Agency And Listing Flashcards
Fiduciary relationship
Both agent and the sales person have a fiduciary responsibility to the owner which requires good faith and honesty
Agency is created
By express written contract
An agreement to pay consideration
Not essential to create an agency relationship
Failure of licensee to disclose to his principal the full amount
Of his commission or profit may result in disciplinary action a licensee must reveal to the other party that he has a license whenever he is involved in a real estate transaction as a principal a licensee can’t purchase property through a dummy buyer
If buyer is close relative to the broker
Must reveal this fact to the seller
Agency
Found in the Civil Code this is a contractual relationship whereby an agent acts as a representative of the principal an agency is created when a principal execute a listing agreement of the racing a licensed real estate broker to be his agent
accepting land as a commission
And selling it for profit acceptable behavior
Rectification
Takes place when a friend supply of stuff course of girls and act that was performed on his behalf without his prior approval
Divided agency
agent is acting for more than one writing in a transaction without knowledge and consent of all parties that disclosure act of 1988 requires the licensee to reveal to the client and customer he’s relationship as soon as possible in other words whether he is the agent of the seller buyer broker
Dual agency
When an agent represents more than one party in a transaction both buyer and seller
An agent must disclose all material facts to the third party buyer
But does not have a fiduciary duty to the third party
An as is clause refers only to observable defects and does not eliminate the duty
To disclose material facts
An agent incurs no liability if he does not disclose that an occupant
Died in the house more than three years ago or that previous occupant had aids hippa act
The brokers entitled to a commission and indemnification from legal action if a contract is rescinded by a buyer due to
False information. Provided by the seller
An agency may be terminated by agreement of the parties by the death of either party but expiration of the time. In the contract we announcement of the agency by the agent or revocation of the agency by the principal in the last two instances the party terminating the agreement may be liable for damages
The broker is entitled to a commission if he produces a buyer who is ready willingly enable to purchase a property on the exact terms of the listing contract or eight a binding contract arranged between the buyer and seller
Commission is not set by the Law but rather buy the agreement in the listing agreement
The broker must be licensed at the time of the sale and have a written listing a contract in order to enforce the payment of a commission
If neither party to a transaction is licensed the buyer does not want to disclose any profit he will make in the future of the sell of property
Laws
Deposit and trust account the usual listing contracts authorities the broker to accept deposits
Trust account if you do Sherry account set up for clients funds only it cannot be commingled with business operating account or personal accounts
Once the offer is accepted
The broker must give deposit if the principle demands it
The broker may hold an uncashed check when directed to do so by the buyer
But he must inform the seller when presenting the offer
Ernest money
Good faith deposit
The broker must leave deposits into Esca into the hands of the principal and to the trust fund account by the third business day
Every does not use guilty of commingling
Is the property is damage before the close of escrow the buyer may
Cancel the contract and have his deposit returned
A brokers buyers agent if he is not authorized by the seller to accept the deposit in this case both the buyer and the broker would be liable if the deposit were misused or lost
The broker is the seller’s agent is the listing contract authorizes the broker to receive deposits the seller and the broker would be liable of the deposits were misused or lost
If the booklet deposits a virus check and the buyer demand a refund before the offer is accepted the broker cannot return the deposit until the buyers check
Has cleared the account
If there is a dispute between the buyer and the seller and the buyer wants to deposit back the broker can give the deposit back to him instead of the selling this is called
Interpleader action
If a broker collects loan processing fees upfront
They must be placed in the trust account until earned
When is brokers commissions is a percentage of the rents collected it does not represent commingling if commissions are withdrawn within
25 days
Withdraws the broker and employee when authorized by the broker may make withdrawals salespersons employed by the broker or an unlicensed employee who is bonded
Anyone who broker authorizes who is employee
A broker may withdraw funds from a trust account to pay for repairs on an apartment he manages
.
A broker is allowed to have up to…… Of his own money in the trust account
200
Any interes earned on funds in the trust account must be credited as a specificsd in a written agreement between principal and broker interest can’t accrue to benefit the broker
A broker must keep an accurate record of all trust funds which pass through his hands but a trust fund account is not required by law
Reconciliation
Comparing the banks accounts with the broker records must be done monthly an unexplained overage must be kept in the trust account
Exclusive right to sell
Broker is entitled to a commission no matter who sells the property including owner
Net listing
The listing agreement states that the broker only receives compensation if the selling price exceeds the net amount that the seller wants
Open listing
Non exclusive authority is given to many brokers no termination date is required
Multiple listings mls
An exclusive listing generally an exclusive right to sell listing with the added responsibility on the part of the broker to distribute information through the multiple listing services share commission with cooperating brokers when bring in buyer
Buyers listing
Exclusive authorization to locate property a contract which the broker is the agent of the buyer the brokers has no agency relationship with the seller or the listing broker once the property is located can become a dual agent for both parties if permission is obtained can represent other buyer as well
Subagent
Broker who brings in buyer
