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42 Cards in this Set
- Front
- Back
- 3rd side (hint)
What format do All states require that an exclusive listing agreement be in |
Writing |
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Exclusive right to sell listing |
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. |
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Open listing |
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 |
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Exclusive agency listing |
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 |
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Net listing |
Is the excess over the sellers desired net from sale is paid to the broker as compensation may be prohibited by state law |
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What maybe included in an exclusive listing |
Multiple listing clause |
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Multiple listing clause |
Permits cooperation with other broker in the multiple listing service |
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A broker's agreement to represent a property seller may be terminated for the following reasons: |
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. |
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Expiration of Listing Period |
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. |
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Listing presentation |
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 |
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Common questions property owners ask |
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. |
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What does a listing agreement identify |
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.
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IDLIP |
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The listing process in a real estate transaction |
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 |
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Listing agreement provisions |
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 |
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What are the main concerns of a property owner |
1. Sales price of the house 2. Net proceeds |
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broker protection clause |
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. |
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Name of all parties on the contract |
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. |
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What should be included in the description of the premises |
1. Street address 2. Legal description 3. Lot size 4. Tax parcel number |
SLLT |
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Where should the Brokers compensation be stated? What are the ways to determine a brokers compensation? |
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 |
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Calculating sales price and net to seller |
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What happens to Real and personal property in a real estate transaction |
1. Personal property included must be identified 2. Real property that will be removed must be identified
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Lease equipment |
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. |
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What should the contract state that a Brokers authority and responsibilities are in a real estate transaction |
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. |
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Brokerage Firm |
1. The brokerage company name 2. The employing broker 3. Sales associate taking the listing must be identified |
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Proposed dates for closing and buyers possession |
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 |
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What can show Evidence of ownership |
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 |
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Home warranty program |
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. |
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Termination of the contract |
A contract should provide a way for the parties to terminate the agreement and should specify under what circumstances the contract can be terminated. |
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Warranties by the owner |
1. The owner is responsible for certain assurances and disclosures |
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Indemnification wording |
The seller and the broker may agree to hold each other harmless for any incorrect information supplied by one to the other. |
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Broker Protection Clause |
1. Brokers may be well advised to protect their interests against possible fraud or a reluctant buyer's change of heart. |
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Who should be at the Closing in a real estate transaction? |
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 |
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Nondiscrimination wording |
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 |
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Date the contract is signed |
This date may be different from the date the contract actually becomes effective. |
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Signature of the parties |
All parties identified in the contract must sign the contract, including all individuals who have a legal interest in the property |
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Antitrust wording |
The contract should state that all fees have been negotiated btw the seller and the broker |
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Sellers representation is terminated when |
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 |
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What do all exclusive listings need to have |
1. Definite termination date |
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What should all exclusive listings not have |
An automatic extension provision |
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Special agent |
The broker is a special agent to the seller |
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General agent |
Tge real estate salesperson is a general agent of the broker |
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exclusive buyer representation agreement |
The buyer works with only one broker, but the broker is free to represent other buyer clients |
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