MT361 Unit 3 Listing Agreement Clause Review Example

Course	MT361 Foundations of Real Estate Practice
Unit	Unit 3
Paper type	Listing agreement review
Length	About 1,000 words, 6 pages double-spaced
Format	APA 7 student paper
School	Purdue University Global
Program	BS in Business Administration
Updated	October 2026

Free sample paper for MT361 Unit 3

Fourteen Clauses and a Cousin: An MT361 Unit 3 Listing Agreement Review for Sellers Who Know a Likely Buyer

[Student Name]

Purdue University Global

MT361: Foundations of Real Estate Practice

Unit 3 Listing Agreement Review

[Instructor Name]

[Date]

The sellers, brokerage and agreement are composite; the federal rule and research cited are real, and the clause wording is illustrative.

What this part is doingFraming the review around the cousin tells the sellers which clauses matter most before the table begins.

How to Read This Review

The review follows the draft's fourteen clauses in order, so the Harlows can keep the agreement open beside it at the kitchen table. Each clause gets a plain reading and one of three flags: confirm, meaning the term looks right but should be checked; negotiate, meaning the term is open and worth discussing; or required disclosure, meaning the law requires it.

The Fourteen Clauses

Clause 1, parties: the Harlows as sellers and Larkspur Realty as listing broker. Confirm that both owners on the deed sign.

Clause 2, property: the street address and legal description of the ranch in Maple Ferry. Confirm the legal description against the deed.

Clause 3, term: April 1 to September 30, 2026. Negotiate; six months suits a two-month market, but a shorter term with an option to extend gives the sellers a way to end an underperforming listing sooner.

Clause 4, list price: left blank pending the market analysis in Unit 4. Confirm once set.

Clause 5, listing broker's fee: 2.5 percent of the sale price. Negotiate. The draft correctly states that fees are negotiable and not set by law.

Clause 6, buyer-broker compensation: the sellers' written decision on whether to offer compensation to a buyer's broker, and in what amount. Negotiate. This clause gets its own section below.

Clause 7, named-buyer exclusion: if the sellers' cousin buys during the term, no fee is owed. Negotiate the time limit; see below.

Clause 8, MLS entry: the broker will enter the listing in the MLS within two business days. Confirm.

Clause 9, lockbox and showing authority: the broker may install a lockbox and schedule showings with notice. Confirm the notice period suits the sellers.

Clause 10, seller disclosures: the sellers will complete the state's property disclosure form. Required disclosure.

Clause 11, lead-based paint: because the house was built before 1978, the sellers must disclose known lead-based paint and hazards and any records, give buyers the federal pamphlet and offer a ten-day opportunity to inspect unless the parties agree otherwise (Opportunity to conduct an evaluation, 2024). Required disclosure. The review confirms the draft attaches the federal form rather than merely mentioning it.

Clause 12, protection period: for ninety days after the listing ends, a fee is owed if the property sells to anyone who was shown it during the term. Negotiate; see below.

Clause 13, earnest money: deposits will be held in the broker's trust account. Confirm.

Clause 14, termination: either party may end the agreement on thirty days' written notice. Confirm.

Buyer-Broker Pay, Decided in Writing

The MLS stopped carrying buyer-broker compensation offers on August 17, 2024. Clause 6 therefore asks the sellers to decide in writing whether they will offer any compensation to a buyer's broker, in what amount, and to acknowledge that all fees are negotiable. The review flags it for a conversation, not a signature. Offering nothing may reduce the number of buyers whose agents bring them to see the house; offering something increases the sellers' cost. Barwick et al. (2017) found evidence that agents steered buyers toward listings offering higher commissions, which is one reason the decision deserves discussion rather than a default.

The 2024 changes moved buyer-broker pay off the MLS and onto the sellers' kitchen table, which is why clause 6 needs a conversation.

What this part is doingExplaining why the compensation clause now sits with the sellers shows the review tracks current practice.

The Cousin and the Protection Period

Clause 7 says no fee is owed if the cousin buys during the term. But clause 12 says a fee is owed for ninety days after the term if the house sells to anyone shown it during the term. If the cousin tours the house in May and buys in October, after the listing ends, clause 12 could make the sellers owe a fee clause 7 was meant to waive. The review recommends two changes: limit the exclusion to the first thirty days of the term, which is when the cousin says he will decide, and add a sentence to clause 12 stating plainly that the protection period does not apply to the named buyer.

Three Forms, One Question

The question for each form is who earns a fee if the cousin buys.

Under an exclusive right to sell, the draft form, the broker earns a fee on any sale during the term, whoever finds the buyer, unless a buyer is specifically excluded. With clause 7, the cousin is excluded; without it, the sellers would owe the full fee even for a sale they arranged themselves. Brokers invest the most effort under this form because their fee is secure. Rutherford et al. (2005) found that agents behave differently when their own interests and their clients' diverge, and the secure fee is part of what aligns them here.

Under an exclusive agency listing, the broker earns a fee unless the sellers themselves find the buyer. A sale to the cousin would owe nothing without any exclusion. But a broker may market less energetically, since any buyer the sellers find costs the broker the fee.

Under an open listing, the sellers may list with several brokers and pay only the one who finds the buyer; a sale to the cousin owes nothing. Open listings rarely receive serious marketing and may not be accepted into the MLS.

Conclusion

The review keeps the exclusive right to sell, with the exclusion limited to thirty days and clause 12 amended to protect it. That combination secures the broker's effort while protecting the one sale the sellers can arrange alone. If the cousin decided not to buy before the listing was signed, the exclusion could be dropped. If he asked for more than a month, exclusive agency would become the better form.

What this part is doingStating what would change the recommendation shows the conclusion follows from the facts rather than habit.

References

Barwick, P. J., Pathak, P. A., & Wong, M. (2017). Conflicts of interest and steering in residential brokerage. American Economic Journal: Applied Economics, 9(3), 191-222. https://doi.org/10.1257/app.20160010

Opportunity to conduct an evaluation, 40 C.F.R. § 745.110 (2024).

Rutherford, R. C., Springer, T. M., & Yavas, A. (2005). Conflicts between principals and agents: Evidence from residential brokerage. Journal of Financial Economics, 76(3), 627-665. https://doi.org/10.1016/j.jfineco.2004.06.006

What the MT361 Unit 3 assignment asks for

Unit 3 asks students to review a listing agreement for a specific set of sellers and recommend the right form. The review usually works clause by clause, explaining each in plain language and noting what the sellers should confirm, negotiate or disclose. Instructors expect required disclosures, such as lead-based paint for older houses, to be identified correctly. Compensation clauses deserve close attention after the 2024 practice changes. Students should notice where two clauses interact, such as an exclusion and a protection period. A comparison of listing types is often required, judged against the sellers' particular facts rather than in the abstract. The conclusion should recommend a form and say what would change that recommendation.

How this MT361 Unit 3 example is built

An introduction explains the three flags and the clause-by-clause order. The fourteen clauses follow, each a short paragraph with its reading and flag, including the lead-based paint clause with its federal citation. A section on buyer-broker pay explains the written seller decision, citing evidence on steering, under a highlighted line about the decision moving to the sellers' table. The cousin section shows how the protection period could undo the exclusion and proposes two changes. Three listing forms are compared on the cousin question and on broker effort, with research on agent incentives. The conclusion keeps the draft form, amended, and names the facts that would favor exclusive agency.

Where the points sit in the MT361 Unit 3 rubric

Listing agreement reviews tend to be judged on accuracy, attention to the sellers' situation, identification of required disclosures and soundness of the recommended form. Reading every clause in order shows thoroughness. Flags that distinguish negotiable terms from required ones show legal awareness. Spotting the interaction between the exclusion and the protection period is the kind of analysis that separates strong reviews. The compensation clause should reflect current practice accurately. A comparison of listing types tied to the sellers' facts earns more than a textbook summary. A recommendation with stated conditions shows judgment. Citations to the federal rule and to research follow APA 7, and the review reads well beside the form itself.

MT361 Unit 3 help: mistakes that cost points

Reviews often summarize listing types from the textbook without applying them to the sellers' facts. Another weakness is reading each clause in isolation, which misses the way a protection period can override an exclusion. Some reviews skip the lead-based paint rule or describe it loosely. Compensation clauses are sometimes treated as if fees were fixed by law. Recommendations frequently lack conditions, so the sellers cannot tell when the advice would stop applying. Before writing, list the facts that make these sellers unusual, such as a buyer they already know, and read every clause asking how it would play out if that fact came true. The clauses that change the answer are the ones to discuss at length.

Get an MT361 Unit 3 example written to your instructions

Have a listing agreement from your Unit 3 prompt, or only a scenario describing one? Either works. Add the rubric and any state the case names. A free first custom review, back within 24-48h, reads each clause for its effect on the seller and tests the listing types against the case your section gives. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.

More MT361 papers and BS in Business Administration samples

MT361 Unit 3 questions, answered

What is the difference between exclusive right to sell and exclusive agency?

Under an exclusive right-to-sell listing, the broker earns the fee no matter who finds the buyer, including the owner. Under exclusive agency, the broker earns it unless the owner finds the buyer without the broker's help. An open listing lets several brokers compete and pays only the one who procures the buyer. Most residential listings use the first form.

What is a protection or carryover period?

A clause entitling the broker to the fee if the property sells, within a set time after the listing ends, to a buyer the broker introduced during the listing. It stops owners from waiting out a listing to avoid the fee. Many forms require the broker to deliver a list of such buyers, and some end the protection if the owner relists with another broker.

Do I need a real listing agreement form to write the review?

Not always. Many sections supply a sample form or a clause list, and some state associations and licensing agencies publish sample forms. If you work from a composite or a published form, say which, and note that terms vary by state. The review is graded on the reading of each clause, not on where the form came from.

Where can I find a free MT361 Unit 3 sample paper?

You can read the full MT361 Unit 3 listing agreement review here, covering fourteen clauses and three listing types for sellers with a likely buyer.

How could the protection period undo the cousin exclusion in the MT361 Unit 3 sample?

If the cousin toured during the listing and bought within ninety days after it ended, the protection clause could make the sellers owe the fee the exclusion meant to waive.