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20 Cards in this Set
- Front
- Back
1
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Single agency (nonexclusive) describes a form of agency whereby the broker
will represent either the buyer/tenant or seller/landlord, but never both in the same transaction. Vendee and vendor are simply terms for buyer and seller, respectively. |
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2
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The nonexclusive single agent provides client-level service to only one
party to a transaction thus minimizing the conflict of interest concerns that frequently arise in the intermediary situation. |
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3
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Since Sally already represents the seller, her nonexclusive single agency
office policy precludes her representing the buyer, Betty; however, Sally may provide customer-level service to Betty which includes assisting Betty with preparing the terms of the contract. Betty will be representing herself. |
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4
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A nonexclusive single agent offers client-level service to both buyers and
sellers. If a represented buyer wishes to purchase an in-house listing however, the transaction may continue as an in-house sale but only if the buyer reverts to customer status. If the buyer needs or desires continued representation, the listing broker will normally be obligated to refer the buyer-client out to another firm and thus share the commission with the other broker. |
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5
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A buyer is entitled to full representation should they need or desire such
client-level service. The limitations of a nonexclusive single agency office must therefore be clearly explained and understood by the consumer in order for them to make an informed decision. This is particularly true if the broker has numerous inhouse listings which will likely meet this buyers needs because that would increase the likelihood of the buyer ultimately having to revert to customer status. |
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6
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Any consumer has the right to representation. If a consumer needs or desires
continued client-level service, the broker should refer the buyer to another office which can provide the buyer full representation. |
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7
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By definition, the nonexclusive single agency office offers representation to
either buyers or sellers, either tenants or landlords, or only one party to an exchange of property, but never both in the same transaction (i.e., this office will always work for one party (the client) and with the other party (the customer) to the transaction). |
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8
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A broker acting as an intermediary represents both parties to the transaction;
the broker practicing single agency provides representation only to one party in the transaction and therefore never acts as an intermediary. Regardless of the services offered by the firm, the designated broker may sponsor either salespersons or broker associates. |
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9
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Single agency brokers represent clients, not just buyers or sellers. The
firm offering nonexclusive buyer agency therefore does not exclude the possibility of occasionally representing the seller-side of a transaction, either as the listing broker or as a subagent. Brokers offering nonexclusive single agency however (whether nonexclusive buyer or nonexclusive seller agency) will never represent both in the same transaction. |
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10
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A broker offering single agency never acts as an intermediary and will
therefore be providing client-level service to parties only on one side of a transaction. If the single agent already represents a buyer, the single agent could not continue with client-level service to the buyer on an in-house transaction. The single agent broker who represents a seller who is interested in buying a property has two choices: (1) represent that seller as a buyers agent in the purchase of another property as long as that property is listed by another office or (2) treat the seller as a customer if the seller is interested in purchasing another of the brokers in-house listings. Finally, since brokers work for clients, the single agency broker cannot work for the buyer and for the seller in the same transaction. |
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Single Agency
Overview |
Exclusive vs. non-exclusive
Descriptive, not legal terms |
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Single Agency
In Practice – non-exclusive |
Brokers Represent Either Seller or Buyer
Never Both in Same Transaction Oriented towards Person not relation to property |
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Single Agency
Counseling Sessions |
General single agency (nonexclusive)
Represent “clients”, not buyers or sellers Initial interview establishes relationship based on need Conflicts of Interest Broker never acts as intermediary May have to withdraw representation from one client Confidential information remains confidential |
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Single Agency
Advantages |
Permits Variety of Representation
Not in Same Transaction Reduces Liability for Undisclosed Agency or Intermediary Permits Long Term Client Level Relationship Clients Receive Full Representation Undivided Loyalty |
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Single Agency
Disadvantages |
Reduces Double Commissions
Loss of Buyer Clients for Own Listings Difficult to Switch from Client to Customer Licensees May Not Be Able to Show Own Listings |
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Single Agency (nonexclusive) Can Represent ------------; Not in the Same Transaction
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Single Agency (nonexclusive) Can Represent Buyers & Sellers; Not in the Same Transaction
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Clients Receive --------------
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Clients Receive Full Representation
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Clients May Have to Switch to -------- Status
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Clients May Have to Switch to Customer Status
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Broker May Have to ---------- from Transaction
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Broker May Have to Withdraw from Transaction
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Suggestions for Brokers
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Office Policy: Decide How to Handle Situations When Buyers Do Not Want Buyer Representation
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