Concepts Definitions
nnnnNet Listing: A listing agreement where the broker’s commission is the amount by which the sale price exceeds a specified net amount desired by the seller. It requires full disclosure to be legal in California.
nnnnExclusive Listing: A contract that grants a single real estate broker the right to sell a property, typically for a specified period. Examples include “Exclusive Authorization and Right to Sell” and “Exclusive Agency” listings.
nnnnTermination Date: A mandatory end date for exclusive listing agreements.
nnnnOption (on property): A contract that gives one party (the optionee) the right, but not the obligation, to purchase a property at a specified price within a certain time period [principlesLS, 226]. When an agent takes an option on a property they are listing, it requires specific disclosures and consent from the principal to avoid conflicts of interest and violations.
nnnnDisclosure: The act of revealing all known material facts relevant to a transaction to all parties involved, especially by an agent to their principal.
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