EARNEST MONEY - amount accompanying an offer to purchase to show good faith or genuine desire of the buyer; it is considered part of the price if the offer is accepted, but is returnable if the offer is rejected.
ESCROW - an agreement where the consideration of a contract or a portion thereof is deposited with a third party known as escrow agent who is authorized to release payment after fulfillment of some conditions.
HOLD-OVER CLAUSE - a provision in listing which entitles the broker to the commission even if he closed the sale after the period of his authority provided the sale is to a buyer whom the broker registered in writing to the seller and with whom he has negotiated during the period of his listing.
LISTING - the authority given by the principal to the broker for the latter to negotiate the sale, purchase, lease, exchange, or mortgage of property within a stipulated period and at stated price and terms.
MULTIPLE LISTING - a cooperative arrangement among brokers who are members of a realty association where properties for sale/lease or wanted are circularized to all members, and commission is shared between the listing member and selling member, with a nominal percentage going to the association as service fee.
OPTION - a contract between the seller/lessor and the buyer/lessee wherein the former, for a consideration known as option money, binds himself to reserve the property for the latter to purchase/lease at a stipulated price and within a stipulated period.
PROCURING CAUSE - the act of the broker which is instrumental in effecting the meeting of minds between the seller and the buyer as to price and terms. It is one of the requisites for entitlement to commission.
REAL ESTATE BROKER - a natural or juridical person who, on behalf of a principal and for or in expectation of commission, fee or other valuable consideration, negotiates the sale, purchase, lease, exchange, or mortgage of real estate.
