FUNDAMENTALS OF REAL ESTATE MANAGEMENT

Notes # 2
REM 325 TTH 3:00 – 5:30 PM

NICOLE DURANO-LUMARDA, IRM, CIPS, MBA

REB, REA, REC, ENP, LPT

CONCEPTS OF REAL ESTATE LISTING

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.

B. Exclusive Listing a listing wherein only one broker is authorized to negotiate.

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”.

He may impose conditions such as:

✓ It must not be advertised nor placed in a multiple listing.
✓ It must be handled by the broker himself and his office staff should not know about it.

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.

FACTORS TO CONSIDER IN LISTING

1. Price quotation of owner is within the realm of the market value.

2. Title is free from any condition or annotation which may pose legal obstacle to is disposition.

3. Person giving authority is the owner or duly authorized representative.

4. Verification whether the property or portion thereof will be expropriated.

5. Verification, in case of agricultural, whether disposition is feasible under agrarian reform law.

ESSENTIAL ATTRIBUTES OF REAL ESTATE BROKERS

AMIABILITY - having a pleasant and friendly disposition, coupled with an easygoing temperament and a
genuine interest in people.

CREATIVITY - having or characterized by imagination, originality, productivity, an artistic skill, etc. No

formula work twice; each formula is simply a solution to a particular problem that occurred in the past.
Every new problem requires a new solution or a fresh approach depending on circumstances
surrounding it.
DEPENDABILITY - ability to keep promises since customers want to know that the broker will be there
when he says he’ll be there.

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.

PATIENCE - an invaluable asset that is a pre-requisite in any type of transaction.

TACK & DIPLOMACY - an ability to appreciate delicate situations and to act accordingly.

TYPICAL LARGE REALTY SET UP