Brokers

Question 1

Rule for brokers:

Answer 1

Real estate brokers must act in the best interests of their clients because they have a fiduciary duty to them. They must also always act in good faith.
Should only have an interest in selling the property, or finding a satisfactory property if they represent the buyer.

Question 2

Can a broker give legal advice?

Answer 2

No, they are not licensed to practice law and cannot act in that capacity.

Question 3

Rules for when a Broker collects their fee:

Answer 3

1) General Rule: Collect their interests when they find a ready, willing, and able buyer.
2) Some states have varied from the general rule: Brokers collect their commission when they close the deal on fixed terms by both buyer and seller.
If the deal fails to close, or the seller defaults, then the brokers claim to their commission is invalid and they cannot profit.

Question 4

Two types of brokers:

Answer 4

1) Buyers brokers: represent the buyer and the buyer only.
2) Sellers brokers: Represents the seller and only the seller. Anything the buyer tells the sellers broker, the broker has a responsibility to inform the seller of.