Module 2, Part 1: Documenting Relationships Flashcards
Code of ethics requires that when documenting a relationship it must include
- Info regarding service alternatives, type of service and multiple representation
- Difference bw costumer & client
Registrant’s obligations for info before agreements is in
section 10 of the code of ethics
If the agreement is more than 6 months
the expiry date must be prominently displayed on the first page
When there is a verbal agreement w/ a seller it should be reduced to writing
before an offer is made
A brokerage cannot charge rumeration unless
there is a written agreement signed by the person who is paying the commission
Indemnification
Seller cannot hold the brokerage responsible for any damage that occurs during the marketing process
Exclusive listing
seller gives sole right to market and sell their property
only the brokerage with whom the seller has signed an Exclusive listing with can
show the property
Exclusive listing are usually not
advertised on a listing service
A property is advertised on a listing service when
the seller wants more exposure to buyers
Open listing is
for sale by owner
For sale by owner
seller does not list property w/ a brokerage, however allows any brokerage to set up viewings
Brokers protected
seller will compensate the brokerage who first acquires a ready buyer
Open listings are seen w/
office, retail and industrial properties
In a listing agreement the SP’s name is added later
where singing to bind the listing brokerage and declaration of insurance is provided
not identified as a seller
non-titled spouse
How can the address of a property be verified
Survey, tax bill & assessment
Listing period
Date & time when it commences and ends
Seller rep and warranty is included to ensure the seller
does not currently have to property listed w/ another brokerage
Types of listing agreements
Exclusive & through a listing service
Buyer’s deposit is applied to
the commission payable
Holdover provision
After a rep agreement expires there is a period at which the brokerage is still owed comission
Holdover provision only applies for buyers that
were shown the property before the expiry of the rep agreement
Representation clause
SP must explain all of the types of rep that could occur
Assumed buyer agency
Unless informed to co-operating brokerage is representing the interests of the buyer
Documents give or received by a S/B are
notices
Finder’s fee
consent for the listing brokerage to receive a fee from a 3rd party in addition to commission received
Warranty clause
Used to ensure that the seller will provide the listing br. w/ all info regarding 3rd party interests or claims on the property
Referral of Enquiries
Seller will inform the brokerage immediately about any enquiries made directly to the seller
Sucessors and assigns clause
a SRA applies to any heir/party working on behalf of a seller
If something is added to an SRA that conflicts with any pre printed portion of a SRA
then the added portion supersedes the pre=printed
If any terms or documents that are added to a SPA
schedules can be used
electronic comm. clause
electronic signatures are deemed the original
Signature when the seller is a corp
sig. of person who is authroized to bind, followed by their title and corporate seal
