Agency Creation and Termination Flashcards
An agency agreement entered into when both parties agree to and understand the arrangement via written or oral communication between the parties
express agency
Agency that is created from the actions of the parties rather than an express agreement
implied agency
A legal concept that says that a person may not disavow something that the person had previously affirmed either by action or words
Ex. Marjorie told the buyers that Kindra was her agent, even though they had no written agreement. Marjorie cannot later assert that Kindra isn’t her agent.
estoppel
Acceptance after the fact, sometimes in contrast to a prior agreement
Ex. Even though the sellers were supposed to leave behind the washer and dryer, they took them when they moved out. The buyer ratified their decision by moving in and getting a set of his own without making a fuss about it.
ratification
A situation in which the agent has a financial stake in the transaction beyond the anticipated commission
Ex. Let’s say you represent a developer in the purchase of a large parcel, and you agree to forego your compensation, provided the developer gives you all the listings on the lots for the subdivision to be developed. Because of your monetary contribution (the loss of your original fee)
agency coupled with interest
When a licensee/brokerage firm acts in a fiduciary capacity for either the buyer/tenant or the seller/landlord in a real estate transaction, but not for both
single agency
A relationship where the licensee represents the seller in a real estate transaction
seller agency
What is a sub-agent?
A licensee who works for one firm but who is engaged by another firm to perform agency functions on behalf of that firm’s client
Representing both sides in a real estate transaction
dual agency
A type of agency agreement in which the real estate licensee or firm is the only one allowed to represent the buyer/seller and earns a commission if the sale goes through unless the client finds a buyer/property without the licensee’s assistance
exclusive agency
A listing agreement that allows the owner to work with multiple brokers, only paying a commission to the broker who procures the buyer
open listing
A listing agreement in which the broker has earned a commission no matter who finds the buyer for the property during the term of the listing
exclusive right-to-sell
an agreement in which the seller specifies a price desired for the property and agrees to pay the broker any amount received above that price as compensation. _________ be written for exclusive right-to-sell, exclusive agency, or open listings.
net listing
When a seller terminates a listing agreement before the date stated in the contract. What two things might the seller owe to the listing agent?
Marketing and advertising expenses to date
and/or Full agreed upon compensation if a ready, willing, and able buyer were found
A common form of a buyer representation agreement; provides the most comprehensive service and protects the buyer agent’s commission
exclusive right-to-represent
The legal agreement between a buyer and a broker hired to represent the buyer’s interest
buyer representation agreement
you should always schedule a in person meeting with a _______. even though meeting a _______ at their house would make perfect sense
buyer, seller
what is the very first thing that should be shownin a buyer presentation
disclosure forms
You’ll want to demonstrate these three qualities to your potential buyer client what are they
Experience
Professionalism
Service mindset
Questions that the buyer needs to answer for a buyer questoniaire include…
Name(s) and contact information
Number of people in the household
How much looking have you done so far? Have you seen anything you like?
(Sometimes the buyer has already identified a property, so give the buyer a chance to tell you so.)
What type of property are you looking for?
What is your primary motivation for the purchase?
This is key. Does the buyer need to move to a specific school district? If so, you shouldn’t show properties outside of that district. Does the buyer need to live closer to an aging parent or son or daughter? Does the buyer need to be in a senior community where specific services are available? Does the buyer need low yard maintenance, or, conversely, need a yard big enough for a garden? The buyer’s primary motivation for moving will help you narrow your search by starting with must-haves.
Price range? Size? Location? Specific neighborhoods? Amenities?
Who is your lender, and are you pre-qualified? For what amount?
What is on your wish list?
What is a deal-breaker?
What is your home-buying experience?
What could your previous agent have done better?
What did your previous agent do well?
____________?
When preparing for a buyer presentation, what main purpose should you keep in mind?
to build trust
Latin term meaning “let the buyer beware”; buyers carry the responsibility of performing due diligence to determine the property’s condition
caveat emptor
what is a CLUE report
Insurers will sometimes look at a given property’s insurance history to determine how the number of claims, the types of claims, and certain property conditions align with their underwriting rules. A property’s insurance rules can be found in a report called the Comprehensive Loss Underwriting Exchange, or CLUE, report.
______ means the information is considered important in deciding what course of action a buyer takes regarding the real estate transaction.
______ means the information is negative information about the property and is usually something that would reduce the property’s value.
_______ means the information is known to the licensee regarding the physical condition of a property or could be plainly noticed by the licensee, regardless of whether it is disclosed by the owner/seller.
_______ means any problematic property condition that may not necessarily be immediately apparent.
Material
Adverse
Actual knowledge
Physical
are Easements and encroachments are considered material facts.
yes
