an example of an - The amount of a real estate broker's commission...

Principles of Real Estate Chp.12-Listing Agreement Flashcards The amount of a real estate broker's commission isestablished through negotiation with clients Expiration of listingSpecific termination of listing; in most states, failure to specify specific date is grounds for suspension or revocation of license A landlord promises to compensate a broker forprocuring a tenant, provided the broker is theprocuring cause. This is an example of a(n) open listing Multiple-Listing Service (MLS)Marketing organization in which brokers share information and commission with other brokers; sellers gain because of greater exposure to larger market Broker Protection ClauseProtects broker from buyer and seller making contract behind broker's back. Provides for commission if broker's buyer purchases a period after listing expires.A broker is hired to procure a customer for a client.In order to earn compensation, the agent must procure a customer who is ready, willing, and able to transact.Due Diligencerefers to verifying the accuracy of the statements in the listing regarding the property, the owner, and the owner's representations.

Keyboxessecurity: the seller should take prudent measures to protect

personal property and remove dangerous items that could cause injury Open Listingnon-exclusive authorization to sell or lease a property A property owner agrees to pay a broker acommission, provided the owner receives aminimum amount of proceeds from the sale atclosing. This is an example of a(n) net listing An agent's performance of due diligence concerning a listing can best be described as ascertaining the facts about the client and theproperty at the onset of the listing period.Net Listingone in which an owner sets a minimum acceptable amount to be received from the transaction and allows the broker to have any amount received in excess as a commission, assuming the broker has earned a commission according to the other terms of the agreement.One of the most important actions an owner's agent is authorized to perform under an exclusive listingagreement is showing the property.The cornerstones of agency law in the context of a listing

agreement are:

definition of the roles of parties involved fiduciary duties of the agent agent's scope of authority A multiple listing authorization gives a broker whatauthority?To list the owner's property in a multiple listingservice.

Market ValueMost probable price the property will sell for in an arm's-length transaction under normal conditions on the open market Competitive Market Analysis (CMA)Analysis of market activity among comparable properties; not an appraisal A client suddenly decides to revoke an exclusiveright-to-sell listing midway through the listing

term.The reason stated: the client did not like the agent.In

this case, the client may be liable for a commission andmarketing expenses.The type of listing that assures a broker ofcompensation for procuring a customer, regardlessof the procuring party, is a(n) exclusive right-to sell agreement Real Propertyan address, but in some states it must include the legal description.A "protection period" clause in an exclusive listingprovides that the agent has a claim to a commission if theowner sells or leases to a party within a certaintime following the listing's expiration.Net ListingBroker entitled to any amount above the seller's stated net; often illegal; potential conflict of interest between broker's interest and seller's interest The most significant difference between an ownerrepresentation agreement and a buyer representation agreement is the client.Fixtures"all other things attached or affixed to the property" generally.Exclusive-Agency Listing AgreementOne agent (broker) is hired; broker receives a commission only if he or she is the procuring cause; seller retains right to sell without obligation to pay commission Option ListingBroker has the right to purchase the property; broker must be very honest to avoid charges of fraud Buyer Agency AgreementEmployment contract in which the buyer hires the broker to find a property to buy. Broker owes fiduciary responsibilities to buyer/client Fee negotiabilitythe broker's fee is the result of negotiations with the seller Exclusive right-to-sell (or lease)a seller contracts exclusively with a single broker to procure a buyer or effect a sale transaction.IndemnificationIn a listing, a clause that states that the seller and broker will not sue each other for any incorrect information supplied by one to the other Fair housing lawsthe broker and seller must comply with discrimination laws To be valid, a listing agreementmay be oral or written Exclusive-Right-To-Sell Listing Agreement One agent (broker) is hired; broker receives a commission regardless of who finds the buyer for the property Open ListingMultiple agents; only the selling agent (broker) entitled to commission; seller retains right to sell independently

without obligation to pay anyone a commission

Listing Priceusually sets forth the gross price for the property and possibly the financing terms the owner will accept, particularly if seller financing or assumption of the seller's loan is involved.Especially important facts for a broker or agent to verify

(Under Due Diligence) are:

the property condition ownership status the client's authority to act Legal advice disclaimerthe broker cannot give legal advice Protection Periodclause stating that, for a certain period after expiration, the owner is liable for the commission if the property sells to a party that the broker procured, unless the seller has since listed the property with another broker.An owner agrees to pay a broker for procuring atenant unless it is the owner who finds the tenant.This is an example of a(n) exclusive agency agreement.Notices to Owner- Fee negotiability- Fair housing laws- Keyboxes- Legal advice disclaimer