Chapter 6 Listing Agreements and Buyer Representation.

Chapter 6Listing Agreements and Buyer Representation

Modern Real Estate Practice 17th Edition

Listing Agreements

Exclusive-right-to-sell listing Exclusive-agency listing Open listing Multiple-listing (MLS) Net listing Option listing

• Given to any number of brokers• Owner can sell and not owe a commission• Owner only owes a commission to broker who

provides a buyer• Not used very often since no protection for broker

• Owner hires one broker• Owner can sell and not owe a commission• Owner owes a commission to the listing broker if sold

by the broker

• Owner hires one broker• If owner sells the property they still owe a

commission• Owner owes a commission to broker no matter who

sells the property• The most common listing type used

• A net amount to the seller is stated in the listing• Broker’s commission is amount in excess of the net

amount • Illegal in many states


Termination purpose is fulfilled expiration of listing period property is destroyed or use is changed title is transferred by law mutual agreement of the parties death or incapacity of either party breach


Listing Process

CMA Basic information required Disclosures


Listing Agreement Issues

Type of listing agreement Broker’s authority and responsibilities Names of all parties Brokerage firm Listing price Real and personal property Leased equipment


Listing Agreement Issues

Description of the premises Proposed closing and possession dates Closing details Evidence of ownership Encumbrances Home warranty program Commission


Listing Agreement Issues Termination Broker protection clause Owner warranties Indemnification Equal opportunity Antitrust Signatures and date


Buyer Agency Agreements

Exclusive buyer agency agreement

Exclusive-agency buyer agency agreement

Open buyer agency agreement

Chapter 6 Listing Agreements and Buyer Representation.

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Transcript of Chapter 6 Listing Agreements and Buyer Representation.