General Principles of Agency 7 Flashcards
Some states require a buyer’s agent to have a “ “ in place to legally represent a buyer.
Buyer Brokerage Agreement
What is a Buyer Brokerage Agreement?
The Buyer Brokerage Agreement is essentially an employment contract whereby the broker is hired to assist a buyer in securing real property.
Do all states require a Buyer Brokerage Agreement
No
When representing a buyer, some of the following duties are expected of the buyer’s broker/agent: 1
To disclose known property deficiencies
To point out unsuitable contract provisions and financing
To suggest the lowest price offer
When representing a buyer, some of the following duties are expected of the buyer’s broker/agent: 2
To disclose the length of time a property is on the market
To share the reason owner is selling if ascertainable
To account for all pertinent funds and documents placed in his or her care
True or False the broker is to put the buyers needs before their own?
True
What is a Exclusive Buyer Representation Agreement
an Exclusive Buyer Representation Agreement, the buyer works with only one broker. If the representation is not exclusive, the buyer can work with multiple brokers, which can create some serious challenges especially if they are introduced to the same property by more than one of the brokers.
What is PRICE-FIXING?
Agents cannot even give an impression that there are “standard” rates
How are buyers brokers compensated?
The options are presented and defined within a buyer brokerage agreement
.
The buyer broker can charge a flat fee for services, an hourly rate, a percentage of the purchase price, or some combination of those methods.
The broker may require a retainer fee at the time the agreement is signed to cover initial expenses.
The retainer may be applied as a credit toward any fees due at closing.
What is Commingling or conversion of funds? and is it legal
To mix a clients funds with your own
it is illegal
