Unit 4-6 Flashcards
Who is the principal?
The individual who hires and delegates to the agent the responsibility of representing the individuals interest
=or=
The client
Agent duties
Care Obedience Accounting Loyalty Disclosure Confidentiality
Cold a/c
Common law of agency
Care Obedience Loyalty Disclosure Accounting Confidentiality
Conversion or commingling
Using a clients monies or combining them with the firms business or personal funds
What makes a ‘Qualified real estate agent’ (in IRS code)?
Three things:
- current license
- written contract with broker stating licensee will not be treated as an employee for tax purposes
- 90% of income must be based on sales production and not hours worked
Unbundling of services
Consultant vs agent
- prep property for sale
- competitive market analysis
- marketing (mls/other websites)
- locating/screening a buyer
- drafting a purchase sales agreement
- negotiate
- closing
Graduated commission splits
For example:
50/50 up to $35,000
60/40 up to $50,000
High producers can bring in. 70/30-90/10.
Caveat emptor
Buyer beware
Idea pre-agent/mls/license laws
Other terms for NONAGENT
Facilitator, intermediary, transactional broker, transactional coordinator, contract broker
Assists without representing either side
Express agency
Actual FORMAL agreement between parties
Universal agent
Unlimited power
Can do anything the principal would be able to do
Not usual
General agent
Broad range of matters are handled
Typical of real estate licensees
Special agent
Limited authorization
For a specific task or transaction
Usually the broker
Designated agency
Only time you have a designated agent is when you have a dual agency
He or she is the designated representative to act for the specific principal
Internet listing display policy
NAR policy which allows all members equal right to display mls data
How long after a sale can a licensee call a consumer?
18 months
3 months after an inquiry
UETA
Uniform electronic transactions act
Purpose is to remove barriers in e-commerce
Antitrust violations
Price fixing
Group boycotting
Allocations
Tie-ins
Antitrust violation penalties
Under Sherman antitrust Act:
Up to 1 million fine and 10 years in prison
(Corporations - up to 100 million)
Civil case - triple the damages plus attorney fees
The seller’s agent is aware of, but does not disclose to a buyer that a new landfill has been approved for development on the adjacent property.
Is this:
negligent misrepresentation or fraudulent misrepresentation
Fraudulent misrepresentation
Fraud is misleading and silence can be misleading
Hold harmless wording has to do with what?
Broker and seller agree in the listing agreement to not sue each other for any incorrect info supplied by either party
Broker protection clause
Protection as procuring clause after expired listing
When is broker’s commission payable?
Day the deed is delivered
