Agency Relationships and Disclosure Flashcards
What falls under DOS Regulation 175.5
“A real estate broker shall make it clear for which party he is acting and he shall not receive compensation from more than one party except with the full knowledge and consent of all parties.”
a written document signed by both the agent and the client or customer should always be utilized in order to best protect everyone’s interests.
What does the NY RPL Section 443 require of brokers/salespersons?
Requires that brokers and salespersons give prospective sellers and buyers (or landlords and tenants), upon first substantive contact, a precisely-worded agency disclosure form that describes the roles of sellers’ agents, buyers’ agents, listing brokers’ agents, and dual agents.
(For commercial written disclosure it not needed)
When should there be signed acknowledgment with the lisiting agent?
A listing agent should obtain the seller’s signed acknowledgment before entering into a listing agreement for a residential transaction.
A buyer’s agent should obtain the buyer’s signed acknowledgment before entering an agreement to represent the buyer.
A seller’s agent must provide the disclosure and obtain the acknowledgment from all prospective buyers or their buyer agents at the time of the first substantive contact.
Who can compensate the Buyer’s agents?
An agency relationship does not depend on the source of the agent’s compensation. Buyer agents may be compensated by
the buyer, the seller, or both, but only with full disclosure to all interested parties to the transaction and with the informed consent of all interested parties to the transaction.
What are the three authorized relationships as sellers agents?
Exclusive-right-to-sell listing
Exclusive-agency listing
Open listing
What is exclusive-right-to-sell?
One broker whose entitled to a commission regardless of who sells the house.
Greatest protection for broker
What is exclusive-agency listing?
One broker. Broker paid if it or another broker is the procuring cause.
Seller retain right to sell without obligation to pay broker
may see 2 advertisements. one by exclusive agents and one by seller
What is open-listing?
Multiple brokers where only selling brokers get paid. Seller retains right to sell without obligations
No one agent is motivated to spend a great deal of time or advertising money on the property, because no compensation will be due if someone else sells it first.
What is the agency relationship of a broker who accepts a listing from a seller?
The broker becomes the seller’s agent.
Any salespersons who work for the broker become subagents of the seller because they are agents of the broker.
