Section 5 Enhanced*
Because a CMA is not an appraisal, the licensing law requires the following statement to be printed?
"conspicuously and without change" on the first page of the CMA report.
What is a comparative market analysis?
A comparison of properties that are similar to the seller's property in location, size, style, age, and amenities.
Any advertisement for a real estate offering that uses lotteries or contests or that offers prizes, certificates, gifts or free lots must contain:
A description of each prize, certificate, gift or lot The prerequisites for receiving each prize, certificate, gift or lot A limitation on the number of prizes, certificates, gifts or lots offered The fair market value of each prize, certificate, gift or lot If the advertisement is in print, the statement of fair market value must be in the same size type as the description of the prize, certificate, gift or lot. The odds of winning or receiving each prize, certificate, gift or lot.
An exclusive listing agreement may not contain:
A listing period exceeding 1 year An automatic renewal clause Any cancellation requirement that requires notification to the broker of termination upon the listing's expiration date Authority of the broker to execute a signed agreement of sale or lease for the owner or lessor An option by the broker to purchase the listed property Authority of the broker to confess judgment against the owner or lessor for the Commission in the event of a sale or lease
Which of these is not a valid reason for terminating a listing contract?
The property is damaged by a hailstorm. Once a listing agreement is in place the broker and client both have a responsibility to fulfill the terms of the agreement. A listing agreement is not terminated by weather damage or "acts of God."
Home tours are oftentimes referred to as
caravans
Can Licensee Dave use his nickname, Skip, when he advertises?
Only if he included the nickname on his license or renewal application.
Other Advertising Rules
An advertisement by a broker about ''sales volume'' or ''production'' can refer only to closed transactions. A ''closed transaction'' is defined as either a sold listing or a sale made after a fully-executed deed is delivered. An advertisement by a broker about his production or position in the ''market'' must identify the municipality that the market comprises. An advertisement by a broker about the number of offices that he or she operates must refer only to those offices that have been issued branch office licenses by the Commission.
Exclusive Agency
An exclusive agency agreement gives one broker the exclusive right to market and sell the property, while the owner retains the right to find a buyer and sell the property without owing the broker a commission. The seller must pay a commission only if the home is sold by the broker or an authorized agent or subagent of the broker.
Most states require what four components to be on a listing agreement?
An identification of the property A promise of compensation to the broker The specifics of that compensation Written document with signatures of the seller or sellers
Open Listing
An open listing is a non-exclusive contract. This type of listing gives the seller the right to engage any number of brokers as agents. With an open listing, all contracted brokers can market the property at the same time. Only the one broker who brings the ready, willing and able buyer will receive the commission.
What is the most important aspect of the broker's fee and the duration of the contract?
Both have been arrived at and agreed to through negotiation.
Broker Greg takes out an advertisement that details the production numbers for his firm. What must the ad identify?
The municipality or location that his market comprises.
Which of the following statements is FALSE about the Seller's Disclosure Statement?
The purchaser can receive a copy anytime before closing. Pennsylvania's property disclosure law requires a seller of residential real estate to disclose to the buyer any and all material defects. The seller is responsible for completing the disclosure statement and the licensee is responsible for providing an appropriate form for the seller to use. A purchaser must receive the disclosure statement before he or she signs an offer to purchase.
An exclusive listing agreement (whether exclusive-right-to-sell or exclusive agency) must contain:
The sale or lease price The commission, fees or other compensation expected on the sale or lease price The duration of the agreement In the case of an exclusive-right-to-sell agreement, a statement in bold print that the broker earns a commission on the sale of the property during the listing period, regardless of who makes the sale, including the owner In the case of an exclusive-right-to-lease agreement, a statement in bold print that the broker earns a commission on the lease of the property during the listing period, regardless of who makes it happen, including the lessor
The sales comparison approach, also known as the market data approach
The sales comparison approach is widely used because it takes into account the subject property's specific amenities in relation to competing properties. In addition, because of the currency of its data, the approach incorporates present market realities. The sales comparison approach is limited in that every property is unique. As a result, it is difficult to find good comparables, especially for special-purpose properties. In addition, the market must be active; otherwise, sale prices lack currency and reliability.
What is a broker protection clause?
This clause says that the owner will compensate the broker if, within a certain number of days after the listing expires, the owner sells the property to someone the broker "introduced" to the property during the listing period.
In 1996, Pennsylvania adopted a property disclosure law called the Real Estate Seller Disclosure Act. What does this do?
This law requires any seller of residential real estate to disclose to the buyer any and all material defects. The seller is obligated to disclose any structural, mechanical or other conditions that a prospective buyer would need to know to make an informed decision.
How can an agent determine who has title to a property he or she is listing?
Ask the seller for a copy of the deed or other title document. Call and check with a title company in the area where the property is located. Call or visit the county tax office and check the records.
A profile sheet is often referred to as a
property data form.
When must the seller receive a copy of the listing agreement?
The seller must receive a copy of the document at the time the signatures are obtained.
Net Listing
A net listing is not technically a type of listing agreement. In a net listing, an owner sets a minimum amount that he wants to receive from the sale of the property and lets the broker have as commission any amount above the set minimum. Net listings are generally viewed as unprofessional and they are illegal in many states.
What is the term given to the action when a broker doesn't perform his or her duties as stated?
Abandonment A listing agreement can be terminated if a broker does not perform his or her duties as stated. This non-performance is known as abandonment.
Neighborhood Canvass Letter
About a week or so after getting the listing, some agents send a letter to the residents of the neighborhood. The letter introduces the listing to the residents and asks for their help in locating a buyer. If you choose to use this marketing tool, be sure to include a property flyer with the letter and an indication that you will be calling the resident within some short timeframe. Then follow through!
Agent Fred uses the nickname "Shorty" on all his advertisements. What can be said about the legal issues of this marketing strategy?
Agent Fred can legally use the nickname, provided that name appears on his license. Pennsylvania law requires that individual licensees must include any nicknames they wish to use in advertising on their licenses or renewal applications.
Name the three types of listing agreements.
Exclusive-right-to-sell Exclusive agency Open
Exclusive-Right-To-Sell
If the property sells while the broker has the listing, the seller must pay the agreed upon commission, regardless of who actually procured the buyer (who was the procuring cause). This means that even if the seller himself finds the buyer with no help from the broker, the seller still owes the broker the commission.
What two items must be present for a listing contract to be enforceable?
It must be in writing and signed by the seller.
Pennsylvania Rules
Pennsylvania licensing law requires a written agreement between the broker and a consumer if the consumer will be paying the broker a fee. The agreement must outline the services the broker will perform for compensation and state the compensation amount. Note: This rule does not prohibit a licensee from performing services before such an agreement is signed, but he or she is not entitled to receive a fee or commission without a signed agreement.
Each of the following would be an item on a listing contract EXCEPT which one?
Terms of purchase A typical listing agreement will contain the agreed price of the listing, the amount of broker compensation, a description of the property, the term of the listing and the type of the listing agreement.
When members share information through an MLS service, what is usually the result?
The commission gets divided between the listing and selling broker when the property sells.
Licensee Tim works for Broker Marty. Tim lists Seller Gary's home, fills out all the paperwork and signs the agreement. The listing agreement is a contract between whom?
The contract is between Broker Marty and Seller Gary. As an employee of Marty, Tim is acting as a subagent.
To what standards is an appraisal written?
Uniform Standards of Professional Appraisal Practice Appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practice, which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest.
A listing contract
is a legal document. Although the specifics of listing agreements vary from form to form, all listing agreements are legal documents.
An open listing
is a non-exclusive contract. An open listing is a non-exclusive contract that gives the seller the right to engage any number of brokers as agents. The broker who brings the ready, willing and able buyer receives the commission.
The listing agreement
is the contract that creates an agency relationship between the broker and the principal (seller) authorizing the broker to offer the seller's property for sale and to solicit purchase offers to submit to the seller.
