Real Estate Chapter 9

Per NCREC all agency agreements must: (4 things)

1)Be signed by all parties; (2) include the licensee's license number; (3) have a definite termination date; and (4) contain the prescribed nondiscrimination provision.

What type of contract is a listing agreement?

A employment contract. Under NCREC rules it must be in writing from the outset of the relationship.

A real estate licensee may call a consumer with whom they have an established business relationship for up to ________ after the consumer's last purchase, delivery, or payment.

18 months

A licensee may call a consumer for up to __________ after the consumer makes an inquiry or sumbits an application.

3 months

Name three types of listing agreements

1)Open Listing
2)Exclusive-agency listing
3)Exclusive-right-to-sell listing

Open Listing

Seller retains the right to employ any number of brokers as agents; it is a nonexclusive-type of listing.

Exclusive-agency listing

One broker is specifically authorized to act as the exclusive agent of the principal. The seller under this form of agreement retains the right to personally sell the property, without obligation to the broker; the seller can compete with the agent to sav

Exclusive-right-to-sell listing

one broker is appointed as sole agent of the seller and is given the exclusive right, or authorization, to represent the property in question.

Protection Agreement

When a particular property is not currently listed with a real estate brokerage firm, a protection agreement is used to guarantee a commission if that particular property is sold to a specific buyer. The NC association of Realtors created the Unrepresente

Termination of Listings

1)Completion or fulfillment; 2)Expiration of terms; 3)Mutual agreement; 4)Breach by one of the parties; 5)By operation of Law; 6)Destruction r condemnation of property; 7)Death or incapacity of either party.

Protection Period clause (override or extender clause)

Protects the broker. If seller sells, rents, leases etc.. to someone the owner met or made contact through the broker before the listing agreement expired the owner has to pay the broker a commission fee.

What must most residential properties give the buyer NLT the time the buyer makes an offer on the property

The NORTH CAROLINA RESIDENTIAL PROPERTY DISCLOSURE ACT.

A listing agreement is an _____________________ between a broker and a seller that clarifies the obligations of each party. In NC, the listing agreement must do 5 things

EMPLOYMENT CONTRACT
1)must be in writing pursuant to rule,
2)must be signed by all parties,
3)must include the broker's license number
4)must have a definite termination date,
5)must contain the non-discrimination clause

A listing agreement may be terminated when:

1)the agreement's purpose is fulfilled
2)that agreement's term expires
3)the property is destroyed
4)title to the property is transferred by operation of law
5)mutual agreement by both parties
6)either party dies or becomes mentally incapacitated
7)either

Broker's entitlement to commission (once a ready, willing, and able buyer is procured) survives if the seller

1)has a change of mind and refuses to sell, 2)has a spouse who refuses to sign the deed, 3)has a title with uncorrected defects, 4) commits fraud with respect to the transaction, 5)is unable to deliver possession within a reasonable time, 6)insists on ter

In an OPEN LISTING

1)the seller retains the right to employ any number of brokers; 2)the seller is obligated to pay a commission only to the broker who successfully produces aready, willing, and able buyer; and 3)the seller is not obligated to pay a commission if the seller

An EXCLUSIVE-AGENCY listing

1)authorizes one broker to act as the sole agent of the seller, but
2)allows the seller to retain the right to sell the property without obligation of payment to the broker

In an EXCLUSIVE-RIGHT-TO SELL listing

1)One broker is appointed as the seller's sole agent.
2)If the property is sold while the listing is in effect, the broker is entitled to a commission, no matter who sells the property.

A NET LISTING has the following characteristics

1) The excess over the net from the sale will go to the listing broker as commission.
2) The broker is free to offer the property at any price greater than the net amount.
3) Net listings are strongly discouraged as a matter of policy in NC.

A _______________ guarantees compensation if a particular property is sold to a specific buyer.

PROTECTION AGREEMENT

TRUE OR FALSE: Broker's compensation with a principal must be agreed upon before an agency relationship is established and can be a commission based on sales price, flat fee, or hourly rate.

True

ENTITLED TO COMPENSATION means an individual must be

1)an actively licensed real estate broker,
2)employed by a client under a valid agency contract, and
3)the procuring cause of the sale by starting or causing a chain of events that resulted in the sale.

When is commission earned

Commission is earned when the seller accepts an offer from a ready, willing, and able buyer prepared to buy on the seller's terms and ready to take positive steps toward consummation of the transaction.

4 things antitrust laws prevent real estate agents from doing:

1) PRICE FIXING
2)group boycotting
3)allocation of customers or markets; and
4)tie-in agreements forcing customers to purchase a product when only another was wanted

Due diligence by agent

Should discover and voluntarily disclose material facts about the property to all parties to the transaction.

TRUE OR FALSE: Square footage is material fact in NC.

False. But if represented, it must be correct. Heated living area is calculated using exterior measurements.

NC Residential Property Disclosure Act requirements include

1)Most residential sellers to provide a completed Disclosure Statement prior to first offer; 2)exempted properties include new construction, bank-owned foreclosures, and lease options; 3)seller may choose to mark no representation; 4)statement must be acc

When working with buyers as a seller's subagent two requirements are:

1)The buyer must initial the disclosure of seller subagency on acknowledgement panel of "Working with Real Esate Agents", and
2)The seller and listing firm must be willing to allow subagency.

When working with buyers as a buyer's agent the requirements are:

1)The buyer agency agreement must be in writing prior to first offer. 2)In a nonexlusive buyer agency, the agent is in competition for compensation with other agents and the buyer-client. 3)In an exclusive buyer agency, compensation is owed regardless of

When working with buyers as a dual agent the agent must:

Get permission from both buyer and seller.
All standard dual agency agreements modify the exclusive agent's duties.