Chapter 11 - OK Broker Relationships Act

Question 1

What are the 6 duties an OK RE broker has to all parties in a transaction?

Answer 1

1) treat all parties with honesty and exercise reasonable skill and care
2) unless specified in writing by a party to the transaction
- receive all written offers and counteroffers
- reduce offers or counteroffers to written for upon request
- present timely all written offers and counteroffers
3) timely account for all money and property received by broker
4) keep confidential info received from a party
5) disclose info pertaining to the property as required by the Residential Property Condition Disclosure Act
6) comply with all requirements of the OK RE License Code and applicable statutes and rules

Question 2

What confidential information must be not be disclosed by broker without consent unless?

Answer 2

• consent is granted in writing
• disclosure is required by law
• information is made public, or becomes public, as result of actions from a source other than the firm

Question 3

What information is confidential and shall be only info considered “confidential” in a transaction?

Answer 3

• price a party is willing to pay more or less than current offer
• party is willing to agree to financing terms different than what is offered
• motivating factors
• info specifically designated as confidential by party (unless info is public)

Question 4

What additional duties does a broker have to the party it is offering services to?

Answer 4

• inform party in writing when an offer is made, that the party will be expected to pay certain costs, brokerage service costs, and approximate amount of costs
• keep the party informed regarding the transaction

Question 5

What is informed consent (dual agency)?

Answer 5

That a firm offering dual agency must provide written notice to both parties and prior to signing a contract

Question 6

What must a broker do when intending to offer fewer brokerage services than normal?

Answer 6

Disclose in writing, a description of steps in transaction where they will not provide brokerage services and state that the broker assisting the other party in transaction is not required to provide assistance with these steps in any matter

Question 7

When must duties and responsibilities be “confirmed”?

Answer 7

They should be confirmed when a relationship is established and confirmed (or stated again) in a separate paragraph in the contract, at time of contract, or in an attachment to the contract.

Must include the Acknowledgement and Confirmation of Disclosures doc

Question 8

What duties does a broker own after it has been terminated?

Answer 8

• account for all monies and property relating to the transaction
• keep confidential information confidential during the broker’s relationships

Question 9

What is vicarious liability?

Answer 9

The concept that holds a client liable for wrongful acts or omissions of the RE licensee acting on his behalf