© 2010 by cengage learning chapter 20 ________________ the principal- broker relationship:...
TRANSCRIPT
© 2010 by Cengage Learning
Chapter 20
________________The Principal-Broker Relationship: Employment
© 2010 by Cengage Learning
Listing Agreement
An employment contract between the owner/seller and the real estate broker.
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1. Exclusive right to sell
2. Exclusive agency
3. Open listing
4. Net listing
Listing Contract Types
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Exclusive Right to Sell
The listing broker is entitled to a commission no matter who sells the property during the listing period.
This is the most common type of listing.
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Exclusive agency
Similar to the exclusive right to sell except the owner may sell the property himself during the listing period and not owe a fee to the broker.
Broker may be less enthusiastic under this form of listing.
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Open listing
There are no exclusive rights. Whoever sells the property will earn the fee. Brokers are reluctant to develop a sales
effort.
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Net listing
Owner states the price he wants for the property and agrees to pay the broker anything above this amount as commission.
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Buyer Representation
Exclusive Authority to Purchase – an agreement where the broker works for the client, the buyer!
Primary responsibility is to the purchaser. Principal is now the Buyer. Buyer Agency!
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MLS A service among REALTOR® members to
offer compensation to other member brokers and increase the market exposure for the listed property.
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Broker Compensation Commission earned when agreed between
owner and broker. Usually occurs when a “ready, willing and
able buyer” is produced. Procuring cause is the one whose efforts
originated the procurement of the sale.
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Terminating the Agreement
Mutual agreement Abandonment
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Key Terms Advance fee listing Exclusive authority to
purchase Exclusive right to sell Multiple listing service
(MLS)
Net listing Ready, willing, and able
buyer Real estate listing