Chapter 5: Unit 2

Handling Cooperative Sales

A brokers agent working in cooperation with the listing agent, a buyers (or tenants) agent, a brokers agent working in cooperation with the buyers (or tenants) agent. *One of these are the cooperating broker

Tenant

A lessee in a residential real property transaction

Landlords Agent

A listing agent, who acts alone, acts in cooperation with a listing agent, or acts as a landlords subagent to find or obtain a tenant

Buyer

A transferee in a residential real property transaction

Subagent

An "agent of an agent"

Dual Agent

An agent who is acting as a buyers agent and a sellers agent or as a tenants agent and a landlords agent in the same transaction

Single Agent

An agent who represents only one person in the transaction, either the buyer or the seller

In most states, in all residential transactions when must licensees give potential sellers or buyers a written disclosure form?

At first substantive contact

Which type of agency would be most advantageous to a buyer?

Buyer brokerage

Seller-Paid Fee

Commission paid to the listing agent and buyer agent

Informed Consent

Dual agency must be disclosed to both the buyer and the seller, both parties must agree in writing, if a dual agency is not disclosed and agreed to in writing it is known as an undisclosed dual agency, therefore violating license law

Buyer Client

If a buyer decides that they want client-level services, the buyer will sign a document known as an exclusive right to represent agreement. This agreement outlines the brokers obligations to the client and also the clients obligations to the broker

Buyer Customer

If a buyer expresses interest in one of the firms listings, the broker must disclose their agency status with the seller at which point the buyer can choose to receive customer-level service when dealing with properties that are listed by that firm

Subagent Relationship

If a cooperating broker accepts the offer of sub agency, that broker is then working through the listing broker and is the subagent of the seller. As a subagent of the seller, the cooperating broker has the same fiduciary responsibilities to the seller as does the listing broker and his or her affiliated licensees

Written Disclosure

Licensee provides, any existing agency relationships to all parties for whom they provide real estate brokerage services

Sellers Agent

Listing agent acts alone, acts in cooperation with a listing agent, or acts as a sellers subagent to find or obtain a buyer for residential real property

Landlord

Market a property for rent to tenants, manage a property under a property management agreement

Blanket Unilateral Offer

New regulations stipulated that is a seller gave permission to a broker to submit the property to MLS, the seller was authorizing the broker to make a blanket unilateral offer of subagency to the other member of that MLS

Single Licensee Dual Agency

Occurs when a real estate licensee tries to represent the seller as a client and the buyer as a client in the same transaction

Broker Dual Agency

Occurs when two agents in the brokers firm represent both the seller and the buyer in a single transaction. Even though the parties are represented by two different agents, the broker is a dual agent

Termination of Agency

Performance, Expiration by mutual agreement, termination by one party, death of either party, agent abandonment, condemnation of the property, destruction of the property, renunciation by the client, bankruptcy, revocation of the agents license

Residential Real Property

Property improved by a one-to-four family dwelling used or occupied, or intended to be used or occupied, wholly or partly

Stranger Negotiating Strategy

Since the broker is now looking at the transaction strictly from the perspective of the buyer, the buyer is in a stranger negotiating position

Retainer

Some brokers, more so in commercial than in residential transactions, negotiate their agency agreement to state that they will receive a non-refundable up-front retainer fee. At closing the retainer is credited to the amount of commission the buyer owed and the broker receives the balance

When a seller gives permission to a broker to submit the property to MLS, the seller is authorizing the broker to make a blanket unilateral offer of what to all the other members of that MLS?

Subagency

In House Sales with Seller Agency

The agent needs to tell the seller that if another agent in the firm has a buyer who is interested in purchasing the sellers property, since both agents work for the same broker, a dual agency situation would arise

Buyer-Paid Fee

The buyer agent will inform the seller and the listing broker that compensation will be direct and the buyer agent will refuse the offer of a commission split for the cooperating sale

In House Sales with Buyer

The buyer and seller could consent to the dual agent agreement, so that the broker can represent both of them

Landlord

The lessor in a residential property transaction

Seller Agency

The real estate agent that the listing broker appoints with the sellers permission to perform activities on behalf of the seller

Seller

Transferor in a residential real property transaction. This includes an owner who lists residential real property for sale with an agent

Access to a Larger Market

When a buyer is willing to pay a commission to the broker, the broker is willing to look for and show a wider range of available properties, could include: open listings, low commissions, for sale by owner, foreclosures, probate sales, and sales by trusts or pension plans.

Non-Agency

When a licensee is not performing the minimum services required under an exclusive brokerage agreement, and is, therefore, not acting as the consumer's agent; this fact must be disclosed in writing to the consumer by the licensee.

Tailored Buyer Agreement

When the buyer and the broker write their agreement, the buyer can have it tailored to meet their needs. The buyer can specify the exact type of property they are seeking and define the geographic location. The buyer can also define how much they're willing to pay in compensation

Designated Sales Agent

a licensed real estate salesperson or associate broker, working under the supervision of a real estate broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction.

Listing Agent

a person who has entered into a listing agreement with a seller or landlord and will act as the agent of the seller or landlord for compensation.

Buyers Agent

an agent who contracts to locate residential real property for a buyer or who finds a buyer for a property and presents an offer to purchase to the seller or seller's agent and negotiates on behalf of the buyer.

Tenants Agent

an agent who contracts to locate residential real property for a tenant or who finds a tenant for a property and presents an offer