Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
38 Cards in this Set
- Front
- Back
Real Estate Listing Agreement
|
An Employment contract between a property owner (the seller) and a real estate broker. The broker only purpose is to find a buyer.
|
|
Sales associates
|
Licensed salespersons or brokers who work for a broker.
|
|
What are the basic components of a simplified exclusive right-to-sell listing?
|
1.Desription of the property 2. Price 3. Terms 4. Broker promises to make a resonalbe effort to find a buyer 5. Period of time the listing is to be in effect is shown. 6. Owner agrees not to list the property with any other brokers. 7. Wording states that the broker will earn a commision no matter what price and terms the owner ultimately accepts.
|
|
Exclusive agency listing
|
Similar to simplified exclusive right-to-sell listing except that the owner may sell the property himself during the listing period and not owe a commission to the broker.
|
|
Open listing
|
carry no exclusive rights
|
|
Net listing
|
created when an owner states the price she wants for her property and then agrees to pay the broker anything above that price as the commission
|
|
Multiple listing service
|
Organizations enable a broker with a listing to make a blanket offering of sub-agency and/or compensation to other member brokers, thus broadening the market exposure for a given property.
|
|
When has the broker earned his commission?
|
When he has met the foregoing statutory requirements and produces a ready, willing, and able buyer
|
|
Agency is terminated when
|
1. When the contract is fulfilled (qualified buyer produced)
2. If the bulk of the contract isn't produced. 3. Mutual agreement of owner and broker to terminate. No money damage will be ensued. |
|
Agency Relationship is Created
|
When a property owner gives a real estate broker a listing authorizing the broker to find a buyer or a tenant and promising compensation if he does.
|
|
Principal
|
The person who empowers another to act as his or her representative.
|
|
Agent
|
The Person who is empowered to act.
|
|
Laws of Agency
|
Duties of the principal, the agent , and the persons (called third parties) with whom they deal.
|
|
What are the three agencies divided into three categories
|
1. Universal agency
2. General agency 3. Specific agency |
|
Universal Agency
|
This Agent has very broad in scope, as the principal gives the agent the legal power to transact matters of all types. Also Power of Attorney
|
|
General agency
|
This agent has the power to bind the principal in a particular trade or business.
|
|
Special agent
|
This agent may not bind the principal by his actions.
|
|
Third parties
|
The people whom the principle and agent negotiate with.
|
|
Broker's Customer
|
What third parties are referred to sometime.
|
|
Broker's Client
|
What the principal is sometime referred to.
|
|
Principals only
|
Property is for sale by owner with out a broker
|
|
Ostensible authority
|
Conferred when a principal gives a third party reason to believe that another person is his agent even though that person is unaware of the appointment
|
|
agency by ratification
|
agency established after the fact
|
|
agency by estoppel
|
can result when a principal fails to maintain due diligence over his agent and the agent exercises powers not granted to him.
|
|
fiduciary relationship
|
This requires that the agent exhibit trust and honesty and exercise good business judgment when working on behalf of the principal whether the principal is a buyer or a seller.
|
|
fiduciary relationship is created
|
When a real estate broker accepts a listing
|
|
Faithful performance (also referred to as obedience)
|
means that the agent is to obey all legal instructions given by the principal and to apply best efforts and diligence to carry out the objectives of the agency
|
|
Loyalty to the principal
|
Means that when seeking a buyer or negotiating a sale, the broker must continue to protect the owner’s financial interests
|
|
Duty of reasonable care
|
implies competence and expertise on the part of the broker
|
|
Commingling
|
If a broker places money belonging to a client or customer in a personal account
|
|
Trust account
|
For the purpose of holding clients’ and customers’ money, the law requires a broker to maintain a
|
|
Seller disclosure statements
|
a detailed disclosure of house defects (or lack thereof) on a form often produced by a real estate trade association.
|
|
Buyer’s brokerage
|
gives the buyer representation, which some people feel the buyer is entitled to or needs in many circumstances
|
|
dual agency
|
When the same broker represents two or more principals in the same transaction, it is a dual agency, and a conflict of interest results
|
|
Principal's duties to the agent.
|
These include compensation, reimbursement, indemnification, and performance.
|
|
Indemnification
|
means that the agent will suffer no damages if a misrepresentation is passed from principal to agent.
|
|
Performance
|
means that the principal is expected to do whatever he can reasonably do to help effect the sale.
|
|
Procuring Cause
|
the ones whose effort originated the procuring of the sale.
|