1. Chapter 8 Real Estate Brokerage
The real estate sales process, agency theory, licensing, types of brokerage firms and compensation.

2. The Real Estate Process:
Listing agreements
Marketing the property and qualifying the buyers
Presentation and negotiations
Contracts and closing

3. Real Estate Brokers and Salespersons:
Licensing of salespeople and brokers:
Transactions on one’s own behalf
Conducting transactions on behalf of others
State license requirements
Real estate brokerage regulation
Consumer protection

4. Legal Aspects of the Broker-Client Relationship:
Agency Law
Principal
Agent
Subagent

5. The Role of Real Estate Brokers:
Broker Representation
Listing Broker
Selling Broker
Buyer’s Agent
Dual Agent
Transaction Broker

6. The Creation of Agency Relationships:
Broker-Seller Relationship (Seller’s Agent)
Open Listing
Exclusive-Agency Listing
Exclusive-Right-To-Sell Listing
Net Listing
Broker’s Right to a Commission
Broker-Buyer Relationship (Buyer’s Agent)
Buyer’s Representation
Types of Buyer Representation Agreements
Compensating the Buyer’s Broker

7. Duties and Rights Under Agency Relationships:
Broker’s Duties:
Fraud and Negligence
Misrepresentation
Seller’s Agent’s duties to the seller
Fair Housing Laws
Steering
Blockbusting
Buyer’s Agent’s duties to buyers
Buyer’s Agent’s duties to seller’s
Disclosure of agency relationship

8. Termination of Agency Relationships:
Methods of Agency Termination:
Sale of the listed property
Time limit expires
Mutual agreement
Breach of duties
Loss of contractual capacity
Improvements are destroyed
Property is taken by government under power of eminent domain

9. Types of Brokerage Firms:
The one-office firm
Property type specialization
Franchises
Desk fee arrangements
Multiple Listing Services (MLS)

10. Broker and Salesperson Compensation:
Percentage Commissions
Anti-Trust Violations
Compensation for Salespersons

11. TYPICAL COMMISSION SPLIT
Sale of Property
$100,000
Commission
6.0%
$6,000
Listing Broker Firm
50% of Commission
$3,000
Selling Broker Firm
50% of Commission
$3,000
Listing Salesperson
50% of Firm’s Commission*
$1,500
Selling Salesperson
50% of Firm’s Commission*
$1,500
*This percentage can vary from 50 percent to 90 percent depending on such factors as length of time the salesperson has been with the firm and whether he or she is an officer of the firm.