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Listing Agreements

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NATURE OF LISTING AGREEMENTS

Employment Contract Agency and Contract Agency versus Contractual

Duties

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Contract Requirements

Offer and acceptance Consideration Other elements common to all contracts

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Commissioner’s Regulations Seller must be given a copy of the listing

agreement at the time it is signed. Agreements must contain a termination date.

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Accepting Deposits

Most listing agreements authorize the broker to accept a deposit.

No Provision – broker accepts the deposit as the buyer’s agent and at the buyer’s risk.

Deposit becomes the seller’s responsibility on acceptance of the buyer’s offer.

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The deposit never becomes the property of the broker, and if it is ever placed in a personal or business account, the broker is guilty of commingling.

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Uncashed Checks as Deposits Management of Deposits

Once an offer is accepted by the seller, the broker must, by the next business day, either give the check to the seller, deposit it in escrow, or place it in a trustee account.

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Appraisals for Listing Price

Brokers liable for appraisals using the words “certified appraisal” “registered appraisal” “licensed appraisal” or other words likely to be confused with a

certified appraisal

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TYPES OF LISTINGS

Open Listing Exclusive Agency Exclusive Right to Sell

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SPECIAL LISTING FORMS

Net Listing Option Listing Multiple Listing

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BROKER’S RIGHT TO COMPENSATION Amount by Agreement Writing Mandatory

Except between Brokers Except Tort Interference

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Procuring Cause

Sale resulted directly & proximately from the broker’s personal efforts

Broker must have introduced a qualified buyer

Unbroken chain of events Purchased or offered to purchase the seller’s

property

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Ready, Willing, & Able Buyer

Buyer produced to purchase property on exact or other terms acceptable to seller.

No deal, no commission clause. Safety Clause

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Two Commissions Possible

If broker sold the property to a prospective client of a prior broker.

owner should specifically exclude this from any new listing.

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SPECIAL COMMISSION SITUATIONS Withdrawal Requires Commission Default by Buyer Seller’s Option of deposit

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SPECIAL COMMISSION SITUATIONS Probate Sales

Traditional Method Independent Administration of Estates Act Disallowed Commission

After Expiration of Listing

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CALIFORNIA ASSOCIATION OF REALTORS® LISTING AGREEMENT

Please review the 38 paragraphs outlined in the text.

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DOCUMENTS REQUIRED

Residential Disclosure Statement FIRPTA Withholding Statement California’s Withholding Agency Disclosure Statement

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Sales of Mobile Homes

involve separate paperwork and requirements

ordinarily personal property When mobile home is affixed becomes part

of real property.

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Sale of Condominiums

Additional disclosure documents: Covenants, conditions, and restrictions

bylaws Articles of incorporation Any age requirements Financial statements Association dues and charges

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