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Whether buying or selling a home, maneuvering through a real estate transaction can be a daunting task for many. It is not that often that the average person is involved in the real estate process during their lifetime.
Whether buying or selling a home, maneuvering through a real estate transaction can be a daunting task for many. It is not that often that the average person is involved in the real estate process during their lifetime.
Listing Contract
Listing Contract
This contract is entered into by the buyer or seller with a real estate broker. This agreement will set forth the type of brokerage relationship that will be established between the broker and the client. It will also set forth the brokerage services to be provided to the client, the compensation to be paid to the broker for those services rendered, as well as many other terms and conditions that the client and broker agree to in the listing contract. A very important provision in this document includes the duties that the broker must perform on behalf of the client.
The broker must exercise reasonable skill and care concerning these duties including, but not limited to:
The broker must exercise reasonable skill and care concerning these duties including, but not limited to:
- Performing the terms of any written or oral agreement with the client;
- Presenting all offers to and from the client in a timely manner;
- Disclosing to the client adverse material facts actually known by the broker;
- Advising the client regarding the transaction and advising them to obtain expert advice as to material matters about which the broker knows but the specifics of which are beyond the expertise of the broker;
- Accounting in a timely manner for all money and property received; and
- Keeping the client fully informed regarding the transaction.
Adverse Material Defect Disclosure
Adverse Material Defect Disclosure
Colorado law requires a broker to disclose to any prospective buyer all adverse material facts actually known by such broker including but not limited to adverse material facts pertaining to the title to the property and the physical condition of the property, any material defects in the property, and any environmental hazards affecting the property which are required by law to be disclosed. These types of disclosures may include such matters as structural defects, soil conditions, violations of health, zoning or building laws, and nonconforming uses and zoning variances.
Responsibilities and Obligations of the Buyer or Seller
Responsibilities and Obligations of the Buyer or Seller
The listing contract also sets forth some disclosure and consent obligations and responsibilities that the buyer or seller have toward the broker that includes:
- Agreeing to conduct all negotiations for the property only through the broker, and to refer to the broker all communications received in any form from real estate brokers, prospective buyers (or sellers), or any other source during the listing period of the listing contract.
- Disclosing to the broker if the client is or is not currently a party to any other agreement with any other broker regarding the sale of this property (seller) or purchase of property (if buyer).
- Representing to the broker that the client has or has not received a list of “Submitted Prospects” (if seller), or “Submitted Property” (if buyer) pursuant to a previous listing agreement to sell or purchase the property with any other broker, respectively.
- The seller to a listing contract also must agree that any advertising of the property by the seller (e.g., Internet, print and signage) must first be approved by the broker.
- In addition, a seller must represent that all materials (including all photographs, renderings, images, videos or other creative items) supplied to the broker by or on behalf of the seller are owned by the seller, except as to those that the seller has disclosed in writing to the broker. The seller also grants to the broker license to use such material for the marketing of the property. All materials provided by the broker (photographs, renderings, images, videos, or other creative items) may not be used by the seller for any reason unless agreed to otherwise.
While there are many additional terms and conditions for both a seller and a buyer and their respective broker in a listing contract, the obligations and responsibilities discussed above will help home buyers and sellers understand a little better what to expect in the beginning stages of a real estate transaction
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