puffing Exaggerated or superlative comments or opinions: e.g.

Ch 9 Flashcards

puffingExaggerated or superlative comments or opinions: e.g.

"This house has the best view in town!" fee-for-service agreementarrangement where consumer asks licensee to perform specific real estate services for a set fee; unbundling of services; limited service firms Protection Clauseoverride or extender 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 sells, rents, leases, or options the property owner to exchanges the property with someone the owner originally met or made contact with through the broker Sherman Anti-TrustPrice fixing (No saying- usual, customary, average etc.), market allocation, unfair competitive practices, boycotting retainer feea small fee paid by the client upon creation of a buyer agency relationship as an advance partial compensation for services; it may be non-refundable or applied to final compensation due depending on the agency agreement Exclusive Agency ListingA listing contract under which the owner appoints a real estate broker as the exclusive agent for a designated period of time to sell the property, on the owner's stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if the owner sells to a prospect who has not been introduced or claimed by the broker.Buyer Agency AgreementA principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency.success feecompensation that is due and payable upon the creation of a valid sales contract for property located by the buyer's agent Net ListingA listing based on the net price the seller will receive if the property is sold. under a net listing, the broker can offer the property for sale at the highest price obtainable to increase the commission. While this type of listing is illegal in many states, it is legal but not encouraged in North Carolina.listing agreementan employment contract between a property owner (as principal) and a real estate firm/broker as agent by which the broker is employed to find a read, willing, and able buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay commission

override clauseA carry-over or protection clause in a listing contract that says the listing broker is entitled to commission for a time period after expiration of the listing term if the property is transferred to a prospect that the broker introduced to the property during the listing term; override clause. This clause is void if the property is listed with another broker.National Do Not Call Registrya national registry, managed by the Federal Trade Commission, that lists the phone numbers of consumers who prefer to limit the telemarketing calls they receive MLSa marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most MLSs accept only exclusive right-to-sell or exclusive-agency listings from their member brokers.ready, willing, and able buyerOne who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction; one of the agent's requirements for entitlement to commission Procuring CauseThe effort that began a chain of events that brings about the desired result. Under an open listing, the broker who is the procuring cause of the sale receives the commission.protection agreementan agreement between an unlisted property owner and a broker to secure payment for the broker if the property is sold to the particular buyer named in the agreement; it does not create a general listing, and may not create agency at all- only compensation for a biter's agent."one-shot" listing Antitrust lawsthese law prohibit monopolies and contracts, combinations, and conspiracies that unreasonably restrain trade. Most common violations- price fixing, group boycotting, and allocation of customers or markets extender clauseA carry-over or protection clause in a listing contract that says the listing broker is entitled to commission for a time period after expiration of the listing term if the property is transferred to a prospect that the broker introduced to the property during the listing term; override clause. This clause is void if the property is listed with another broker.employment contracta document evidencing formal employment between employer and employee or between principal and agent. In real estate, this is generally a listing agreement, a buyer agency agreement or a management agreement Open ListingA listing agreement under which the broker's commission is contingent on the broker personally producing a ready, willing, and able buyer before the property is sold by the

seller or another broker.Exclusive Right to Sell ListingA listing contract under which the owner appoints a real estate broker as the exclusive agent for a designated

period of time to sell the property, on the owner's stated terms, and agrees to pay the broker a commission when the property is sold, regardless of who sells the property.