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20 Cards in this Set

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1
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.
2
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.
3
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.
4
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.
5
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 buyer’s needs because that would increase
the likelihood of the buyer ultimately having to revert to customer status.
6
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.
7
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).
8
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.
9
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.
10
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 broker’s 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.
Single Agency
Overview
Exclusive vs. non-exclusive
Descriptive, not legal terms
Single Agency
In Practice – non-exclusive
Brokers Represent Either Seller or Buyer
Never Both in Same Transaction
Oriented towards Person not relation to property
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
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
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
Single Agency (nonexclusive) Can Represent ------------; Not in the Same Transaction
Single Agency (nonexclusive) Can Represent Buyers & Sellers; Not in the Same Transaction
Clients Receive --------------
Clients Receive Full Representation
Clients May Have to Switch to -------- Status
Clients May Have to Switch to Customer Status
Broker May Have to ---------- from Transaction
Broker May Have to Withdraw from Transaction
Suggestions for Brokers
Office Policy: Decide How to Handle Situations When Buyers Do Not Want Buyer Representation