Real Estate Agency: Unit 2

Broker Dans agency has 20 sales people. Seller Susan agrees to allow Dan to immediately name his agent, Gloria, as Susan's designated agent. How many people represent Susan?

2, Dan and Gloria represent seller Susan. Since susan is a designated agent, none of the other agents working for Dan have a business relationship with the seller

In-house transaction

A real estate transaction in which the listing broker is the only broker involved

Carl, a salesperson for selling agent Sylvia, is showing steve and donnas house to a potential buyer. The buyer tells Carl that he's desperate to find a house quickly and is willing to pay above asking price if there are other offers. Carl has the duty to keep the buyers information confidential.

False, carl is not the buyers agent; his fiduciary duty is to the seller, via the listing broker. Carl should inform the listing broker of the information he has learned about the buyer Page 82

Dans agency practices designated agency. Paul represents the sellers and Jan represents the buyer. Dans role is to act as a mediator between Paul and Jane to help them arrive at a fair price

False- As a dual agent, Dan cannot give advise or offered an advantage to either side; his job is completely neutral

Sylvia shows Steve's house to buyer Kathy. Kathy makes an offer, which Sylvia delivers to listing agent Dan. Kathy is Sylvia's client?

False- Kathy is just a customer. Sylvia's client is Steve, the seller

Listing broker Dan offeres subagency to broker Sylvia to help sell client Steve's house. Sylvia is Dan's subagent

False- Sylvia is seller Steve's subagent. She is Dan's agent

Paul is a salesperson for broker Dan. He gets a listing to sell the Smiths house. The listing agreement is a contract between Paul and the Smiths

False- contracts are always between the client and the broker, even if it is an salesperson "who gets the listing" The contract is between Dan and the Smiths

Dans agency practices designated agency. Paul represents the sellers and Jan represents the buyer. Dan is a dual agent. The other licensees in Dans agency are also dual agents, since they have the same relationship to an agencys clients as the broker

False- designated agency provides an expectation to the rule that all affiliated licenses have a fiduciary obligation to all of the agency clients. Only the designated agent and the broker are fiduciaries to the principal. The other licensees have no relationship with either the buyer or the seller

Seller Susan agrees to allow broker Dan to immediately name his agent, Gloria, as Susans designated agent. Both Dan and Gloria represent the seller. Dan is a dual agent?

False- unless and until there is a buyer for the property who has a buyers agent in Dans company. Dan is simply agent to the seller

Affilate Licensee

Individuals licensed as salespersons or associate brokers who're employed by the same broker

Lets say that buyer Maggie never signed a buyer broker agreement. Even so, salesperson Jane shows Steve and Donna's house to Maggie. Jane then submits Maggie's offer to purchase to the seller's agent, Paul. If Dans agency does not practice designated agency, which of the statements are true?

Jane can tell the sellers that Maggie just won the lottery -if maggie didn't sign a broker buyer contract, she is simply a customer. no one in dans acing has a fiduciary obligation to maggie, including dan. But since the sellers do not have a contract with dans agency, they are sled janes clients

Karen contracts with broker Jim to sell her house. Who's the principal in this traditional agency relationship?

Karen the client.

In a seller agency relationship with a subagent, who represents the buyer?

No one the subagent, known as the selling agent, also represents the client of the listing agent with whom they have a relationship. In this scenario, no one represents the best interest of the buyer, who is simply a customer. The buyer would need to sign a buyer broker contract with a broker to create a buyers agency relationship

carol is selling her home as a FSBO and she hires Gerald as transaction coordinator to do paperwork on the 200,000$ offer from buyer Jack. Carol tell Gerald that does desperate to sell her house because it is on the verge of a foreclosure. She says shed have been willing to accept less than what Jack offered. Is Gerald obligated to keep that information confidential?

No, a transaction coordinator or transaction licensee is not a fiduciary relationship, and therefore, there is no duty of confidentiality.

Seller Susan agrees to allow Broker Dan to immediately name his agent Gloria as Susans designated Agent. can Gloria tell a fellow agent that Susan is desperate to sell and would take less than the asking price?

No, gloria would be breaching the fiduciary obligation because her fellow agents at Dans brokerage do not have a business relationship with the seller

An affiliated licensee of the listing agent on a brokerage practicing traditional agency will have what agency relationship with the seller?

Seller's agent- where traditional agency is practiced in a brokerage, all affiliated licensees have the same agency relationship as the listing agent

Carl, a salesperson for selling agent Sylvia, finds a buyer for Steve and Donna's house. Once the transaction is complete, how will Carl receive his earned commission?

Sellers Steve and Donna pay listen agent Dan, who pays selling agent Sylvia, who pays Carl -the sellers pay the listing agent, who pays any cooperating agents. Carl, as a salesperson, can accept compensation only from his employing broker

Sylvia is a sellers agent, Dan is the listing agent. Sylvia is Dan's fiduciary

True- Sylvia owes Dan the same fiduciary obligations that she owes to her clients

Star Realty practices traditional agency. Seller Patti signs a listing contract with Star Realty broker Ivan. All affiliated licenses at Star realty are agents of seller Patti

True- an agent of the listing brokerage that practices traditional agency assumes the same role as the listing agent

Bruce signs a buyer broker contract with Ursula of Penny Realty, a buyer representative agency. Harold, an associated broker for Penny Realty, has never met Bruce. Nonetheless, Harold has a fiduciary responsibility to Bruce.

True- bruce is a clients to everyone at Penny Realty, and so Harold is a fiduciary to Bruce, even though he doesn't know Bruce's name.

Can the agency relationship change over the life of the agency agreement?

Yes, someone can go from being a sellers agent to a dual agent if a buyer client of that brokerage is interested in a house they have listed. Remember that dual agency requires the written consent of both parties

Transaction Coordinator

a licensee not working directly for either party who's dry is to see that all the details of the transaction are completed in a timely and accurate manner. Also called a transaction licensee

Multiple listing servie (MLS)

a listing service whereby local member brokers agree to share listings, and agree to share commissions on properties sold jointly

Principal

a person who grants another person (an agent) authority to represent him or her in dealing with third parties

Listing

a written agency contract between a seller and a real estate broker, staring that the broker will be paid a commission for finding (or attempting to find) a buyer for the sellers real property. A listing is a personal services contract

Designated Agency

an agency relationship where a licensee is assigned by a broker to represent a buyer or seller in a transaction, usually in a in-comapny dual agency situation

Traditional Agency

an agency relationship where the seller is the only client and the buyer has no representation

Subagent

an agent of an agent; a person that an agent has delegated authority to, so that the subagent can assist in carrying out the principals orders. In real estate scenario, a broker who cooperates with a listing broker to represent the seller is a subagent of the seller client

Sellers Agent

an agent representing the interest of the seller of the property. also called a losing agent

Buyers agent

an agent representing the interests of the buyer of a property

Cooperating Agent

an agent who works with a listing agent to sell property in a real estate transaction; the selling agent who found a buyer for the listed property. The cooperating agent could be a buyers agent, a cooperating agent could e a subagent of the seller, working as an agent of the listing agent. Also called cooperating broker

Frank is a real estate salesperson for employing broker Rita. Frank would not have a fiduciary duty to all of Rita's clients if she practices

designated agency. The only situation listed that would free Frank of fiduciary obligations to all of his employing brokers clients would be in Rita practiced designated agency

In rela esta transactions, an affiliated licensee has a direct fiduciary relationship to the

employing broker

Ellen is a cooperating broker on Jon's listing of Erics house. Ellen is Erics________ and Jons__________.

subagent/ agent Jo is the listing broker and his clients is Eric. As a cooperating broker, this makes Ellen Jobs agent and Eric subagent

Selling Agent

the agent who finds a buyer in a real estate transaction, often as a cooperating agent. Do not confuse them with the term sellers agent, which is the listing agent. Also called the selling broker

Listing Broker

the broker with whom a seller signs a listing agreement and whom commission is typically paid upon the successful procurement of a buyer. Also called a listing agent or sellers agent

Dual agency

when a broker or salesperson represents both parties (buyer and seller) in a transaction, AND all management level licensees at a brokerage.

Tammy is a buyer client of Star Realty. Hal is her designated agent. Do you think that Lucille can also be a designated agent to Tammy?

yes- a broker could designate multiple agents to represent one client, for example, to provide representation when one agent is going on vacation