Unit 11 Client Representation Agreements

Question 1

Define comparative market analysis (CMA)

Answer 1

A comparison of the prices of recently sold homes that are similar to a listing seller’s home in terms of location, style, and amenities. 179

Question 2

Define exclusive buyer representation agreement

Answer 2

Agreement in which the buyer works with only one broker, although the broker is free to represent other buyer clients. 189

Question 3

Define automatic extension clause

Answer 3

A listing agreement clause stating that the agreement will continue automatically for a certain period of time after its expiration date. In many states, use of this clause is discouraged or prohibited. 179

Question 4

Define controlled business arrangement

Answer 4

An arrangement that offers consumers a package of services (e.g., a real estate firm, title insurance company, mortgage broker, and home inspection company).

Question 5

Define multiple listing clause

Answer 5

A provision in an exclusive listing for the authority and obligation on the part of the listing agent to distribute the listing to other real estate professionals in a multiple listing organization. 177