Agency RETAKE$

As an agent with two clients in the same transaction, you owe________________ duties to both parties

fiduciary

Do Not Call Implementation Act

rule for telemarketing and regulations for cold calling

you can't be a facilitator for one party and an agent for another in the same ____________

sale (transaction)

ensure that the buyer's earnest money is deposited is who's job?

seller's agents in seller agency

what type of offer? puts bids on several different properties at once

simultaneous offer

what type of agency prohibit their licensees from representing opposing sides in a transaction and require that all the brokers and agents within that firm, act in a fiduciary capacity for either the buyer or the seller in a real estate transaction

single agency

has traditionally been recognized as a situation in which a licensee brings an unrepresented buyer to a transaction. In states where sub-agency is permitted, that licensee represents and owes fiduciary duties to the seller.

sub-agency

if you are the seller agent and the seller is your client who is the 3rd party?

the buyer agent and the buyer

The duty of confidentiality survives agency unless the information is known from other sources or ______.

the former client is found guilty of fraud.

agency coupled with interest continues until

the interest in the property ends.

overall goal when representing the buyer

to advocate for your clients' interests and seek the best price available or a price that's acceptable to them

express agency agreement

- When you represent a seller - he listing agreement accomplishes this requirement and spells out the scope of your authority and agreement for compensation.

examples of dual agency that could be an example of disclosing information that could be a disadvantage to the other party

1. Disclosing to a buyer that the seller will accept an amount other than the asking or listed price 2. Disclosing to a seller that the buyer can pay a price other than or greater than the price submitted in a written offer to the seller 3. Disclosing the motivation of either the buyer or the seller for selling or buying the property 4. Disclosing to a buyer or seller that the opposing party will agree to financing terms other than those specified in their respective offering

task of seller agency

1. Invest your time and energy in marketing and selling the property. 2. Inform the seller of the responsibility to make all required property condition disclosures. 3. Negotiate contract terms in accordance with the seller's wishes. 4. Ensure that the buyer's earnest money is deposited by the contracted deadline. 5. Communicate all offers and counter-offers to the seller.

certain task required of fiduciary duties for a buyer agency relationship

1. Show them properties that meet their criteria and fall within their budget. 2. Ensure that they receive all required property condition disclosures from the seller. 3. Ensure that they understand the importance of due diligence, including a professional inspection of the property. 4. Review transaction documents with them, clarifying anything that could be confusing, without stepping outside the scope of your license (in other words, refer buyers to an attorney for interpreting any legal consequences or language). 5. Negotiate contract terms that are fair and agreeable to them.

termination by forced of law (operation of law)

1. The client or the firm's broker becomes incapacitated or dies. 2. The property is destroyed for any reason, making the property unmarketable. 3. The client or the firm's broker files for bankruptcy.

Two Duties that Survive Agency Termination

1. accounting ( I must keep you informed as to the status of your transaction, and I'm responsible for any funds, paperwork, or property I'm entrusted with on your behalf. This duty can also survive the end of our relationship. If anything remains outstanding, such as paperwork or property, I must account for it to you.) 2. Confidentiality (If you tell me something, I must keep it confidential (unless it's a material fact). I can only divulge your confidential information if you give me written permission to do so or under subpoena.)

What must you do to legally engage in dual agency?

1. if firm allows it 2. & if made proper disclosure to and written consent received from buyer and sellers

rules with broker incapittion or absence in TN

1. notify the TREC within 10 days of principals broker's death, resignation, termination or other incapacity or if unexplained extended absence should be submitted within reasonable time 2. the firm should submit to the commission its plan to continue business operations during the search for a new principal broker. 3. the commission may allow a firm to continue operations for up to 30 days. If the firm is fully compliant with its approved plan, the commission may allow an additional 30 days. 4. a new principal broker must be appointed by the 61st day after the death, resignation, termination, or incapacity of the principal broker who'll be replaced.

how do firms avoid dual agency?

1. offer designated agency up front to their clients to avoid dual agency situations 2. that licensees will default to facilitator status rather than invoke dual agency.

Disclosing Personal Interest in Tennessee

1. to disclose the fact that you're a licensee whenever you buy or sell property for yourself. 2. You also need to disclose when you have any personal interest in a property being listed by your firm.

two types of agency agreements

1. traditional agency agreement 2. designated agency agreements

Within ____________________ days of a principal broker's death, resignation, termination, or other incapacity, the commission must be notified. If there's an unexplained and extended absence, the commission should be notified within a reasonable timeframe.

10

if broker death or absence the commission may allow a firm to continue operations for up to ___________days

30

Any person who is involved in a transaction in which you're involved—and who is not your client

3rd party

if broker death or absence the new principal broker must be appointed by the ________ day after the death or absences of old principle broker

61st

What is a licensee before singing a bilateral, written agreement?

A facilitator, aka transaction broker.

generally acting as a "middle man" in a transaction

A non-agent—(also known as a facilitator or transaction broker)

Limited agency:

Agency relationships aren't boundless, allowing the agent unlimited power of representation. Rather, the licensee is limited to duties outlined in the law and actions the client initiates.

Specifically, what does the fiduciary duty of disclosure relate to?

Conflicts of interest, material facts, and adverse material facts

If, after seeing your carefully prepared comparative market analysis, a seller doesn't agree with the price range you prepared in your listing presentation, your best practice would be to ______.

Decline the listing if the seller's price and your price analysis are too far apart

Justin is representing the seller in a transaction. Which of the following tasks is he permitted to perform for the unrepresented buyer as a non-agent?

Explain to a buyer the purpose of the seller's property disclosure.

A facilitator is a licensee who provides general assistance to parties to a transaction, without a specific agency agreement representing any of them.

Facilitator (also called transaction broker)

when would a client may need to pay a commission to the agent, even if the client revokes the agency relationship.

For instance, if a seller terminates an agency agreement by withdrawing the property from the market prior to the expiration of the listing agreement, the agent may still be able to receive compensation if the agency agreement specified a time to complete the transaction. For open listing agreements that do not include a time limit, an agent may not be able to seek compensation.

termination of completion/ performance

If the real estate transaction with which the agent was assisting closes, then the agency relationship terminates.

seller agency goal

It's your duty to advocate solely for the seller and seek a sale of the property at the best price available or a price that's acceptable to the selle

Bill and Betty Buyer, who are moving into the area, contact Larry Lister because Bill's job requires him to move. Larry knows the neighborhood that the Buyers are moving into and is aware that one of the major factories will be closing in two years. What should Larry do?

Larry should tell the Buyers about the imminent factory closing and let them know it may affect the value of their property within a few years.

jenna signs a designated agency agreement with Tom so that he can represent her in her condo search. Javier, another licensee in Tom's office, has a client selling a condo that sounds perfect for Jenna. Who's the dual agent in this situation?

No one, since Tom is a designated agent

used with unrepresented buyers and sellers to disclose agency

RF301: Working with a Real Estate Professional

This disclosure form lets other parties know whether the licensee is representing the buyer or seller, and in a traditional or designated way.

RF302: Confirmation of Agency Status

You are the buyer agent for Buyer Brando, who is purchasing a four-bedroom, two-story house just outside of the city. The seller of this house is Seller Sam, who is being represented by his listing agent, Andrea. For you, the third parties in this transaction are??

Seller Sam and Andrea

Brooke Sales shows 15 homes to Bill and Betty Buyer. She talks to them about signing a buyer representation agreement, but they refuse and part ways. A few weeks later, the Buyers call Brooke and ask her if she knows anything about the property she showed them on Elm Street. Brooke remembers that house because she listed it three years ago. The sale was a nightmare because there was damage in the basement from a fire. What should Brooke tell the Buyers?

That she knows the basement had issues from a fire in the past

which an agency relationship may be terminated:

The client's goals were met during the agency agreement term (i.e., the sale is completed). The specified term in the agency agreement expires. The client and agent mutually agree to dissolve the relationship. The relationship ends through termination by force of law (aka by operation of law):The client or the firm's broker becomes incapacitated or dies.The property is destroyed for any reason, making the property unmarketable.The client or the firm's broker files for bankruptcy. The client revokes the agreement prior to the agreement's expiration date. Clients can revoke an agency relationship with no penalty if they lack confidence in the agency or believe the agency to be untrustworthy. If a client revokes the agreement for no specific reason or without good cause, the client may be in breach of contract. The agent renounces the agreement prior to the agreement's expiration date.

Accounting for all money and other property received during the relationship ends when

This duty ends once all money and property have been accounted for.

Sellers who terminate an agency agreement before it expires may still owe the agent

a commission

may advise either or both of the parties to a transaction but cannot be considered a representative or advocate of either party." You can still work with a customer and provide general help, care, and advice.

a facilitator

To establish an agency relationship

a licensee and a buyer or seller must complete and sign a bilateral, written agency agreement.

under what fiduciary duties does This means no commingling or conversion of the earnest money, among other requirements go under?

accounting

ministerial acts

acts which do not require the licensee to give expert guidance or exercise discretion and which cannot be construed as violating the licensee's duty of loyalty to the client.

agents must wait until ____________ listing is expired(terminated) to reach out

after

in which a licensee enters into a contract to represent a client in a real estate transaction in exchange for compensation.

agency

dual agency

agency represent both the buyer and seller in same transaction

A licensee isn't an agent unless the licensee is operating under a_______________________, with a client

bilateral, written agreement

The client revokes the agreement prior to the agreement's expiration date. Clients can revoke an agency relationship with no penalty if they lack confidence in the agency or believe the agency to be untrustworthy. If a client revokes the agreement for no specific reason or without good causethe client may be in ___________

breach of contract

The duty of confidentiality extends beyond the termination of the agency relationship.

confidentiality

that ____________ must always be offered to buyer brokers, even when compensation isn't.

cooperation

traditional agency agreement

create a relationship between a broker and a client. This means that the relationship extends to all of the licensed affiliates working for that broker, possibly introducing unintended dual agency.

designated agency agreement

create a relationship between a single affiliate broker and a client, not the managing broker and the client. This also means that there aren't any relationships between the client and the other licensees in the brokerage.

An unrepresented ______ who's a party to a transaction is known as a principal.

customer

doesn't void an agency coupled with interest arrangement.

death or incantation

"in house"

dual agency

means that a real estate brokerage firm, and all the brokers and agents for that firm, can act in a fiduciary capacity for both the buyer and seller in the same transaction. Such a transaction is often referred to as "in-house."

dual agency

prohibits disclosing anything to one party that could be a disadvantage to the other. For example:

dual agency

the licensee has agreements to provide agency services to more than one party in a specific transaction, and the parties' interests are opposite.

dual agency

when working for a seller, this listing agreement accomplishes this requirement and spells out the scope of your authority and agreement for compensation.

express agency agreement

Tamara has identified a neighborhood where she'll concentrate her real estate activities. She starts by sending postcards to all residents, then walks door to door to introduce herself. Over time, she sends more communications, participates in neighborhood events, and eventually becomes the "go to" real estate professional for the neighborhood. What approach has she used?

farming

is a method in which a licensee identifies a neighborhood and focuses efforts in that area. This may include meeting residents; sending letters, postcards, and other correspondence; and working to be "the" real estate professional who services this area.

farming

Not wanting to delay closing, Alice, the seller's agent, didn't disclose when the seller informed her a week before closing that the hot water heater needed to be replaced. Which fiduciary duty to the customer is Alice violating?

honest & fair dealing

general agent

is responsible for handling all dealings in a given area for a client, such as a property manager. This type of agent may bind a client to a contract.

fiduciary

is someone in a position of trust who owes loyalty to another.

single agency

is when a licensee represents one party, either the buyer or the seller, in a transaction. Single agency firms don't permit licensees to engage in dual agency, even if the state permits it.

Single License dual agency

is when a single licensee represents both the buyer and the seller in the same transaction.

Designated/appointed agency (aka dual-licensed dual agency)

is when two separate licensees from a single firm each represent one party (buyer or seller) in the same transaction.

What's true about implied agency in Tennessee?

its illegal

While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching?

loyalty

Tennessee's law specifically states that ______________ aren't considered dual agents when individual licensees serve as designated agents in transactions.

managing brokers

Getting the best price is always a factor for a seller, but the ______ that it actually would sell for must be another consideration.

market price

Agency coupled with interest

means that the agent has some form of ownership of, security interest in, or possession of the principal's property. The agent's compensation depends on continuance of the agency agreement. - continues until interest in property ends

What situation occurs when a seller receives more than one offer on his property?

multiple offers

agency disclosure

offers a way to explain the actions you'll perform in a transaction if the buyer or seller decides to become your client.

Identifying properties being sold by owners and persuading them to list with a licensee describes the ______ approach to finding listings.

owner sales

Avoiding recommending the services of a business or person with whom they have a

personal interest or receive a referral fee

What can a facilitator do for a customer?

process paperwork

which fiduciary duty requires agents to operate within the scope of their expertise and advise clients to seek expert advice on matters that are outside of the agent's scope of knowledge. It also refers to the expert performance of a licensee's tasks. Licensees should always encourage clients to seek an attorney's advice before signing contracts.

reasonable skill and care

Contacting prospective clients through previous clients, co-workers, and networks describes the ______ approach to finding listings.

referral

the duty of confidentiality doesn't extend too

to material facts relating to the property.

what agency agreement possibly introducing unintended dual agency

traditional agency agreement (create a relationship between a broker and a client. This means that the relationship extends to all of the licensed affiliates working for that broker)

tow duties that is impossible to provide in dual agency is

undivided loyalty & full disclosure (must keep one clients information confidential to the other)

A court-appointed guardian is an example of what type of agent?

universal agent

has broad authority to act for the principal, such as someone who has power of attorney.

universal agent

principal

usually the party to the transaction who is represented (the client).

buyer agency relationship

you exclusively represent the buyer

when you're representing a seller can you list other properties?

you may list other properties for sale, even if they're competing.