Chapter 8 ReaL Estate Brokerage The real estate sales process by YF3Th7w0


									Chapter 8

Real Estate Brokerage

The real estate sales process,
agency theory, licensing, types of
brokerage firms and compensation.
The Real Estate Process:
 Listing agreements
 Marketing the property and qualifying the buyers
 Presentation and negotiations
 Contracts and closing
Real Estate Brokers and Salespersons:
 Licensing of salespeople and brokers:
    Transactions on one’s own behalf
    Conducting transactions on behalf of others
    State license requirements
 Real estate brokerage regulation
    Consumer protection
Legal Aspects of the Broker-Client
 Agency Law
    Principal
    Agent
    Subagent
The Role of Real Estate Brokers:
 Broker Representation
    Listing Broker
    Selling Broker
    Buyer’s Agent
    Dual Agent
    Transaction Broker
The Creation of Agency Relationships:
 Broker-Seller Relationship (Seller’s Agent)
    Open Listing
    Exclusive-Agency Listing
    Exclusive-Right-To-Sell Listing
    Net Listing
 Broker’s Right to a Commission
 Broker-Buyer Relationship (Buyer’s Agent)
    Buyer’s Representation
    Types of Buyer Representation Agreements
    Compensating the Buyer’s Broker
Duties and Rights Under Agency
 Broker’s Duties:
    Fraud and Negligence
    Misrepresentation
    Seller’s Agent’s duties to the seller
        Fair Housing Laws
        Steering
        Blockbusting
    Buyer’s Agent’s duties to buyers
    Buyer’s Agent’s duties to seller’s
    Disclosure of agency relationship
Termination of Agency Relationships:
 Methods of Agency Termination:
    Sale of the listed property
    Time limit expires
    Mutual agreement
    Breach of duties
    Loss of contractual capacity
    Improvements are destroyed
    Property is taken by government under power of
     eminent domain
Types of Brokerage Firms:
 The one-office firm
 Property type specialization
 Franchises
 Desk fee arrangements
 Multiple Listing Services (MLS)
Broker and Salesperson Compensation:
 Percentage Commissions
 Anti-Trust Violations
 Compensation for Salespersons
                                TYPICAL COMMISSION SPLIT

                                       Sale of Property


  Listing Broker Firm                                                Selling Broker Firm
  50% of Commission                                                  50% of Commission
        $3,000                                                             $3,000

        Listing Salesperson                               Selling Salesperson
      50% of Firm’s Commission*                         50% of Firm’s Commission*
                $1,500                                            $1,500

*This percentage can vary from 50 percent to 90 percent depending on such factors as length of
time the salesperson has been with the firm and whether he or she is an officer of the firm.

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