Real Estate Brokerage & Agency Flashcards
Brokerage
the business of bringing parties together in a real estate transaction
Broker
a person or an entity that is paid a fee to act for another person in the purchase, sale, rental or exchange of real estate
Salesperson
type of real estate license in CT; must be affiliated with and supervised by a real estate broker and acts on behalf of a broker
Real Estate Agency
the legal representational relationship that a broker has with a client
Agency Relationship
the relationship that occurs when a broker represents a person; the broker is the agent and the person represented is the client or principal
Fiduciary Relationship
a special position of trust and confidence to a client; a legal obligation to look out for a client’s best interests
Fiduciary Duties (COLD-AC)
care, obedience, loyalty, disclosure, accounting and confidentiality
Customer
someone the broker is working with but does not represent and does not have an agency relationship with
Written Agency Agreement
is required by CT law if the broker wishes to collect payment for services provided
Dual Agency
where the broker represents both the buyer and seller; legal in CT as long as both clients give their written informed consent
Designated Agency
in a dual agency transaction; the broker has the option of designating one salesperson to specifically represent only one client and another salesperson to the other client. Also requires written informed consent
Unrepresented Customers
brokers or salespersons working with an unrepresented customer must clearly disclose to them that they do not represent them but RATHER represent whoever the broker’s client is in the transaction (Real Estate Agency Disclosure Notice Given to Unrepresented Persons)
CT Real Estate Commission
Part of the CT Dept of Consumer Protection; the licencing agency for real estate brokers and salespersons
State Law Requiring Licensure
Chapter 392 of the CT General Statues
Permitted Unlicensed Assistant Activities
answer phones, transmit and make changes in the MLS, follow up on loan commitments, assemble closing documents, secure public documents, have keys made, social media and advertising, record / deposit earnest money, type contract forms etc
Nonresident Brokers
brokers licensed in other states who enter into an agency contract for the sale of real property in CT are considered to be unlicensed and would not be entitled to collect a commission or compensation
Agency
the legal representational relationship between a broker and a client
Listing Agreements
agency agreements with a seller
Buyer Agency Agreements
agency agreements with a buyer
Standard Agency Agreement
a broker does not have the right to convey the seller client’s property; he or she has only limited authority to act as a special agent to locate a buyer and obtain an offer to purchase the seller’s property
Confidential Information
facts concerning a person’s assets; liabilities; income; expenses; motivations to purchase, rent, or sell; and previous offers received or made that are not a matter of public record
Co-Brokerage
when a real estate broker who represents a seller allows agents at other brokerage firms to show the seller’s property on behalf of the seller; considered subagency
Subagency
in CT, no longer permitted in a cobrokered transaction without the written consent of the seller (or other person being represented)
Subagency Limitation
does not apply to leasing transactions or commercial purchase and sale transactions
CT Commission Regulations
the only type of compensation NOT allowed in CT is a NET AMOUNT; whereby the broker retains all funds above a certain net to the seller figure as compensation
Broker’s Lien
a broker who has performed services relating to residential or commercial real estate has the right to place a lien on the real estate to secure payment of compensation pursuant to Section 20-325a of the CT General Statutes
Referral Fees
may be received from other brokers licensed in CT and other states; may NOT be received from an attorney or mortgage broker or lender (unless they hold a real estate license)
Real Estate & Mortgage Broker
broker’s fee must be for negotiating or arranging for a mortgage loan for the buyer and not for the referral of the buyer to a mortgage lender; must be fully disclosed
Record Retention
must be kept for seven years; offers & counteroffers, contracts, leases, agency agreements and disclosures, escrow and trust account checks and bank statements
CT Uniform Electronic Transaction Act (CUETA)
authorizes the use of electronic records and signatures, but does not require its use
