Roctrine review Flashcards
A seller signs a listing contract with the firm. Who is the agent and who is the principle?
The seller is the principle and the firm is the agent.
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?
The buyer is a customer.
When can a firm engage in multiple representation?
Written consent of both parties, agency disclosure to both parties.
What kind of agency is a firm practicing if a firm represent just one party in the transaction?
Single agency
In what kind of transaction does a firm have to provide agency disclosure?
All transactions (resident, commercial, vacant land, etc.)
By when must a firm provide agency disclosure to a client? A customer?
Before or at the time of entering into the agency agreement
By when must an agent disclose the buyer agency relationship to the seller or the listing firm?
The earliest first contact, a showing, or any other negotiations with the seller or the listing firm.
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?
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.
When does a property manager need to have a real estate license?
If signing or negotiating leases on behalf of the property owner.
If a licensee is representing a family member who is writing an offer on a property, what are the licensee’s disclosure obligations?
Disclose the relationships in writing and obtain consent of both parties.
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?
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.
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?
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.
What tie-in arrangements are legal?
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.
Who can retain an unlicensed personal assistant? Be Who can retain a licensed personal assistant?
Unlicensed personal assistant - anyone. Licensed personal assistant - just the firm.
Which agency duties survives the transaction?
Confidentially
What duties does a firm owe to all parties in a transaction?
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.
What are the additional duties owed to a client?
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]
When a firm has a multiple representation relationship with designated agency, to whom will each salesperson provide information, options, and advice?
Their respective clients.
How should a client withdraw consent to a multiple representation relationship?
In writing.
How should a client waive a firms duty of negotiation?
In writing and the firm must provide disclosure language regarding waiver of negotiation.
What type of agency relationship is created with written words?
Express
What types of agency relationship give an agent the authority to represent a principal in more that one transaction?
General
What are the seven ways to terminate an agency relationship?
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
Which listing contracts do not require the seller to pay a commission to the listing firm when the buyer is procured?
Exclusive agency, one-party listing, open listing
