A principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency.
Comparative Market Analysis
A comparison of the prices of recently sold homes that are similar to a listing seller's home in terms of location, style, and amenities:an estimate of market value.
A document evidencing formal employment between employer and employee or between principal and agent. In real estate, this is generally a listing agreement, a buyer agency agreement or a management agreement.
A listing contract under which the owner appoints a real estate broker as the exclusive agent for a designated period of time to sell the property, on the owner's stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if the owner sells to a prospect who has not been introduced or claimed by the broker.
A listing contract under which the owner appoints a real estate broker as the exclusive agent for a designated period of time to sell the property, on the owner's stated terms, for a commission when the property is sold, regardless of who sells the property.
Extender Clause and Override Clause
A carry-over or protection clause in a listing contract that says the listing broker is entitled to commission for a time period after expiration of the listing term if the property is transferred to a prospect that the broker introduced to their property during the listing term: override clause. This clause is void if the property is listed with a broker.
An employment contract between a property owner (as principal) and a real estate firm/broker (as agent) by which the broker is employed to find a ready, willing and able buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay commission.
Multiple Listing Service(MLS)
A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own.
A listing based on the net price the seller will receive if the property is sold. Under a net listing, the broker can offer the property for sale at the highest price obtainable to increase the commission. While this type of listing is illegal in many states, it is legal but discouraged in North Carolina
A listing agreement under which the broker's commission is contingent on the broker personally producing a ready, willing, and able buyer before the property is sold by the seller, or another broker.
The effort that began a chain of events that brings about the desired result. Under an open listing, the broker who is the procuring cause of the sale receives the commission.
An agreement between an unlisted property owner and a broker to secure payment for the broker if the property is sold to the particular buyer named in the agreement: it does not create a general listing, and may not create agency at all - only compensation for a buyer's agent. Sometimes called a "one-shot" listing.
Exaggerated or superlative comments or opinions: ex: "This house has the best view in town."
Ready, Willing, and Able Buyer
One who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction: on of the agent's requirements for entitlement to commission.
A small fee paid by the client upon creation of a buyer agency relationship as an advance partial compensation for services: it may be non-refundable or applied to final compensation due depending on the agency agreement.
Compensation that is due and payable upon the creation of a valid sales contract for property located by the buyer's agent.