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Real Estate > Lesson 9A > Flashcards

Lesson 9A Flashcards

1
Q

What is the definition of a “Client” in real estate?

A

A client is someone who engages an estate agent or salesperson to perform estate agency work, establishing a client-agent relationship.

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2
Q

When is a client-agent relationship formalized?

A

Through the use of prescribed forms and a formal agency agreement to safeguard both the client’s and salesperson’s interests.

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3
Q

What are some prescribed forms used to establish client-agent relationships?

A

Form 5 (Seller)
Form 6 (Buyer)
Form 7 (Landlord)
Form 8 (Tenant)

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4
Q

What does PSM 1.1.2 state about the rules of engagement for salespersons?

A

The salesperson must meet the client as soon as possible to discuss the terms of engagement, services, fees, or commission, and provide necessary advice.

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5
Q

What does PSM 1.1.3 indicate about changing estate agents or salespersons?

A

There should be no change in the estate agent or salesperson once engaged, unless initiated or requested by the client, except for valid terminations.

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6
Q

What is an example of a prohibited change in salespersons according to the case studies?

A

Salesperson A engages with a client, but before the transaction closes, Salesperson B is introduced to take over. This is not allowed.

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7
Q

What is one of the primary duties an estate agent owes to a client?

A

To act in the best interest of the client.

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8
Q

What should an agent advise a client to do if an issue is outside their expertise?

A

Advise the client to seek independent professional advice.

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9
Q

How should offers or expressions of interest be communicated to a client?

A

In a timely, objective, and unbiased manner.

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10
Q

What effort must be made concerning the property the client is interested in acquiring or disposing of?

A

Make reasonable efforts to discover relevant facts about the property.

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11
Q

What defines a potential conflict of interest in real estate transactions?

A

If a party (e.g., buyer) related to the property transaction is a relative or has a business association with the salesperson.

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12
Q

Under what conditions can a salesperson continue to act despite a conflict of interest?

A

Only if the client is fully informed and consents to continue the representation.

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13
Q

What restriction exists regarding acquiring client property?

A

Agents must not acquire a client’s property directly or indirectly without the client’s express knowledge and consent

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14
Q

What must not be accepted by estate agents or salespersons regarding fees for referrals?

A

They must not accept any fee, reward, commission, rebate, etc., for referring services rendered by third parties without the client’s express knowledge and prior written consent.

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15
Q

What must be disclosed to clients regarding fees accepted for referrals?

A

Both the fact and amount of such fees must be disclosed in advance and in writing.

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16
Q

What restriction is placed on estate agents regarding additional work or business activities?

A

They must not engage in any business, work, or activity that could reasonably be expected to compromise their obligations to their clients.

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17
Q

What conditions apply in a private property transaction when a salesperson represents a buyer?

A

The salesperson may represent the buyer/tenant with a commission paid by the seller/landlord if agreed upon. However, a formal estate agency agreement can’t be signed with the seller/landlord.

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18
Q

What must a salesperson do if transacting a property for themselves?

A

They must disclose upfront that they are an interested party as soon as possible.

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19
Q

Can a salesperson who is transacting property for themselves act on behalf of the other party?

A

No, they cannot act on behalf of the other party in the transaction and may only represent themselves.

20
Q

Can a salesperson collect a commission from the other party when transacting for themselves?

A

No, they cannot collect a commission or co-broke commission from the other party or their salesperson.

21
Q

What does PSM 1.5 state regarding salespersons being Power of Attorney?

A

Due to inherent conflicts of interest, real estate salespersons (RES) cannot be appointed as attorneys for persons they represent in property transactions.

22
Q

If a salesperson is appointed as an attorney by one party, what can they not do?

A

They cannot represent the other party in the transaction.

23
Q

What are the steps a salesperson should take to confirm the identity of a client?

A
  1. Record the full name of the client.
  2. Record the authorized signatory for company representatives, including obtaining a company resolution or letter of authorization.
  3. Verify the age of the client (18 years old for tenancy agreements < 3 years).
  4. Ensure prospective foreign tenants are legal residents in Singapore.
  5. Check for any criminal history related to serious crimes.
24
Q

How can ownership of an HDB flat be verified?

A

Ownership can be verified using the MyHDBpage.

25
Q

What property information should salespersons verify?

A

Information on tenure, floor area, service & conservancy charges, upgrading works and costs, and approved use of property.

26
Q

What are suggested sources for confirming property ownership and details?

A

Singapore Land Authority (SLA)
Land Titles Registry
HDB Infoweb
Town Council
MCST
URA website

27
Q

What is a key principle regarding dealing with vulnerable clients in real estate?

A

Estate agents and salespersons must not take advantage of vulnerable clients and should exercise greater care and diligence in their interactions.

28
Q

What should estate agents do when involving vulnerable clients in discussions?

A

They should advise that appropriate persons be involved in discussions to support the vulnerable clients.

29
Q

What does PSM 1.10 state about offering gifts or cash vouchers?

A

Estate agents or salespersons shall not advertise or offer any benefit, in cash or kind, to induce any party in a transaction to engage their services.

30
Q

What should estate agents do if someone requests to offer gifts or cash vouchers?

A

They shall not agree to offer such benefits, regardless of who initiates the request.

31
Q

What are the 3 main types of professional advice RES offer?

A
  1. Property Price/Rent
  2. Financing/Payment of Fees
  3. Procedures
32
Q

What 3 property types are there different procedures for?

A
  1. Uncompleted properties
  2. Completed properties
  3. HDB
33
Q

What must agents obtain before conducting property viewings?

A

They must obtain prior consent from the client before conducting viewings.

34
Q

What record-keeping is essential for property viewings?

A

Agents must keep proper records of all persons who viewed the property.

35
Q

What is the protocol for handling a client’s key during property viewings?

A

Agents must obtain written consent and verify it before handling the client’s key.

36
Q

What must salespersons avoid regarding cheque collection?

A

Salespersons must not collect multiple cheques as an indication of “sincerity.”

37
Q

Can estate agents or salespersons use cheques to solicit higher offers from other buyers?

A

No, they must not use cheques to show other buyers or solicit for higher offers.

38
Q

What is the role of cheque exchange in the context of the Option to Purchase?

A

Cheques can be exchanged in relation to the Option to Purchase processes, signifying the buyer’s earnest intent.

39
Q

What must an estate agent do prior to the launch of an uncompleted property?

A

Work out the appropriate mode of sale with the developer.

40
Q

How should the mode of sales and management system for potential buyers be characterized?

A

It should be fair and transparent.

41
Q

What is required for the collection of cheques in uncompleted property transactions?

A

Projects must have approval for sale by the URA

42
Q

How should cheques be written for these transactions?

A

Crossed cheques must be written to the Project Account.

43
Q

How should multiple offers be managed?

A

All offers must be relayed to the client in the order of receipt, and the agent must seek the client’s instruction and explain the offers.

44
Q

How long should estate agents retain copies of offers?

A

Retain copies of offers for a period of 1 year.

45
Q

What should be done after a sales or rental agreement is reached?

A

Follow up by explaining payment matters, advising the client to seek legal advice, and passing copies of signed documents to the client as soon as possible.

46
Q

What documentation is required prior to handling over a property?

A

An inventory list, photographs, or explanatory notes, all of which form part of the transaction documentation.

Real Estate (19 decks)

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