Chapter 2 - Brokerage, Agency, The Licensee Flashcards
Agent
one who acts or has the power to act for another
Principal
CLIENT
main party to a transaction
What three things can an agent be
Individual, corporation, or partnership
who represent someone in a real estate transaction
What are the 3 types of agents
G-U-S
Gus is my agent, he is my friend! Gus could be:
General Agent
Universal Agent
Special Agent
Special Agent
What power of attorney do they have?
Facilitates one particular act or transaction
Limited power of attorn
General Agent
Property Manager
Facilitates ongoing service related to a partciular job
Universal Agent
What power of attorney do they have?
Have greatest amount of authority
Can do anything for you
Full power of attorney
How is agency created?
Implied Agency
Expressed Agency
Implied Agency
Someone believes they are being represented by actions, behavior or words agent uses
Whats another name for Implied Agency
Ostensible Agency
Expressed Agency
Takes place orally or in writing, no room for misunderstanding
Facts made clear
whats Ostensible agency
implied agency
Fiduciary
Your relationship with a client that requires trust and loyalty
One who confidence is placed
Acting in best interests of client
Fiduciary Relationship
Between sales person and client
Between sales person and broker
What do customers (3rd party) deserve
honesty (about material facts)
fairness
accuracy (of facts)
Duties to client
Care Loyalty Obedience Confidentiality Accounting Full Disclosure
Who is represented, a customer or client?
Client
Procuring Cause
Effort that brings about desired reults. Who is the cause of the sale and receives commission.
Dual Agency
Representing two parties (buyer and seller in transaction). Must be in writing.
Caveat Emptor
Buyer Beware
They have responsibility for reasonable investigation
Commissions
Paid by consumer to broker they sign with.
Sales person only allowed to receive commission from Broker.
Exchange of properties can bring about commission or two sales.
Broker may receive compensation for services wihtout representing the party that paid the fee.
What act prohibits real estate agents from conspiring
Sherman Anti Trust Law
When are commissions earned?
When a ready and will buyer is produced
When are commissions paid?
When a client closes.
AT CLOSING
Sherman Anti Trust Act Rule
Prohibits sales people from
1) price fixing
2) dividing territories
3) Agreements to not deal with another person or business
4) Refuse to provide service unless customer buys another service
Lead Paint Disclosure (YEAR)
Required for housing built before 1978
- Give EPA info
- Disclose known hazards
- Sellers provide 10 day period to conduct pain inspection
- Sellers and lessors retain copy of disclosures for no less than 3 years from date of sale or lease
Can Spam Act
Rules for commercial email
- No false misleading header info
- Identify message as ad
- Tell receipient how to opt out and honor that
- Monitor others actions on your behalf
Do-Not-Call Exemptions
Charities, non-profits
Politcal campaigns
Surveys
- Consumers who had a relationship up to 18 months before end of transaction
- Consumer who makes inquiry, you have 3 months to call them
- Persons granting permission in WRITING
Do-Not-Call FSBO’s
- can only call for client who wants to discuss sale of property
- cannot solicit for owner to register property with sales person
Electronic Signatures
E signatures are legal
E Sign 2000
UETA 1999
Required disclosures
All disclosures should be made UP FRONT
- Licensees must disclose to agents and other parties how they serve their consumer (client or customer)
- Individual consumer must be made aware of the service they are to receive (client or customer)
- All known defects must be disclosed
- If licensee is personally involved as THE seller or buyer, they must disclose they are licensed
Independent contractors
Set own hours
Have no social security withheld
Pay own expenses
Sign agreement with broker to represent them
