Module 1 Part 2: Explaining Services to Buyers and Sellers Flashcards
Multiple rep
1 agent represents multiple principals
If the buyer is a costumer of the seller’s brokerage
Single representation
Obligation for providing advice in multiple rep
brokerage/SP should not advice S/B on what price to accept/offer
REBBA’s required disclosures for multiple rep
Disclosure 1. before a rep agreement 2. before an offer
Disclosure before a rep agreement
- Circumstances that may arrive if there are multiple principals
- nature of the services
Disclosure before an offer (multiple rep)
- must be consent from all parities
- Disclose the difference in obligations
3 Advantages of working with a registered SP
Knowledge, Professional standards, insurance
All agreements that document a brokerage relationship
must comply with the code and include the minimum requirements for any written agreement
Rep agreement with a seller
listing agreement
Rep agreementes define
authority granted to a brokerage as well as limitations to it
Prior to an offer a brokerage would ensure a seller rep agreement is signed,
presented to the seller for signature and once signed by seller, ensure the seller receives a copy
Agreement used when a seller is selling their property privately and a buyer wants to see it
costumer service agreement/FSBO (for sale by owner)
costumer service agreement/FSBO is used to confirm the brokerage
is not the representative of the seller
costumer service agreement seller /FSBO provides the brokerage with the authority
to obtain additional info about the property
costumer service agreement/FSBO details commission
to be paid by the seller/authorization to apply the deposit to reduce to commission payable
costumer service agreement w/ a buyer is typically used when
a brokerage is repping the seller and providing services to the buyer/an experienced buter
A SP is obligated to provide info to a S/B before
entering into a rep or costumer service agreement
Due diligence
make all necessary disclosures (to them and 3rd parties), discover all relevant info/material facts, refer to other professionals when required
Offering transaction management for a seller is
analyzing, advising and negotiating offers, manage post trans relationship
Conducting a visual walkthrough with a seller
helps identify material facts about the property, build working knowledge of the property and build rapport w the seller
If a seller hs not provided a deed or survey a SP can review
registry, tax, assessment records to verify aspects of the property
registry, tax, assessment records to verify aspects of the property including
ownership, legal description and lot size
Any commission paid is subject to
HST
Irrevocable time period
time for a seller to accept an offer
