Unit 11 - Broker Relationships Flashcards by Cynthia Rosenfeld

Agent

is the one who is authorized to act on the PRINCIPAL’S behalf

How well did you know this?

Not at all

Perfectly

Principal

one who delegates authority to another to act on one’s behalf

How well did you know this?

Not at all

Perfectly

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.

How well did you know this?

Not at all

Perfectly

Principal - Agent - Sub Agent

Buyer - Broker - Sales Associate/broker assoc.

How well did you know this?

Not at all

Perfectly

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

How well did you know this?

Not at all

Perfectly

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.

How well did you know this?

Not at all

Perfectly

Single Agent Broker can only work with the other party in ____________unless_____________–

No Brokerage unless both parties agree to transaction brokerage.

How well did you know this?

Not at all

Perfectly

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

How well did you know this?

Not at all

Perfectly

No Brokerage - Nonrepresentation

A relationship when the broker works with a seller or buyer as a nonrepresentative

How well did you know this?

Not at all

Perfectly

No Brokerage - Nonrepresentation - DAD

Only owes
Dealing Honestly and Fairly
Account for funds
Disclosing material facts

How well did you know this?

Not at all

Perfectly

Broker showing a no brokerage listing

Has no other obligation to the seller, but must tell the prospective buyer the value of the property

How well did you know this?

Not at all

Perfectly

Relationship disclosure Req. Chapter 475

Mandates the delivery of statutory disclosure form when operating as a single agent in residential transactions.

How well did you know this?

Not at all

Perfectly

Sales Associate must sign on with

Broker or developer. One or the other

How well did you know this?

Not at all

Perfectly

Transaction Brokerage

Limited representation of buyer, seller or both

How well did you know this?

Not at all

Perfectly

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.

How well did you know this?

Not at all

Perfectly

No Brokerage

Non-representational

How well did you know this?

Not at all

Perfectly

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”

How well did you know this?

Not at all

Perfectly

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:

1. Procure a Buyer 2. Procure and optionee 3. 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

1. Flat Fee 2. Percent of Gross sales price 3. Hourly 4. 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

1. Advertise 2. obtain current mortgage info 3. Use MLS 4. Provide CMA to potential Buyers 5. Follow Lockbox and offer instruction 6. Act as a Transaction Broker

Seller Obligations

1. Cooperat 2. Allow Access to property 3. Notify Broker before encumbering the property 4. Hold Harmless CLause 5. Comply with FIRPTA 6. Make all property disclosures 7. Seek professional advice from others - lawyer, roofer, home inspector etc.

Default Broker Relationship

Transactional

Dispute Resolution

Mediation Arbitration Litigation

Termination of Agency Agreement

1. Death or Chapter 7 bankruptcy of Broker, Buyer, or Seller. 2, Destruction of Improvements 3. Performance or Expiration (Sell or expire) 4. Mutual Recission - like it never happened.