Agency Policies Flashcards
Texas agency disclosure laws apply to what type of licensees?
Commercial and residential
What causes the highest probability of problems for licensees?
Lack of Communication
Why must real estate licensees discuss all proposed agency relationships with buyers and sellers (landlords and tenants)?
So they may make an informed decision
In addition to specific requirements for agency disclosure, TREC requires that the licensee deliver to prospective parties a second provision known as what?
A written information statement
When must disclosure of agency relationships and whom the licensee currently represents in the transaction take place?
Early in the first substantive meeting about real property
What two required disclosures concerning agency must licensees make orally or in writing?
Written information statement
Agency disclosure form
What is the best defense a company has to offset problems in the area of agency?
A written policy regarding agency relationships practiced and authorized by the brokerage
What are three items that should be covered in the Handling Common Situations section of a policy manual? (See screen 13 for other correct answers.)
Open houses
Subagency representation
Listing presentation requirements
What will brokers avoid if they take control over agency relationships by developing a company disclosure policy?
Unintended and illegal agencies
Policies and procedures are written to protect the brokerage and licensees, but they should also be written to serve whom?
The customer and client
When a prospect comes into an open house, our duty is to whom?
The seller
When should agency and other working relationships be firmed up
Always as soon as possible to avoid any confusion on the part of all parties, including the licensee
Many communication problems could be eliminated if the licensee would:
Decide in each transaction whether to represent the buyer or the seller.
Decide whether intermediary brokerage might be possible.
Disclose to the buyer or seller whom they represent after the agreement has been signed.
Document the disclosure with an adequate written confirmation.
Act consistently with the disclosed decision.
Before deciding on the status of the working relationship
the licensee should define what role to play in each situation.
Agency
as defined, is a consensual relationship that requires a delegation of authority by the principal and consent by the agent (broker or licensee).
Texas Real Estate License Act specifies the duties of licensees to disclose their agency relationships.
A broker who represents a party in a real estate transaction or who lists real estate for sale under an exclusive agreement for a party is that party’s agent.
A license holder who represents a party in a proposed real estate transaction shall disclose such representation, orally or in writing, at the time of the license holder’s first contact with: another party to the transaction, or another license holder who represents another party to the transaction.
The statute requires
both the written information statement and a disclosure of any agency relationships.
The best defense a company has regarding problems in the area of agency is
a well thought out written policy regarding agency relationships practiced and authorized by the brokerage.
Brokers should develop a company disclosure policy
so that they take control over agency relationships and avoid unintended and illegal agencies. Timely, proper disclosure is the key to a successful and effective agency program.
When a prospect comes into our open house
our duty is to the seller and we must use our best efforts to sell the home to the prospect.
Before entering into an intermediary relationship
written consent must be obtained from both parties
Brokers must
supervise their licensees
