Show Recommended textbook solutions
 Statistical Techniques in Business and Economics15th EditionDouglas A. Lind, Samuel A. Wathen, William G. Marchal 1,236 solutions
Human Resource Management15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine 249 solutions Principles of Economics8th EditionN. Gregory Mankiw 1,335 solutions
Information Technology Project Management: Providing Measurable Organizational Value5th EditionJack T. Marchewka 346 solutions Recommended textbook solutions
Calculus for Business, Economics, Life Sciences and Social Sciences13th EditionKarl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett 3,913 solutions
Human Sexuality Today9th EditionBruce M. King, Pamela Regan 1,085 solutions Marketing Essentials: The Deca Connection1st EditionCarl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese 1,600 solutions
Century 21 Accounting: General Journal11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman 1,009 solutions
Terms in this set (29)Listing Agreement A legally-binding contract that creates an agency relationship authorizing a broker to serve as the agent for a principal in a real estate transaction. Bilateral Listing Agreements Employment contracts - meaning that the owner hires the broker and promises to pay a commission in exchange for the broker's promise to locate a "ready, willing and able" buyer or tenant for the owner. To be enforceable, Listing agreements must be___________ In writing. Oral listings do not afford a broker any legal protection. If the listing agreement is not in writing, a broker could not collect his or her commission if the seller refused to pay. The three most common types of listings are: Open Listing An Open Listing: is a NON-Exclusive contract, authorizing a broker to serve as the agent for either the sale or the purchase of property. With this type of listing, a broker is not under the same obligation to perform as with other listing agreements, so an open listing is often considered to be a UNILATERAL contact. This type of listing gives the seller or buyer the right to engage any number of brokers as agents. With an open listing, all contracted brokers can market the property or search for property at the same time. BUT only the one broker who brings the ready, willing and able buyer to the seller or who finds the right property for a buyer will receive the commission. In addition, with an open listing, a seller could sell the property himself or herself and a buyer could make a purchase himself or herself without having to pay any commission to any broker. Exclusive Right to Sell Listing Under this listing arrangement, the broker employed is entitled to a commission no matter who sells the property during the listing period. (Even the Seller). Note: All exclusive listing contracts must contain a definite termination date. Exclusive Agency Listing The owner employs only one broker but retains the right to personally sell the property, and thereby not pay a commission. However, if any other real estate company sells the property, the listing broker is still entitled to the commission stipulated. Net Listing The broker agrees to sell the property in order to achieve a net price to the owner, and anything which is received above the net price is the broker's commission. A net listing is prohibited by the licensing law in many states. Note: Net listings are NOT illegal in Illinois, but they are not encouraged Multiple Listing Marketing service in which many brokers pool all of their listings and establish procedures for sharing commissions. What is an important thing to remember about listing agreements? They must be in writing to be enforceable. Describe an open listing. An open listing is a non-exclusive listing that allows a seller or buyer to engage a number of different brokers to sell or help purchase property. The broker who brings the buyer or finds the suitable property gets the commission. If the owner sells the property or the buyer finds his or her own property, no commission is owed to any broker. What is the major difference between an exclusive right to sell listing and an exclusive agency listing? With exclusive right to sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer. With exclusive agency, the owner retains the right to find a buyer and sell the property and owe the exclusive broker no commission. How does a net listing create a conflict of interest for a broker? It violates the broker's responsibility of putting the client's interests above his or her own. Basic Parts of a Listing Agreement Every listing agreement should have at least these four components. - An identification of the property Identification of the Property The best way to identify a property is through the legal description. A street address can be and is often used, but it should be supported by the legal description, attached to the listing document. If the licensee does not have a copy of the description at the time the listing is prepared, he or she can have the seller sign it with a note on the legal description line that states the description will be provided by the agent at a later time. The agent can obtain the legal description from a title insurance company or from the seller's deed. Promise of Compensation The listing agreement must contain an assurance that the broker will receive compensation and state how that will happen. The seller could stipulate that the broker will receive compensation when the buyer is found, when a contract is signed or only if the sale actually closes. Specifics of Compensation The listing agreement must show the broker's compensation as a fixed amount. It is usually indicated as a percentage of the sale price, but it could be a specific flat fee. As we mentioned when we talked about net listings, the compensation may NOT be indicated as whatever is left over from some net price the seller has in mind to receive. Signed Written Document In Illinois all listing agreements must be in writing and signed by the seller to be enforceable. In other words, if the agreement is not in writing, the broker could not sue for the commission if the situation were to arise. Listing Signatures It's very important that all the owners sign the listing agreement to avoid any potential problems. If the sellers are unclear about the ownership of the property or if you just want to check for yourself, you can do it in one of these ways. Ask the seller for a copy of the deed or other title document. Call and check with a title company in the area where the property is located. Call or visit the county tax office and check the records. In most cases, it is a licensee who is affiliated with a broker who will be taking the listing and filling out the appropriate forms. Even though this is the common practice, we can't stress enough that the agreement is actually a contract between the managing broker and the seller. Once the listing agreement has been completely filled out and signed, the seller must receive a copy of the document at the time the signatures are obtained. This is required by LAW. For this reason, many listing agreements are printed on multiple form stock, so that the copy can be given to the seller immediately. Consider this situation. Agent George signed a listing agreement with the Hatfields. After three weeks on the market with just a few showings, George and the Hatfields mutually agree to extend the period of the listing. Even though the decision is mutual, it's not legal unless it is changed in writing. So how does George do that? One way to make the change, and one that is very common, is to cross out the date, write in the new date and then have all parties initial the change. If the change is a simple one, it's okay to do it that way. But a cleaner, more efficient way to make a change to a listing agreement is to use a form especially designed for that purpose. The two most common changes to a listing agreement are price changes and listing period extensions. Listing Termination - Performance - The licensee has helped the seller find a ready, willing, and able buyer to purchase his or her home. Listing Ownership All of these situations have some effect on a listing agreement. Death of the broker If the listing agent transfers to another firm, the listing agreement will stay with the original broker, unless that managing broker gives permission for the broker to take the listing with him or her. What four components should be on every listing agreement? An identification of the property The listing agreement is a contract between whom? The agreement is a contract between the managing broker and the seller. What are the two most common changes to an original listing agreement? Price changes and extensions to the listing period Broker Sara has lost her license for unprofessional conduct. What will happen to her listings? The Department of Licensing can appoint a temporary broker to close any of Sara's pending transactions. Otherwise, all Sara's listings will terminate. Sets with similar termsMissouri Practice Course (Set #1)67 terms emsaitta California Real Estate Chapter 7144 terms JeffreyAdamos Broker Agreements CHAPTER 639 terms kuklaru Unit 6 Brokerage Agreements46 terms bdpatte92 Sets found in the same folderChapter 17 - Real Estate Finance Quiz Question10 terms rs2471 Chapter 39 - CMA Mechanics - Quiz Questions10 terms rs2471 Ch. 56 - Closing the Transaction - Quiz Questions10 terms rs2471 Ch. 65 - Property Management Overview31 terms rs2471 Other sets by this creatorCh. 10 - Financing POST15 terms rs2471 Ch. 9 - Market Analysis and Pricing POST10 terms rs2471 Ch. 8 - Closing Costs POST5 terms rs2471 Ch. 7 - The Buying Process POST5 terms rs2471 Recommended textbook solutionsHuman Sexuality Today9th EditionBruce M. King, Pamela Regan 1,085 solutions Statistical Techniques in Business and Economics15th EditionDouglas A. Lind, Samuel A. Wathen, William G. Marchal 1,236 solutions
Human Resource Management15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine 249 solutions Principles of Economics8th EditionN. Gregory Mankiw 1,335 solutions Other Quizlet setsNutrition Ch. 1814 terms quizlette524344 Bio I Lab Exam53 terms Dianndroid Topic 644 terms DorothyYao0215 Chapter 4 micro24 terms sucheema08 Related questionsQUESTION What are the two types of trespass? 15 answers QUESTION Other manufacturers will obtains this once the original manufacturers patent has expired 4 answers QUESTION When pay differentials between male and female employees are due to a seniority system, a merit pay system, a productivity-based pay system, or "a factor other than sex," the pay differentials generally do not violate the Equal Pay Act. 2 answers QUESTION Providing buyers with a limited set of choices based upon the real estate professional's decision, not the buyer's instructions, in known as: 6 answers What is the difference between an exclusive listing and an exclusive right to sell?The primary difference between exclusive agency and exclusive right-to-sell relates to commission fees. In an exclusive agency listing, the seller only pays fees if the agent sells the property. In an exclusive right to sell agreement, the seller must pay realtor fees regardless of if the property is sold.
What is an exclusive agency listing?Exclusive Agency Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker.
What is an exclusive right to sell listing quizlet?In an exclusive-right-to-sell listing, one broker is appointed as the seller's agent and is given the exclusive right to market the seller's property; the seller must pay the broker a commission if the property is sold during the term of the listing.
What is the difference between an open listing and an exclusive agency listing?Home sellers may have the option of offering a real estate agent an exclusive listing or an open listing. An open listing allows other local real estate agents to compete to find a buyer for the property. An exclusive listing gives the sole agent an incentive to work hard for the sale.
|
What is the difference between an exclusive agency and an exclusive right of sale listing quizlet?
zusammenhängende Posts
Urheberrechte © © 2024 defrojeostern Inc.
