This concludes Chapter 23. Below is a brief summary which you can review before you take your chapter quiz. 

Listing agreements:

The Exclusive Authorization and Right to Sell is a listing for sale of one or more specifically described parcels of real property.

The listing of a sale of residential property of not more than four units must contain: "Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker."

Under a listing's "safety clause," there will be a period of time set forth for after the expiration of the listing, during which the broker will be entitled to compensation if the owner personally sells to someone who physically entered and was shown the property or who wrote an offer on it. 

The broker must notify the owner in writing of the names of the prospective buyers with whom the broker has negotiated during the listing term.

A broker may NEVER use a listing form in which the amount of compensation is preprinted prior to negotiation with the seller.

A multiple listing service (MLS) is usually operated by brokers affiliated with a real estate association. The broker MUST have written permission from the seller before he can submit the property to the MLS. The listing broker controls the listing and agrees to split the commission with the cooperating agents.

A listing agreement authorizes the broker to:

• Place a “for sale” sign on the property;
• Place the property in a multiple listing service;
• Cooperate with subagents or buyer’s agents;
• Accept (on the seller’s behalf) a prospective buyer’s good faith deposit toward the purchase price. 

Net Listing

• A change of price or terms of a listing must NEVER be made on the original contract form, but MUST be made on a price change or extension form.

Real Estate Purchase Agreements in California:

1. Offer:The prospective buyer stipulates the price AND terms of the offer.
2. ALL OFFERS received by the broker MUST be presented to the owner.
3. Acceptance:Upon the seller’s acceptance of the offer, the communication of this acceptance may be sent to the buyer in person, by mail, or by fax.
4. ANY TIME before the buyer receives notification of the seller accepting the offer, the buyer can legally withdraw the offer and not be held liable on the contract.
5. A broker must show that he/she has reasonably supervised the transaction.
6. Signed copies of the offer and the acceptance must be left with ALL parties at the time they sign the documents. 
7. If the terms of the offer are unacceptable, the seller CAN REJECT the offer outright; The seller can make a counterofferback to the buyer 

Acceptance of the property’s condition is a contract provision.

• A deposit receipt has 3 copies: the master, buyer’s and seller’s copy.
• The handwritten parts have control over the printed parts and BOTH PARTIES must initial ALL corrections. 

Disclosures upon the sale of real property:

• Mold Disclosure: If the seller is aware of mold on the property, this should be indicated on the Transfer Disclosure Statement.
• Illegal Controlled Substances:If the seller has actual knowledge that an illegal controlled substance has been released on the property, he MUST disclose this IN WRITING to any prospective buyer.
• Local Option Real Estate Transfer Disclosure Statement: a seller might be required to provide specific information about the neighborhood or community.
• Natural Hazards Disclosure: must be provided if the property is located specified natural hazard zones.
• Disclosure of Military Ordinance Location: Certain areas that were used for military training and which may contain live ammunition, have been identified by federal and state agencies.
• Home Inspection Notice: encourages the buyer to order an independent home inspection BEFORE buying the property. 
• Smoke Detector Statement of Compliance: The seller must provide the buyer with a written statement that the property complies with the California legal requirements for properly operating smoke detectors. 
• Water Heater Bracing: The seller must provide written certification to the prospective buyer that a water heater has been braced or otherwise anchored to resist movement in the event of an earthquake. 
• Megan’s Law: The buyer must be given notice that a database is available for the prospective buyer to screen a specific area for registered sex offenders.  
• Common Interest Development Information:IF the buyer is buying a common interest development the buyer must be given information about the CC&Rs and the amount of homeowner dues, as well as the financial situation of the owner’s association and any pending lawsuits. 
• Notice Regarding the Advisability of Title Insurance: If no title insurance is to be issued, the buyer must receive and sign or otherwise acknowledge a statutory notice regarding the advisability of acquiring this insurance with the close of escrow.   

Residential Environmental and Earthquake Hazards Disclosure: The seller and agent provide the buyer with the Seismic Safety Commission's booklet: “Homeowner's Guide to Earthquake Safety”.

The seller MUST disclose that a property is in an earthquake zone.

Asbestos: carcinogen mineral used as insulation in houses. Encapsulation or removal MUST be performed by a state-licensed technician.

Lead

• Exposure is VERY harmful.
• Lead-based paint disclosure is necessary for any residential structures built prior to 1978. 
• Undetectable except by a professional.
• Seller MUST provide a lead hazard information pamphlet (includes a disclosure form).

Radon is a RADIOACTIVE gas produced by the natural decay of radioactive substances. 

Methamphetamine

• Within 48 hours after receiving this notification of potential contamination of property, the local health officer must post a written notice in a prominent location on the premises of the property.
• The property owner must notify the prospective buyer in writing of the order and notice ALL prospective tenants that have completed a rental application.
• If the local health officials determine that the property is NOT contaminated, within 3 working days,the local health officer MUST remove all notices posted on the premises.