Chapter 11 Section 4

Question 1

listing contract

Answer 1

-an employment contract between a broker and the owner of real estate
-gives a broker authority to perform specified real estate services on behalf of an owner

Question 2

MLS

Answer 2

-a means of collectively marketing properties listed with the service

Question 3

procuring clause

Answer 3

-the broker who successfully performs by locating a willing, ready and able buyer is said to be the procuring clause of the sale and is the only broker entitled to a commission

Question 3

written listing contracts

Answer 3

-definite termination date
-legal description of property
-price and terms offered
-fee or commission to be earned by broker
-signatures of property owner(s)

Question 4

open listing (residential listing)

Answer 4

-a unilateral contract
-property owner promises to pay a commission if the broker finds a buyer willing to purchase the property at a price and at terms that are acceptable to the property owner
-oral or written
-owner can give an open listing to any number of brokers for the sale of the same property

Question 5

exclusive agency listing (residential)

Answer 5

-a bilateral contract in which the property owner promises to list the property with only one broker
-property owner promises to pay commission if the broker successfully performs or can sell it themselves
-oral or written

Question 6

exclusive rights of sale listing

Answer 6

-a bilateral contract in which the property owner promises to pay a commission regardless of who sells the listed property
-broker promises to use their best professional efforts to locate a buyer who is ready, willing, and able to buy the listed property at the price and terms specified

Question 7

commercial listings

Answer 7

-F.S 475 presumes a broker to have a lien against the seller’s net proceeds (not real property) upon performance by the broker to under a written listing contract in a commercial real estate transaction

Question 8

required commercial listings disclosure

Answer 8

-when a broker has earned a commission by performing licensed services under a brokerage agreement with you, the broker may claim a lien against your net sales proceeds for the broker’s commission
-the broker’s lien rights cannot be waived before the commission is earned

Question 9

commission notice (commercial listings)

Answer 9

-for lien to be enforceable, the broker must prepare a commission notice that contains language in substantially the same format as specified in the Act
-must be witnesses by a notary public
-lien is not enforceable should the broker fail to deliver copies to owner and closing agent as required
-copy of notice must be delivered to owner and closing agent within 30 days of performance of broker but not less than one day prior to closing
-broker must record a lease of lien within 7 days after the receipt of payment of the commission

Question 10

Net listings

Answer 10

-the property owner agrees to accept a stipulated amount, and no less, upon the sale of the property
-the seller’s net plus the broker’s commission and closing costs is equal to the total sale of the property

Question 11

calculating a brokerage commission

Answer 11

-two basic ways in which a brokerage commission may be established: a single percentage of the sales price, or on a sliding scale

Question 12

effect a sale

Answer 12

-the broker is entitled to compensation when the potential purchaser has been located and title successfully passes from seller to buyer at closing

Question 13

find a purchaser

Answer 13

-employed to find a purchaser who is ready, willing, and able to purchase
-broker entitled to compensation regardless of whether sale is finalized

Question 14

protection period

Answer 14

-this specified period of time follows the expiration of the employment contract
-if the owner sells the property during this period to anyone with whom the broker had dealings during the employment period, the broker is entitled to compensation

Question 15

implied listing

Answer 15

-if an owner knowingly allows a broker to show property to prospective purchasers in the absence of a written listing, and the property is sold to one of them, the broker is entitled to commission based upon an implied listing

Question 16

termination of a listing

Answer 16

-breach
-renunciation
-lapse of time
-abandonment
-performance
-destruction of the property
-death or insanity
-bankruptcy
-revocation

Question 17

renunciation

Answer 17

-mutual consent of parties to terminate listing

Question 18

lapse of time

Answer 18

-listing contract is terminated at the time specified in the listing contract

Question 19

revocation

Answer 19

-the broker or owner can terminate the listing by giving notice of revocation to the other party