2011©Cengage Learning. All Rights Reserved.

Listing Agreements 2011©Cengage Learning. All Rights Reserved.

NATURE OF LISTING AGREEMENTS Employment Contract Agency and Contract Agency versus Contractual Duties 2011©Cengage Learning. All Rights Reserved.

Contract Requirements Offer and acceptance Consideration Other elements common to all contracts 2011©Cengage Learning. All Rights Reserved.

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. 2011©Cengage Learning. All Rights Reserved.

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. 2011©Cengage Learning. All Rights Reserved.

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. 2011©Cengage Learning. All Rights Reserved.

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. 2011©Cengage Learning. All Rights Reserved.

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 2011©Cengage Learning. All Rights Reserved.

TYPES OF LISTINGS Open Listing Exclusive Agency Exclusive Right to Sell 2011©Cengage Learning. All Rights Reserved.

SPECIAL LISTING FORMS Net Listing Option Listing Multiple Listing 2011©Cengage Learning. All Rights Reserved.

BROKER’S RIGHT TO COMPENSATION Amount by Agreement Writing Mandatory  Except between Brokers  Except Tort Interference 2011©Cengage Learning. All Rights Reserved.

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 2011©Cengage Learning. All Rights Reserved.

Ready, Willing, & Able Buyer Buyer produced to purchase property on exact or other terms acceptable to seller. No deal, no commission clause. Safety Clause 2011©Cengage Learning. All Rights Reserved.

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. 2011©Cengage Learning. All Rights Reserved.

SPECIAL COMMISSION SITUATIONS Withdrawal Requires Commission Default by Buyer Seller’s Option of deposit 2011©Cengage Learning. All Rights Reserved.

SPECIAL COMMISSION SITUATIONS Probate Sales  Traditional Method  Independent Administration of Estates Act  Disallowed Commission After Expiration of Listing 2011©Cengage Learning. All Rights Reserved.

CALIFORNIA ASSOCIATION OF REALTORS® LISTING AGREEMENT Please review the 38 paragraphs outlined in the text. 2011©Cengage Learning. All Rights Reserved.

DOCUMENTS REQUIRED Residential Disclosure Statement FIRPTA Withholding Statement California’s Withholding Agency Disclosure Statement 2011©Cengage Learning. All Rights Reserved.

Sales of Mobile Homes involve separate paperwork and requirements ordinarily personal property When mobile home is affixed becomes part of real property. 2011©Cengage Learning. All Rights Reserved.

Sale of Condominiums Additional disclosure documents: Covenants, conditions, and restrictions bylaws Articles of incorporation Any age requirements Financial statements Association dues and charges 2011©Cengage Learning. All Rights Reserved.