Unit 2: Buyer Agency

As a buyer's agent, you owe specific duties to your buyer client. What are these duties?

- Advocate for the interests of the buyer. - Seek the best price available or a price that is acceptable to the buyer.

To whom does the Illinois broker give the notice of no agency?

Any unrepresented consumer the licensee won't be representing **Licensees must give the notice of no agency to any unrepresented party they won't represent in a transaction. This same notice is given to a buyer or seller who's working with the licensee but not represented by the licensee.

Give the consumer your undivided loyalty Customer or Client

Client

Negotiate the best terms Customer or Client

Client

When working with a consumer, you'll perform different actions, depending on whether you have a customer or client relationship with that person. Take a look at these actions and decide if each is something you'd perform solely for a customer or solely for a client. Advocate on the consumer's behalf Customer or Client

Client

Show properties only within the consumer's price range (and not a penny higher) Customer or Client

Consumer

Ensure favorable appraisal of the property. Perform or Don't perform

Don't Perform

Sara is your buyer customer. She doesn't want to sign a buyer agency agreement. What duty do you owe her? Confidentiality Honesty and fairness Negotiation of the best price Undivided loyalty

Honesty and fairness

Why is the licensee required to make the agency disclosure?

It's the law.

Leslie represents Mr. and Mrs. Connelly. The three of them just met with Mick, a consumer, who signed a Notice of No Agency Relationship form. Which of the following is true about this situation? Leslie can now legally facilitate a real estate transaction between these two parties. Leslie is now a dual agent for the Connellys and Mick on any upcoming sales transaction. Leslie may now legally be paid commission. Mick is now Leslie's client.

Leslie can now legally facilitate a real estate transaction between these two parties.

You're meeting with a buyer who doesn't want to sign an agency agreement. Who represents whom when you show this customer properties? Listing agent Seller or Buyer? You Seller or Buyer?

Listing Agent represents seller I represent the seller as well **Right! Since the buyer's a customer, you don't represent him. In fact, that puts you on Team Seller. Team Buyer is a lonely place.

Now let's assume the buyer signs an agency agreement with you. Who represents whom? Listing agent Seller or Buyer You Seller or Buyer

Listing agent represents the seller I represent the buyer **That's right! Now the teams match up a little more fairly. Next, let's talk about what you'll do for a client vs. a customer.

As a buyer's agent, you'll perform certain tasks for your clients. Which of the following are tasks you should perform? Show buyers properties that meet their criteria and fall within their budget. Perform or Don't perform

Perform

Ensure buyers understand the importance of due diligence to include a professional property inspection. Perform or Don't perform

Perform

Ensure that buyers receive all required property condition disclosures from the seller. Perform or Don't perform

Perform

Negotiate contract terms that are fair and agreeable to buyers. Perform or Don't perform

Perform

Review transaction documents with buyers, clarifying anything that could be confusing, without stepping outside the scope of your license. Perform or Don't perform

Perform

Which of the following is a buyer's agent's task or duty? Advocating for the seller Negotiating for the seller Representing the buyer's interests Reviewing transactional documents with the seller

Representing the buyer's interests

You are showing your buyer client, Anita, around a cute little cottage that belongs to Pete, who's selling the home on his own and isn't represented by a broker. When do you make the agency disclosure to Pete and what disclosure do you use? a. Never b. Right now; Notice of No Agency c. Just before you enter into a sales agreement; Agency Disclosure Form d. Any time prior to closing, but before you receive your commission for your part in the transaction; Notice of No Agency

Right now; Notice of No Agency **You got it! You must provide a Notice of No Agency form to the seller to ensure that the seller understands you're representing the buyer and that you owe the seller no fiduciary duties.

Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties? She's a buyer's agent to Cintra and an undisclosed dual agent with the seller. She's a dual agent to the buyer and seller. She's an agent to Cintra, and the seller is her customer. The seller and buyer are her customers.

She's an agent to Cintra, and the seller is her customer.

As a buyer's agent, you have a relationship with both the buyer and seller, but in different capacities. What's your relationship to each of these parties? Which is buyer and which is seller? The client is your _________ The customer is your _________

The client is your Buyer The customer is your Seller

If you've shown Suzie three properties, and she decides to put an offer in on one of them but hasn't signed an agency agreement with you, who do you represent? Both Suzie and the seller No one Suzie The seller

The seller

Who does the agent assisting the buyer in a transaction represent if there's no buyer agency agreement? No one The buyer in a sub-agency capacity The customer The seller

The seller **Without a buyer agency agreement in place, the agent assisting the buyer actually represents and owes loyalty to the seller.

In a buyer agency relationship, what relationship does the seller have to the licensee? The seller is the licensee's client. The seller is the licensee's customer. The seller is the licensee's fiduciary. The seller is the licensee's nemesis.

The seller is the licensee's customer.

A licensee must perform which of the following tasks for a buyer client? a. Ensure the buyer understands the importance of due diligence, including a professional inspection of the property. b. Review the seller's property disclosures and show the buyer the ones that you believe are important. c. Show the buyer properties that you are listing for other sellers. d. Tell the buyer how much earnest money she should put down to ensure the deal goes through.

a. Ensure the buyer understands the importance of due diligence, including a professional inspection of the property. **A licensee must ensure the buyer understands the importance of due diligence, including a professional inspection of the property.

What form must the agency disclosure take? a.The disclosure must be in writing. b. The disclosure must be presented orally only. c. The disclosure must be videotaped. d. The disclosure must be recorded.

a.The disclosure must be in writing