Stereotypes

Listing Agreement (now called a service provisions agreement)

1. A type of employment agreement between a principal and a agent

2. It authorizes the broker to try to find (procuring cause) a ready, willing and able buyer on terms acceptable to the seller.

Parties

1. Seller is the principal

2. The broker is the agent

3. Salespeople are the sub-agents of the seller

4. Cooperating broker is the agent of the listing broker and the sub-agent of the seller

5. Salespeople in the cooperating brokers office are agents of their broker

Requirements

1. Names of all parties

2. Accurate description; does not have to be the legal description.

3. Terms and conditions (i.e. FHA or VA sales)

4. Commission

5. Asking price

6. Items included or excluded (i.e. Stove refrig)

7. Signature

Responsibilities to the principal

C - Confidentiality

L - Loyalty

O - Obedience

T - Trust

D - Do care/ do diligence

A - Accounting/ accountability

D -Disclosure

Responsibilities to principal

1. Licensees must Represent the general public fairly

2. Without deceit or fraud

3. Duty is over and above a fiduciary duty to the principal

4. Broker should never accept a fiduciary duty that conflicts with his/her duty to the general public

5. Reason for the rule is to be certain the public is protected

A. Patent defects

0. A defect plainly visible or as would be disclosed by the exercise of ordinary care

0. You do not have a duty to disclose a visible defects

B. Latent Defects

0. A licensees must reveal all known hidden defects

0. Is hidden or concealed one that could not be discovered by reasonable inspection

Puffing

2. An opinion not made as a representation of fact but in tended to enhance the value of property

Selling Disclosure Statement

2. Took effect Jan. 1994

2. Requires seller of one to four family residential properties to disclose defects in the structure in writing

2. Filled out by the seller at the time of taking a listing

2. Licensee should not participate or help to fill this form out

2. Licensee should encourage the seller to be truthful

2. licensee is required to provide a copy to prospect before presenting the offer

2. if the buyer does not get a copy they have the right to resend the deal until the deed is conveyed

Types of Listing Agreements

Exclusive right to sell listing

Property listed with only one broker however, seller promises to pay commissions no mater who finds the buyer during the listing period.

Exclusive Agency

Property listed with only on broker however, seller reserves the right to find own buyer and not pay a commission

Open listing (Pocket Listing)

Property may be listed with more the one broker however, the owner reserves the right to find their own buyer and not pay a commission.

Net Listing (Illegal in Michigan)

Seller wants to net a certain amount on the sell and the brokers commission is anything the sell leaves over.

Additional Requirements of Listing

1. Beginning or start date and expiration date

1. non-discrimination clause

1. duties and responsibilities

Termination of Contract

B - Bankruptcy

A - Abandonment of contract

D - Death of broker or principal

D - Destruction of property

M - Mutual agreement

I - Incompetence

C - Completion of brokers duties

E - Expiration of contract

Contract Law

7. Valid Contract

. Totally enforceable in court

7. Void Contract

. Totally unenforceable in court

Void able Contract

0. Appears to be valid on surface but may be resided by one party

0. The other party has no legal recourse

Types of Void able Contracts

3. M - Miner someone under 18

3. C - Contingencies that need to be meet or the party placing the contingencies can get out of contract

3. D - Duress

3. I - Incompetence

3. F - Fraud or misrepresentation

Six Essentials