2011©cengage learning. all rights reserved.. listing agreements 2011©cengage learning. all rights...
TRANSCRIPT
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Listing Agreements
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NATURE OF LISTING AGREEMENTS
Employment Contract Agency and Contract Agency versus Contractual
Duties
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Contract Requirements
Offer and acceptance Consideration Other elements common to all contracts
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Commissioner’s Regulations Seller must be given a copy of the listing
agreement at the time it is signed. Agreements must contain a termination date.
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Accepting Deposits
Most listing agreements authorize the broker to accept a deposit.
No Provision – broker accepts the deposit as the buyer’s agent and at the buyer’s risk.
Deposit becomes the seller’s responsibility on acceptance of the buyer’s offer.
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The deposit never becomes the property of the broker, and if it is ever placed in a personal or business account, the broker is guilty of commingling.
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Uncashed Checks as Deposits Management of Deposits
Once an offer is accepted by the seller, the broker must, by the next business day, either give the check to the seller, deposit it in escrow, or place it in a trustee account.
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Appraisals for Listing Price
Brokers liable for appraisals using the words “certified appraisal” “registered appraisal” “licensed appraisal” or other words likely to be confused with a
certified appraisal
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TYPES OF LISTINGS
Open Listing Exclusive Agency Exclusive Right to Sell
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SPECIAL LISTING FORMS
Net Listing Option Listing Multiple Listing
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BROKER’S RIGHT TO COMPENSATION Amount by Agreement Writing Mandatory
Except between Brokers Except Tort Interference
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Procuring Cause
Sale resulted directly & proximately from the broker’s personal efforts
Broker must have introduced a qualified buyer
Unbroken chain of events Purchased or offered to purchase the seller’s
property
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Ready, Willing, & Able Buyer
Buyer produced to purchase property on exact or other terms acceptable to seller.
No deal, no commission clause. Safety Clause
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Two Commissions Possible
If broker sold the property to a prospective client of a prior broker.
owner should specifically exclude this from any new listing.
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SPECIAL COMMISSION SITUATIONS Withdrawal Requires Commission Default by Buyer Seller’s Option of deposit
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SPECIAL COMMISSION SITUATIONS Probate Sales
Traditional Method Independent Administration of Estates Act Disallowed Commission
After Expiration of Listing
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CALIFORNIA ASSOCIATION OF REALTORS® LISTING AGREEMENT
Please review the 38 paragraphs outlined in the text.
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DOCUMENTS REQUIRED
Residential Disclosure Statement FIRPTA Withholding Statement California’s Withholding Agency Disclosure Statement
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Sales of Mobile Homes
involve separate paperwork and requirements
ordinarily personal property When mobile home is affixed becomes part
of real property.
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Sale of Condominiums
Additional disclosure documents: Covenants, conditions, and restrictions
bylaws Articles of incorporation Any age requirements Financial statements Association dues and charges
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