George Real Estate Group
Real Estate: An Introduction to the Profession
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The Principal-Broker Relationship: Employment
Chapter 20
Listing Agreement • An employment contract between the owner/ seller and the real estate broker.
Listing Contract Types 1. Exclusive right to sell 2. Exclusive agency 3. Open listing
4. Net listing
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.
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.
Open listing
• There are no exclusive rights. • Whoever sells the property will earn the fee. • Brokers are reluctant to develop a sales effort.
Net listing • Owner states the price he wants for the property and agrees to pay the broker anything above this amount as commission.
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!
MLS • A service among Realtor® members to offer compensation to other member brokers and increasing the market exposure for the listed property.
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.
Key Terms
• Advance fee listing • Broker • Exclusive authority to purchase • Exclusive right to sell
• Multiple listing service (MLS) • Net listing • Ready, willing, and able buyer • Real estate listing
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