Unit 10 Alabama Real Estate Principles: Client Representation Agreements

Vocabulary flashcards covering the key terms and concepts related to client representation agreements, listing types, and broker-client relationships in real estate.

Listing agreement

An employment contract between a real estate broker and a property seller which, in all states, must be in writing to be enforceable in court.

Special agent

The legal capacity in which a broker is authorized to represent the principal and the principal's real estate to consumers.

General agent

The legal capacity of a real estate sales associate acting under the supervision of a broker to carry out listing services.

Exclusive right-to-sell listing

A listing where one broker is appointed as the seller's sole agent, and the broker is entitled to a commission regardless of who sells the property while the listing is in effect.

Exclusive agency listing

A listing authorizing one broker as the sole agent of the seller, but allowing the seller to personally sell the property without obligation to pay the broker.

Open listing

Also known as a nonexclusive listing, where the seller can employ any number of brokers and only owes a commission to the broker who successfully produces a ready, willing, and able buyer.

Net listing

A listing in which the broker's compensation is the excess amount over the seller's desired net from the sale; this type of listing may be prohibited by state law.

Broker protection clause

A clause that preserves a broker's right to compensation if the owner transfers the property to a buyer brought by the listing broker within a certain number of days after the agreement expires.

Buyer representation agreement

An employment contract where a prospective property buyer employs a broker for the purpose of finding suitable property.

Exclusive buyer representation agreement

An agreement in which a buyer works with only one broker, though the broker remains free to represent other buyer clients.

Termination of representation

The ending of an agreement due to fulfillment of purpose, expiration of term, property destruction, title transfer by law, mutual agreement, breach of contract, or death/incapacity of a party.

Automatic extension provision

A clause that all exclusive listings should not have, as they are required to have a definite termination date.