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© OnCourse Learning Chapter 20 : The Principal-Broker Relationship: Employment.

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Presentation on theme: "© OnCourse Learning Chapter 20 : The Principal-Broker Relationship: Employment."— Presentation transcript:

1 © OnCourse Learning Chapter 20 : The Principal-Broker Relationship: Employment

2  An employment contract between the owner/seller and the real estate broker. LISTING AGREEMENT © OnCourse Learning

3  An agreed amount of compensation the owner agrees to pay the broker.  Not set by law.  The amount of the fee is negotiable between the owner and the broker.  Typical commission fee in the US is 5% to 7% of the selling price. © OnCourse Learning BROKERAGE COMMISSION

4 1. Exclusive right to sell 2. Exclusive agency 3. Open listing 4. Net listing LISTING CONTRACT TYPES © OnCourse Learning

5  The listing broker is entitled to a commission no matter who sells the property during the listing period.  This is the most common type of listing. EXCLUSIVE RIGHT TO SELL © OnCourse Learning


7  Similar to the exclusive right to sell except the owner may sell the property himself during the listing period and not owe a fee to the broker.  Broker may be less enthusiastic under this form of listing. EXCLUSIVE AGENCY © OnCourse Learning

8  There are no exclusive rights.  Whoever sells the property will earn the fee.  Brokers are reluctant to develop a sales effort. OPEN LISTING © OnCourse Learning

9  Owner states the price he wants for the property and agrees to pay the broker anything above this amount as commission. NET LISTING © OnCourse Learning

10  Exclusive Authority to Purchase – an agreement where the broker works for the client, the buyer!  Primary responsibility is to the purchaser.  Principal is now the Buyer.  Buyer Agency! BUYER REPRESENTATION © OnCourse Learning


12 © OnCourse Learning EXCLUSIVE AUTHORITY TO PURCHASE (continued)

13  A service among REALTOR ® members to offer compensation to other member brokers and increase the market exposure for the listed property. MLS © OnCourse Learning

14  Commission earned when agreed between owner and broker.  Usually occurs when a “ready, willing and able buyer” is produced.  Procuring cause is the one whose efforts originated the procurement of the sale. BROKER COMPENSATION © OnCourse Learning

15  the one whose efforts originated procurement of the sale. © OnCourse Learning PROCURING CAUSE

16  Mutual agreement  Abandonment TERMINATING THE AGREEMENT © OnCourse Learning


18 Key Terms Advance fee listing Exclusive authority to purchase Exclusive right to sell Multiple listing service (MLS) Net listing Ready, willing, and able buyer Real estate listing © OnCourse Learning

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