Notes # 2 - Fundamentals of Real Estate Management PDF
Notes # 2 - Fundamentals of Real Estate Management PDF
Notes # 2 - Fundamentals of Real Estate Management PDF
Notes # 2
REM 325 TTH 3:00 – 5:30 PM
LISTING - is the authority given by the seller / buyer, lessor / lessee, financier / borrower, or landowner /
developer for the broker to negotiate the sale, purchase, lease, exchange, mortgage, development joint
venture of real estate, for a certain period of time, at certain price and terms, for a stipulated rate of
commission.
KINDS OF LISTING:
I. AS TO FORM
➢ Oral Listing - one where the authority to sell is verbally given.
➢ Written Listing - one where the authority to sell is given in writing
I. AS TO EXCLUSIVENESS
➢ Open, None Exclusive, or “First Come First Serve”
➢ Exclusive Listing
➢ Multiple Listing
➢ Restricted Listing
A. Open, None Exclusive, or “First Come First Serve” - authority given to two or more brokers.
The sale made by one of the brokers automatically terminates the contract of all brokers
concerned. The broker who is the procuring cause of sale receives the commission. If the
owner sells or leases the property directly, he needs not to pay any broker.
Exclusive Agency Contract an exclusive listing wherein the listing broker is not entitled to a
commission if the owner negotiates the sale of the property.
Exclusive Right To Sell a listing where the solely authorized broker is entitles to commission
even if the principal closes the transaction.
C. Multiple Listing - the Broker who holds the Exclusive Contract to Sell re-lists it to a multiple
listing service (MLS). The MLS is usually available from the real estate organizations and /or
boards. The real estate org or board, after accepting the listing, provides copies of necessary
sketches, location maps, and lot plans, pictures and other pertinent data about the
property, and distributes these to the participating members.
D. Restricted Listing - the owner, for some special reasons, may want the authority to sell he
gave the broker to be treated as “strictly confidential”.
CONTENTS OF LISTING
✓ Name, address, and signature of principal and broker
✓ Description of property; Lot/Block/Plan/Title No., Location, Area, Improvements,
✓ Mortgages (if any), Utilities and facilities
✓ Period of authority
✓ Price and terms
✓ Rate of commission
SOURCE OF LISTING
✓ Personal contacts
✓ Referrals
✓ Multiple listing and fellow brokers
✓ Memberships in clubs and associations
✓ Foreclosure notices
✓ Banks and financing institutions
✓ Classified ads and newspaper advertisements
✓ For sale signboards of owners
✓ Adjoining owner of the property which is for sale, etc.
2. Title is free from any condition or annotation which may pose legal obstacle to is disposition.
5. Verification, in case of agricultural, whether disposition is feasible under agrarian reform law.
AMIABILITY - having a pleasant and friendly disposition, coupled with an easygoing temperament and a
genuine interest in people.
EMPATHY - a liking and understanding of people coupled with the ability to involve themselves in the
problems and decisions of others.
ENTHUSIASM & OPTIMISM -the broker must have a positive outlook in his daily undertaking and should
treat his profession as something that both enjoyable and rewarding to do.
HONESTY - being trustworthy, honorable, upright. As the Proverb says, “Honesty is the best policy”,
being honest in every transaction clears away all doubts if any, in the minds of all the parties involved
and as a result, further boosts the credibility of the broker.
INDUSTRIOUS - having an earnest, steady effort in following up even the smallest details in every
transaction.
INTELLIGENCE - a recognition of all the facts pertinent to every transaction and maintaining a high
quality of salesmanship.
TACK & DIPLOMACY - an ability to appreciate delicate situations and to act accordingly.