Unit 3: Applications and Scenarios

How would you handle this situation?

1. Tell the Seller they need to address this directly with Agent Joe. You can't get involved. 2. Take down the information and talk with Agent Joe directly. Let him handle it from there. 3. Advise the Sellers you will talk with the Designated Broker and have him contact them directly.

Is the Dual Agent allowed to ?steer? or suggest that the Buyer contact the police department and find their own answers?

Again, the response should be neutral - if you, the client, have a concern, please do your own due diligence. Then wait for them to ask for references. Provide upon request. Make sure the Seller is made aware of your process on disclosure.

What if the Buyer does that and then decides not to write an offer... has the Dual Agent compromised their agency relationship with the Seller?

All depends on how the Seller has been prepped, the process signed off on at the initial listing appointment and no aggressive "pushing" has occurred.

If the Dual Agent is aware of high crime in the area, are they allowed to disclose that to the potential Buyer without the Seller's permission?

If crime has been raised by the Buyer as an adverse material fact, have the Buyer write an inquiry to the Seller. Deliver it to the Seller and have them respond. If they refuse to respond to the Buyer, the Buyer can then make their decision.

As a dual agent, the buyer is requesting information about the property being in a high crime area. If the buyer requests assistance on how to obtain the information (due to the seller not providing any information) what should the dual agent do in this situation

provide the buyer with a resource to obtain the desired information

Under the Rational Model of Decision Making, all of the following are included EXCEPT

requirements and procedures

Does company policy state that client information remains confidential to perpetuity or once the listing has expired, can that information be revealed to future buyers?

What you do for one, you do for all. Consistency and adhering to state requirements is what is most important.

A seller inquires about another agent that you have worked with from time to time and asks your opinion of the agent. What is your response?

that you have worked with him over the years

You are a new agent and you see an experienced licensee drinking alcohol prior to driving customers around. What should you do?

contact the designated broker

All of the following fall within the Aspen Declaration that lists out six core values that transcend cultural, religious and socioeconomic differences EXCEPT

discipline and rules

Buyer' agent Ed submitted an offer to another company on a property his buyers wanted. It was a full price cash offer to close in 2 weeks with no inspections or other requirements. 24 hours later Ed learns that his buyer's offer was not accepted by the seller and the seller selected another offer. Ultimately it closes and Buyer's agent Ed learns the sold price of the property was lower than the cash offer his buyer made. Ed calls the seller because he knows him from Church but the seller indicated he never saw the buyer's cash offer. Which one of the following is incorrect as to this situation?

the offer the seller accepted closed sooner than 2 weeks due to the other offer having VA financing

A buyer wants to purchase a commercial property and you have never conducted a commercial transaction but believe you can. How should you respond?

you immediately contact an agent who has expertise in commercial transactions and request a referral fee

I saw my best friend Agent pour Jack Daniels into her coffee cup prior to getting in the car to show houses. Her breath already smelled like alcohol prior to preparing her morning coffee.

Company Policy - No drinking of alcoholic beverages while on duty as a real estate Agent. Agent must be sober when working with clients and the public. Buyer - Doesn't know they are getting in a car with someone who might be an impaired driver. Buyer and Agent and other souls might be involved in an accident Injured individuals could sue the company Broker could fire you if you knew the Agent was drinking and didn't say anything. No drinking on the job or going to work intoxicated. We want to be fully mentally alert and keep safety of our clients at the top of our minds. Tell the Designated Broker Stop the Agent from driving - offer to assist Advise the Buyer that the Agent has been drinking Keep the friendship Keep the Buyers and drinking Agent safe Follow the Company Policy By not speaking up - could be an accident and company is sued and people are harmed. By speaking up - could lose friendship of Agent and be labeled a tattle tale in the office. By speaking up - can help Agent get help for drinking addiction Don't allow Agent to go on the showing and have that Agent speak with the Designated Broker - get the Agent help with their addiction Update company policy manual to set steps and procedures in handling this type of situation in case it comes up again

Licensee Martha listed a home of a family friend. After 4 weeks on the market and ZERO offers, Licensee Martha discussed the recent sales data and options with Seller Samantha. Seller Samantha said she would consider lowering the price but wanted to think about it for a couple of days. The next day, Licensee Martha received a call from Buyer Bill. Buyer Bill said he saw Martha's contact information on the brokerage sign and wanted to see the home that afternoon if possible. Martha confirmed a time for the Buyer and emailed him the Agency Disclosure Form and informed she will have a copy for him to sign at the showing. Martha also reminded Seller Samantha of the Dual Agency disclosure and consent as part of the listing agreement. The Seller agreed to the showing. After the showing, Buyer Bill told Licensee Martha that he would like to make an offer but that he would not be able to pay the listing price because the HOA dues were so high. Licensee Martha, excited to finally have an offer, mentioned to Buyer Bill that the Seller was considering lowering the price. Martha prepared the offer, as the buyer instructed, and presented it to Seller Samantha. When Samantha received the offer, she asked Martha how come the offer was so low. Martha shared that the Buyer considered the amount for HOA dues each month and made adjustments to his offer based on that. Licensee Martha also reminded the seller that she was considering lowering the price. Seller Samantha was happy to have an offer, however, begins to wonder if Licensee Martha disclosed her willingness to accept less than the asking price. Question:What, if any, disclosures are missing in this scenario? And did Martha do anything wrong in her conversations with the parties?

In this scenario, there was mention of the Dual Agency and the appropriate disclosure was made to the Buyer. However, the Licensee disclosed information that the seller was willing to accept less than the asking price.

4-Way Test to Decision Making

Is it the Truth? Is it Fair to all concerned? Will it build goodwill and better friendship? Will it be beneficial to all concerned?

Jennifer is a top producer who is working floor duty - handling all incoming calls for the next three hours. She is very busy person but takes a call regarding the opportunity to show high end properties in the next week. Jennifer takes the information down and promises to get back to the potential renter. Two days later, Rebecca, a new Licensee, is doing floor duty and receives a call from the same person who says they spoke to someone two days before, but don't remember her name. They indicated that no one called them back and they really needed to buy a home before the end of the week. Rebecca checks the call log and sees no record, she then asks the Managing Broker if it was okay to proceed, and when she is told "yes", Rebecca sets up the showings and ends up writing an offer on a $750,000 home. When Jennifer called the Buyer back five days later, she learns that Rebecca "stole" her client and storms into the Managing Broker's office demanding she receive the commission for the transaction. Jennifer was so angry she threatens she will leave if this isn't handled properly. How do you think this situation should be handled?

No specific assistance has taken place at this point nor has a Buyers Representation Agreement been signed between the Buyer and Jennifer. Rebecca did everything possible to identify the Agent. Once she was unable to do so, she technically could move forward in handling the transaction. In this situation, Designated Broker sided with Jennifer and handed the full commission to Jennifer because they didn't want to lose a top producer. Mortified, Rebecca resigned and moved to another company where she thrived.

You list a beautiful home. Sellers are very particular about which pictures will be available for the MLS. They own an extensive, very expensive art collection, which they do not want to take down, because it helps showcase the property, but they do not want public pictures of it anywhere. You do not post this request in the MLS comments section. Buyer's Agent Sally gets permission to show your Seller's home to her potential Buyers. While inside the property, Agent Sally takes video and pictures of the inside of the property and then posts these images on her public Facebook page. You receive an irate call from the Sellers regarding this situation, as they learn about Agent Sally after reviewing their audio/visual monitoring system they have. Are there any ethical or professional violations?Could anything have been done to make sure this doesn't occur?

Procedural violations and invasion of privacy violations. First mistake was not posting on the MLS that independent photos/video are not allowed. Next step after the transgression is to call Agent Sally and demand she delete the images from public view and all images she took. Taking photos and video inside a listing requires the written permission of the Sellers. This should be reinforced in your company policy manual!

Mike, a Buyer's Agent calls Ellie, the Sellers' Agent and asks to set up a home inspection appointment for Monday 9:00 am. Ellie texts the Sellers, asking if that time would work. She doesn't hear back from the Sellers. Unknown to Ellie, her phone is not receiving text messages and she can't get it fixed until Monday. No communication regarding the appointment confirmation happens. Mike assumes all is good and the Home Inspector shows up Monday morning at 9:00 am. The Seller's 12-year-old daughter is home alone and happens to be taking a shower when the Inspector lets himself into the house after no one responds to his knocks. Are there any ethical or professional violations? How would you handle this situation?

Professional violation - First, no showings are to take place without confirmation that the showing time is approved. Mike should have taken steps to call Ellie and get a verbal okay if he hadn't received anything via text or email. The inspector should have been "on hold" until confirmation is received.

You work on a team with Agent Joe. Agent Joe is good longtime friends with Mr. and Mrs. Seller and lists their property. Mr. and Mrs. Seller call you today stating that Agent Joe isn't doing a good job for them. Mr. and Mrs. Seller want to file an ethics complaint against Agent Joe based on text messages Agent Joe sent them regarding other agents who show their property. One text message stated, "(Showing Agents Name) is a f**** crusty old lady." Are there any ethical violations?

Professionalism issues can seriously hamper a Seller's and their Agent's ability to sell their property. Obviously it's essential to take care in how you represent other professionals in your local area and the industry at large. Ethics are often a matter of personal opinion, but obviously, pointed, mean-spirited language can and should be avoided as a means to maintain professionalism!

Jennifer is a top producer who is working floor duty and she receives a call from a potential buyer and indicates that she will get back to them soon. Two days later Rebecca is working floor duty and receives a call from the same potential buyer who asks to speak with Jennifer. Rebecca indicates that Jennifer is not available and could she help them. Ultimately Rebecca shows them several properties and soon the buyers are under contract. Did Rebecca act properly?

Rebecca should have taken a message for Jennifer

Licensee Martha listed a home of a family friend. From day one, the home received showing requests from other licensees (not associated with her brokerage), however, a majority stated the HOA fees were too high. After 4 weeks on the market and ZERO offers, Licensee Martha discussed the recent sales data and options with Seller Samantha. Seller Samantha said she would consider lowering the price but wanted to think about it for a couple of days. The very next day (isn't that always how it happens), Licensee Martha received a call from Buyer Bill. Buyer Bill said he saw the listing on Zillow and wanted to see the home that afternoon if possible. He also shared that he has been wanting to move into the neighborhood and the HOA amenities were just what he was looking for. Licensee Martha contacts the Seller to confirm a time for showing. She tells the Seller that by showing the home to the Buyer, her role becomes a Dual Agent, as mentioned in the listing agreement. The Buyer arrives at the home and immediately expresses his excitement about the exterior. He begins asking Licensee Martha a lot of questions about the HOA, since he is very interested in a lower-maintenance property. Licensee Martha relays the HOA information provided by the Seller. Half-way through the showing, Buyer Bill says he wants to make an offer. He begins giving details of his offer and asks how soon Licensee Martha can have it ready for his signatures. Licensee Martha contacts Seller Samantha and tells her to expect an offer in a few hours. Question:What, if any, disclosures are missing in this scenario?

Remember—If written permission to act as a Dual Agent is not procured prior to showing properties, the Buyer may challenge the relationship because of the lack of disclosure. Buyer Bill holds the cards if, by chance, his excitement changes. You can't be too careful!

One of your firm's listing clients has expressed dissatisfaction with the handling of their property by your colleague, the Listing Agent Mica. You know for a fact that Mica cuts corners, does not follow through on promises, is lazy and incompetent. The listing will expire soon. How should you handle this conversation?

Some Agents might take this an opportunity to try and secure a listing after expiration by stepping in as the "good guy". If you give the Seller any recourse in how to cancel the listing, you have stepped into the agency of Listing Agent Mica and could be held responsible for the fallout. Recommend process - Thank the client for the information. Contact the Listing Agent Mica and inform them of the call you received and that you will be forwarding this information to the Designated Broker. Talk to the Designated Broker and let them decide how to proceed.

What does your own past behavior indicate in terms of future action? Is it a habit of yours to get involved when someone else steps out of line?

Some people may have been raised with the concept that if you see something illegal or unethical, say something or do something. Others may have been raised to keep their head down and concentrate only on what they are doing - ignore everyone else since you can't control what other people do.

Agent Reggie has a commercial listing that is getting a lot of activity and Susan, buyer's agent shows the property to her buyer. Susan indicates to Reggie that her buyers wants to think about it and asks Reggie if he will call her if someone submits an offer. What should Reggie or Susan have done?

Susan and the buyers had the obligation to follow-up if they wanted to make an offer on the property

For example, are you a dual agent when showing past listings to new Buyer clients? If a listing has expired, and then your buyer client wishes to see the property, does dual agency still exist?

Technically, when the listing ends, the agency representation ends. So Dual Agency doesn't not exist at this point. However, the confidentiality restrictions may carry over. Depends on company policy which must follow state rule and law.

When asked, should you tell clients what you really think about other Agents, especially if it is negative?

The answer is absolutely not. Response could be something like: "Thank you for your question. It's my policy to only comment about my services and processes. Do you have any other questions that relate to this transaction specifically?"

What is the Limited Dual's Agent responsibility in terms of answering the question?

The response must be neutral - by suggesting they go to police to get data, it might make the Buyer walk away from the property. It is a very fine line. A lot depends upon how the Seller has been prepared in case this type of question comes up

Using the Rational Model of Decision Making is

a system that allows you to identify facts, values and actions prior to making a decision

Agent Melinda gave a referral listing to Agent Jason (with another company) because her company did not specialize in selling lots. They agreed that the referral fee to Melinda (for referring the listing) would be 20% of the listing side commission. Ultimately the property sold for $60,000 and Jason sent Melinda $100.00 check for her referral portion. Melinda was outraged and Jason told her to take it or leave it. What went wrong in this situation?

a written compensation agreement should have been generated and completed between companies

If crime has been raised by the Buyer as an adverse material fact to them buying the property, what should the dual agent do

advise the seller of the request and if they refuse to respond to the buyer, suggest buyer do their own research on the matter

All the following fall within the Aspen Declaration that lists out six core values that transcend cultural, religious and socioeconomic differences EXCEPT

character and forgiveness