Duties to 3rd Parties Flashcards
What is a customer?
A customer is someone the licensee is not representing.
What is the effective date of contract?
The date when the last licensee who had his client or customer make the last initials on the last counter offer contacts the licensee on the other side of negotiations and announces that everything has been accepted and communicates that the contract is now official.
What is the best way for a licensee to declare agency relationship to possible customers and clients?
Licensees should learn to say the words, “I am representing the seller or buyer.”
What is the status of a FSBO seller when a buyer hires a licensee to help with the purchase?
A Customer
Why should a customer be told to be careful what he or she says around the listing agent?
Because the seller will be told that information and the buyer’s negotiating position can be diminished by the seller having the information
What is a material fact?
A material fact is anything that the customer may not be able to discover by himself that would change his approach on whether or not to continue with the transaction.
All lenders require a buyer to get what type of insurance?
Title Insurance
What policy is being practiced when a listing agent warns the buyer where the licensee’s loyalties reside?
Honesty and fairness
What are the three types of customers to avoid?
Underage
Incompetent
Dangerous
Why does an agent not want to drop a customer?
No commission will be earned
What does an agent need to communicate with customers on an on-going basis?
Tracking system
How should an agent handle an underage customer?
With respect; he or she may become a client someday
What is the best way to respond to a customer’s question regarding the safety of a neighborhood?
Inform the customer to seek information from the local police.
What is the “15 Minute Rule?”
Within 15 minutes of a new owner moving in, a neighbor will inform them of everything about the property.
What Fair Housing topics should not be disclosed to anyone?
Topics relating to any of the protected classes - race, color, religion, sex, national origin, familiar status, or handicap.
What are two types of possible property safety issues when showing a customer a property?
Machinery Fires Dangerous roads Dangerous chemicals Electric wire fences Wells Livestock Septic tanks
There are occasions when a buyer hires a licensee to help purchase a For Sale by Owner (FSBO) property
In this case, the licensee has no agency relationship with that seller. The agency would be created with the buyer and the seller would be a customer. In this situation, the licensee must disclose his or her buyer agency status to the seller.
A customer is someone the licensee is not representing.
The customer has the right to know if the licensee is already representing anyone. The seller has the right to know if the agent is already representing a buyer. The buyer has the right to know if the agent is already representing the seller.
When showing rural property:
Licensees should be careful around livestock. A bull chasing buyers out of a field may end a showing quickly.
There may be electric wire fences that buyers need to be warned about.
Buyers should be warned that cigarette smoking could be a danger if the county has not had much rain lately.
