revised 7-30-08 chapter 6 slide 1 copyright – david a. mcgowan all rights reserved. chapter 6...

Revised 7-30-08

Chapter 6

Slide 1Copyright – David A. McGowan

All rights reserved.

Chapter 6

EMPLOYMENT CONTRACTS

Exclusive-right-to-sell (Page 81)

Exclusive-agency listing (Page 81)

Open listing (Page 81)

Buyer Representation (Page 97)

Revised 7-30-08

Chapter 6



OPEN LISTING (Page

81)

Verbal agreement

Any number of brokers

Seller retains right to sell without a broker

Unenforceable

Unable to advertise, create a flyer or place a sign (License ACT Sec 20-20 (¶17) 6)

Revised 7-30-08

Chapter 6



EXCLUSIVE LISTINGS (Page

93)

Must be written

Changes must be in writing & signed by all signatories (Page 95)

Commission – How much & when due

Names of broker, seller & designated agent

Revised 7-30-08

Chapter 6



EXCLUSIVE LISTINGS (Page 93)

Duration

List price

Address of the property

Dual Agent Authorization(Page 88 & License ACT Sec 15-45 Page 21)

Revised 7-30-08

Chapter 6



EXCLUSIVE LISTINGS (Page 93)

Default of earnest money (Page 91)

Discrimination (Page 91 & License ACT Sec 20-20 (21) & (22) Page 27)

Minimum services (License ACT Sec 15-75 Page

24)

Anti-trust

Revised 7-30-08

Chapter 6



EXCLUSIVE RIGHT TO SELL (Page

81)

One broker selected to represent the seller

Selected broker paid a commission regardless of who finds the buyer

Revised 7-30-08

Chapter 6



EXCLUSIVE AGENCY LISTING

(Page 81)

One broker selected to represent seller

Broker paid a commission if they or another broker is involved in the sale

Seller retains the right to solicit their own buyer without obligation for a commission

Revised 7-30-08

Chapter 6



NET LISTINGS (2)

Seller receives a net amount of money upon sale

Broker ‘s commission is anything obtained above the seller’s net

Legal in Illinois

Considered un-ethical

Revised 7-30-08

Chapter 6



MULTIPLE LISTING SERVICES

An association of brokers to share listing information

An offer of sub-agency absolutely may not be made through an MLS in Illinois

Revised 7-30-08

Chapter 6



EXPIRATION OF LISTING

All listings in Illinois must specify a definite period of time (Page 84)

The failure to specify a definite termination date in a listing agreement is grounds for suspension or revocation

(Page 84)

Revised 7-30-08

Chapter 6



BROKER PROTECTION PERIOD

(Page 84)

Provides for payment of commission after the expiration date if a purchaser to whom the broker had physically shown the property returns to purchase it

If property is re-listed by another broker, all existing safety clauses are automatically cancelled

Effective on residential property of 4 or less units

Revised 7-30-08

Chapter 6



DISCLOSURES (Page 87)

Disclosure of agency

Disclosure of material facts

Disclosure of interest

Disclosure of special compensation

Default of Earnest money

Revised 7-30-08

Chapter 6



DISCLOSURES (Page 87)

Disclosure of property condition

Illinois Real Property Disclosure Report (Page 40)

Lead based paint (Page 428)

Radon (Page 431)

Revised 7-30-08

Chapter 6



BUYER AGENCY AGREEMENTS

(Page 97)

Exclusive buyer agency agreement

Exclusive-agency buyer agency agreement

Open buyer agency agreement

Revised 7-30-08

Chapter 6



TERMINATION (Page 101)

Closed

Expiration

Substantial destruction

Some force outside the owner’s control, such as a zoning change or condemnation by eminent domain.

Revised 7-30-08

Chapter 6



TERMINATION (Page 101)

Operation of law, as in the case of the client’s bankruptcy.

If the broker and client mutually agree to end the agreement

Broker or client dies or becomes incapacitated.

Broker or client breaches the contract (the breaching or canceling party may be liable to the other for damages)

revised 7-30-08 chapter 6 slide 1 copyright – david a. mcgowan all rights reserved. chapter 6...

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