Professional Documents
Culture Documents
REAL ESTATE
BROKERAGE
by Maya Bandolon-Cartojano, REC, REA, REB
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RE Businessmen/Entrepreneurs
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Contract of Agency
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Withdrawal of agent
Accomplishment of purpose
Revocation
Dissolution of a firm which
granted or accepted
agency
Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
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AS TO FUNCTION OF BROKERS
Sales Agency
Purchase Agency
Lease Agency
Exchange Agency
Loan Agency
Joint Venture Development
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
Sales Agency - authority given by the seller for the broker to look for a
buyer and negotiate the sale.
Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
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AS TO BASIS OF COMMISSION
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PROCURING PROSPECTS
A prospect is a person who is in
need and can afford to buy.
A person who has the willingness
but without capacity or one who
has capacity but without
willingness is only a suspect.
One with willingness without
capacity but has willingness to
have the capacity is a future
prospect.
Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
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Previous clients
Referrals
Fellow brokers
Advertisements
Club membership
Newspaper announcements
Apartment dwellers
Social media
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FACTORS TO CONSIDER IN
QUALIFYING PROSPECTS
Need of the prospect
Cash position or capacity to
secure financing
Verification whether or not
prospect is authentic and not only
a window shopper
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C. PRESENTATION AND
DEMONSTRATION
Showing of pictures,
brochures, price, site,
To arouse interest
To create desire
which could lead him to
act and buy the
property.
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PRESENTATION
it is the orderly written / oral explanation of facts and figures that make a
given property attractive to a prospective purchaser.
Scope of coverage:
a. Property identification - location (street, house, number, city); lot area
and dimensions; type of property; description of improvements; zoning
classification; price and terms;
b. Advantages and benefits - quality of neighborhood, availability of
public transportation, proximity to public market/ malls/ schools/ hospitals;
reasonableness of price.
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DEMONSTRATION
-it is the process of showing the property and pointing out its physical
utilities and other advantages and benefits to arouse the desire to
possess or own it.
Preparing for demonstration:
Preparation of checklist of the physical attributes and other data
which may be the object of prospects inquiry.
Organization of selling points to be emphasized.
Anticipation of possible objections.
Selection of ideal route to create favourable
impression of the neighborhood.
Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
12/6/2015
D. NEGOTIATION
involves transmittal of
purchase offers,
counteroffers and
conciliation of parties as to
the price and terms.
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NEGOTIATION
transaction as to price
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NEGOTIATION
Common Difficulties
Hesitancy of prospect to express
his objection,thereby depriving the broker the
opportunity to answer or overcome it.
Presence of supposed advisers of the prospect who give
negative remarks which tend to undermine the transaction.
Prejudice on either both parties because of differences in religion,
political beliefs, superstition, etc.
d. Failure or inability to analyze prospects affordability.
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
E. CLOSING &
CONSUMATION
the process effecting the
meeting of minds of the
parties in the transaction.
The execution and signing
of the documents,
payment of the
consideration, delivery and
the registration of the
property in the name of the
buyer.
Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
12/6/2015
CLOSING -it is the process when , thru the mediation of the broker,
the minds of the parties meet where the buyers offer of price, terms,
and other conditions become acceptable to the seller, or vice versa.
General Steps
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CLOSING
CLOSING
When the title to the property has certain annotations which the seller
assumes cancellation of.
When the seller is given time to vacate the premises and escrow is
provided to ensure delivery within the stipulated period.
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
CLOSING
CLOSING
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
CLOSING
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F. REGISTRATION
is the cancellation of the
sellers title and issuance of
new title in the buyers
name, or annotation of the
mortgage or lease at the
back of the title.
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COMMISSION
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COMMISSION
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KINDS OF LISTING:
I. AS TO FORM
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
KINDS OF LISTING:
I. AS TO EXCLUSIVENESS
Restricted Listing
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
B. Exclusive Listing
a listing wherein only one broker
is authorized to negotiate.
Exclusive Agency Contract
an exclusive listing wherein the
listing broker is not entitled to a
commission if the owner
negotiates the sale of the
property.
C. Multiple Listing
the Broker who holds the Exclusive
Contract to Sell re-lists it to a
multiple listing service (MLS). The
MLS is usually available from the
real estate organizations and /or
boards. The real estate org or
board, after accepting the listing,
provides copies of necessary
sketches, location maps, and lot
plans, pictures and other
pertinent data about the
property, and distributes these to
the participating members.
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
D. RESTRICTED LISTING
D. RESTRICTED LISTING
CONTENTS OF LISTING
Rate of commission
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Maya Bandolon-Cartojano, REC, REA, REB www.cartojanorealty.com
SOURCE OF LISTING
Personal contacts
Referrals
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The principal is averse to giving written authority and the broker is hard put in proving his
verbal authority.
Seller and buyer collude with each other by postponing consummation after expiration
of brokers listing which does not contain a hold-over clause.
After broker has spent time, effort and money is photocopying documents, and follow
ups, spending gasoline, etc., the buyer purchases the property thru another broker who
happens to be his relative or friend.
After the broker has registered his buyer with the seller, the buyer purchases the property
not in his name but in that of his company; thus buyer is no longer the person registered
by the broker.
The authority of the broker is a net-selling, and the seller accepts an offer to buy at the
listed price or lower, thereby depriving the broker of the overprice compensation.
With the effectiveness presentation of the broker, or after the broker has prepared a
feasibility study, the seller realized new values on the property and decides not to sell.
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