Negotiations, MREC & Agency

Question 1

BATNA

Answer 1

Best alternative to a negotiated agreement

(try to identify what your clients BATNA is)

The Batna is the parties bottom line.

Question 2

Nobody

Answer 2

A licensee who has no agreement to provide any services

Can’t give advice, except for at the presentation.

Question 3

Transaction broker

Answer 3

A licensee who has an agreement (written or verbal) to provide broker services but with no fiduciary duties to anyone.

Question 4

An agent

Answer 4

A licensee who has a written agreement with legal duties to represent their buyer/seller client.

Question 5

OLD CARD

Answer 5

Obedience, 
loyalty, 
due diligence, confidentiality, 
accounting, 
reasonable care, 
disclosure.

Question 6

What still remains from the old cards after a termination in agreement?

Answer 6

Confidentiality and accounting still remain after a termination of an agreement.

Question 7

Dual agency

Answer 7

When a licensee is representing both the buyer and the seller in a transaction.

Question 8

Appointed agent

Answer 8

A designated broker will a point and Agent to a client and no other agent in the agency will work with that client.

Question 9

What do you need to have an appointed agency?

Answer 9

You need a company policy, a minimum of three affiliated licensees, and a designated broker.

Question 10

Latent defects

Answer 10

Hidden defect that is not seen by the eye

Question 11

Ministerial act

Answer 11

An act which a licensee may perform in a real estate transaction that do not require the judgment or advice of a licensee.

Question 12

Material fact

Answer 12

A fact that Is so important that it would influence the party to whom it was communicated.

Question 13

Material defects

Answer 13

Any defect that would cause a buyer to disapprove of the property. All defects.

Question 14

Does a transaction broker have to have a written agreement with the buyer/seller?

Answer 14

No the licensee is not required to have a written agreement. They may work together on a handshake agreement.

Question 15

What is a substance of communication?

Answer 15

It is when someone has asked for advice on their real estate. This is when you give them the real estate broker relationship form.

Example: what do you think of my house?

Question 16

What four ways is the real estate broker relationship form not required ?

Answer 16

1. The real estate is the land without a residential dwelling unit or is land with more than four residential dwelling units.
2. The licensee is acting solely as a principal in the real estate transaction.
3. The written communication from the licensee is a solicitation of business
4. The licensee has knowledge or maybe reasonably assume that the other licensee has given a copy of the form to a client.

Question 17

Imputed knowledge

Answer 17

Knowledge that I heard from someone else.

Question 18

Breach

Answer 18

Violation of a duty

Question 19

Dismissal, consent agreement, or hearing are all decided by who?

Answer 19

It is decided by the commissioners not by the director for the staff

Question 20

What is the definition of omission and commission?

Answer 20

Omission=not correcting the person from something incorrect they said.

Commission= lying

Both are considered fraud

Question 21

Puffing

Answer 21

Exaggeration of the real estate. Are considered opinion is not a misrepresentation.

Question 22

Future profits

Answer 22

Agents to tell buyers that they could make a future profit on the property

Question 23

How long must documents be saved for?

Answer 23

Documents must be saved for three years except for rejected offers or counter offers are for 1 year and continuing education certificates for 4 years.

Question 24

Net listing

Answer 24

A net listing is a type of listing where the agency receives all excess money over and above the minimum sales price set by the seller.

This is illegal

Question 25

AsBestos

Answer 25

Is a mineral, to insulate furnaces heat ducks wall cavities near electrical wiring in buildings. It is friable, Can be broken down into powder which are invisible to the eyes, in the air unseen but when inhaled can destroy lung tissue.

Question 26

Radon

Answer 26

Is in odorless and invisible gas that occurs naturally in the environment. Disease control recommends 2PcL radon is present in air and water.

Question 27

Arsenic

Answer 27

Is found in water, well water, and has been using pressure-treated lumber.

Question 28

Are sellers or buyers required to sign the disclosure form?

Answer 28

No, technically they are not required to sign it

Question 29

Positional bargaining

Answer 29

After a seller lists with you, instructs you don’t bother me with any offers lesson one 200,000.

Question 30

Principled negotiations

Answer 30

Asking the parties what their interests are, what they are hoping for, communicate effectively and listen to the needs of the other party. Brainstorming creativity to find a mutual acceptable solution