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
