Chapter 5 Flashcards
According to NY license law, what types of property are not included in the definition of residential real property?
Vacant land upon which residential dwellings will be constructed
What is the definition of a single agent?
An agent who represents only one person in the transaction, either the buyer or the seller.
How does a cooperating broker accept a unilateral blanket offer of subagency?
If a unilateral offer of subagency is in place, the cooperating broker accepts it by showing the property to a buyer customer.
What obligations does a subagent of the seller owe to the seller and what obligations does the subagent owe to the buyer?
The subagent owes the seller the same fiduciary responsibilities he or she would owe to any client.
The subagent owes customer level services to the buyer – honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property.
Section 175.7
Section 175.7 of the Real Property Law is directly related to Section 443 of the Real Property Law, which, deals with the disclosure of agency in the sale of all residential properties.
What is dual agency?
Dual agency is the situation that exists when a real estate firm or a real estate licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction.
What is undisclosed dual agency?
Undisclosed dual agency is a dual agency relationship that is not disclosed and agreed to in writing. If this situation occurs, the agent has breached his or her fiduciary responsibilities to the client and has also violated New York State License Law.
Under what circumstances does New York allow dual agency and what is it called?
Dual agency is permitted in New York ONLY with disclosure and informed consent in writing. This is known as consensual dual agency.
What is designated agency and why is it important?
Designated agency means that a broker may designate one or more licensees to act exclusively as the agent of the seller or landlord, and designate one or more licensees to act exclusively as the agent of the buyer or tenant in the same transaction. This arrangement must also be disclosed to both parties, and the broker must obtain the written consent of both the buyer and the seller.
What is meant by single agency?
In a single agency relationship, the agent can represent only one party - either the buyer or the seller - in a single transaction, but never both.
Why would a tenant enter into an agency agreement with a broker?
A tenant could choose to employ a broker to locate property that will meet his or her specific needs, such as retail or office space.
What are three advantages to entering into a buyer agency agreement?
The buyer can tailor the agreement to reflect his or her specific needs or wants.
The broker will be willing to search in a wider market area than just in-house and local MLS listings.
The buyer will be in a stronger negotiating position.
List four ways an agency agreement can be involuntarily terminated. (Other correct answers can be found on screen 43.)
Death or incapacity of either party
Condemnation of the property
Destruction of the property through fire, vandalism or natural disaster
Bankruptcy
What is an important thing to remember about the enforceability of listing agreements?
They should be in writing to be enforceable.
Describe an open listing
An open listing is a non-exclusive listing that allows a seller or buyer to engage a number of different brokers to sell or help purchase property. The broker who brings the buyer or finds the suitable property gets the commission. If the owner sells the property or the buyer finds his or her own property, no commission is owed to any broker.
