1. © 2010 by Cengage Learning Chapter 20 ________________ The Principal- Broker Relationship: Employment

2. © 2010 by Cengage Learning  An employment contract between the owner/seller and the real estate broker.

3. © 2010 by Cengage Learning 1. Exclusive right to sell 2. Exclusive agency 3. Open listing 4. Net listing

4. © 2010 by Cengage Learning  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.

5. © 2010 by Cengage Learning  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.

6. © 2010 by Cengage Learning  There are no exclusive rights.  Whoever sells the property will earn the fee.  Brokers are reluctant to develop a sales effort.

7. © 2010 by Cengage Learning  Owner states the price he wants for the property and agrees to pay the broker anything above this amount as commission.

8. © 2010 by Cengage Learning  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!

9. © 2010 by Cengage Learning  A service among REALTOR® members to offer compensation to other member brokers and increase the market exposure for the listed property.

10. © 2010 by Cengage Learning  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.

11. © 2010 by Cengage Learning  Mutual agreement  Abandonment

12. © 2010 by Cengage Learning 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