Since Jamaica real estate brokers and salespersons are parties to negotiation of the contracts there are some types of contracts that are of special significance to them.
Examples of such contracts are listing contracts.
The Listing Contract A Jamaica property listing contract may be written, oral or implied by knowledge and consent of the property owner.
A written or drafted Jamaica property, real estate or land listing contract will have or state a set expiring date, the description of the Jamaican property, sale price, conditions and terms, an explicit fee to be charged (known as a commission) and the signature of the principal or vendor.
A copy of the contract must be given to the principal(s) within twenty-four hours of execution.
No written listing contract can be automatically renewed.
The listing contract is the broker's employment contract.
If litigation should result from some misunderstanding, default or breach, it is easier to find a remedy by showing the written terms and conditions rather than trying to prove the terms or conditions of an oral listing.
Some Conditions of the Listing Contract A listing contract is a unilateral contract because the principal does not have to do anything until and unless the broker performs the terms of the contract, at which time the contract becomes bilateral.
This is common place for Jamaica homes for sale.
The listing contract also creates a fiduciary (trust and confidence) relationship between a broker or agent and principal.
Further, the task of the licensee has been expressed so that no misunderstanding should result.
If required to find a purchaser, the licensee must produce a customer who is ready, willing and able to buy at the terms specified by the principal or take to the principal a customer's offer to buy at the prescribed price and terms, The offer must be in such a form as to be enforceable as a contract if accepted by the principal.
When the licensee has done either of the above actions, he or she is entitled to a commission, even if the buyer and a seller finally negotiate a sale on different terms.
If required to effect a sale by the terms of the Jamaica real estate listing contract, the licensee must not only find a buyer ready, willing and able to buy on the terms specified but also ensure that the buyer signs all necessary notes, mortgages and other instruments and pays all monies required or at least obtain from the buyer a signed contract for purchase of the property at the terms required by the principal.
If the buyer's offer is materially different from the terms prescribed by the principal, then the offer may be rejected and the licensee is not entitled to a commission.
The Different Types of Listing Open listing - The open listing either expressed or implied exists when the owner gives the listing to a number of brokers but reserves the right to sell the property.
The owner-principal is not obligated to pay a commission to any broker except the broker who first finds a buyer to purchase the Jamaica property.
If the owner sells the property, no broker is entitled to a commission.
Exclusive agency listing - The exclusive agency listing is given when a principal has selected one broker to handle the property but reserves the right to sell the property without paying a commission.
If the broker sells the property before the principal is able to do so, the broker is entitled to a commission.
The broker with the exclusive listing normally is regarded as the seller's agent and cooperates with other brokers in selling the property by offering sub agency.
Exclusive right of sale listing - Also known as exclusive-right-to-sell, this listing is the most advantageous type of listing from the broker's viewpoint.
This type of listing is given to a selected broker who then becomes the exclusive agent of the owner or principal for the sale of the property during the time the listing contract is effective.
The broker therefore is assured of a commission regardless of who sells the property.
Even if the owner sells the property during the contract period, the broker is entitled to a commission.
To be enforceable this type of contract should be in writing.
Both the exclusive right of sale and exclusive-agency listings may be converted to multiple-listing service (MLS).
The MLS generally consists of exclusive listings obtained by a broker and then shared with other member brokers through a published list of properties for sale.
Net Listing - The net listing is created when a principal agrees to sell a property for a stated acceptable minimum amount.
The broker must calculate all costs and charges (including the commission, selling expenses, closing costs, etc.
) to arrive at a total sales price or asking price.
The Jamaica real estate broker cannot raise the sales price for personal benefit without the principal's specific permission.
In the strict sense of the word "net" any amount over the agreed net to the principal goes to the broker.
However, any "remaining amount" could be interpreted as "unjust enrichment," subordinating a principal's interests and violating a fiduciary duty.
Because of these factors and the potential for abuse and fraud, net listings are not recommended for use by the brokerage normally is regarded as the seller's agent and cooperates with other brokers in selling the property by offering sub agency.
Examples of such contracts are listing contracts.
The Listing Contract A Jamaica property listing contract may be written, oral or implied by knowledge and consent of the property owner.
A written or drafted Jamaica property, real estate or land listing contract will have or state a set expiring date, the description of the Jamaican property, sale price, conditions and terms, an explicit fee to be charged (known as a commission) and the signature of the principal or vendor.
A copy of the contract must be given to the principal(s) within twenty-four hours of execution.
No written listing contract can be automatically renewed.
The listing contract is the broker's employment contract.
If litigation should result from some misunderstanding, default or breach, it is easier to find a remedy by showing the written terms and conditions rather than trying to prove the terms or conditions of an oral listing.
Some Conditions of the Listing Contract A listing contract is a unilateral contract because the principal does not have to do anything until and unless the broker performs the terms of the contract, at which time the contract becomes bilateral.
This is common place for Jamaica homes for sale.
The listing contract also creates a fiduciary (trust and confidence) relationship between a broker or agent and principal.
Further, the task of the licensee has been expressed so that no misunderstanding should result.
If required to find a purchaser, the licensee must produce a customer who is ready, willing and able to buy at the terms specified by the principal or take to the principal a customer's offer to buy at the prescribed price and terms, The offer must be in such a form as to be enforceable as a contract if accepted by the principal.
When the licensee has done either of the above actions, he or she is entitled to a commission, even if the buyer and a seller finally negotiate a sale on different terms.
If required to effect a sale by the terms of the Jamaica real estate listing contract, the licensee must not only find a buyer ready, willing and able to buy on the terms specified but also ensure that the buyer signs all necessary notes, mortgages and other instruments and pays all monies required or at least obtain from the buyer a signed contract for purchase of the property at the terms required by the principal.
If the buyer's offer is materially different from the terms prescribed by the principal, then the offer may be rejected and the licensee is not entitled to a commission.
The Different Types of Listing Open listing - The open listing either expressed or implied exists when the owner gives the listing to a number of brokers but reserves the right to sell the property.
The owner-principal is not obligated to pay a commission to any broker except the broker who first finds a buyer to purchase the Jamaica property.
If the owner sells the property, no broker is entitled to a commission.
Exclusive agency listing - The exclusive agency listing is given when a principal has selected one broker to handle the property but reserves the right to sell the property without paying a commission.
If the broker sells the property before the principal is able to do so, the broker is entitled to a commission.
The broker with the exclusive listing normally is regarded as the seller's agent and cooperates with other brokers in selling the property by offering sub agency.
Exclusive right of sale listing - Also known as exclusive-right-to-sell, this listing is the most advantageous type of listing from the broker's viewpoint.
This type of listing is given to a selected broker who then becomes the exclusive agent of the owner or principal for the sale of the property during the time the listing contract is effective.
The broker therefore is assured of a commission regardless of who sells the property.
Even if the owner sells the property during the contract period, the broker is entitled to a commission.
To be enforceable this type of contract should be in writing.
Both the exclusive right of sale and exclusive-agency listings may be converted to multiple-listing service (MLS).
The MLS generally consists of exclusive listings obtained by a broker and then shared with other member brokers through a published list of properties for sale.
Net Listing - The net listing is created when a principal agrees to sell a property for a stated acceptable minimum amount.
The broker must calculate all costs and charges (including the commission, selling expenses, closing costs, etc.
) to arrive at a total sales price or asking price.
The Jamaica real estate broker cannot raise the sales price for personal benefit without the principal's specific permission.
In the strict sense of the word "net" any amount over the agreed net to the principal goes to the broker.
However, any "remaining amount" could be interpreted as "unjust enrichment," subordinating a principal's interests and violating a fiduciary duty.
Because of these factors and the potential for abuse and fraud, net listings are not recommended for use by the brokerage normally is regarded as the seller's agent and cooperates with other brokers in selling the property by offering sub agency.
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