Seller's Listing Agreement Overview
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Questions and Answers

What is the purpose of the Seller's Listing Agreement?

  • To provide a legal framework for rental agreements.
  • To list the property for sale and appoint a broker. (correct)
  • To set fixed real estate fees for all transactions.
  • To establish a mortgage agreement between buyer and seller.

    • What must the seller pay the broker according to the brokerage fee agreement?

  • A commission only if the property sells for over a specific amount.
  • A flat fee regardless of the sale price.
  • A negotiable percentage of the purchase price. (correct)
  • A fixed fee determined by law.

    • What happens if the property is withdrawn from sale without the broker's consent?

  • The seller must still pay the agreed brokerage fee. (correct)
  • The broker will lose their right to any commission.
  • The seller will receive a full refund of the deposit.
  • The transaction must be reported to the authorities.

    • What is established during the retainer period in the Seller's Listing Agreement?

    <p>The broker has exclusive rights to market the property. (A)</p> Signup and view all the answers

    What is one of the responsibilities the seller agrees to cover during a sale?

    <p>FHA/VA appraisal fee (B)</p> Signup and view all the answers

    What is required from the buyer regarding existing loans when the cash down payment is made?

    <p>Buyer to assume the existing loans (B)</p> Signup and view all the answers

    What percentage of interest is specified for the note and trust deed to the seller?

    <p>It is not specified (A)</p> Signup and view all the answers

    Which item is specifically mentioned as part of the costs the seller agrees to pay?

    <p>Home warranty policy (C)</p> Signup and view all the answers

    What happens if the Seller enters negotiations with a prospective buyer after the termination of the agreement?

    <p>The Broker is entitled to a fee for the transaction. (C)</p> Signup and view all the answers

    Within how many days must the Broker notify the Seller of identified prospective buyers after the agreement terminates?

    <p>21 days (A)</p> Signup and view all the answers

    What is the payment to the Broker if the agreement terminates without the Seller being obligated to pay a fee?

    <p>A sum based on the Broker’s hourly rate (D)</p> Signup and view all the answers

    What authorization does the Seller provide to the Broker regarding property signs?

    <p>To place a For Sale sign on the property (A)</p> Signup and view all the answers

    If a dispute arises from the agreement, what is the first step the parties must take?

    <p>Undergo non-binding mediation (B)</p> Signup and view all the answers

    What may the Broker do with other brokers according to the terms of the agreement?

    <p>Divide compensations for transactions (A)</p> Signup and view all the answers

    What must the Seller acknowledge receipt of according to the agreement?

    <p>The Agency Law Disclosure (D)</p> Signup and view all the answers

    What may the prevailing party in a dispute claim if they did not first offer to enter into mediation?

    <p>Nothing (B)</p> Signup and view all the answers

    What type of property issues is addressed by the Residential Earthquake Hazards Report?

    <p>Earthquake safety (D)</p> Signup and view all the answers

    What aspect of personal property is included in the real estate terms?

    <p>Encumbrances (A)</p> Signup and view all the answers

    What does the MLS property profile refer to?

    <p>Multiple Listing Service (C)</p> Signup and view all the answers

    What type of disclosure is required regarding Lead-Based Paint?

    <p>Mandatory disclosure (D)</p> Signup and view all the answers

    Flashcards

    Retainer Period

    The time period in which the Broker has exclusive rights to sell, exchange or option the property.

    Seller's Deposit

    The initial money paid by the Seller to the Broker for their services.

    Brokerage Fee

    The fee paid to the Broker for their services.

    Brokerage Fee Payment

    A percentage of the purchase price or a fixed amount that the Seller agrees to pay the Broker for their services.

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    Brokerage Fee Triggers

    Various scenarios that trigger the Seller's obligation to pay the Broker's fee, even if the Broker didn't successfully sell the property.

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    Price Sought

    The price the seller is asking for the property.

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    Seller's Net Sheet

    A document detailing how much the seller will receive after the sale, factoring in expenses and costs.

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    Seller's Paid Costs

    A list of expenses the seller agrees to cover during the sale process.

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    Sale Payment Options

    The different payment options the buyer can choose from to purchase the property.

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    Exchange Terms

    A detailed plan for how the seller will handle the proceeds from the sale of the property.

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    Protection Period

    A time period during which the broker is obligated to find a buyer for the property even after the listing agreement has ended, if a similar transaction occurs with a buyer they negotiated with during the listing period.

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    Broker's Fee

    A fee paid by the seller to the broker for their services in finding a buyer for the property, often a percentage of the sale price.

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    Replacement Property Fee

    When a broker negotiates the purchase of a replacement property for the seller, they may be entitled to an additional fee, based on the original fee amount.

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    Hourly Fee

    An hourly rate paid to the broker for their services if the listing agreement terminates without a sale, it helps ensure the broker is compensated for their time investment.

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    Agency Law Disclosure

    A formal document that outlines the legal relationship between the seller and broker, clarifying their responsibilities and rights.

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    Mediation

    A process where parties try to resolve a dispute with the help of an independent mediator, aiming to reach a mutually acceptable resolution.

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    Conflict of Interest

    A broker may represent both the buyer and seller concurrently, leading to a potential conflict of interest because they may be obligated to act in the best interests of both parties.

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    Attorney Fees & Costs for Prevailing Party

    The prevailing party in a legal dispute is entitled to attorney fees and costs only if they attempted mediation before filing the lawsuit.

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    Governing Law of Listing Agreement

    This specific Listing Agreement is subject to and interpreted according to California law.

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    Real Estate Type, Name, and Ownership

    This refers to the type of real estate being listed, its name, and details about how it is owned.

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    Encumbrances of Record

    This section outlines recorded liens or financial obligations associated with the property, such as mortgages.

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    First Loan Details

    This refers to the initial mortgage on the property, including its amount, monthly payment, interest rate, and type.

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    Second Loan Details

    This section details a potential second mortgage on the property, including its amount, monthly payment, interest rate, and due date.

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    Other Encumbrances

    This section allows for the listing of any other financial obligations, bonds, assessments, or liens associated with the property.

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    Personal Property Included

    This section identifies the personal property included in the listing, such as appliances or fixtures.

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    Encumbrances on Personal Property

    This section details any existing encumbrances or loans associated with the personal property included in the listing.

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    Addenda and Disclosure Forms

    This clause clarifies that addenda regarding different aspects of the listing are attached, providing further information and disclosures required by law.

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    Study Notes

    Seller's Listing Agreement

    • Purpose: Used to employ a real estate agent for a fixed period to sell a property.
    • Date: Important for specifying the listing period.
    • Retainer Period: Sets the exclusive right of the agent to market, negotiate, and sell the property until termination date.
    • Brokerage Fee: Negotiable percentage of purchase price paid to the broker. Can be stated as a fixed amount per hour of work up to a certain limit.
    • Seller's Deposit: Payment made to the broker for managing the property and transactions.
    • Conditions for Fee payment: Broker's compensation is triggered if the property is sold during the listing agreement period(through buyer or exchanger procured by the Broker), the property is withdrawn from sale before the period end without the agent's consent or a transaction occurs with a prospective buyer within a year by the agent.
    • General Provisions: Includes details such as the agency law disclosure, property inspection, cooperating brokers, and acceptance of offers. Also provides a non binding mediation requirement for future disputes.
    • Option Terms: Possibility for the buyer to purchase the property at a specified price during a certain time(if any option terms exist).
    • Real Estate: Provides details such as the type of loan(s) that exist on the property and liens that may be in place.
    • Personal Property Included: Items included in the sale(if any).
    • Sale Terms: Details the price, payment method, and other key conditions related to the sale.
    • Exchange Terms: Details of exchanging the property.

    Real Estate Addendum

    • Encumbrances: Specifies existing loans and liens on the property.
    • Personal Property: Defines personal property included in the sale.

    Additional Notes

    • RPI Forms: Various forms referenced for details related to the disclosure and specifics of the listed property, some are related to the real estate agency(RPI form means Realty Publishing Inc. forms).
    • Legal Considerations: Indicates that the agreement will follow California law.
    • Specific Disclosures: Details such as home warranty policy, local ordinance compliance, well water reports are considered crucial for the agreement.

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    Seller's Listing Agreement PDF

    Description

    This quiz explores the key components of a Seller's Listing Agreement, including its purpose, retainer period, brokerage fees, and conditions for fee payment. Understand how these elements work together to facilitate the sale of a property through a real estate agent.

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