1. Revised 7-30-08 Chapter 6 Slide 1 Copyright – David A. McGowan All rights reserved. Chapter 6 EMPLOYMENT CONTRACTS Exclusive-right-to-sell (Page 81) Exclusive-agency listing (Page 81) Open listing (Page 81) Buyer Representation (Page 97)

2. Revised 7-30-08 Chapter 6 Slide 2 Copyright – David A. McGowan All rights reserved. OPEN LISTING (Page 81) Verbal agreement Any number of brokers Seller retains right to sell without a broker Unenforceable Unable to advertise, create a flyer or place a sign (License ACT Sec 20-20 (¶17) Page 26)

3. Revised 7-30-08 Chapter 6 Slide 3 Copyright – David A. McGowan All rights reserved. EXCLUSIVE LISTINGS (Page 93) Must be written Changes must be in writing & signed by all signatories (Page 95) Commission – How much & when due Names of broker, seller & designated agent

4. Revised 7-30-08 Chapter 6 Slide 4 Copyright – David A. McGowan All rights reserved. EXCLUSIVE LISTINGS (Page 93) Duration List price Address of the property Dual Agent Authorization (Page 88 & License ACT Sec 15-45 Page 21)

5. Revised 7-30-08 Chapter 6 Slide 5 Copyright – David A. McGowan All rights reserved. EXCLUSIVE LISTINGS (Page 93) Default of earnest money (Page 91) Discrimination (Page 91 & License ACT Sec 20-20 (21) & (22) Page 27) Minimum services (License ACT Sec 15-75 Page 24) Anti-trust

6. Revised 7-30-08 Chapter 6 Slide 6 Copyright – David A. McGowan All rights reserved. EXCLUSIVE RIGHT TO SELL (Page 81) One broker selected to represent the seller Selected broker paid a commission regardless of who finds the buyer

7. Revised 7-30-08 Chapter 6 Slide 7 Copyright – David A. McGowan All rights reserved. EXCLUSIVE AGENCY LISTING (Page 81) One broker selected to represent seller Broker paid a commission if they or another broker is involved in the sale Seller retains the right to solicit their own buyer without obligation for a commission

8. Revised 7-30-08 Chapter 6 Slide 8 Copyright – David A. McGowan All rights reserved. NET LISTINGS (Page 82) Seller receives a net amount of money upon sale Broker ‘s commission is anything obtained above the seller’s net Legal in Illinois Considered un-ethical

9. Revised 7-30-08 Chapter 6 Slide 9 Copyright – David A. McGowan All rights reserved. MULTIPLE LISTING SERVICES An association of brokers to share listing information An offer of sub-agency absolutely may not be made through an MLS in Illinois

10. Revised 7-30-08 Chapter 6 Slide 10 Copyright – David A. McGowan All rights reserved. EXPIRATION OF LISTING All listings in Illinois must specify a definite period of time (Page 84) The failure to specify a definite termination date in a listing agreement is grounds for suspension or revocation (Page 84)

11. Revised 7-30-08 Chapter 6 Slide 11 Copyright – David A. McGowan All rights reserved. BROKER PROTECTION PERIOD (Page 84) Provides for payment of commission after the expiration date if a purchaser to whom the broker had physically shown the property returns to purchase it If property is re-listed by another broker, all existing safety clauses are automatically cancelled Effective on residential property of 4 or less units

12. Revised 7-30-08 Chapter 6 Slide 12 Copyright – David A. McGowan All rights reserved. DISCLOSURES (Page 87) Disclosure of agency Disclosure of material facts Disclosure of interest Disclosure of special compensation Default of Earnest money

13. Revised 7-30-08 Chapter 6 Slide 13 Copyright – David A. McGowan All rights reserved. DISCLOSURES (Page 87) Disclosure of property condition Illinois Real Property Disclosure Report (Page 40) Lead based paint (Page 428) Radon (Page 431)

14. Revised 7-30-08 Chapter 6 Slide 14 Copyright – David A. McGowan All rights reserved. BUYER AGENCY AGREEMENTS (Page 97) Exclusive buyer agency agreement Exclusive-agency buyer agency agreement Open buyer agency agreement

15. Revised 7-30-08 Chapter 6 Slide 15 Copyright – David A. McGowan All rights reserved. TERMINATION (Page 101) Closed Expiration Substantial destruction Some force outside the owner’s control, such as a zoning change or condemnation by eminent domain.

16. Revised 7-30-08 Chapter 6 Slide 16 Copyright – David A. McGowan All rights reserved. TERMINATION (Page 101) Operation of law, as in the case of the client’s bankruptcy. If the broker and client mutually agree to end the agreement Broker or client dies or becomes incapacitated. Broker or client breaches the contract (the breaching or canceling party may be liable to the other for damages)