"A Listing Situation"

Read the text below and answer the following questions

Robert and Penelope Jordan decide to sell their home in Gainesville, Florida, because Robert's firm has transferred him to Fort Myers. They contact Ben Park, a Realtor with Baden Associates Realty, who sold them the house five years ago. They like Benhe was courteous and efficient when he helped them find a home, and he has stayed in touch with them since. On May 1, 2017, Ben comes to the Jordans' home, which is located in Spring Meadow Estates. The Jordans remind Ben that they paid $240,000 for the house five years ago, and, they believe the house is now worth around $270,000. Ben points out some recent sales of similar houses in the neighborhood ranging from $253,000 to $272,000, and he tells them that the house realistically will not sell for more than $265,000. (He suspects this is high and that it will ultimately sell between $255,000 and 265,000 but feels he should give the benefit of the doubt to the client.) After some discussion about the advantages and disadvantages of their house relative to others in the neighborhood, the Jordans agree the listing price should be $268,000, which will include the kitchen range and refrigerator, and a patio table and chairs as well as the real estate. The property is free of encumbrances except for an existing mortgage with a remaining balance of $204,072. The Jordans prefer not to give a second mortgage or other financing terms. The existing mortgage has a due-on-sale clausethat is, it cannot be assumed (taken over) by the buyer without agreement of the lender. The house has four bedrooms, two baths, a living room, dining room, screened porch, double garage, and an outside storage room. It has central heating and central air conditioning and was built in 1976 with concrete block and stucco (CBS)-on-slab construction. Like other houses in the neighborhood, it lacks modern windows and wall insulation that are necessary for energy efficiency. This lowers its value significantly below comparable newer homes. The entire house, except for the kitchen, was carpeted about eight years ago. The house is in a reasonably good condition, although the interior and exterior paint is beginning to look dull and the carpet is becoming worn in heavy traffic areas. The lot is approximately one-fourth acre and is modestly landscaped. The neighborhood contains similar generally well-maintained houses, and property values are increasing after several years of decline. According to the Jordans' deed in the Alachua County Courthouse, the property description is "Parcel No. 3, Block 2 of Spring Meadow Estates, recorded in Plat Book 12, page 28." Ben and the Jordans agree on a commission rate of 6 percent. Exhibit 12-6 shows the completed listing form for the Jordans' property. Several clauses in the listing contract should be noted: Clause 1 states that it is an exclusive right of sale agreement, covering the real property plus personal property as listed. In Clause 2 the question of fixtures appears. The default treatment of the contract includes all carpets and all "permanently installed equipment." Clause 4F delineates the seller's responsibility for closing expense items, including responsibility to purchase a title insurance commitment for the prospective buyer. Section 5 states the performance obligations of the broker to bring about a sale. Clause 5F gives the broker the right to incur expenses on behalf of the seller as needed to effect the closing of a sale. Clause 5G states the agency status of the broker. Clause 6D holds the seller liable for any seller misrepresentations, failures to disclose material facts, or failures to perform the requirements of the contract. Clause 6F addresses the question of latent defects. The seller is held fully responsible for known but undisclosed defects, and the broker is explicitly absolved of any liability for such defects. Section 8 details the compensation to the broker under several outcomes, including sale, securing an option to purchase, or renting. Clause 9 details the broker's compensation in case the seller wants to terminate the listing. Clause 12 details the disposition of the buyer's deposit if the buyer defaults and the seller elects the recourse of liquidated damages. Section 15 states that this contract replaces any oral agreements between the seller and the broker, and can only be modified in writing. An issue of growing prominence in residential brokerage is the latent defects problem addressed in clause 6F of the following exhibit. States generally have adopted laws holding the sellers of a residence, and sometimes their agent, liable for any material defects not plainly evident (e.g., a deteriorated roof or plumbing) if the seller knows about the defects and does not disclose them. In short, the doctrine of caveat emptor (buyer beware) has beenalmost entirely reversed

Read the text above and answer the following questions:

1.What did the Jordans pay for the home initially?

2.The Jordans called Ben Park, a Realtor, who sold them the house originally.How does Ben help the Jordans decide on a listing price?

3.What is the amount of the existing mortgage on the Jordan's house?

4.The Jordan's mortgage has a due-on-sale clause.What does this mean?

5.What features cause the Jordan's house to have a lower value than newer homes?

6.What land description form is used to describe the Jordan's property? (Chapter 3 info)

7.Exhibit 12-6 is a copy of the Listing Agreement.Define "exclusive right of sale" and the Broker's obligations as authorized by the seller.(Summarize this information, do not cut and paste verbatim.

8.Whose responsibility is it to purchase a title insurance policy in this contract?

9.What are the details of the compensation from the Seller to the Broker?

10.Paragraph 9 describes the "Conditional Termination".What are the details of this paragraph?What is the fee for such?

11.What is the amount of the compensation to other Brokers?

12.How long is the listing in effect?

13.Define "latent defect".Where is this discussed in the contract?

14.What are the items excluded from the purchase?

15.What personal property items are included in the purchase?

16.What is the listing price and what are the financing terms?