Module 1 Part 2: Explaining Services to Buyers and Sellers

Question 1

Multiple rep

Answer 1

1 agent represents multiple principals

Question 2

If the buyer is a costumer of the seller’s brokerage

Answer 2

Single representation

Question 3

Obligation for providing advice in multiple rep

Answer 3

brokerage/SP should not advice S/B on what price to accept/offer

Question 4

REBBA’s required disclosures for multiple rep

Answer 4

Disclosure 1. before a rep agreement 2. before an offer

Question 5

Disclosure before a rep agreement

Answer 5

1. Circumstances that may arrive if there are multiple principals
2. nature of the services

Question 6

Disclosure before an offer (multiple rep)

Answer 6

• must be consent from all parities

- Disclose the difference in obligations

Question 7

3 Advantages of working with a registered SP

Answer 7

Knowledge, Professional standards, insurance

Question 8

All agreements that document a brokerage relationship

Answer 8

must comply with the code and include the minimum requirements for any written agreement

Question 9

Rep agreement with a seller

Answer 9

listing agreement

Question 10

Rep agreementes define

Answer 10

authority granted to a brokerage as well as limitations to it

Question 11

Prior to an offer a brokerage would ensure a seller rep agreement is signed,

Answer 11

presented to the seller for signature and once signed by seller, ensure the seller receives a copy

Question 12

Agreement used when a seller is selling their property privately and a buyer wants to see it

Answer 12

costumer service agreement/FSBO (for sale by owner)

Question 13

costumer service agreement/FSBO is used to confirm the brokerage

Answer 13

is not the representative of the seller

Question 14

costumer service agreement seller /FSBO provides the brokerage with the authority

Answer 14

to obtain additional info about the property

Question 15

costumer service agreement/FSBO details commission

Answer 15

to be paid by the seller/authorization to apply the deposit to reduce to commission payable

Question 16

costumer service agreement w/ a buyer is typically used when

Answer 16

a brokerage is repping the seller and providing services to the buyer/an experienced buter

Question 17

A SP is obligated to provide info to a S/B before

Answer 17

entering into a rep or costumer service agreement

Question 18

Due diligence

Answer 18

make all necessary disclosures (to them and 3rd parties), discover all relevant info/material facts, refer to other professionals when required

Question 19

Offering transaction management for a seller is

Answer 19

analyzing, advising and negotiating offers, manage post trans relationship

Question 20

Conducting a visual walkthrough with a seller

Answer 20

helps identify material facts about the property, build working knowledge of the property and build rapport w the seller

Question 21

If a seller hs not provided a deed or survey a SP can review

Answer 21

registry, tax, assessment records to verify aspects of the property

Question 22

registry, tax, assessment records to verify aspects of the property including

Answer 22

ownership, legal description and lot size

Question 23

Any commission paid is subject to

Answer 23

HST

Question 24

Irrevocable time period

Answer 24

time for a seller to accept an offer

Question 25

Win-Win

Answer 25

Seller obtains market value, buyer receives the property

Question 26

Win-lose/lose-win

Answer 26

seller successfully sells home at/close to asking price, buyer has to make significant repairs to the property

Question 27

Lose-lose

Answer 27

both seller & buyer fail to achieve a meeting

Question 28

No outcome

Answer 28

Seller decides not to sell/buyer has second thoughts or cannot finance the property

Question 29

Any change to the buyer’s offer

Answer 29

releases the buyer from the offer

Question 30

Sub-agency is when a brokerage

Answer 30

extends the ability to rep the principal to another brokerage

Question 31

Sub-agency occurs when the seller … and a cooperating brokerage

Answer 31

• is a client of the listing brokerage

- has a buyer who is a costumer

Question 32

In Sub-agency the cooperating brokerage owes

Answer 32

fiduciary duties to the seller

Question 33

For sale by owner means that the seller

Answer 33

does not want to formally list their property for sale, but want buyers to know its available

Question 34

Pre-qualifying a buyer

Answer 34

SP should encourage buyer to look at financing options, and provide properties in that price range