AgencyIntermediateDelaware Exam

Under Delaware law, what is a 'listing agreement' and what are the essential elements?

ASimply an informal verbal understanding between the agent and seller only about how to market the property, though specific requirements can vary depending on the transaction details

BA written contract between a property owner and a licensed broker authorizing the broker to find a buyer, specifying the listing price, duration, broker's compensation, and termsCorrect

CA government registration of a property for sale with the state

DAn MLS entry form submitted to the multiple listing service

Why A written contract between a property owner and a licensed broker authorizing the broker to find a buyer, specifying the listing price, duration, broker's compensation, and terms Is Correct

Answer B: A written contract between a property owner and a licensed broker authorizing the broker to find a buyer, specifying the listing price, duration, broker's compensation, and terms

A listing agreement is a written employment contract between a property owner and a broker. Essential elements include: authorization to market and sell the property, listing price, listing period (start and end dates), broker's compensation terms, property description, and signatures of all parties.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

People Also Study

Key Terms to Know

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Purchase Agreement

A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

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