Listing Agreements
Disclosure of defeats
If the property has a known defect, the seller has a duty to disclose that defect to potential buyers even if the disclosure form doesn't specifically ask about that type of problem. The seller should include information about the defect on the disclosure form.
The multiple listing service will reject a listing unless every section of the listing input sheet has been completed in full.
false-On the listing input sheet we looked at, some sections are marked with a black dot to indicate that the information is required. Sections without a black dot don't have to be filled in.
MLS Provisoin
n Paragraph 9, the seller authorizes you and your firm to submit the listing information to your MLS for publication and cooperate with other MLS agents to sell the property. This provision also explains the commission split that will take place between the listing firm and the selling firm. Like most listing agreements, this one provides that the selling agent will be entitled to a portion of the commission no matter which party that agent is representing.
An agent who finds a ready, willing, and able buyer is entitled to compensation regardless of whether the sale closes.
true
A seller disclosure statement must be used in "for sale by owner" transactions.
Even if no real estate agent is involved, a seller must complete a seller disclosure statement and give it to the buyer (unless the transaction is exempt for some other reason).
A buyer who decides to rescind the purchase and sale agreement after receiving a seller disclosure statement must do so within five business days after receiving the statement.
False - 3 days not 5
The federal Fair Housing Act applies to the sale or lease of commercial buildings.
False- The federal Fair Housing Act applies to the sale or lease of residential property, and to the sale or lease of vacant land for construction of residential buildings. Other federal laws, though, such as the Civil Rights Act of 1866, may prohibit discrimination involving commercial property.
modifyng the agreement
Once a listing agreement has been signed, the terms of the agreement can be modified only with the written consent of both parties.
Under this type of listing, you must be the procuring cause of the sale in order to receive a commission.
Open
If a seller's spouse signs a listing agreement even though the spouse is not a co-owner of the property, the listing agreement is invalid.
flase
-A ready, willing, and able buyer
is one who makes an offer on the seller's terms and who's financially able to complete the transaction.
Procuring cause
is the person primarily responsible for bringing about a purchase and sale agreement between the seller and a buyer.
Platting requirements
Generally, it's illegal to offer a portion of a larger property for sale unless the land has been platted and the plat has been recorded. However some counties, such as King County and Snohomish County, allow lots to be offered for sale after the preliminary plat has been approved but before final approval and recording. The buyer should check county ordinances to determine what procedures apply.
The seller should provide the listing agent with a completed seller disclosure statement as soon as possible.
true
Acme Bank refuses to make a loan to the Rodriguez family to purchase in the Toxic Flats neighborhood. The bank states that it would be glad to help them purchase a home in another neighborhood, but a new chemical plant in Toxic Flats has caused property values to plummet and their home would be unlikely to maintain its value. This is illegal redlining.
false-A bank may refuse to make a home loan in a neighborhood where there is objective, economic evidence that the subject property is likely to decline in value. The bank may never base this decision on the racial composition of the neighborhood, but that is not a factor in this instance.
Americans with Disabilities Act
Under the ADA, disabled persons must be allowed equal access to places of public accommodation and other commercial facilities. Thus, your real estate office must be reasonably accessible to the disabled. The law defines a disability as any physical or mental impairment that substantially limits one or more major life activities. -Other businesses and facilities, such as stores, restaurants, hotels, and attorneys' offices, must also be accessible to the disabled. The person who owns, leases, or operates a place of public accommodation or commercial facility is responsible for removing barriers to accessibility. When you list or show this type of property, consider whether modifications might be necessary for ADA compliance. If that's a possibility, you should mention it to prospective buyers or tenants and recommend that they find out more about what would be involved.
If the property is leased with an option to purchase, this will generally be considered a "sale" for the purpose of determining whether the listing agent is entitled to a commission.
true
If the seller interferes with the brokerage's ability to market the property, he can become liable for a commission regardless of whether a sale occurs.
true
buyers waiver of rights
-After reviewing the information disclosed by the sellers, the buyer can use the form to waive her right to rescind the purchase and sale agreement. -Alternatively, the buyer can use the form to waive her right to receive a copy filled out by the sellers. -However, if the sellers' answer to any of the questions in the Environmental section would be Yes, then the buyer isn't allowed to waive that section of the form. -The sellers will have to fill out the Environmental section and give the buyer a copy of the form.
listing
-If you use a listing agreement form improperly or fail to fulfill the legal responsibilities imposed by a listing agreement, you could lose a lot. -You could lose the commission that you're trying to earn. -
Listing amendment form
Changes to the terms of a signed listing agreement should generally be made on a special addendum form, especially if the changes are numerous or complicated.
You must use a standard form from a multiple listing service to satisfy the requirement that the listing agreement be in writing.
False
Redlining
ccurs when a lender refuses to make a mortgage loan because of the ethnic or racial composition of the neighborhood in which the home is located. Redlining occurs when a lender refuses to make a mortgage loan because of the racial or ethnic composition of the neighborhood in which the security property is located.
exclusive right to sell listing
-Under an exclusive right to sell listing, you earn a commission if the property sells during the listing term, regardless of who sells it. -If you find the buyer, you earn the commission. -If another agent finds the buyer, you still earn the commission. -And if the seller finds the buyer, you still earn the commission.
Vacant land listing
A buyer purchasing vacant land is likely to be especially concerned about availability of utilities, zoning restrictions, soil percolation, and lot dimensions. A portion of a larger property can't be sold separately unless the seller complies with local development procedures.
termination before expiration date
A listing agreement may terminate even before its expiration date; let's discuss some of the ways this can happen. -If the property is sold, the listing agreement terminates when the transaction closes. -And if a brokerage firm goes out of business or has its license suspended or revoked, that event will usually terminate all of the firm's listing agreements. -Also, a seller and your brokerage firm may mutually agree to terminate their listing agreement. Your supervising broker may agree to terminate the listing. -Note that only a designated or managing broker can agree to a mutual termination; you can't release the seller on your own.
New information
After the three-day rescission period has ended, circumstances may change or information may come to light that makes the information in the disclosure statement inaccurate. When this happens, the seller has two choices. 1.The seller can give the buyer an amended disclosure statement. This reactivates the three-day rescission period. 2. Or the seller can make the necessary repairs or take other action that will make the disclosure statement accurate again. The corrective action must be completed at least three business days before the closing date. (Otherwise the closing would have to be delayed to allow for a new three-day rescission period.)`
This type of listing requires the seller to pay a commission if any agent finds a buyer for the home, but not if the seller finds a buyer on her own.
An exclusive agency listing entitles the agent to a commission if anyone other than the seller finds a buyer for the property.
Blockbusting
Blockbusting occurs when a real estate agent tries to induce homeowners to list their homes by predicting that members of another race (or any other protected group) will be moving into the neighborhood and that this will have a negative impact on the neighborhood.
answering questions
Each question on the form should be answered; the seller can't leave any blanks. If a question doesn't apply, the seller should write "NA," for "not applicable." Sellers should answer questions based on their actual knowledge. And if they know the answer to a question, they can't answer "Don't Know."
Buyer's Acknowledgement
First the buyer acknowledges she has a duty to pay attention to any material defects that she knows about or could discover through diligent observation. -The buyer also acknowledges that the real estate agents won't be liable for inaccurate information provided by the sellers, unless the agents were aware of the inaccuracies. -Finally, the buyer acknowledges receiving a copy of this disclosure statement and (if the house was built before 1978) a pamphlet about lead-based paint.
Change of information
If a change in circumstances or new information makes the disclosure statement inaccurate, the seller can give the buyer an amended disclosure statement or take the necessary corrective action to make the disclosure statement accurate again. Repairs or other corrective action must be completed at least three business days before the closing date
Notice or recission
If the buyer decides to rescind the purchase and sale agreement, he must give the seller written notice of the rescission within the three-day window after receiving the disclosure statement. After rescinding the agreement, the buyer is entitled to a full refund of the earnest money deposit.
pre lisint comission agreement
Most pre-printed listing agreement forms allow the agent to state the commission either as a percentage of the price or as a dollar figure. In the example shown here, the agent filled in the commission as a percentage of the sales price and put an X in the other blank.
Steering
Steering occurs when a real estate agent channels prospective buyers or tenants to or away from specific neighborhoods based on race (or another protected characteristic) in order to maintain or change the character of those neighborhoods.
Fair housing act
The Fair Housing Act prohibits discrimination in residential transactions based on race, color, religion, sex, national origin, familial status, or disability. Among other discriminatory practices, the act prohibits blockbusting, steering, and redlining.
Paragraph 9 explains that the MLS is merely a beneficiary of the listing agreement—not an actual party to the contract.
The MLS will distribute information about the property to MLS members and the public, but the organization isn't responsible for verifying the information provided to it by the seller and the listing agent. -
This is the most commonly used type of listing agreement in residential transactions.
exclusive right to sell
The seller disclosure statement is supposed to be filled out by the listing agent after a visual inspection of the property.
false- seller only
Net listing
For example, suppose your seller doesn't care what the sales price is, as long as he'll walk away from the sale with $150,000. A net listing provides that the seller will get a certain amount of cash from the sale, and the real estate agent will get anything over that net amount. -For example, suppose your seller doesn't care what the sales price is, as long as he'll walk away from the sale with $150,000. -He says that if the sale proceeds are more than enough to provide that net amount, you can keep the excess as your compensation. -So if the home sold for $160,000, you'd get a $10,000 commission. -But if it sold for $180,000, you'd get a $30,000 commission. -Net listing arrangements are frowned upon. This type of listing makes it too easy for an unscrupulous agent to take advantage of a home seller. (Net listings are illegal in some states, although not in Washington.)
Rescission rights
Generally, it's illegal to offer a portion of a larger property for sale unless the land has been platted and the plat has been recorded. However some counties, such as King County and Snohomish County, allow lots to be offered for sale after the preliminary plat has been approved but before final approval and recording. The buyer should check county ordinances to determine what procedures apply.
Brokerage authority and compensation
Secondly, a listing agreement must give the brokerage firm authority to market the property on the seller's behalf, in exchange for compensation (usually a percentage commission). The brokerage firm earns the commission if it finds a ready, willing, and able buyer.
Penalties
The civil penalty may be as high as $16,000 for a first offense and up to $70,000 for subsequent offenses. -Clearly, any real estate agent found guilty of discrimination may face significant financial consequences. A judge may issue an injunction ordering someone to stop conduct that violates the Fair Housing Act. Violators may also be ordered to pay damages and attorney's fees to an injured party and/or to pay a civil penalty to the government.
Property description
The first requirement is that the property be clearly identified. Real property is usually identified by its legal description—in fact, the NWMLS requires a legal description. Note that a street address isn't enough. If you're ever tempted to use only a street address, remember that addresses are assigned by the post office merely to simplify mail delivery.
address and property descriptoin
The remainder of the first section of the form is for identifying the property. First you fill in the property's street address, and then the city, the county, and the zip code. Don't rely on the property's mailing address to determine whether or not it's within city limits. Properties take on the name and zip code of the nearest town or city even if they're outside its limits. Ask the seller or look at a map.
Exclusive agency listing
The second type of listing agreement is the exclusive agency listing. Under an exclusive agency listing, your brokerage firm is entitled to a commission if anyone but the seller finds a buyer for the home. If you (the listing agent) find the buyer, the seller must pay the commission. -But if the seller finds the buyer without the help of any real estate agent, she doesn't owe your brokerage a commission. The major problem with exclusive agency listings is the potential for a dispute between the listing brokerage and the seller over who procured the buyer.
'hold harmless' clause.
The seller agrees to take responsibility for the information given to you in the listing agreement. -If you and your brokerage firm get into legal trouble because the seller wasn't entitled to sell the property, or because property information provided by the seller wasn't correct, the seller will be obligated to reimburse the brokerage for expenses incurred.
seller disclosure form
The seller must complete the disclosure form and give it to the buyer within five days after a purchase and sale agreement is signed, unless the parties mutually agree to a different time frame. -However, if the buyer specifically waives the right to receive the disclosure statement, the seller doesn't have to provide one. -There's one exception to the waiver rule, concerning environmental disclosures, which we'll cover shortly. -due within 5 days
The last requirement for a valid listing agreement is that it be in writing and signed by the seller.
The statute of frauds requires all listing agreements to be in writing and signed. -That means if you agree to work under the terms of an oral listing and the seller later refuses to compensate you, you won't be able to sue the seller for the commission. -Of course, the listing agreement you'll be using is likely to be more than a jotted note.
Another major antidiscrimination law affecting real estate agents in Washington is the Washington Law Against Discrimination.
This law prohibits discrimination in real estate transactions based on race, creed, color, national origin, sex, sexual orientation, marital status, familial status, sensory, physical, or mental disability, the use of a trained guide or service animal, or military or veteran status.
theft
When you explain this provision to a seller during a listing presentation, you should also discuss safety precautions that the seller should take once the house is listed. For example, the seller should put valuable small items such as jewelry, coins, or papers into a safe deposit box at a bank
A listing period of at least 90 days is mandated by state law in residential transactions.
false
An agent may freely make modifications to the text of the listing agreement form, provided that the seller initials the changes.
false
An agent suggests to her buyers that they might not be comfortable living in the Birchwood neighborhood, because it has a high crime rate and most of its residents are racial minorities. This is legal, as she is helping her buyers narrow down what neighborhood they would most like to live in.
false
Any officer of a corporation may sign a listing agreement on behalf of that corporation.
false
If a home was built after 1978, the seller must complete the lead-based paint portion of the seller disclosure statement.
false
Minor changes to a listing agreement (for example, extending the listing period for one more week) require the seller's consent, but a written modification of the agreement is unnecessary.
false
The multiple listing service is always a party to any listing agreement.
false
Unlike the listing input sheet for residential property, the vacant land input sheet does not ask about local schools.
false
The hold harmless clause provides that if the seller sells the property within six months after expiration of the listing agreement and the buyer is someone who heard about the property through the listing firm, then the listing firm is still entitled to a commission.
false- extender clause
sellers insurance
tel lsellers that the peroperty is on sale -If anything does happen to your clients' property, they'll want the loss to be covered.
There are three different types of listing agreements:
the open listing, the exclusive agency listing, and the exclusive right to sell listing.
Sections in Seller disclosure
title, water, sewer/ on site sewage system, structural, systems and fixtures, homeowners assoiciation/ common interst, envirionmental, lead based paint, manufactured-mobile homes, full disclosure by seller, full disclosure by sellers,
A listing agreement may be terminated through the unilateral action of either the listing firm or the seller.
true
An agent completing a listing input sheet should indicate whether the house is occupied by the owner, occupied by a tenant, or vacant.
true
Any known material defect must be disclosed on the seller disclosure statement form, even if the form does not have a specific question about that particular type of defect.
true
If a seller's property is stolen during an open house, the listing agent is not liable for any loss.
true
In the listing agreement, the seller may give advance consent to a dual agency.
true
Net listings are legal in Washington but generally frowned upon.
true
On the listing input sheet, you may opt to keep the property's address undisclosed.
true
The Fair Housing Act is enforced through the Department of Housing and Urban Development.
true
If you don't have the legal description when you're taking the listing
you should write something to the effect of "Legal description to be provided at a later date" in the blank for the legal description. Then obtain the legal description and attach it to the agreement as soon as possible.
Types of violations
-Within the broad prohibition of agreements in restraint of trade, four specific types of behavior are prohibited by the antitrust laws. -
Listing period
90 days is typical -However, properties that are priced higher than the median-priced home in your market may take longer than 90 days to sell. And a property priced significantly higher may take significantly longer to sell. You should do some market research to determine how long it takes to sell an average home in this property's price range in your area. You can present this information to the seller, and then suggest a listing expiration date that's within that time frame.
license law ad discrimination
A Washington real estate licensee who violates a state or federal antidiscrimination law is subject to disciplinary action under the license law. That means the licensee could have her license suspended or revoked, face a fine of up to $5,000 for each instance of discrimination, and be required to complete an educational course on civil rights law
substantial development permit.
A development is considered substantial if its value exceeds $6,416 or if it would interfere with the normal public use of the water or shoreline. Anyone considering buying shoreline property needs to keep this law in mind—it may affect the potential uses of the property.
group boycotts
A formal or informal agreement between competing real estate firms or agents to exclude another firm or agent from fair participation in real estate activities would be an illegal group boycott.
This is the only type of listing agreement that allows a seller to list the property with more than one agent at the same time.
A seller can enter into open listing agreements with more than one brokerage firm at the same time.
Open Listing
An open listing is non-exclusive. In other words, a seller can enter into open listing agreements with more than one real estate firm at the same time. Under the terms of these agreements, the seller will be obligated to pay a commission only to the firm whose agent is the procuring cause of the sale.
Urea formaldehyde
Another environmental hazard, urea formaldehyde, may be found in the adhesives used in pressed wood building materials, which are used in furniture, kitchen cabinets, and paneling. Urea formaldehyde emits dangerous gas, which can cause cancer or breathing problems, for only a few years. Older urea formaldehyde materials are not considered to be dangerous.
Implied willingness to discriminate
Another thing to avoid saying or implying during a listing presentation is that the house will be easier or more difficult to sell because of the presence of a particular group in the neighborhood, or because of the racial or ethnic character of the neighborhood as a whole. In this context, keep in mind that statements don't have to be negative to be discriminatory. For most agents it's easy to refrain from saying negative things related to race, religion, national origin, or other protected categories. But even positive statements can violate antidiscrimination laws under some circumstances.
WA consumer protection Act
Antitrust violations are also prohibited under the state Unfair Business Practices and Consumer Protection Act. This law also forbids other misleading or deceptive practices, such as false advertising.
Illegal drug manufacturing
As a real estate agent, you may occasionally come across properties that have been used for illegal drug manufacturing operations. Some of the chemicals used in the manufacture of certain drugs and some of the byproducts of the process are highly toxic, and the effects of contamination can linger for long periods of time. This can pose a substantial health risk for a property's occupants. If a site was ever used to manufacture illegal drugs, it should be thoroughly tested by experts. A site that's currently being used to manufacture illegal drugs can be seized by the government—even if the owner had no knowledge of the illegal drug activity.
Once commonly used in insulation and roofing material, this can cause lung cancer if disintegrated particles are inhaled.
Asbestos is not hazardous in its intact condition, but its dust can cause lung cancer if inhaled.
Asbestos
Asbestos is one of the best-known environmental hazards. It was once commonly used as insulation on plumbing pipes and around heat ducts. It was also used in floor tile and roofing material. As long as it remains in its original state, asbestos is believed to be harmless. However, asbestos dust can cause lung cancer. Asbestos materials turn into dust when they age and begin to disintegrate, or when they are damaged or removed during remodeling projects.
This law assigns cleanup costs associated with properties contaminated with hazardous waste.
CERCLA regulates liability for cleanup of hazardous waste sites, and created a fund for facilitating this process.
This law prohibits development in wetlands without proper government permission.
Clean water act
Contaminated water
Contaminated water is a serious health hazard. Drinking contaminated water can cause physical symptoms that range from mild stomachaches to cancer, from kidney and liver damage to death. Water can be contaminated by bacteria, viruses, nitrates, lead and mercury, fertilizers and pesticides, and radon. -These contaminants may come from underground storage tanks, from nearby farms or industries, or from malfunctioning septic systems. Homeowners who use a private well as their water source should have the well tested by the health department or private laboratories at least once a year. If a well has become contaminated, a new well may have to be dug.
earthquakes
Earthquakes are potentially the most destructive of all geological hazards, but they are the least predictable and controllable. There isn't much that real estate agents can do to evaluate earthquake risks, but agents should be aware that seismic retrofitting—for instance, bolting a home's wood frame to its foundation—can minimize damage to structures.
superfund
First, it established a multibillion dollar fund, called Superfund, to pay for the cleanup of hazardous waste dumps and spills of hazardous material. Second, it established a process to identify liable parties and make them responsible for cleanup costs.
flooding
Flooding can be a major problem in low-lying, flat areas adjacent to Washington rivers. An agent examining property in such an area should look for signs of previous flood damage. It may be a good idea to consult local records to determine how often flooding has occurre
Geologic hazards
Four types of geologic hazards and natural disasters are of particular concern to property owners: landslides, flooding, subsidence, and earthquakes.
Refusal to list
If a neighborhood is within the market area served by your brokerage firm, you (or your firm) can't refuse to list property in that neighborhood because of the presence of a group protected by antidiscrimination laws. For example, suppose your managing broker tells you not to take listings in a certain neighborhood. When you ask why not, he says it's a gay neighborhood. His instructions (and your compliance with them) would violate the Washington Law Against Discrimination, since it prohibits discrimination based on sexual orientation.
The penalties for violating the Sherman Act are severe.
If an individual is found guilty of violating the act, she can be fined up to one million dollars and sentenced to ten years in prison. If a corporation is found guilty of violating the act, it can be fined up to one hundred million dollars.
Agent Duties
If you suspect any problems, advise the seller to consult an environmental attorney, an environmental engineer, or other professional. -Naturally, the presence of environmental hazards must be disclosed in the seller disclosure statement. -And in some cases it may be appropriate for the seller to have an attorney draft additional, more detailed disclosures. -If you're representing a buyer who's interested in property that presents environmental issues, make sure the buyer understands the potential problems. As a general rule, any necessary cleanup should be completed before closing. But the buyer must also realize that if further cleanup turns out to be necessary later on, under federal law he could be held responsible for the additional cleanup costs (even though he didn't cause the contamination).
refusal to list for discriminatory reasons
It's illegal to refuse to list property in your market area because of the presence in the neighborhood of a group protected by antidiscrimination laws.
Landslides
Landslides are a common geological problem for homeowners in Washington. The weight of a house built next to a cliff or on sloping ground may cause soil to move downhill, especially after a heavy rain. This can cause foundation cracking or much more severe structural damage. A real estate agent examining a property should look for landslide warning signs such as cracks or dips in the ground, active soil erosion, and tilting trees. A geologist should be consulted in such a situation to assess the degree of threat to the buildings on the property.
Lead-based paint
Lead-based paint is the most common source of lead in the home. Lead, which is extremely toxic, is especially harmful to children. It can damage the brain, the kidneys, and the central nervous system. Many homes built before 1978 contain some lead-based paint. As the paint deteriorates, or if it is sanded or scraped, it forms a lead dust that can be breathed in or ingested. Homeowners should never try to deal with lead-based paint themselves. A professional should be hired to eliminate the paint or cover it with non-lead-based paint.
implied willingness to discriminate
Make sure that what you say or do (or fail to say or do) doesn't create the impression that you'd be willing to discriminate or allow someone else to. Don't tell racial or ethnic jokes or lend your silent approval to such jokes.
Discriminatory advertising
Make sure that your advertisements follow fair housing principles. Use flyers properly, choose your media carefully, make sure your photos and clip art reflect the diversity of your population, and use the fair housing logo or slogan in all ads for residential property.
Mold
Mold is a common problem, and for most people it causes no adverse health effects. But for some people it can render a house unlivable. When a person who is sensitive to mold is exposed to particularly noxious mold infestations, serious respiratory problems may result. Mold cannot be totally eliminated, but its growth can be controlled by limiting sources of moisture. Mold that is already growing may be removed by scrubbing with water and bleach, although carpet or tile that has been affected may need to be thrown out.
This law requires an environmental impact statement before a federal agency undertakes an action that may have an effect on the environment.
NEPA requires federal agencies to provide an impact statement before taking any action that may have significant environmental effects.
If asbestos is present in a building, an experienced professional can deal with it in one of three ways:
Placing an airtight barrier between the asbestos and the rest of the space. (This is called enclosure.) Covering the asbestos with an adhesive that permanently seals in the asbestos fibers. (This is called encapsulation.) Removing the asbestos materi
If a local multiple listing service publishes a statement that lists what commission rate each brokerage in the area is charging, this would be considered _______________ and a violation of antitrust laws.
Price fixing
This carcinogenic gas, associated with underground uranium deposits, can enter a house through cracks in foundations or floor drains.
Radon
Radon
Radon is a colorless, odorless gas that may cause lung cancer. It is found wherever uranium is deposited in the earth's crust. As the uranium decays, radon gas is formed and seeps from the earth into the atmosphere. Sometimes the gas gets trapped in buildings. It may enter a house through cracks in the foundation or through floor drains.
This law applies to private land development that requires approval from a state or local government agency in Washington.
SEPA
State Environmental Policy Act, or SEPA.
SEPA requires an environmental impact statement for all acts of state or local government agencies that may have a significant effect on the quality of the environment. SEPA also applies to private land development that requires the approval of state, city, or county government agencies. SEPA requirements must be met before a city or county can approve rezones, variances, conditional use permits, or building permits.
Clean water act
Section 404 of the federal Clean Water Act protects wetlands. Under this law, a private landowner may not fill or drain wetlands on her property without obtaining a permit from the U.S. Army Corps of Engineers. The legal definition of wetlands is expansive, encompassing swamps, marshes, ponds, and similar areas where the soil is saturated for part of the year. Thus, this law can severely limit what some owners may do with their land.
The _______________ is a federal law that prohibits any agreement between business entities that serves to restrain trade.
Sherman Act
tie in arrangements
Sherman Act Price fixing Group boycotts Tie-in arrangement Market allocation Washington Consumer Protection Act It's an illegal tie-in arrangement when someone will sell one product or service only on the condition that the buyer also purchases a different product or service.
This state law requires special permits for development within 200 feet of large bodies of water.
Shoreline Management ACt
subsidence
Subsidence, or the collapse of ground into underground cavities, is another possible problem. This can occur naturally, but it more commonly results from man-made cavities, such as those left behind where underground storage tanks have been removed or where mining has occurred.
Sherman Act
The Sherman Act is a federal antitrust law that prohibits any agreement that results in an unreasonable restraint of trade. Specific practices that violate the Sherman Act include price fixing, group boycotts, tie-in arrangements, and market allocation.
The most important antitrust law for our purposes is the Sherman Antitrust Act, which was passed in 1890.
This act prohibits any agreement that has the effect of unreasonably restraining trade.
Underground storage tanks
Underground storage tanks are a common problem in both commercial and residential properties. Underground storage tanks are used by gas stations, chemical plants, and paint manufacturers. They're also used by homeowners to store fuel oil. Storage tanks are considered "underground" if 10% of their volume is below the earth's surface.
This chemical, sometimes found in items made of pressed wood materials, can cause cancer and breathing problems.
Urea formaldehyde, which may be found in adhesives used to make pressed wood products, can cause health problems.
remarks that constitue blockbusting
When you list a property, never say or imply that the presence of minorities in the neighborhood will lower property values, change the neighborhood's character, make the neighborhood less safe, or lower the quality of neighborhood schools.
Explain the law
When you're making a listing presentation, explain the antidiscrimination laws to the seller and discuss your commitment to fair housing principles. Ask the seller to make a commitment to them, too. If the seller refuses to do so, you should refuse to take the listing.
Blockbusting
When you're soliciting listings from potential sellers, never say or imply that the presence of minorities in the neighborhood will lower property values, change the character of the neighborhood, make it less safe, or lower the quality of its schools. Any statements or implications of that nature would constitute blockbusting.
The Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA,
cleanup costs- Since its enactment, it has revolutionized the sale and management of real property, especially commercial property.
A developer in eastern Washington advertises lots in a new subdivision without mentioning that the lots are arid and not hooked up to utilities. He could be liable to buyers for damages under the _______________.
consumer protection act
explain the law
explain fair housing laws to the seller, discuss your commitment to fair housing, and ask the seller to make a similar commitment. If the seller refuses to do so, you should refuse to take the listing.
A classified advertisement states: "Four-bedroom home in traditional neighborhood. Large yard, close to good schools. You won't find another house of this size in a white neighborhood at a price this low!" This advertisement would be lawful.
false
An agent may encourage a seller to list his property by stating that property values in the neighborhood may drop because of changes in the composition of the neighborhood.
false
An apartment complex is intended for and solely occupied by persons 62 years or older (meeting federal requirements for elder housing). An advertisement for this property includes the phrase: "Absolutely no children! Hacienda House is an adults-only complex." This is discriminatory.
false
Gathering more information about rental applicants who belong to a certain racial or ethnic group doesn't violate Washington law, as long as that information is not actually used to discriminate against the applicants.
false
The most common form of compensation for real estate agents is a commission expressed as a specific dollar amount.
false
The Washington Law Against Discrimination is enforced by the Department of Housing and Urban Development (HUD).
false- Incorrect. The Washington Human Rights Commission is the agency charged with enforcing the state law. (HUD enforces the federal Fair Housing Act, not the state law.)
In an exclusive listing agreement, the seller grants the broker the exclusive right to present offers to purchase the property.
false- A listing agreement is a contract between the seller and the listing firm, not the listing broker. Only a firm may legally provide real estate brokerage services to the public. (The listing broker submits offers to the seller as an agent of the listing firm.)
A buyer's agent may not answer questions that a buyer has about the racial composition of various neighborhoods that she is interested in.
false-An agent may provide truthful answers to questions about neighborhood characteristics, including demographics. However, the agent must not try to discourage the buyer from looking at houses in a particular neighborhood because of its racial makeup.
Under the Americans with Disabilities Act, a listed home may have to be modified to make the property accessible to persons with disabilities before it can be sold.
false-The ADA requires places of public accommodation and other commercial facilities to be accessible to disabled persons, and business owners may have to modify their premises to comply. But residential properties aren't public accommodations or commercial facilities, so the ADA doesn't apply. (Also, it isn't ordinarily necessary to make commercial property accessible before it can be sold or leased, although the buyer or commercial tenant may have to modify it before opening a business there.)
The safety clause provides that the seller is responsible for the listing information and will reimburse the brokerage firm for damages that the firm must pay because of misinformation in the listing agreement.
flase
A discount brokerage charging only a 4% commission opens in a small town. The other brokerages in town decide together to refuse to send any referrals to the new brokerage. This would be considered a _______________.
group boycott
Shoreline managment act
he Shoreline Management Act regulates development within 200 feet of a high water mark. This law affects the development of land bordering coastal shorelines, lakes larger than 20 acres, and streams that flow at a rate in excess of 20 cubic feet per second.
Price fixing
is defined as the cooperative setting of prices by competing business firms. If competing real estate firms set (or appear to set) uniform commission rates, they can be charged with price fixing.
conspiracy
is defined as two or more business entities participating in a common scheme, the effect of which is to create an unreasonable restraint of trade. Conspiracies do not require any malicious criminal intent, and they are not limited to big business. A conspiracy is simply two or more businesses—real estate brokerages, for example—agreeing to follow a particular course of action that unreasonably restrains trade.
Endangered Species Act
is intended to conserve the habitats of animals that have been listed as endangered or threatened. Someone who owns land where listed species are present may develop the land if he agrees to a Habitat Conservation Plan and takes measures designed to limit harm to the protected habitat. Once a plan has been agreed upon, the landowner won't be required to take additional steps, even if environmental circumstances change.
Ingestion of this substance, which hasn't been used since the 1970s, can cause brain damage, especially in small children.
lead-based paint
This can grow in damp, unexposed areas inside a house, causing respiratory problems for those who are particularly susceptible.
mold
An agent tells a client, "Our commission rate is 7%. This is the local standard, and it's not negotiable." By suggesting that commission rates are fixed, he has opened himself to charges of _______________.
price fixing
NEPA, the National Environmental Policy Act.
requires federal agencies to provide an environmental impact statement, referred to as an EIS, for any action that may have a significant effect on the environment. An EIS should disclose the impact of the development on energy consumption, sewage systems, drainage, water facilities, and other environmental, economic, and social factors. -NEPA applies to all types of federal development and to private actions that require the approval of a federal agency. NEPA has a huge impact on all kinds of activities, such as public works projects and management of public resources. It applies to more than just land development or construction.
If radon is found to be present in a home, the levels may be lowered by:
sealing the holes or cracks that allow the gas to enter the home; increasing the ventilation where the radon enters, to dilute the gas; or pressurizing the home to keep the gas out.
A licensee agrees to manage a commercial complex, but only on the condition that when the owner plans to sell the property, he must list it with the licensee. Under antitrust laws, this would be a _______________.
tie-in arrangement
A lender believes that minorities are more likely to default on their mortgages, and therefore charges non-whites a higher interest rate for home loans. This is a violation of the Washington Law Against Discrimination.
true
A listing agreement should include a legal description or other unambiguous description of the property.
true
A real estate agent is working with a buyer who's a different race than the agent. The agent didn't explicitly refuse to represent this buyer, but he schedules appointments only at inconvenient times and arbitrarily cancels appointments, hoping the buyer will give up and go away. This is a violation of the Washington Law Against Discrimination.
true
A real estate agent sends out flyers to residents in a neighborhood, stating that minority families have begun moving into the neighborhood and predicting a decline in property values. This is an illegal practice known as blockbusting.
true
A real estate licensee is advertising a property located in a primarily Latino neighborhood. He advertises only in several Spanish-language publications, feeling that the buyer will most likely be a reader of one of those publications. This is illeg
true
During a listing presentation, a prospective seller makes a disparaging joke about a particular racial minority, although he does not say that he would refuse to sell to a non-white buyer. The agent must at that point explain her commitment to fair housing principles, even if it means losing the listing.
true
The federal Fair Housing Act prohibits discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability.
true
The legal description in a listing agreement may take the form of an attached photocopy of the description from the seller's deed.
true
The seller must give the seller disclosure form to the buyer within five days after the purchase and sale agreement is signed.
true
Market allocation
when competing brokers agree not to sell some or all of their products or services in certain areas, or not to sell to certain customers in certain areas.
Closing costs
The seller agrees to pay for the buyer's title insurance policy and the real estate excise tax. -It's customary for the seller to pay for the buyer's title insurance policy, since it's the seller who's promising that she's capable of transferring marketable title to the buyer. -And since excise tax is a tax on the sale of property, it's generally the seller who pays the tax. -Also in Paragraph 8, the seller agrees to pay half of the escrow fees—or, if the transaction is financed with an FHA or VA loan, whatever portion of the escrow fees the seller is required to pay. This paragraph also lists items that will be prorated between the seller and the buyer at closing. This may include rent, property taxes, interest, reserve account deposits, assumed obligations, homeowners association fees, and insurance.
Under this type of listing, the listing firm is entitled to a commission if the property is sold, regardless of whether its own agent, an agent from another firm, or the seller found the buyer.
An exclusive right to sell listing guarantees the listing agent a commission as long as the property sells during the term of the listing agreement.
Modifying the form
As a general rule, a multiple listing service doesn't allow the parties to make changes to the MLS listing agreement form. Occasionally a pre-printed provision can be crossed out or changed with special permission from the MLS. When permission for this type of modification has been granted, the listing agent must make a note of the change on the input sheet, so that other agents will know about it.
input sheet
MLS listing agreement forms include a listing input sheet. On the input sheet, the listing agent describes the property's features and provides related information using checkboxes and codes, for easy input into the MLS database.
open listing facts
Open listings are rarely used in residential real estate transactions. -Real estate agents generally prefer to avoid open listings, because a dispute could arise over who the procuring cause of the sale was. -Furthermore, agents tend to not work as hard on open listings as they do on other kinds, because actually earning the commission is a fairly uncertain proposition. -In addition, many multiple listing services don't accept open listings.
This type of listing is disfavored by brokerages since no commission is owed if the seller finds a buyer, or if an agent from another firm finds a buyer.
Open-Under an open listing, the listing brokerage is not entitled to a commission if the buyer is found by the seller himself, or by an agent from another firm.
Disclaimer of liability
Paragraph 10 states that the real estate agents involved in marketing the property won't be responsible for loss, theft, or damage of any kind to the property or to the personal items within the property. This means that if the property is damaged or a personal item is stolen during an open house or a showing, you won't be liable for the loss. This disclaimer of liability extends even to the misuse of the keybox.
Corporations and other entities
When property owned by an entity (such as a corporation, partnership, or trust) is going to be listed for sale, the listing agreement must be signed by a person authorized to sell the property. -The entity is the seller, and the authorized person signs on the entity's behalf.
Under the Washington law, all of the actions on this list are prohibited
if they're based on race, creed, color, national origin, sex, sexual orientation, marital status, familial status, disability, use of a guide or service animal, or military or veteran status. : Refusing to engage in a real estate transaction Discriminating in the terms or conditions of a transaction Discriminating in providing services or facilities in connection with a transaction Refusing to receive or transmit a bona fide offer Refusing to negotiate Representing that property is not available when it is in fact available Failing to advise a prospect about a listing Publishing any advertisement that indicates discriminatory intent Using an application form or inquiry that indicates discriminatory intent Accepting a listing with the understanding that a person may be discriminated against Expelling a person from occupancy Discriminating in financing a real estate transaction or providing related services (such as title insurance) Inducing someone to sell or rent by representing that members of a protected class are coming to the neighborhood (blockbusting) Inserting into a written instrument a condition or restriction based on a protected class Graphic shows a list of actions prohibited by the Washington law.
