RES212

REAL ESTATE AGENCY PRACTICE 1

 TERM DEFINITION

General Term
An agreement that represents the right
of real estate agent to handle the sale of
real property and to receive a fee or
commission for services.
 TERM DEFINITION
Real Estate Term
1.A written engagement contract between a
principal and an agent authorizing the agent
to perform services for the principal involving
the latter’s property

2.A record of property for sale by an agent

who has been authorized by the owner to
sell.
Types of Real Estate Listing
TYPES OF REAL ESTATE LISTING

There are various type of real estate listings.

General or open listing;

the right to sell that may be given to more
than one agent.
TYPES OF REAL ESTATE LISTING
There are various type of real estate listings.

Exclusive agency listing;

the right of one real estate agency to be the
sole party, with the exception of the owner,
who is permitted to sell the property during a
particular period. The agency will receive the
commission even if the owner find the buyer
during the time period.
 TYPES OF REAL ESTATE LISTING

There are various type of real estate listings.

Multiple listing;
takes place when an agent with an exclusive
listing provides a number of members of a
real estate association with information about
the property and shares the commission with
the agent who is able to find a buyer.
TYPES OF REAL ESTATE LISTING

There are various type of real estate listings.

Net listing;
an arrangement whereby the seller
establishes a min price that will be taken for
the property and agent’s commission is the
amount for which it sells above such
minimum.
Steps in Preparing Listing Register
Sources Of Listing
Canvassing
eg. Newspaper or other media such as section on property or classified
advertisement

Door to door
Survey for units that offer for sale or rent or vacant and suitable for
housing estate or multi storey building

Developer
Agent appointed to sell or market the development units either for the
whole scheme or leftover units which are unsold.

Others agents
Through expired listing which failed to close deal
Financial institution
Some Financial institution involved in developments in financing the
project

Friends and Personal contact or Former client

Through recommendation and excellent past services

Telephones or telemarketing
A list of potential buyer/seller/tenant looking for properties

Internet
The latest approach that need lower cost but a wide market coverage but
problems in determining a genuine offer
 LISTING CONTRACT
A listing contract is a contract between a real estate agent
and a seller to give the agent the right to offer the property
for sale.

The contract is often referred to as a listing agreement

MEAS provides the format for agents to use

i. Authorization to secure property for acquisition
ii. Authorization to secure property for rent
iii. Exclusive authorizations to let
iv. General authorization to let
v. General authorization to sell
vi. Exclusive authorization to sell.
Standard Listing Contracts
7 terms in Standard listing contract
1.A beginning and termination
date 1

Listing a property: incurs some

expenses, some time and effort of
an agent; therefore certain minimum
listing time period needed to have a
good chance. So, the listing contract
must have beginning and expiration
date. Typically, 30 days to 60 days.

If the property not sold or under a

purchase contract by then, seller
may re-list the property with the
different listing price
7 terms in Standard listing contract
2. List Price/Rental

If for sale the price requested 2

by owner or rental amount for
tenancy.

Sale price - the lowest

expected price offered

Rental – monthly/yearly/other
seasonal period; net or gross
rent
 7 terms in Standard listing contract
3.Terms and condition of appointment
The terms of the contract could be
different depends upon:

 The successful negotiation of a

purchase contract
 Finding satisfactory buyer who is ready,
willing and able to pay the full listing 3
price (or more)
 If the seller refused to sell the real
estate when one of the above two
conditions applies, it is normally
considered that the real estate agent
has done his job of finding a
satisfactory buyer and the seller must
still pay the commission
7 terms in Standard listing contract
4. Payment of Fee

The commission is paid by the

seller to the listing real estate 4
agent who will then pay his listing
agent and any co-operating agents
from this commission by separate
agreements with them.
7 terms in Standard listing contract
5. To co-operate with other
agents

as sub-agents or buyer’s
agents and details the
compensation to be offered to
those agents in the event they
get a buyer

5
7 terms in Standard listing contract
6. Agent to disclose if any
other offer had been
received formally.

6
7 terms in Standard listing contract
7. Authorization to the agent to
post a sign

 It include to post any type of

advertisement must be
approved by the principal or
client as it will affect the
amount of claim or
disbursement incurred later.

 The type of advertisement

7
to be used depend on the
type of property
7 terms in Standard listing contract
For exclusive agency; a
declaration on any other
exclusive agency engaged.

Agent’s obligations to advise

the seller about regulations
and laws which may affect
the transaction.