Real Estate Practice and Transactions
Listings and transactions
Learn listing types: exclusive right to sell (broker earns commission even if seller finds the buyer), exclusive agency (seller may sell without owing the broker), and open listing (non-exclusive). Buyer agency agreements create duties to the buyer; transaction-broker service does not. A net listing is risky and regulated-avoid promising a seller a net price. Offers should be presented promptly and objectively. Disclose seller property condition (Tennessee Residential Property Condition Disclosure), lead-based paint (pre-1978), agency status, HOA information, and wire-fraud warnings. Fair housing and antitrust rules apply throughout: do not steer, blockbust, or discuss commission-fixing with competitors.
Closing and money
At closing, the deed transfers title, title insurance protects the lender/owner, and escrow prorates taxes, rents, and some utilities. Closing costs may include origination, title, recording, survey, and prepaid items. RESPA Section 8 prohibits unearned fees and referral kickbacks. Prorations use the contract and closing date; never assume the buyer pays the whole year's taxes. Traps: exclusive-right-to-sell vs exclusive agency, unlicensed assistants negotiating, sharing commissions with unlicensed persons, and failing to document disclosures.
Worked rule
Seller lists exclusively with Broker A. Seller personally finds a buyer during the listing term. Under an exclusive right to sell, Broker A generally earns the agreed commission; under exclusive agency, the seller may avoid it. Rule of thumb: read the listing type first-it answers “who gets paid?”