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39 Cards in this Set
- Front
- Back
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Nobody |
A licensee who has no agreement to provide any services |
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An agent |
A licensee who has a written agreement with legal duties fiduciary duties called old card to represent their buyers / seller client |
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Transaction broker |
The licensee who has an agreement as a written or verbal to provide brokerage services but with no fiduciary duties to anyone |
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Definition of a client |
A client is a person who has entered into a written brokerage agreement with a real estate brokerage agency that has agreed to represent that person and be bound by the fiduciary duties set forth in section 13272 on behalf of that person. |
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Real estate brokerage relationships form |
The licensee shall furnish a prospective buyer or seller with a copy of the real estate brokerage relationships form when there is a substantive communication regarding a real estate transaction by either a face to face meeting and written communication on electronic communication with a prospective buyer or seller |
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Casual communication |
If the conversation is casual then there is no requirement to hand out the real estate brokerage relationships form |
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Substantive communication |
The conversation can not be characterized as casual then it must be substances in the real estate brokerage relationships form is given to the consumer |
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When should you hand out the real estate brokerage relationships form? |
When in doubt hand it out! |
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When is the real estate brokerage relationship form not required |
Not required when the real estate is land without a residential dwelling or is land with more than four residential dwelling units. Also not required when the licensee is acting solely as a principal and a real estate transaction not required when the written communications and the licensee is a solicitation of business or the licensee has knowledge or may reasonably assume that another license he has been a copy of the form to prospective buyer or seller in that transaction |
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Real estate brokerage relationships form is not required for all transactions. |
It is only required when the property is a one to four family property. |
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Does the real estate brokerage relationships form need to be signed |
It does not need to be signed it does not create a contract. It is simply a disclosure about how the real estate brokerage industry works. |
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How does a licensee complete the real estate brokerage relationships form? |
Licensee with complete the appropriate section of the forum relating to the presentation of the form. |
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When is the form expected to be given to the DB? |
The licensee who delivers the forum is expected to give a copy to the designated broker within 5 days. The DB is required to keep it for three years. |
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What are the old card fiduciary duties? |
Obedience loyalty disclosure confidentiality accounting reasonable care diligence |
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What does obedience mean |
The duty of obedience means that the agent must obey the client's lawful instructions. These instructions could include do not post a sign, no showings on the weekends, 24 hour advance notice, and don't let the cat out! |
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What is the duty of loyalty? |
The duty of loyalty is an expectation that the agent will put his client's interests ahead of his personal interests. The client's interests are paramount. |
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What is disclosure? |
Disclosure means watching out for and protecting the client's business. Also full property disclosure. |
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What is confidentiality in real estate? |
A duty to keep the confidences of their client. not sharing information about a client. Not divulging any information that would adversely impact on the clients real estate business. |
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What does a realtor need to do with regard to earnest money? |
The earnest money needs to be deposited into a real estate trust account of the real estate agency. The holder of the earnest money has a duty to account for the money and be prepared to tell all parties where the money is. At the end of the transaction the money is to be used appropriately for the transaction. |
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Define reasonable care. |
Agent has a duty to be reasonably careful in conducting business with the client. Agent should fill out the disclosures make sure the representations about the properties are accurate. |
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Can a real estate licensee give advice to a customer? |
No, but they are required to give their very best advice to clients. |
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Define diligence. |
To ensure that you're pursuing the the client's business properly. |
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To move from a nobody to an agency relationship, what is required? |
A written agreement is required. |
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A brokerage agreement between a real estate brokerage agency and a client must be in writing. What does it need to include? |
The signature of the client to be charged. The terms and conditions of the brokerage services to be provided. The method or amount of compensation to be paid. The date upon which the agreement will expire. Finally, a statement that the agreement creates an agency client relationship |
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A brokerage agreement between a real estate brokerage agency and a client must be in writing. What does it need to include? |
The signature of the client to be charged. The terms and conditions of the brokerage services to be provided. The method or amount of compensation to be paid. The date upon which the agreement will expire. Finally, a statement that the agreement creates an agency client relationship |
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What is a dual agency? |
It's a listing agreement with a seller and simultaneously a buyer representation agreement with a buyer who wants to buy that listing. The real estate company would represent both the buyer and the seller in the same transaction. |
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What is a consent agreement disclosed dual agent? |
An agency may act as they disclose to agent only with the informed written consent of all parties. |
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What is a single agency? |
An agency may only represent one party as a client and any single transaction. |
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What is a single agency sellers agency? |
Single agency / sellers agency represents sellers only. A buyer would have to be a customer, not a client. |
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What is a single agency buyer's agency? |
A buyer's agency represents buyers only. The seller must be a customer, not a client. |
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Describe a disclose dual |
A disclosed dual agency may only occur with the informed written and signed consent of a client. This signed consent must occur before entering into a brokerage agreement. |
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A disclosed dual agency represents the buyer and seller. The agent may disclose to the buyer any information provided by the seller and may disclose to the seller any information provided by the buyer, except what? |
The willingness or ability of seller to accept less than the asking price. The willingness or ability of the buyer to pay more than has been offered. Confidential negotiating strategy not disclosed in the sales offer as terms of the sale. The motivation of the seller for selling in the motivation of the buyer for buying. |
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What is an appointed agency? |
Appointed agent means that the affiliated licensee who was appointed by the designated broker of the licensee's real estate brokerage agency to act solely for a client of that real estate brokers agency to the exclusion of other affiliated licensees of that real estate brokerage agency. |
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An appointed agency must have at least 3 licensees by law. Does the designated broker have any fiduciary duty to the buyer or seller? |
No. |
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What is a transaction broker? |
A transaction broker does not represent any party as a client to a real estate transaction and is not bound by the duties set forth in 13272. |
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What is a sub agency? |
A sub agency is created when one agency usually the sellers agency appoint other brokers or agencies with the seller's permission to help perform client base functions on the clients behalf. The sub agent becomes an agent of the listing agency who was an agent of the seller. |
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What is the most common type of appointed real estate agency? |
The most common type is an appointed agency with disclosed dual agency. DDA. |
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What are non appointed company agency policies |
Seller agency only - whole office has greater vicarious liability. Buyer agency again whole office has greater vicarious liability. Seller and buyer agency with DDA same thing whole office has greater vicarious liability appointed agency with no DD a whole office has greater vicarious liability. |
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Agency questions. To calculate commissions what is the formula? |
Income equals rate times value or I = RxV. Income equals the agency's commission. Rate is the percentage of the agency's commission and value is the sales price. |
