CH 2 Real Estate Brokers Flashcards
What is a real estate broker?
A person who:
(1) buys, sells, or leases real property
(2) on behalf of another person
(3) for expectation of payment (which can be anything of value)
What are the 2 types of real estate brokers, and who do they represent (buyer or seller)?
Listing broker—seller
Selling broker—buyer
What are the 3 types of listing agreements?
(1) open listing
(2) exclusive agency
(3) exclusive right to sell agreement
Listing Agreements: who can sell the property in an open listing?
Broker
Different Broker
or Yourself
Listing Agreements: with which agreements will the broker receive NO commission?
Exclusive agency or Exclusive right to sell agreement
Listing Agreements: Who can sell under exclusive agency?
No other brokers can sell, but you can
Listing Agreements: if you sell the property yourself the broker receives __ ____________.
no commission
Listing Agreements: who gets to sell in an exclusive right to sell agreement?
no other brokers
Listing Agreements: what is used the most in Arkansas?
An exclusive right to sell agreement.
Duties of Brokers: what are the 3 duties?
(1) Duty of Loyalty
(2) Duty of Disclosure
(3) Duty of Confidentiality
Duties of Brokers: What is the duty of loyalty and what does it protect?
- The real estate broker will use reasonable efforts to further the interests of the client
- Protect the client and advance his interests
Duties of Brokers: What is the duty of disclosure and what is it’s most important element?
- When a broker learns facts or information material to the client’s position or interests, broker should promptly tell the client
- Big one here is that any offer/counter-offer should be presented to the client
Duties of Brokers: what is the duty of confidentiality?
Keep all confidential information confidential
Dual Agency: Is it permitted?
Yes
Dual Agency: what is it?
Real estate broker can represent both the buyer and seller in a transaction so long as it is disclosed in writing.
When does the broker have a right to commission?
The broker’s right to a commission arises when he finds a ready, willing, and able buyer (“Procuring Cause”)
Can you contract around a broker’s right to commission, if so, how?
yes,
you can contract around this with a condition that says that the broker will not receive a commission until closing/property sells
Brokers can help fill out warranty deeds, bills or sale, mortgages, and leases if: (6) things
(1) the person the broker is representing does not want an attorney
(2) if the forms the broker is using have been approved by an attorney either before or after the blanks are filled in
(3) form shall not be used for anything other than simple real estate transactions
(4) forms used only in connection with the transaction actually handled by the broker
(5) broker cannot charge anything to complete the documents
(6) broker shall not give advice or opinions on legal matters
If a brokers helps fill out warranty deeds, bills of sale, mortgages, and lease but does not meet all (6) criteria, then they have…
committed the unauthorized practice of law
