Case Study Question #3

case study scenario

eugene and linda Bboyle married on december of last year and decide to move into eugene's property and make it their residence. the property is currently situated at 319 henderson. lane, but also known as lot 12, block 14, in the johnson estates of houston, texas 74512. the boyles are looking at selling the property due to financing reasons. so they decide to list their property with about town realty company. after speaking with their broker, the boyles agree to list the property for $218,500 and allow possession to take place at closing. currently the boyles have a mortgage on their property for $220,000 and it must be paid before title will be transferred. pursuant to the terms of the listing agreement, the boyles agree to pay the broker a commission of 6% of the sales price and theboyles have received a tax notice of estimated taxes in the amount of $4,383.55. the boyles are needing to sell their property as soon as possible because eugene just found out that he has recently been laid off due to budget cutbacks. thankfully the broker has a buyer that is seeking a property similar to the boyle's house. so the broker contacts mark and susan hilton and shows them the property. the hiltons fall in love with the house and submit an offer on february 18 to the boyles. the hilton's offer was set at $215,000 and they agreed to locate and obtain a new financing. during the allowable time limit, the boyles provided the sellers disclosure notice to the tiltons and after reviewing the document, they agree to purchase the property as is and to pay the boyles $200 for the option to terminate the contract within 7 days from the effective date of the contract. the boyles signed the contract on february 21 and closing was set for april 15 at the office of universal title company. the title company was to hold the earnest money in the amount of $15,000. (use a 360-day year for prorations). the hiltons will be applying for a 15-year conventional loan from mallet federal credit union in the amount of $165,000 at 3% interest. they will be signing a deed of trust to secure the loan and agree to obtain credit approval within 15 days of signing the contract. the hiltons further agree to pay for a new survey as well.

which of the following documents should NOT be attached to the listing agreement between about town realty and the boyles?

seller financing addendum the seller financing addendum should only be attached to the sales contract between the boyles and hiltons if the boyles will be financing the sale. in this case, the hiltons will be obtaining third party financing. the remaining forms listed may be attached to the listing agreement if they are relevant.

assume that there were multiple offers the boyles were considering before accepting the hiltons' offer. what may the agent disclose to potential offerors if the boyles have not specifically instructed the agent otherwise?

that the boyles are considering more than one offer according to the listing agreement, the agent may only disclose whether the sellers are considering other offers. the specific terms of any other offers should not be disclosed to other offerors unless the seller specifically instructs the agent to disclose such information. the agent must treat all other offerors fairly and equally and may not favor one party over another.

what happens if the boyles decide to use the exclusive agency addendum to listing?

the boyles retain the right to sell the property without having to pay a commission to about town realty under exclusive agency, while only one broker is specifically authorized to act as the exclusive agent of the seller, the seller is not required to pay the broker if the seller finds a buyer.

which of the following need not be disclosed to potential buyers?

the fact that a sex offender lives in the neighborhood under section 62.045(e) of the code of criminal procedure, sellers, builders and landlords of single-family residential property, as well as the real estate agents in the transaction, are not responsible for obtaining or disclosing information about the location of registered sex offenders. however, real estate agents, sellers and landlords are not prohibited from doing so. the remaining facts must be disclosed.

which of the following statements is TRUE?

the listing for the boyles home must have a definite termination date in paragraph 4 the real estate license act requires that listing agreements have a definite termination date. there are no exceptions for intermediary transactions or exclusive agency. further, the law does not specify the duration of the listing period.