Unit 11 - Broker Relationships Flashcards
Agent
is the one who is authorized to act on the PRINCIPAL’S behalf
Principal
one who delegates authority to another to act on one’s behalf
Sub Agent
is Sales Associate’s relationship to the Broker’s clients or customers
Has the SAME obligations to the client or customer as the Broker.
Principal - Agent - Sub Agent
Buyer - Broker - Sales Associate/broker assoc.
Single Agent Broker
Has a relationship with a Buyer or Seller ONLY.
Broker Has allegiance to the Principal, all sub agents working under Broker have same allegiance
DAD SO COLD - Single Agent Broker
Dealing honestly and fairly
Accounting for all funds
Disclosing all known facts that materially affect value and that are not immediatly observable
Skill, Care and Diligence (get answers to quesitons)
Offers and COunter offers presented in timely manner
Confidentiality of everything - FULL!!!! BIG DEAL!!!!
Obedience
Loyalty
Disclosure (full) of all material facts including rumor and questionable facts.
Single Agent Broker can only work with the other party in ____________unless_____________–
No Brokerage unless both parties agree to transaction brokerage.
Dual Agency
Arises when a single agent for the seller is also a single agent for the buyer. Illegal in Florida. Violators subject to disciplinary action from FREC
No Brokerage - Nonrepresentation
A relationship when the broker works with a seller or buyer as a nonrepresentative
No Brokerage - Nonrepresentation - DAD
Only owes
Dealing Honestly and Fairly
Account for funds
Disclosing material facts
Broker showing a no brokerage listing
Has no other obligation to the seller, but must tell the prospective buyer the value of the property
Relationship disclosure Req. Chapter 475
- Mandates the delivery of statutory disclosure form when operating as a single agent in residential transactions.
Sales Associate must sign on with
Broker or developer. One or the other
Transaction Brokerage
Limited representation of buyer, seller or both
Transaction Brokerage
Limited representation of buyer, seller or both.
It is assumed that a licensee is working in a transactional capacity UNLESS a single agent or no brokerage relationship is established.
No Brokerage
Non-representational
No Brokerage
Non-representational
FSBO, or maybe unrepresented buyer at open house who wants you to draw up a contract.
Only Owe them
Deal honestly and fairly
Account for funds
Disclose material info
**MUST TELL PROSPECTIVE BUYER THE VALUE OF THE PROPERTY”
Which Brokerage relationship has limited confidentiality of PTM?
Transactional
PTM
Price
Terms
Motivation
A brokerage firm repping transactional with a buyer can only
rep transactional OR non broker with a seller, or vice versa ,
Chapter 475 is the
Laws of Real Estate
Automatic renewal of a listing agreement is
prohibited
A listing agreement is a contract between____&______ and if in writing, must include:
1-5
a seller and a broker. In florida it does not have to be in writing. however, if the broker uses a written listing agreement, it must include:
- Start and expiration date
- description of property
- acceptable price and terms to seller
- amount/method of compensation
- signed by seller
Residential Transactions Include:
`1. Improved dwellings 4 units or fewer
- Unimproved property approved for and intended for use as dwellings of 4 units or fewer
- AGRICULTURE property of 10 acres or fewer - RESIDENTIAL AGRICULTURE
No brokerage (so, unrepresented buyer), agreement and transition to transaction forms must be signed before when?
SHOWING THE PROPERTY
Authority to perform in place of another - Universal Agents
1 Power of Attorney
- Attorney in fact is the one who has power of attorney
- Broker doesn’t automatically have it.
2. Guardian
3. Trustee
4. Personal representative
Buyer / Broker Agreement
Parties and Buyer and Broker
Default is TRANSACTION BROKER
Listing Agreement
Parties are Seller and Listing Broker
Emploeyment contract that authorizes and agrees to pay a broker to find a ready, willing and able buyer according to the terms of the contract, or on any other terms acceptable to the seller.
Listing Agreement - Conditions under with commission is earned:
- Procure a Buyer
- Procure and optionee
- Procure a Tenant
Listing Agreement
- Parties are Seller and Listing Broker
- Employment contract between one or more sellers and the listing broker.
- Created by Florida Realtors
- Exclusive right of sale means procuring clause will never be an issue.
- Athorizes and agrees to pay a broker to find a ready, willing and able buyer according to the terms of the contract, or on any other terms acceptable to the seller.
Listing Agreement - Amount or Method of Compensation for Broker
- Flat Fee
- Percent of Gross sales price
- Hourly
- Net : Price - net = commission
Types of Listing Agreements - Exclusive
Exlusive - 1 listing with 1 broker, Bilateral Maximum protection for broker Gets paid no matter who sells it Procuring Clause is never an issue
Types of Listing Agreements - Exclusive Agency
Seller reserves right to sell it on their own without paying commission
Broker Paid if anyone else sells it
Types of Listing Agreements - Non Exclusive / Open Listing
More that one broker - Unilateral
Broker paid only if broker sells
Least protection for the broker
ex: FSBO, You can put a sign in the yard. If they get a buyer, you get nothing. If you get a buyer, you get paid. If another broker gets a buyer, you don’t get paid
Authorized Agreement
Each party, including Agent, signs and dates the agreement
Authority to sell property
- Contractual Rights and obligations are extended through the dates of closing.
- No guarantee of sale
- Both promise - no illegal discrimination
- Seller Promises to convey property
Description of property
- Get it from County Property Appraiser
- Real property address and legal description
- Personal property description
- OCcupancy, is there a lease?
Price and Terms
- Offering Price
- Acceptable Finance Terms
- Cash to Seller
- Purchase money mortgage, contract for deed, seller financing
- Assumption of existing mortgage
- Is there any credit from the seller?
Broker Obligation and Authority
- Advertise
- obtain current mortgage info
- Use MLS
- Provide CMA to potential Buyers
- Follow Lockbox and offer instruction
- Act as a Transaction Broker
Seller Obligations
- Cooperat
- Allow Access to property
- Notify Broker before encumbering the property
- Hold Harmless CLause
- Comply with FIRPTA
- Make all property disclosures
- Seek professional advice from others - lawyer, roofer, home inspector etc.
Default Broker Relationship
Transactional
Dispute Resolution
Mediation
Arbitration
Litigation
Termination of Agency Agreement
- Death or Chapter 7 bankruptcy of Broker, Buyer, or Seller.
2, Destruction of Improvements - Performance or Expiration (Sell or expire)
- Mutual Recission - like it never happened.
