subject: Learn About Properties For Sale In Rural Jamaica [print this page] If you're thinking about putting up property for sale, here are some things that you simply ought to know about the listing contracts utilized by the Jamaica real estate companies. A listing contract is the actual estate broker's employment contract. You can learn about other aspects in property marketplace, so you can investigation further on land for sale in Montego Bay Jamaica.
A listing agreement must be written so that you can be enforceable and must consist of:
An expiration date.
Description of the property, asking cost and terms. The terms and conditions relating to payment of fees or commission. The principal's (owner's) signature (s). The broker's or salesperson's signature. Problems produced by a listing contract
A listing agreement is a unilateral agreement simply because the vendor/owner does not have to do anything unless and until the salesperson or broker has performed the terms from the contract, at which time the agreement becomes bilateral.
The listing contract creates a fiduciary (trust & confidence) relationship between the salesman or broker and the property owner.
The Kinds of Listing Contracts
There are various kinds of listing contracts and thus several ways of hiring a real estate salesperson or broker. The two main kinds of listing contracts are the:
Exclusive Right of Sale/ Rent Listing Non- Exclusive Listing Exclusive Right of Sale/ Rent Listing
The exclusive right of sale/ rent listing prevails when the vendor selects a single broker or salesperson to be the exclusive agent for the sale or rent of the property for the duration of time described by the listing contract. This is a formal unilateral employment contract between the owner and the agent.
The Exclusive Right of Sale/Rent agreement guarantees certain services to an owner and requires the salesperson/broker to effect a sale. This indicates that the salesperson/broker is required is produce a purchaser/tenant who is prepared, ready and able to buy or rent at the cost and terms specified by the owner and ensures that the purchaser/ tenant signs all the essential contracts (offer & sales contracts) and will pay all charges required to finish the transaction.
A common misunderstanding of the exclusive right of sale/rent agreement is that only the chosen broker/salesperson can sell or rent the property or home. This is false. The reality is that an exclusive right of sale/rent agreement basically gives a property maximum exposure by enabling the salesperson to freely expose it to all registered brokers/ dealers.
How is this possible?
This is because there are two sides to a actual estate transaction- the listing side and the selling side. Therefore a salesperson who's listed a property exclusively, benefits by disclosing your house to the wider agent community simply because they are able to maximise your sales price while sustaining their incentive of securing commission on the listing side.
So what are the advantages of an Exclusive Right of Sale/ Rent Listing?
The property owner benefits from the maximum quality of marketing to give the property maximum exposure including exposure to the agent/broker community.
A trust and confidence relationship is established because a single agent is formally employed to understand and meet the owner's objectives. The agent will only get capable buyers, thus eliminating the problems and delays, which result from purchasers who are not screen.
As a trained professional, the agent will work out the highest possible price by "objectively" and enthusiastically "selling" the value of the property.
The owner can relax recognizing that they have an agent overseeing the activity and results of the marketing, and showings. The owner benefits from having a well informed agent who can manage the details from the sale/ rental transaction and address all concerns.
Non- Exclusive Listing
The non-exclusive listing is really a "loose and informal" employment contract with the salesperson or broker because the owner reserves the right to rent/sell the property and may also give the listing to salesperson within various companies. The non- exclusive listing may seem like the best option for an owner who wants to sell/rent within a specific time frame and achieve the best cost; however the owner actually puts himself at a disadvantage.
DISADVANTAGES A trust and confidence (fiduciary) relationship is difficult to establish. There is little incentive for the salesperson to provide the highest quality of services for marketing and exposing the property.
The sale or rental cost is hardly ever maximized simply because the listing cost can be varied from broker to broker, which creates the problem of attracting qualified buyers/tenants.
The owner has to keep an eye on the activity and results of advertising the home by taking on the duty of communicating with several agents. In many instances, the owner has to manage the details of the transaction him/herself and deals with qualifying the purchaser/tenant.
A seller who's objectives are to sell their property within a specific time frame and attain the best possible price will have the best chance of achieving these objectives by opting for an Exclusive Right of Sale/Rent contract.
