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20 Cards in this Set
- Front
- Back
Common-law duties to the general public
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Honesty and fairness
Disclosure Reasonable skill and care Accounting |
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Customer level duties to public- honesty and fairness:
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Give client accurate info, honesty and fairness
Don't discourage a transaction by lying |
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Customer level duties to public-disclosure
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All material facts related to the property that is subject of the transaction. Any adverse property conditions
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Customer level duties to public-reasonable care and skill
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Rigorous training and licensure procedures. When awarded a license they are considered to have a level of skill and expertise.
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Customer level duties to public-accounting
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Must account for all funds or transactions of value received from the parties to the transaction. Fun such as earnest money or cash advances must be kept separate from the agent or broker's personal money and detailed records must be prepared for each transaction
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When agency relationship exists real estate agents and brokers are considered _______of their principals. As such, they owe this client level duty to their principles
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Fiduciary
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Agents and brokers who are acting in any agency capacity of the following fiduciary duties to their principles
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Loyalty obedience confidentiality disclosure reasonable skill and care accounting
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In agency capacity fiduciary duties to principle – loyalty
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Requires they act solely in the best interest of principal at all times. Work to obtain best price and terms to satisfy needs investigate and present all offers and obtain relevant information about buyer or seller. Avoid any conflict of interest that would compromise loyalty.
Realtor purchases property then immediately sells for profit |
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In agency capacity fiduciary duties to principle- obedience
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Promptly and efficiently obey all of principles lawful instructions but does not include obligation to obey unlawful instructions such as not marketing a property to minorities or misrepresentation of condition
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In agency capacity fiduciary duties to principle-confidentiality
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Keep all info confidential unless otherwise required by law. Safeguard principles lawful confidences and secrets. Agent that represents seller should not disclosed to buyer that the seller is willing to sell below list price. Duty of confidentiality does not include obligation to withhold known material facts about condition of property or misrepresent
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In agency capacity fiduciary duties to principle- reasonable skill and care
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They must act as a competent real estate professional would act in a similar situation
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In agency capacity fiduciary duties to principal- accounting
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Agent is entrusted with principles monies and properties need to document all paid or received during a transaction. Including earnest money's which is the money paid by the buyer to the seller to secure the transaction and which is forfeited if buyer defaults. Money must be kept in separate escrow account
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Statutory or federal laws – interstate land sales full disclosure act ILSA late 1960s
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Main problem buying properties in other states is when travel to see the property it does not match the representation during the sale. Requires registration of any sale or lease of lots in subdivisions condominiums or houses with the department of housing and urban development HUD if the transaction includes the use of interstate commerce or mail
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Sherman and clayton
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Sherman- Federal law that prohibits any activity that may result in restraint of trade. Including monopolizing a particular trade
Clayton- regulates business practices that may be detrimental to fair competition some general practice is regulated include price-fixing mergers and acquisitions |
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Federal laws
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-Interstate land sales full disclosure act ILSA
-antitrust laws – Sherman and Clayton act -fair housing act- title vii civil rights act of 1964 -American with disabilities act - Megan's law -truth in lending act regulation z - real estate settlement procedures act respa - federal lead based paint hazard reduction act - comprehensive environmental response compensation and liability act |
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Aims to promote informed use of consumer credit by requiring disclosures about loan terms and conditions
Also establishes disclosure standards for advertisements that refer to certain credit terms |
Truth in lending act – regulation Z TILA
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Consumer protection statute first passed in 1974. Purpose is to regulate real estate settlement services and eliminates kickbacks and referral fees that increased cost of certain settlement services. It requires agents and brokers to disclose fees and procedures and real estate settlement
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Real estate settlement procedures act
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Requires disclosure of know info on lead based paint and hazards before sale or rental of house built before 1978
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Federal residential lead based paint hazard reduction act
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Superfund act 1980
Imposes liability on property owners and other parties involved for the full cost of cleanup of environmentally contaminated land if discovered before escrow |
Cercla
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Consumer protection laws Protect the public from unfair and deceptive practices of business entities and professionals. Laws provide consumers with additional protection and remedies from possible fraudulent and deceptive business practices one prohibits certain acts and practices that tend to mislead and deceive customers
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Deceptive trade practices act 1972
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