South-Western Publishing©2002 By Charles J. Jacobus Real Estate Principles Ninth Edition Real Estate: An Introduction to the Profession Ninth Edition South-Western Publishing©2002

Chapter 20 The Principal-Broker Relationship: Employment _______________________________________

South-Western Publishing©2002 Listing Agreement An employment contract between the owner/seller and the real estate broker.

South-Western Publishing© Exclusive right to sell 2. Exclusive agency 3. Open listing 4. Net listing Listing Contract Types

South-Western Publishing©2002 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.

South-Western Publishing©2002 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.

South-Western Publishing©2002 Open listing There are no exclusive rights. Whoever sells the property will earn the fee. Brokers are reluctant to develop a sales effort.

South-Western Publishing©2002 Net listing Owner states the price he wants for the property and agrees to pay the broker anything above this amount as commission.

South-Western Publishing©2002 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!

South-Western Publishing©2002 MLS A service among Realtor® members to offer compensation to other member brokers and increasing the market exposure for the listed property.

South-Western Publishing©2002 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.

South-Western Publishing©2002 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