification wording

18. Nondiscrimination wording

19. Antitrust wording

20. Signatures of the parties

21. Date the contract is Signed

Front 15

What are the main concerns of a property owner

Back 15

1. Sales price of the house

2. Net proceeds

Front 16

broker protection clause

Back 16

This clause provides that the property owner will pay the listing broker a commission if, within a specified number of days after the listing expires, the owner transfers the property to someone the broker originally introduced to the owner.

Front 17

Name of all parties on the contract

Back 17

Anyone who has an ownership interest in the property must be identified and should sign the listing to validate it.

Co owners should be clearly stated.

It should be disclosed if the property is in the possession of a tenant.

Front 18

What should be included in the description of the premises

Back 18

1. Street address

2. Legal description

3. Lot size

4. Tax parcel number

Hint 18

SLLT

Front 19

Where should the Brokers compensation be stated?

What are the ways to determine a brokers compensation?

Back 19

1. The circumstances under which the broker will be paid must be specifically stated in the contract

2. The brokers compensation can be a percentage of the sales price or a flat rate

Front 20

Calculating sales price and net to seller

Back 20

Front 21

What happens to Real and personal property in a real estate transaction

Back 21

1. Personal property included must be identified

2. Real property that will be removed must be identified

Front 22

Lease equipment

Back 22

1. It must be determined if lease equipment will stay with property. The seller is responsible for notifying the equipment lessor of the change in ownership.

Front 23

What should the contract state that a Brokers authority and responsibilities are in a real estate transaction

Back 23

1. The contract should specify whether the broker may place a sign on the property and advertise

2. It should address when the property should be shown

3. It should address whether the or not the broker should take earnest money on behalf of the seller.

4. The broker does not have any authority to sign any legal documentations.

Front 24

Brokerage Firm

Back 24

1. The brokerage company name

2. The employing broker

3. Sales associate taking the listing must be identified

Front 25

Proposed dates for closing and buyers possession

Back 25

These dates should be based on an anticipated closing date. The listing agreement should allow adequate time for the paperwork involved and the move in date

Front 26

What can show Evidence of ownership

Back 26

A warrant deed, title Insurance policy, abstract of title with an attorney's opinion, or other documentation customary in the area will be used for proof of title

Front 27

Home warranty program

Back 27

To make the property more desirable to home buyers a seller might purchase a home warranty to cover the property plumbing electrical and heating systems.

Front 28

Termination of the contract

Back 28

A contract should provide a way for the parties to terminate the agreement and should specify under what circumstances the contract can be terminated.

Front 29

Warranties by the owner

Back 29

1. The owner is responsible for certain assurances and disclosures

Front 30

Indemnification wording

Back 30

The seller and the broker may agree to hold each other harmless for any incorrect information supplied by one to the other.

Front 31

Broker Protection Clause

Back 31

1. Brokers may be well advised to protect their interests against possible fraud or a reluctant buyer's change of heart.

Front 32

Who should be at the Closing in a real estate transaction?

Back 32

1. An attorney, title company or escrow company should be considered by state law.

2. Designated party will be needed to complete the paper work, disburse funds and file the proper forms that need to be sent to the IRS

Front 33

Nondiscrimination wording

Back 33

The seller must understand that the property will be shown and offered without regard to race, color, religion, national origin, sex familial status and Disability of the prospective buyer

Front 34

Date the contract is signed

Back 34

This date may be different from the date the contract actually becomes effective.

Front 35

Signature of the parties

Back 35

All parties identified in the contract must sign the contract, including all individuals who have a legal interest in the property

Front 36

Antitrust wording

Back 36

The contract should state that all fees have been negotiated btw the seller and the broker

Front 37

Sellers representation is terminated when

Back 37

1. The agreement purpose is fulfilled

2. The agreement term expires

3. The property is destroyed

4. Title to the property is transferred by operation of law

5. The broker and the seller mutually agree to end the agreement

6. Either the broker or the seller breaches the contract.

7. Either party dies or becomes incapacitated

Front 38

What do all exclusive listings need to have

Back 38

1. Definite termination date

Front 39

What should all exclusive listings not have

Back 39

An automatic extension provision

Front 40

Special agent

Back 40

The broker is a special agent to the seller

Front 41

General agent

Back 41

Tge real estate salesperson is a general agent of the broker

Front 42

exclusive buyer representation agreement

Back 42

The buyer works with only one broker, but the broker is free to represent other buyer clients