Ch. 6 Flashcards
Affirmative Disclosure
The voluntary (affirmative) offering of relevant information or material facts that are known or should have been known by a licensee.
Buyer’s Agent
A licensee who is working under a written agreement between the licensee’s broker and the buyers (the licensee’s clients) in the purchase of real estate. Buyer representation only occurs with a written buyer’s agreement because presumed agency is no longer allowed.
Clients
Individuals who have signed an employment agreement with a brokerage firm They can now expect to be represented (not just assisted) and are now owed fiduciary duties and client-level services.
Confidential Information
Personal finances, bargaining strategy, and motivation must be kept confidential for all clients throughout the transaction. Confidentiality applies to an individual licensee’s clients and to the broker’s clients as well. Licensees must disclose material facts to everyone and not disclose their client’s confidential information to anyone.
Customers
An individual who has not secured rights of representation and can only be assisted by a licensee rather than represented. Customers are entitled to honesty, fairness, timely presentation of offers, and All disclosure of materials facts.
Dual Agents
A broker who represents not only the sellers but also the purchasers in the same property transaction. All as parties must sign a completed Consent for Dual Agency form for this to be conducted lawfully. In MD, only a broker can function as a dual agent; salespersons and associate brokers can be assigned to either party as ICAs.
First Contact
Per the agency requirements, a licensee will disclose existing agency relationships within the same medium that the first contact was made. For example, disclose that you represent the seller within the email response to the online inquiry requesting to see one of our listed properties.
First Fact-to-Face Meeting
When meeting with an unrepresented party, a licensee will use the UWREAR agency disclosure form to either disclose an existing agency relationship or explain options of representation for an unrepresented party to consider.
Fiduciary Duties
When acting as an agent to the client, the license owes the following duties: care, obedience, loyalty, disclosure, accounting, and confidentiality. As a fiduciary, an agent is to put a client’s interest first.
Intracompany Agents (ICAs)
When a firm performs dual agency, ICAs must be appointed. A broker would appoint an ICA to represent the seller client and an ICA to represent the buyer client in the sale of a specific property.
Presumed Agency
Prohibited in MD; agency relationships are only created by written agreements.
Residential Agency Law
Agency requirements apply for al residential transactions including residential leases of more than 125 days.
Seller’s Agents
A licensee who is affiliated with the listing broker for a property. A seller’s agent represents the sellers (the client) but may also assist a prospective buyer (a customer).
Single-Agency Company
A company that either represents the buyer or the seller, but not both, in any given transaction. Such a company also does not participate in dual agency because of its small size, its policies, or because it is an exclusive buyer or seller agency.
Subagents
A licensee who works for a real estate firm other than the one that listed the property. Although not part of the listing company, the subagent still represents the seller (previously known as cooperating agent) through and under the listing broker. The subagent represents the seller client and assists the prospective buyer (the customer) in acquiring the property.
