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Principles of Real Estate Chap 12 Flashcards and Quiz

Terms in this set (33)

What is a Listing?
the process of getting a property owner to sign a listing agreement with you.

Once you have made contact with a customer and you know that they are actually interested in either buying or selling real estate, you have to convince them that you have the ability to help them achieve their goal.
What is a Listing Agreement?
a contract between a real estate supervising broker (or their agent representatives acting in the supervising broker's name) and a seller or sellers of real property that gives the broker the right to offer the property for sale.
MLS
Real estate organizations, such as the National Association of REALTORS®, will keep a list of properties for sale. This list is known as a Multiple Listing Service
Sec. 1101.652. Grounds for Suspension or Revocation Of License.
(b) The commission may suspend or revoke a license issued under this chapter or take other disciplinary action authorized by this chapter if the license holder, while engaged in real estate brokerage:
(12) fails to specify a definite termination date that is not subject to prior notice in a contract, other than a contract to perform property management services, in which the license holder agrees to perform services for which a license is required under this chapter;
The seller must provide the buyer with a disclosure statement in the statutorily required form, which includes disclosure of:
the condition of all major appliances, systems, and services
the general condition of the property, including basement and roof leaks
infestations
underground storage tanks
pending litigation
The National Association of Realtors defines a "stigmatized property" as
property that "has been psychologically impacted by an event, which occurred or was suspected to have occurred on the property, such event being one that has no physical impact of any kind."
The agent cannot lie about the information but must attempt to refrain from revealing it. If asked about any non-material fact, the broker should always respond with a statement similar to
"that information is considered confidential and, therefore, I am legally prohibited from discussing that topic."
Open Listing
a sort of free-for-all with the added benefit of the property being listed on the MLS. The seller agrees to pay a commission to any agent that brings in a buyer.
Exclusive Agency Listing
only one broker is specifically authorized to act as the exclusive agent for the seller who will pay the agent a commission if the agent, or any cooperating agent, finds a buyer. If the seller is able to find a buyer independently of the agent, then the agent does not get a commission.
Exclusive Right-to-Sell Listing
The listing agreement must be in writing and include a seller's signed agreement to pay the commission, no matter where the buyer comes from (this would include even if the seller brought in the buyer).
Net Listing
a listing agreement in which the broker's commission is the difference ("net") between the sales proceeds and an amount desired by the owner of the real property
A net listing will need to be combined with an open listing, exclusive agency listing, or exclusive right-to-sell because a net listing refers specifically to
the commission amount, whereas the other types of listings specify who receives the commission.
How does an MLS benefit a buyer?
they do not need to go from broker to broker to find available properties.

the MLS provides features that will help in determining the value of a particular property, or how motivated the seller might be by showing the number of days a property has been on the market, a history of the price reductions, if any, and what price other similar properties have sold for.
CMA
comparative market analyses
IDX feeds are
a combination of policy and software that allow members of a particular MLS to integrate listings from the MLS database into their own real estate websites.
Real Estate Transaction Standard (RETS)
a set of rules used when transferring information derived from different real estate lists. It can be thought of as akin to saying "let's all use .pdf documents for listings".
Syndication
the process of taking information from the MLS and placing it on third-party sites. Many MLSs are trying to make syndication into an automatic process;
Limited service brokers
real estate license holders who only provide some of the traditional services provided by a traditional broker. The most common version of this is brokers who, for a flat fee, will post information onto the MLS but do not represent the seller in any other capacity.
All real estate advertisements must be
honest
When working with real estate there are two general class of persons. These classes are
licensed individuals and unlicensed individuals
The final rule seems quite obvious but there have been numerous violators. You cannot list property for sale or lease without the
permission of the property's owner.
an "advertisement" is a
written or oral statement or communication by or on behalf of a license holder which induces or attempts to induce a member of the public to use the services of the license holder or service provider.
An advertisement containing an offer to rebate a portion of a license holder's commission must
disclose that payment of the rebate is subject to the consent of the party the license holder represents in the transaction.
TREC has enacted a safe harbor policy in regard to the requirement
that the broker's name must be "clear and conspicuous".
The safe harbor policy states that
the name or assumed name must be at least half of the size of the largest item of contact information to qualify for safe harbor.
Listing services first began in what year?
1858
A seller or seller's agent shall have no duty to make a disclosure or release information related to whether a death occurred on a property for any of these reasons, except::
accident related to the condition of the property
Reasons an agency relationship may be terminated include all of these, except which of these?
...
Which of the following is considered an anti-competitive practice by the U.S. Department of Justice?
Refusing to accept less than the list price.
A broker is obligated under a listing contract to:
A) to buy or sell a home for the principal that the broker has agreed to represent
B) place the principal's interest ahead of all of the broker's other clients
C) negotiate the best possible transaction for the principal that the broker has agreed to represent
D) act as a general agent for the principal
negotiate the best possible transaction for the principal that the broker has agreed to represent
The least common form of legal listing agreement in Texas is the:
A) exclusive agency
B) open
C) net listing
D) exclusive right-to-sell
net listing
A latent defect is defined as a defect:
A) known to the buyer but not likely to be discovered by ordinary inspection.
B) known to the seller but not to the buyer and that would not be discovered by ordinary inspection.
C) not known to the seller but easily discovered by ordinary inspection.
D) not known to the seller or listing agent that would be discovered by ordinary inspection.
known to the seller but not to the buyer and that would not be discovered by ordinary inspection.
Which of the following is considered an anti-competitive practice by the U.S. Department of Justice?
Refusing to accept less than the list price.
Refusing to let non-licensed individuals post on the MLS.
Refusing to let non-Realtors® access the MLS.
Offering brokerage services that only include posting on the MLS.
Refusing to let non-Realtors® access the MLS.
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