5. Statutory Requirements Governing the Activities of Licensees Flashcards
When advertising to purchase, sell, exchange or lease any real estate, what 2 things must a broker or agent clearly indicate about the licensee?
- That they are the party advertising
2. Their name and associated brokerage
How many brokerages can an agent work for?
Only 1, the one that holds their license
Who is the only person an agent may accept commission or other renumeration for trading in real estate?
The broker that holds their license
Can an agent be independent of a broker?
No
What 2 things must an application for a license of an agent or a renewal have attached by a licensed broker to be approved by the Superintendent?
- A recommendation of the applicant
- A declaration that the applicant, if granted a license, is to act as an agent employed by or associated with and representing the broker making the declaration.
What happens to an agent’s licence when they cease to be employed by their broker?
It is void
Can a broker employ, permit , or engage the agent of another broker, or an unlicensed agent to trade in real estate?
No
Can a broker pay commission or renumeration to an agent of another broker, or an unlicensed agent?
No
What 2 things happen if a broker passed away?
- The Superintendent may grant to his executor/administrator temporary registration as a broker for a period of no more than 6 months.
- The licensed agents of the deceased broker at the time of his death shall be deemed to be licensed as agents of such executor/administrator.
Can a licensed broker/agent pay commission or other fee to an unlicensed person in consideration for furthering a trade in real estate?
No
What happens if a sale/lease happens and there is no agreement in place for commission?
The rate or commission, or other basis of renumeration, shall be that generally prevailing in Bermuda.
No action shall be brought to charge a person by commission or otherwise for services rendered in connection with the sale of real estate except for what 2 circumstances?
- The contract is in writing and signed by the party to be charged or by his broker
- The person thought to be charged has as a result of the services, effected a lease AND has duly executed a sale and purchase agreement or lease signed by all necessary parties and delivered it to the purchaser or lessee.
If a broker or agent wants to purchase real estate listed with him for sale, what must they do?
Disclose in writing to the Superintendent AND listing owner complete details of his negotiations for the sale of the said property to another person.
What must a broker or agent do after the execution of an agreement to list real estate with him for sale, exchange, lease, or rent?
Deliver a true copy to the person who signed the agreement.
What must a broker/agent do if they have secured from the owner of real estate a signed acceptance of an offer to sell, purchase, exchange, or rent such real estate?
Immediately deliver a true copy of the acceptance to each of the parties to the contract or to their legal representatives.
What 3 things must a broker do in regards to handling of client monies?
- Establish trust accounts for client funds.
- Not commingle them with any personal funds.
- Keep appropriate ledgers
What must be included in a sole listing to make it valid?
An expiration date
When are true copies of listings and sales contracts presented to the appropriate parties?
Immediately
What 6 pieces of information must a broker include in order to keep proper books and accounts in respect of each trade?
- The nature of the trade
- A description of the real estate involved
- A true consideration of the trade
- The names of the parties to the trade
- The amount of deposit received and a record of the disbursement thereof
- The amount of commission or other renumeration and the name of the party thereof
According to the Electronic’s Act 1999, what is the most notable criteria that broker’s documents may be kept on electronic storage?
The information contained in the electronic record is accessible and is capable of retention for subsequent reference.
Definition:?
False promises and representations designed to convince a party to enter into an arrangement that may not be proper, ethical, or to the party’s ultimate benefit.
When an agent or broker makes a representation that guarantees or promises to resell real estate offered for sale by him.
Unfair inducement
Under what condition can an agent make a representation legally to either sell any of the purchaser’s real estate or procure a mortgage, extension of mortgage, ease or extension of a lease?
If at the time of making the representation, the person making it delivers a letter or electronic copy thereof setting out the representation in clear language to the person to whom the representation is made.
Where must a licensed broker keep their licence?
Exhibited in a prominent place at the address shown thereon.
Where must a licensed agent keep their license?
At the office of the broker whom he is employed by or associated with.
