Creation and Termination of Agency Flashcards
Explain an agency relationship
Agency is a relationship in which a person from the public now has a licensed broker and the broker’s salespeople to assist the client in accomplishing either selling a property, buying a property, or leasing a property.
When does a customer become a client?
When the customer signs an agency agreement with the broker.
If a licensee accidentally discloses confidential information to a customer, this type of agency is termed what?
Implication of Agency
What is the most desirable type of listing to have?
Exclusive right to sell
Exclusive Agency is usually used when?
When the seller wants to reserve certain names to sell the property to without the help of the broker
How many brokers can a seller give an open listing to?
As many as the seller wants
A buyer that would rather remain a customer rather than become a client is doing so for what reason?
To be able to leave one broker and go to another without having any relationship created between them
What is the minimum number of disclosures required whether working for a buyer-client or seller-client?
Three
It’s always the goal of the licensee to meet the needs of whom?`
The Client
What is the best way to end agency?
By successfully closing the deal
Generally, is it possible to collect a commission after the listing expires?
After the listing expires, if no extension is given, the listing broker would not be able to collect a commission
When is the only situation in which a reasonable time decision will have to be made?
When the agreement was verbal rather than in writing
What might sellers do if they are not happy with the progress the agent is making in showing and selling their home?
They can request the listing be revoked.
What can a broker do during an agency agreement if the client wants to continue the agreement, but the broker does not?
The broker can cancel the agency agreement, but must have good cause to do so.
With the death of the owner, what happens to the listing agreement?
It dies as well, canceling the agency agreement
List five ways agency can terminate.
Broker Failure Bankruptcy of the Seller Foreclosure of the Property Property is Destroyed Incompetence of Broker or Client
The types of confidences that an agent would have would be things like
Why the seller is selling Lowest price the seller will take Highest price the buyer will offer A family divorce A lost job A pending foreclosure A previous offer that did not become a contract What the buyer would spend on additional properties
The one fiduciary duty that continues beyond the agency relationship is what?
Confidentiality
Courts have ruled that if the client wrongfully terminates the agency, what may happen?
The client may be liable for the damages caused to the broker because the agency was ended before the termination date.
How much time notice is required when a licensee decides to leave his or her broker?
There is no notice required.
What could happen if there is a change in zoning for an office’s geographical coverage area?
The broker’s office policy may not allow the salesperson to re-list the property under its new status.
The responsibility of taking care of the needs of the client
fall upon the broker even though a salesperson in the office may be the one in direct communication with the client. If the salesperson falters, the broker needs to pick up the slack. If the salesperson needs assistance, it should be provided by the broker.
The best way to create agency
is in writing, rather than implying agency.
An exclusive right to sell
is the most desirable listing to have. Under this agreement, it does not matter who sells the property. As long as the property sells during the time that the broker had the listing, the seller should pay the broker the commission.
The seller can give an open listing
to as many brokers as they can get to take it.
Buyer’s Rep Agreement
is written in such a way that the buyer is exclusively represented by one broker and is not to enter into another agreement with another broker`
There should never be undisclosed agency
Each licensee should always know who he or she is representing and be comfortable telling licensees and customers about that representation.
three disclosures that should take place when creating agency with a client whether that client is a seller or a buyer.
The licensee should explain what the company policy is concerning cooperating with other brokers
The client should also know where the commission is coming from
Each client should have it explained to them that the broker could wind up representing both the buyer and the seller
The best way to end agency is to close the deal
This would be done by getting a suitable price and terms for the seller and by finding a suitable property for the buyer.
Recission
is when both the client and the broker agree to end the relationship that they are in.
There is no form
to end the relationship that a salesperson has with the broker. The normal way that the independent contractor relationship ends is that the licensee lets the broker know to send his or her license back to the Texas Real Estate Commission.
