Question

Which of the following is true regarding a sellers role under a listing agreement?

A. A seller's role under a listing agreement includes providing accurate information about the property, such as its condition, features, and any known defects.
B. The seller is responsible for allowing potential buyers and their agents to access the property for showings and inspections as agreed upon in the listing agreement.
C. The seller typically agrees to pay a commission to the listing agent or brokerage upon the successful sale of the property.
D. The seller may have the option to negotiate the listing price and terms with the listing agent before signing the listing agreement.

Answer 1

A seller under a listing agreement must provide accurate information, allow property access for showings, agree to pay commission upon sale, and can negotiate listing terms. To reassure buyers amidst imperfect information, sellers can offer warranties or service contracts.

Step-by-step explanation:

The role of a seller under a listing agreement indeed encompasses several responsibilities.

First, the seller must provide accurate information about the property, including its condition, features, and any known defects.

Second, the seller is responsible for facilitating access to the property for potential buyers and their agents for showings and inspections, as detailed in the listing agreement.

Third, upon a successful sale, the seller agrees to pay a commission to the listing agent or brokerage. Lastly, before signing the listing agreement, the seller has the opportunity to negotiate the listing price and the terms with the listing agent.

In the case of imperfect information, sellers can reassure possible buyers through a variety of means. Offering warranties or the chance to purchase a service contract are common means by which sellers of goods like cars, appliances, and houses can provide reassurances to buyers.

In markets where both buyers and sellers are well informed and compete independently, imperfect information can hinder price agreement.

Thus, transparency and options for recourse play a pivotal role in bridging the gap of imperfect information, facilitating trust, and enabling smoother transactions.