Lesson 4: Seller Agency

A seller who has established a listing contract with a broker benefits from the broker's A) access to resources possessed by the brokerage. B) knowledge. C) experience. D) All of these are correct

All of these are correct A) access to resources possessed by the brokerage. B) knowledge. C) experience.

A subagent is... A) an unaffiliated broker working for the seller's agent who assists the seller's agent with a real estate transaction. B) a broker who takes over the listing contract when the original listing broker is unable to continue acting as the seller's agent. C) a single broker employed to represent both the buyer and seller in negotiating the property transaction. D) a person who acts on behalf of another.

an unaffiliated broker working for the seller's agent who assists the seller's agent with a real estate transaction. A subagent for the seller is usually a broker from another brokerage who has agreed to help the seller's broker in a transaction, commonly by providing limited assistance to the buyer. A subagent for the seller is a broker who is working with, rather than for, a buyer. The lack of an agency relationship is what separates a buyer's broker from a subagent for the seller. A subagent for the seller, even when providing assistance to the buyer, is still a representative of the seller. The subagent for the seller owes his or her fiduciary duties to the seller and not the buyer. The buyer is not represented by the subagent and, in fact, does not have any contractual agreement with the subagent.

True or false: in Texas, a subagent must be associated with the broker he or she is acting as a subagent for. A) true B) false C) N/A D) N/A

false

Real estate commissions are: A) set by law. B) set by the local real estate commission. C) negotiable, though every area has a common standard range. D) negotiable, and widely varied even within an area.

negotiable, though every area has a common standard range. Although commissions are negotiable, most areas have a standard percentage that agents expect to receive. This amount has been 6 percent of the sales price for residential listings for many years, but you will find agents who accept 5 percent and even agents who accept 4 percent. It's not uncommon for a seller to negotiate a lower rate with the prospective listing agent.

Exclusive seller agency refers to: A) An agency who works only with luxury properties. B) A brokerage who only represents sellers. C) An arrangement where the agent only represents the seller, and another agent represents the buyer. D) An arrangement where the agent only works with one selling client at a time.

A brokerage who only represents sellers. When we talk about exclusive seller agency, we are talking about a brokerage that only represents sellers. For a brokerage that exclusively represents sellers, sellers are always clients and buyers are always customers.

Which of the following is a type of listing agreement? A) All of these are correct B) Exclusive right-to-sell C) Open D) Net

All of these are correct B) Exclusive right-to-sell C) Open D) Net There are four types of listing agreements that are commonly used. Open listings give the seller the most control over the representation and commission payment. The seller under an open listing pays commission to the party that brings in the buyer. The seller pays no commission if the seller brings in themselves. An exclusive agency agreement requires the seller to be represented by a specific broker. Commission is paid to the representing broker unless the seller brings in the buyer. An exclusive right-to-sell agreement binds the seller to pay commission to the representing broker regardless of who finds the buyer. A net listing an unusual form of listing in which the seller sets an amount of profit that he or she wants to get out of the sale. Any profit in excess of the seller's desired amount is transferred to the seller's broker.

When is a licensee required to provide a seller with a written statement which contains the disclosure describing services which may be expected from an agent of a seller? A) When the listing contract is signed B) At the time of first substantive dialogue C) When the seller receives the initial offer from a buyer D) Never; this disclosure statement must only be given to buyers

At the time of first substantive dialogue

What is the term for a transaction in which licensees from the same brokerage represent both the buyer and seller? A) Insider agreement B) Cooperative sale C) In-house sale D) Contained transaction

In-house sale Some brokerages, especially large brokerages, will attempt to handle both sides of a transaction. This has the advantage of controlling the distribution of commission and allowing more control over the transaction. The disadvantage of this is the potential for dual agency or accidental disclosure of confidential information. The usual term for this kind of arrangement is an in-house sale.

In Texas, must a subagent be affiliated with the broker he or she is acting as a subagent for? A) Yes B) No C) No, unless the subagent is an associate broker D) Yes, unless the subagent is an emancipated sales agent

No Subagency is a specific agency arrangement in which a broker asks an unaffiliated licensee to work for him or her during a transaction. A subagent is almost always assigned to work with the party to that transaction that the primary agent is not representing. A broker representing a seller will commonly use a subagent to assist the buyer. The subagency relationship is distinct from the relationship a broker has with sponsored sales agents or broker associates. Subagency, specifically, cannot be offered by a broker to one of his or her sponsored or affiliated licensees.

What is the traditional form of real estate agency? A) Dual agency B) Cooperative agency C) Buyer's agency D) Seller's agency

Seller's agency

Which of these is not a common element of a listing agreement? A) The broker's scope of authority. B) Term of the listing. C) The broker's commission and fees. D) Seller's reason for selling.

Seller's reason for selling. The following are elements that will be found in nearly every kind of listing agreement:The term of the listing...The listed price of the property...The broker's commission and broker fees...The broker's scope of authority.

What does the administrative code in Texas say regarding oral and written listing agreements? A) Oral listings are not legal, listings must be written. B) The parties to an agreement may make any kind of agreement they wish to. C) They are both legal, but a person may not pursue legal action to collect a commission unless there is a written and signed agreement. D) Whether an agreement is oral or written is not addressed by the administrative code.

They are both legal, but a person may not pursue legal action to collect a commission unless there is a written and signed agreement. While both oral and written listing agreements are valid in Texas, Section 1101.806 of The Real Estate License Act establishes some limits on the enforceability of commission provisions of agreements that are not written down. A person may not maintain an action in this state to recover a commission for the sale or purchase of real estate unless the promise or agreement on which the action is based, or a memorandum, is in writing and signed by the party against whom the action is brought or by a person authorized by that party to sign the document.

If an agent has a vested interest in a property transaction, which of the following actions must be taken? A) They must inform the real estate commission, but may act as an agent in the transaction after that. B) They may act as an agent in the transaction, but are required to inform all parties of their potential conflict of interest. C) they may not act as an agent in the transaction. D) They may not only act as an agent in the transaction, but they have extra leeway since it is personal.

They may act as an agent in the transaction, but are required to inform all parties of their potential conflict of interest. Sometimes an agent will assist in a transaction where they have a vested interest. They may be helping their child buy property, selling a commercial park that they rent a section of, or are selling a property their husband has a contractor's lien on. Regardless of the source of the conflict, agents are required to inform all parties of their potential conflict of interest. Agents are not required to avoid all conflicts, but rather they simply need to make the various parties aware of the conflicts.