Post-License Ch7 Summary Notes

If something is filled out incorrectly you can be held liable for misrepresentation.

A copy of the listing contract must be given to the sellers within 24 hours after it has been filled out and signed. An Open Listing gives a broker the right to market and sell a property, but that right isn’t exclusive.

• Seller can work with as many brokers as he wan
• Can be terminated at any time, by either party, without prior notice, and cannot be entered into the MLS.

Exclusive-Agency Listing

• A seller works with only one broker, but can still avoid paying a commission by finding a buyer himself.
• The sellers will basically have to act as FSBOs.
• There are forms and notices which, legally, potential buyers must be given when they view the home.

The potential problem with both Open and Exclusive-Agency Listings is with procuring cause. For a broker to receive commission, he has to prove that his efforts produced the buyer and led to the sale.

Exclusive-Right-of-Sale Listing

• Broker is guaranteed a commission regardless of who finds the buy
• There’s no required length.

There’s a clause which states that this contract will automatically be extended if the seller enters into a purchase agreement and the closing is set for after this agreement expires.

In addition to the legal description, the seller will need to list all fixtures and personal property that are included in the sale.

The seller can limit acceptable financing to conventional mortgages. The broker commits to diligently market

the home and seek ready, willing, and able buyers.

Permission for the broker to distribute a CMA and to use a lockbox.

When a buyer writes an offer on the property, one of the contingencies is likely to be that the property’s title is marketable and transferable.

The seller will make all disclosures required by law and will consult with the necessarily professionals with regards to tax, legal, and other advice.

A dispute resolution calls first for mediation by a neutral party. With binding arbitration, the prevailing party is not entitled to compensation for attorney’s fees or other costs.

Your activities will include more than showing the home:

• Holding open houses.
• Keeping the Competitive Market Analysis updated.
• Placing ads in local newspapers and other publications.

Providing Great Service

• You need to enter the listing into the MLS.
• Schedule an office tour and share any feedback with the sellers.
• Stay in regular contact with the sellers.
• When you place an ad, send a copy to your sellers.
• After the first month, review the listing’s activity.

Post-License Ch7 Summary Notes