EA and The Client Flashcards
What is an Estate Agent’s Client?
Client = person who gives mandate to EA to render an estate agent service for him/her
Example: Btea e seler mean the purchaser is their client. Client is the person who mandates this service (usually the seller).
What is a mandate?
Mandate = when EA accepts an instruction/authority from a client to render a particular EA service
Example: In the case of a double mandate - the person who gave the mandate FIRST = client.
What is a Sole mandate?
Upon acceptance, there is a binding contract established. Generally: need not be in writing: however, the following MUST be in writing:
Example: Good practice to place all mandates in writing in order to avoid disputes.
What is a Sole and Exclusive Mandate?
Sole Mandate in place AND the client may not market/’sell his/her own property. These mandates should be signed by client and EA as well
Arguments for sole and exclusive mandates: 1. EA cannot afford time/money or provide quality service if it only increase exposure.
What should an EA pay attention to when negotiating a sole mandate?
In case of a sole mandate: - The period of the sole mandate. The expiry date is to be expressed as a calendar date and must be recorded in the sole mandate itself. Not obligated to actually do anything when you have a sole mandate. Meant that EA’s could completely ignore the mandate and focus on other properties. Client then cannot do anything with the property
Example: When negotiating a sole mandate, EA to pay attention to:
What does the Code of Conduct dictate?
EA MUST stipulate in contract exactly what obligations
or
Failure to do so contravenes the Code and
EA cannot encourage client to offer his/her
disciplinary measures may be taken.
Certain contractual obligations may come with a sole mandate.
What must an Estate Agent (EA) do in a sole mandate situation?
EA MUST not accept a sole mandate if there is no firm intention to actively market the property.
Should the client sell the property to anyone introduced by the sole agent during the sole mandate, the seller is obliged to pay commission even if the purchaser wasn’t directly introduced by the sole agent.
What is canvassing in the real estate context?
Canvassing is where multiple EAs share their listings with the understanding that commission shall be shared between the listing agent and the EA with mandate to share.
Giving the client a copy of a written mandate should be done without undue delay.
When is an EA’s mandate terminated?
An EA’s mandate is terminated if the EA/client dies or becomes of unsound mind before the mandate period expires, after a reasonable period, or if the EA renounces the mandate.
When seeking new business, certain provisions of the Code of Conduct must be followed.
What is included in rendering a professional service to a client?
Rendering a professional service includes conducting a comparative and competitive market analysis (CMA) for the client to provide details of comparable properties.
An Estate Agent’s legal and ethical obligations include preparing the seller for the marketing of their property and discussing the hours that the property may be shown.
What are an Estate Agent’s legal and ethical obligations?
An Estate Agent’s legal and ethical obligations include duties to communicate, display reasonable care and skill, not abuse or unlawfully disclose confidential information, and not conclude an offer unless agreed to by the client.
Account of money received on behalf of a client must be responded to by the client.
