Chapter 6 Listing Agreements and Buyer Representation Whether representing sellers or buyers, the role of the real estate professional is one of building relationships. The property for sale is the product but the focus of the agent’s business is relationships with the parties.

2 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Learning objectives –Identify the different types of listing and buyer representation agreements and their terms –Describe the ways in which a listing may be terminated –Explain the listing process and the parts of the listing agreement –Distinguish between the characteristics of the various types of listing and buyer representation agreements

3 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation In Georgia, a listing or agency agreement is known as a brokerage engagement agreement –Must fully set forth its terms and expiration date –Licensee must furnish copies of agreement to each person signing it –A salesperson who lists, sells, rents, or buys real estate on behalf of another person must do so under the supervision of a broker

4 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Listing agreements –Exclusive-right-to-sell listing –Exclusive-agency listing –Open listing –Multiple-listing (MLS) –Net listing—not legal in Georgia –Option listing

5 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation 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

6 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Listing process –Information needed for the listing agreements –Disclosures

7 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Relating the Sales Price, Commission rate, and the Commission

8 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation 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

9 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Listing agreement issues –Description of the premises –Proposed closing and possession dates –Closing details –Evidence of ownership –Encumbrances –Home warranty program –Commission

10 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Listing agreement issues –Termination –Broker protection clause –Owner warranties –Indemnification –Equal opportunity –Antitrust –Signatures and date

11 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Buyer agency agreements –Exclusive buyer agency agreement –Exclusive-agency buyer agency agreement –Open buyer agency agreement

12 ©2013 Kaplan, Inc. 6 Listing Agreements and Buyer Representation Buyer representation issues –Licensee should make same disclosures to buyer that would be made to seller –License should explain the forms of agency available and the parties’ rights and responsibilities –Services provided to buyer should be explained –Compensation issues should be addressed –Licensee should obtain financial information from buyer