Agent's Performance An agent performs a listing agreement by achieving the result specified in the agreement. When and if the result is achieved, the agent's performance is complete. A listing generally specifies the result to be either finding a customer or effecting a completed transaction. Finding a customer means locating a party who is ready, willing, and able to transact under the client's terms. Effecting a completed transaction means finding a customer who is not only ready, willing, and able, but one who makes an acceptable offer. A ready, willing, and able customer is one who is: • amenable to the terms of the transaction (ready and willing) • financially capable of paying the price and legally capable of completing the transaction (able) End of Page Specific Responsibilities A listing agreement authorizes a broker to undertake actions relevant to achieving the performance 12 . Terminating Listings - Fulfillment 13 . Fulfillment - Responsibilities
objective. Authorized activities usually include the following: • Show or seek property • Locate buyer, seller, tenant, or landlord • Communicate the client's transaction terms • Promote features and advantages of the terms to customers • Assist in negotiating a meeting of the minds between parties Due Diligence Due diligence in the listing context refers to verifying the accuracy of the statements in the listing regarding the property, the owner, and the owner's representations. Especially important facts for a broker or agent to verify are: • The property condition • Ownership status • The client's authority to act Failure to perform a reasonable degree of due diligence may increase an agent's exposure to liability in the event that the property is not as represented or that the client cannot perform as promised. Delegation of Responsibilities In the normal course of business, a listing broker delegates marketing responsibilities to salespeople. A salesperson may not, however, seek compensation directly from a client. Only the broker can obtain and disburse the compensation. End of Page Compensation The main item of performance for the client is payment of compensation, if the agreement calls for it. A broker's compensation is earned and payable when the broker has performed according to the agreement. The amount and structure of the compensation, potential disputes over who has earned compensation, and the client's liability for multiple commissions are other matters that a listing agreement should address. Negotiated Compensation 14 . Fulfillment - Compensation and Procuring Cause
The amount of a broker's commission is whatever amount the client and broker have agreed to. Compensation may be in the form of a percentage of the sale or lease price, or a flat fee.
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- Fall '16