Real Estate Brokers

1.    Agency relationship.
2.    Authority to show, advertise and market the property.
3.    If clearly stated, may have power of attorney to sell or contract for the sale of property.
4.    Exclusive (“exclusive agency” or “exclusive right to sell”) and Non-exclusive Listings.
5.    Drake v. Hosley (Alaska 1986): The broker found a group of buyer willing and able to perform.  The buyers were to close 10 days after evidence of clear title was furnished.  Title was encumbered by an ex-wife’s judgment.  Seller sold to another group of buyers through a different broker.  Original broker is entitled to commission since the seller’s conduct was improper or frustrating and prevented the title from passing.
•    Dobbs: The traditional rule is that a broker does not earn a commission unless the contract of sale is performed.  The broker must have a willing and able buyer and the seller needs the proceeds of the completed sale to pay the commission.
•    In Texas, the Dobbs rule applies.  When drafting, it is not enough to say that the commission comes out of the proceeds of the sale.  The contract must say that commission is not earned until the deal closes.
6.    Disclosure of representation statute.
7.    Listing Agreements – 1/17 Pink Notes
8.    In Texas, pursuant to the Real Estate License Brokerage Act, a broker has a duty to disclose known facts/defects, but not facts/defects he should have known about.