Roctrine review

Question 1

A seller signs a listing contract with the firm. Who is the agent and who is the principle?

Answer 1

The seller is the principle and the firm is the agent.

Question 2

A buyer asks a listing agent to draft an offer. The buyer does not sign a buyers agency agreement. Is the buyer a customer or a client?

Answer 2

The buyer is a customer.

Question 3

When can a firm engage in multiple representation?

Answer 3

Written consent of both parties, agency disclosure to both parties.

Question 4

What kind of agency is a firm practicing if a firm represent just one party in the transaction?

Answer 4

Single agency

Question 5

In what kind of transaction does a firm have to provide agency disclosure?

Answer 5

All transactions (resident, commercial, vacant land, etc.)

Question 6

By when must a firm provide agency disclosure to a client? A customer?

Answer 6

Before or at the time of entering into the agency agreement

Question 7

By when must an agent disclose the buyer agency relationship to the seller or the listing firm?

Answer 7

The earliest first contact, a showing, or any other negotiations with the seller or the listing firm.

Question 8

What are the listing firms agency disclosure obligations when working with a customer who want to write an offer on a duplex? What if the buyer want to write an offer on a commercial wharehouse?

Answer 8

Provide agency disclosure to the buyer of the duplex and ask the buyer to sign the agency disclosure because this is a 1-4 family transaction. Provide agency disclosure to buyer for commercial warehouse but you do not have to ask the buyer to sign because it is not a 1-4 family property.

Question 9

When does a property manager need to have a real estate license?

Answer 9

If signing or negotiating leases on behalf of the property owner.

Question 10

If a licensee is representing a family member who is writing an offer on a property, what are the licensee’s disclosure obligations?

Answer 10

Disclose the relationships in writing and obtain consent of both parties.

Question 11

What are the licensee’s disclosure obligations if the licensee is going to receive a fee from referring a lawn maintenance company? What if the licensee is a listing agent who is referring a client to a buyer’s agent?

Answer 11

For the lawn maintenance company, disclose the potential referral fee in writing before or at the time of making the referral. Referral fees from license to license do not need to be disclosed.

Question 12

When must a licensee disclose that the licensee holds a real estate license when selling the licensee’s own home? What if the licensee is selling commercial property owned by the licensee?

Answer 12

The earliest of first contact, a showing, or any other negotiations. The disclosure shall be in writing and is the same whether selling personally owned home or commercial property.

Question 13

What tie-in arrangements are legal?

Answer 13

Legal tie-ins
1. Condition the sale of vacant land owned by the licensee upon the buyer’s agreement to use a specific builder if the builder co-owns the property with the licensee
2. Condition the sale of vacant land owned by the licensee upon the buyer’s agreement to use a specific builder if the builder and the licensee are the same person.
3. Condition the sale of vacant land owned by the licensee upon upon the buyer’s agreement to use a specific builder if the agreement to use the builder is a legitimate effort to maintain developmental quality/architectural uniformity and no compensation passes from the builder to the licensee.

Question 14

Who can retain an unlicensed personal assistant? Be Who can retain a licensed personal assistant?

Answer 14

Unlicensed personal assistant - anyone. Licensed personal assistant - just the firm.

Question 15

Which agency duties survives the transaction?

Answer 15

Confidentially

Question 16

What duties does a firm owe to all parties in a transaction?

Answer 16

Duties to all parties
1. Provide brokerage services to all parties honestly and fairly,
2. Provide brokerage services with reasonable skill and care
3. Timely disclose material adverse facts in writing that the firm knows and that the party does not know or cannot discover through reasonably vigilant observation, unless the disclosure is prohibited by law
4. Keep confidential any information given to the firm, or any information obtained by the firm that the firm knows reasonable party would want to be kept confidential, unless the information must be disclosed by law or the person whose interest may be adversely affected by the disclosure specifically authorizes the disclosure of particular information.
5. Provides accurate information about market conditions that affect a person’s transaction to any party who requests the information, within a reasonable time of the person’s request.
6. Safeguard trust funds and other property held by the firm as required by statute and rule.
7. When negotiating on behalf of a party, present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

Question 17

What are the additional duties owed to a client?

Answer 17

Duties to Clients
1. Loyally represent the clients interests by placing the clients interests ahead of the firms interests
2. Provide when requested by the client information and advice to the client on matters that are material to the clients transaction and that are within the scope of the knowledge skills and training required of a licensee.
3. Disclosure all material facts affecting the transaction not just the adverse facts. (Divorcing spouses lists with two firms = owe two commissions, sellers daughter wants to offer selling bonus)
4. Fulfill any obligation required by the agency agreement (listing contract/buyer agency agreement) and any order of the client that is within the scope of the agency agreement and is consistent with other duties.
5. Negotiate on behalf of the client unless released from this duty. [The duty of negotiation may be waived by a client in part or full, if an express written waiver of negotiation duties is made by the client]

Question 18

When a firm has a multiple representation relationship with designated agency, to whom will each salesperson provide information, options, and advice?

Answer 18

Their respective clients.

Question 19

How should a client withdraw consent to a multiple representation relationship?

Answer 19

In writing.

Question 20

How should a client waive a firms duty of negotiation?

Answer 20

In writing and the firm must provide disclosure language regarding waiver of negotiation.

Question 21

What type of agency relationship is created with written words?

Answer 21

Express

Question 22

What types of agency relationship give an agent the authority to represent a principal in more that one transaction?

Answer 22

General

Question 23

What are the seven ways to terminate an agency relationship?

Answer 23

Termination of agency
1. Death or incapacity of principal
2. Destruction of condemnation of the property
3. Expiration
4. Mutual agreement
5. Breach
6. Operation of law
7. Completion

Question 24

Which listing contracts do not require the seller to pay a commission to the listing firm when the buyer is procured?

Answer 24

Exclusive agency, one-party listing, open listing

Question 25

What type of listing contracts are illegal in Wisconsin?

Answer 25

Net

Question 26

What are the six requirements to create a valid agency agreement?

Answer 26

Valid agency agreements
1. Description of the real estate
2. Statement of the price
3. Statement of the commission
4. Statement of the term
5. In writing and
6. Signed by the person who will pay the commission

Question 27

In an unmodified. WB-36 Buyer Agency Agreement, does a buyer’s firm have to be directly involved in negotiations in order to earn a commission?

Answer 27

No - if the buyer buys or enters into an enforceable contract for sale, the firm earns a commission.

Question 28

What are the remedies if an agent breaches an agency agreement?

Answer 28

Remedies for breach
1. Rescission
2. Forfeiture of commission
3. Sue for damages

Question 29

On what lines of the WB-1 residential listing contract does the firm address the marketing plan?

Answer 29

Marketing is at lines 17-29, firm’s specific plans go on lines 19-20

Question 30

Who are the parties to the listing contract?

Answer 30

Seller and listing firm, line 274

Question 31

How long is the listing period extend for protected buyers in the WB-1 Residential listing Contract Listing Provision?

Answer 31

One year, line 230