Substantive contact
Contact that led from casual to professional conversations regarding learning the plans of the buyer or seller, that if disclosed could harm the consumer’s bargaining position.
First practical opportunity
First opportunity in which disclosure can be accomplished without major inconvenience.
Fiduciary duties also known as:
Client level services in which they have been signed as a client by an agent.
Client level duty to seller
- Seek sale at price and terms stated
- Present all offers and counteroffers regardless of whether a property is under contract
- order of multiple offers is not important
- Disclose to the seller all adverse material facts
- Accounting for money and property.
- Tell seller to get expert advice
Buyer agent duties to client
- Seek a property at price and terms stated
- Present all offers and counteroffers
- Disclose to buyer all adverse materials facts known by licensee
- Accounting for money and property
- Tell buyer to get expert advice
Optional services of licensees
- Identify and show property
- Provides stats and 411
- Provide preprinted contracts
- Act as scribe and write offers
- Provide list of professional service providers
- ID schools and perks of location
Customer vs Client level services
Customer-Raw data
Client-Raw data and advice
Mandatory customer services
Present all information including funds, offers, scope of practice, and broker relationship while keeping all facts accurate on state of property.
Keep information confidential if requested in writing by the customer.
Tort
Wrongful act while agent is representing the broker.
Ex: deceit, auto accident, anything that causes adverse problems for parties involved.
Disclosure ethics
Better to disclose too much than not enough because too much can be risky but not enough can be fraud.
