Section 9, Unit 1: Listing Agreements

open listing agreement

An agreement that allows sellers to contract with multiple agents but only pay a commission to the agent who locates a buyer is called an

exclusive agency agreement

An agreement that allows sellers to work with an agent while still trying to locate the buyer themselves is called an - If the sellers find the buyer, the sellers don't owe a commission to the agent.

Other agents and the seller create more competition against Ben for the commission.

Ben is the listing agent for property seller Terry, who's requested an open listing agreement. From Ben's perspective, what's the disadvantage to signing an open listing agreement with Terry? Open listings are stigmatized for their inherent conflict of interest, and may damage Ben's reputation. Other agents and the seller create more competition against Ben for the commission. With multiple people working on the sale, Ben may only get a fraction of the commission. With no competition for the commission, Ben has little incentive to work hard.

true

In many states, net listings are illegal (T/F)

brokerage

Listings belong to the _________________, not the individual licensee

"That's not my area of expertise. You should ask your tax advisor."

Mitch, your seller client, asked you about the tax ramifications of selling his townhome. What's your best response? "Let me check with my accountant and get back to you." "That's not my area of expertise. You should ask your tax advisor." "There is no tax on the sale of a personal residence." "Your capital gains exclusion should take care of any tax issues."

Open, exclusive agency, or exclusive right-to-sell listings

On what type of listing (or listings) may a net listing be used in states where they are legal? Exclusive right-to-sell listings only Open, exclusive agency, or exclusive right-to-sell listings Open listings only Open or exclusive agency listings only

Open listing

Patsy's home had been on the market for five weeks, and two brokers had buyers who were ready to make offers. If Patsy accepted one of those offers, the corresponding broker would be the only one to earn a commission. What type of listing does this describe? Exclusive agency Exclusive right to sell Net listing Open listing

writing

To protect your commission, a listing agreement should be in _________

The buyer requests it

Which of the following is NOT a valid way to terminate a listing agreement? Expiration Mutual agreement The buyer requests it The property sells and closes

A listing agreement

Which of the following is a type of agency agreement? A land contract A listing agreement A rental agreement A sales contract

In both types of listings, the seller who finds the buyer won't owe a commission.

Which of the following scenarios accurately describes the similarities between an open listing and an exclusive agency listing? In both types of listings, sellers are required to pay a commission to all of the brokers who list the home. In both types of listings, the broker owes the commission regardless of who sells the property. In both types of listings, the seller may work with multiple brokers to sell the property. In both types of listings, the seller who finds the buyer won't owe a commission.

Net

Which type of listing is not legal in some states because it can lead to a conflict of interest? Exclusive agency Exclusive right to sell Net Open listing

listing agreement

a binding contract entered into by the seller of a property and you, as the seller's listing agent, but only on behalf of your brokerage

exclusive agency

agreement is an option for sellers and landlords who want to reserve the right to find a buyer or tenant themselves and avoid paying a brokerage fee, but who still want to make sure their property receives the broadest possible market exposure

open listing

agreements are unilateral agreements in which a seller may contract with many real estate agents to locate a buyer. Only the agent who brings in the buyer earns the commission, and if the seller finds a buyer herself, no one is owed a commission

exclusive right to sell

an _ allows the listing agent to list the property and receive a commission no matter who brings the buyer to the table.

net listing

an agreement in which the seller specifies a price desired for the property and agrees to pay the broker any amount received above that price as commission

exclusive right to sell

listing agreement provides the highest service to the seller and the most protection for the broker's commission. It allows the listing agent to list the property and receive a commission, no matter who brings the buyer to the seller. Even when the owner finds a buyer, the listing agent is owed a commission, provided the sale occurs during the agreement term