Post 301 - Broker Relationships and Responsibilities
All of the following are true about using a Delayed Marketing Date or "Coming Soon" rider:
"Coming Soon" announces that the property will be on the market soon and provides information while the owner finishes preparing the property to show. Under both, the property may not be shown to anyone other than the individual listing agent working with the seller on behalf of the listing company prior to the property being available to all. The rules and policies governing "Delayed Marketing Date" and "Coming Soon" marketing practices are dictated by each Multiple Listing Service.
A broker at a listing presentation is explaining the services his company offers and has not yet provided the Working with Real Estate Agents brochure to the seller. What comment by the seller would cross the boundary of first substantial contact?
"What would you recommend as a listing price?"
Suppose a property manager is trying to calculate the Net Operating Income. The potential gross income is $200,000. Vacancy and collection losses total $15,000. Operating expenses account for $30,000. What is the NOI for this property manager:
$155,000 PGI-Vac and losses-operating expenses = NOI
All of the following are true about the Commission's advertising rule:
A broker must have the written consent of the owner to display a "for rent" or "for sale" sign on the owner's property. Blind ads are prohibited. All affiliated agents must have their BIC's consent to advertise.
NCREC rules regarding BPOs require all of the following:
A broker must provide at least three comparables. A broker may perform a BPO for either residential or commercial properties for sale or lease if they have the necessary market knowledge and experience to be competent. A broker is expected to personally inspect the interior and exterior of the subject property unless waived in writing by the person requesting the BPO.
Which of the following would be dual agency?
A broker representing a buyer client who wants to see a property the broker personally listed.
A broker must disclose their agency status at INITIAL contact with a consumer or broker in which of the following situations?
A buyer agent upon contacting the seller or listing agent directly. ** When you represent the buyer you must disclose agency ASAP!
Written agency agreements for brokerage services generally are between:
A consumer as the principal and the real estate company as the agent. **Principal- the person for whom the agent acts and to whom the agent owes certain legal duties **Agent- the one who acts for or on behalf of another by authority from the principal.
Additional recommended documents a broker might bring to the listing presentation include all of the following:
A copy of both Std Form 2-T Offer to Purchase and Contract and the Guidelines explaining the form (Std Form 2-G). A copy of a CMA you prepared. A Property Data Sheet to note property information you will need to advertise the property.
A broker should ask the seller to have all of the following documents ready for the listing meeting EXCEPT:
A copy of the Deed from when they purchased the property. A copy of the restrictive covenants. Information about any owners' association, including bylaws, regulations, dues, assessments, and management. X A financial statement disclosing all of their assets and debts.
All of the following are true as to what License Law requires a BPO to contain
A copy of the assignment request from the person requesting the BPO. A description of the subject property and the intended purpose/use of the BPO. The broker's name, signature, license number, and the effective date of the BPO.
The Sherman Antitrust Act is:
A federal law with national application. A federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace.
Under NCREC rules, after proper disclosure to and discussion with a consumer of agency options, a broker may work with a buyer as:
A seller agent or subagent. A buyer agent. A dual agent. All of the above.
Who of the following is NOT guilty of misrepresentation?
A seller who checks "no" on a mandatory property disclosure document even though he knows there is a problem with that feature. A broker who, having made no attempt to verify the accuracy of information from the seller, tells a prospective buyer incorrect information. X A seller who checks "no rep" on a mandatory property disclosure document even though he knows there is a problem with that feature. A listing broker who in the MLS states "3265 SF per tax records" when the actual square footage is 2800 square feet.
North Carolina Residential Property Disclosure Act:
All agents in the transaction should facilitate the timely delivery of the property disclosure report to the buyer.
Brokers must provide consumers the Working with Real Estate Agents brochure in:
All real estate sales transactions.
All of the following may lead to an express or implied agency agreement:
An express agreement between the principal and agent authorizing the agent to act on the principal's behalf. The agent begins to advise the consumer and negotiate on their behalf. The broker begins gathering confidential information about the consumer.
All of the following are true EXCEPT:
Any business leasing or selling housing must display the Fair Housing Poster in a public area, including real estate companies. The Fair Housing/Equal Opportunity logo must appear in all print advertising 2" by 2" or larger. X The Fair Housing logo must appear on all business cards and flyers. Various housing authorities and fair housing groups maintain lists of words categorized as "acceptable," "unacceptable," and "caution" when advertising.
Which of the following is NOT a viable option to combat an oral buyer client's reluctance to sign a written buyer agency agreement to enable the broker-buyer agent to prepare and present the offer?
Ask the buyer to sign an Exclusive Buyer Agency. Agreement limited to the property on which they want to make an offer. X Write and present the offer and persuade the buyer to sign a written agreement once the seller and buyer are under contract. Enter into an Exclusive Buyer Agency Agreement for 10 days. Ask the buyer to sign a Non-Exclusive Buyer Agency Agreement.
Best practices include all of the following EXCEPT:
Ask the buyer-client to select a lender and get prequalified before you show them numerous properties. Instruct the buyer not to make any large purchases prior to purchasing the property as it may impact their buyer qualification ratios. X Your client asks you to search the title of a property before they make an offer. Remember that your job is to provide competent brokerage services and refer your client to other service providers.
When representing a seller, the agency agreement with the seller must be in writing:
At the outset of the relationship before providing any brokerage services.
A prudent listing agent utilizing syndicated advertising should do all of the following:
Attach the NCAR Internet Addendum to the listing agreement if a Realtor® member. Create a Google Alert for the property address so that if it appears anywhere on the internet, the broker is notified. Warn the seller about possible Craig's List scams offering the property for lease, rather than for sale.
Stairs connecting two floors within "living area" space count as square footage for:
Both floors they connect.
An agent who violates their fiduciary duties to their principal (client) may be subject to all of the following consequences:
Civil liability. Disciplinary action by the NCREC. An ethics complaint if the agent is a REALTOR member.
Which of the following is NOT an example of illegal price-fixing?
Companies A, B, and C agree that they will pay each other 0.5% more than the buyer agent compensation each offers other brokers in the MLS. Company A, B, and C discuss what should be the minimum listing period and decide each will require not less than six months. At a social function, the BICs of four different real estate companies discuss why they dislike oral buyer agency and decide none of them will allow it as part of their respective office policies. X The BIC of Company A has a written office policy that dictates the fees the company generally charges for various services.
Which of the following statements about oral buyer agency is FALSE?
Company office policy may prohibit affiliates from entering into oral buyer agency agreements or provide a time limit, e.g., not more than 5 days. X An oral buyer agency agreement is not binding; thus, the broker has no fiduciary duties to the buyer until a written agency agreement is signed. Oral buyer agency agreements may not be exclusive, thereby allowing the buyer to work with multiple brokers simultaneously Oral buyer agency agreements are no definite time period and may be terminated at any time by either party.
A buyer agent is permitted to have an oral agency employment agreement with a buyer as long as the licensee gets the agency agreement in writing no later than the:
Date of closing. Time an offer is accepted. Formation of a contract between the seller and buyer.
All of the following describes designated dual agency in North Carolina?
Designated dual agency is optional, not mandatory. Designated dual agency does not eliminate traditional dual agency. A broker who has confidential information about the seller-client cannot be appointed as a designated dual agent for the buyer-client.
All of the following are true:
Each company sets its own policy regarding the forums and internet sites to which affiliated agents may send leasing and sales information. Many owners may want to advertise on Zillow because it attracts a large number of consumers. Brokers should explain the company's listing and marketing practices when completing the listing agreement and determine which marketing options the seller selects.
All of the following are typical duties of a property manager:
Enforcing rules and regulation. Instituting legal actions. Maintaining records and accounting to owners.
The following are typical duties of a property manager:
Engaging in competitive bidding. Creating market analysis on trends and their effect on the property. Creating leasing concessions. Planning capital expenditures. Establishing rental schedules. Calculating cash flow. Maximize the owner's net income. Preserve the value of the property. Generate income to the property.
Under which type of listing agreement does the seller retain a right to compete for the commission?
Exclusive agency listing agreement.
When discussing the Residential Property and Owners Association Disclosure Statement with a seller, the NCREC expects a listing broker to do all of the following:
Explain when the seller must provide the form and their answer options. Explain the consequences of not timely providing the form. Explain that if the seller answers "yes" or "no" the information must be accurate or the seller may be guilty of misrepresentation.
A property manager must comply with federal and state laws:
Fair Housing Federal lead-based paint disclosure Fair Credit Reporting Act
The Commission recognizes that measurements involve personal judgments and allows a reasonable error margin of:
Five percent.
HUD recommends all of the following to avoid fair housing issues when advertising:
Focus on the property and its features, rather than the individuals who may live there. Mention the amenities, not the participants, and have diversity in any photographs promoting the property or omit the people from the photographs. Target behavior, not people, for example, "no drugs/no alcohol" versus "no drug addicts/no alcoholics."
The NCREC 's Residential Square Footage Guidelines define "living area" as meeting all of the following criteria:
Heated. Finished. Directly Accessible.
All of the following are true about NCAR Form 203, Non-Exclusive Buyer Agency Agreement:
It creates a non-exclusive agency relationship with the company so the buyer may still work with multiple agents. The buyer is not obligated to pay the selling company if the listing company won't share, but the selling company may terminate the agency agreement if their buyer-client refuses to compensate them. The agency agreement must have a definite termination date and the non-discrimination language because it is in writing.
Which of the following is FALSE regarding NCAR Form 150 "Unrepresented Seller Disclosure and Fee Agreement," also referred to as a "Protection Agreement"?
It may be used to confirm a limited listing where the seller offers x% to a selling agent in the MLS. X It may confirm a sellers' agreement to pay the buyer-agent's fee as a seller subagent. It cannot be used to force a For Sale By Owner to pay the buyer agent if the owner-seller refuses. It confirms a seller's agreement to pay the buyer agent, but expressly states that the buyer agent represents only the buyer.
What does using NCAR's Form 203, Non-Exclusive Buyer Agency Agreement accomplish?
It obligates the buyer-client to pay the buyer-agent company if the listing company/seller refuses to share.
All of the following are true about the Sherman Antitrust Act:
Its primary purpose is to promote competition in the marketplace so consumers have a choice in the purchase of goods and services. Any collusion among competitors that restricts choice violates the Act. Brokers should avoid any discussions concerning their sales practices or rates when at functions with other brokers to avoid tacit collusion.
Iris is working with a buyer customer as a seller-subagent as offered by the listing company. The buyer tells Iris that he wants to write an offer for $185,000, but that he will go as high as $195,000 to "get the property." Iris delivers the buyer's written offer to the listing agent, Lucy, and tells Lucy that the buyer customer is offering $185,000, but he will go up to $195,000 to get the property. Lucy presents the offer to the seller-client, but does not tell the seller that the buyer will go as high as $195,000. The seller accepts the buyer's $185,000 offer. Who has violated agency law?
Lucy violated her duty to disclose everything she knew to her seller-client.
A buyer agent generally may rely on a listing agents' square footage representations unless there is a red flag that an ordinary reasonable prudent broker would recognize. Which of the following would NOT be a red flag?
MLS lists total square feet as 2200, when it actually has 2050 square feet.
The definition of "material fact" includes all of the following:
Matters impacting or affecting the property. Information about a principal's inability to perform his/her contractual obligations. Matters known to be of particular importance to a prospective party.
When showing an unrepresented buyer one of the company's listings, the buyer tells the listing agent that they want to run a business out of their home. The listing agent:
Must tell the buyer that their desired use may not be permitted and the buyer should investigate further.
All of the following are true about NCAR Form 201:
Only Realtor® members may use the form. The buyer acknowledges that they may need to hire other specialists to adequately advise them in the transaction. The buyer releases the buyer-agent from any liability for recommending other service providers or if the buyer declines to have an inspection recommended by the buyer-agent.
Housing expenses include:
Principal and interest payments. Taxes, Homeowner's insurance, and private mortgage insurance, if applicable. Owner Association dues.
Housing expenses include:
Principal and interest payments. Taxes, Homeowner's insurance, and private mortgage insurance, if applicable. Owner Association dues. All of the above.
When must a licensee working for a buyer reduce the oral agency employment agreement to writing?
Prior to preparing an offer.
The purpose of a CMA/BPO is to determine:
Probable sales price.
The NCREC expects a listing broker to do all of the following:
Provide the seller with all of the applicable seller disclosure forms and advise them of their options in completing those forms. Inform the seller of the legal consequences of failing to provide any of the mandatory forms. Inform the seller of the broker's duty to disclose material facts, regardless of how the seller chooses to answer the disclosure forms.
All of the following are criteria for selecting properties to use as comparables:
Proximity to the subject property. Similarity to the subject property. Sold preferably within the past six months.
All of the following are true about loans and recurring monthly debt:
Recurring monthly debt includes student loan payments, car payments, other loan payments, and revolving credit card payments. Child support or alimony paid by the borrower will also be included in the recurring monthly debt. For a conventional loan, housing expenses can't exceed 28% of gross income and total recurring expenses including housing can't exceed 36% of gross income.
A buyer asks a broker to show him a property listed with another company that is offering compensation only to buyer agents. The broker provides the agency brochure and explains the options, but the buyer rejects any form of buyer agency, and the listing company won't authorize seller-subagency. What is the broker's best course of action?
Refer the buyer to the listing company and negotiate a referral fee.
What law prohibits advertising any financing terms, other than the APR stated as such, without full disclosure of all financing terms?
Regulation Z under TILA.
A listing agent's duty to discover and disclose material facts:
Requires them to discover and disclose any information they know or should have known.
A buyer agent should do all of the following EXCEPT:
Review the sellers' RPOADS and MOG and alert the buyer to potential issues. Urge the buyer to conduct any and all inspections or inquiries they wish during the due diligence period and discuss the results of those inspections with the buyer client. Be proactive and engaged as an advisor/advocate when acting as an exclusive buyer agent. X Order and conduct inspections/investigations on behalf of their buyer-clients during due diligence.
A valid listing agreement with a real estate company may be terminated for any of the following reasons:
Sale of the property. Agreement of the parties. Destruction of the property.
A broker-listing agent is conducting an open house for her seller-client. A former buyer-client with whom the broker had worked previously attends. Later that afternoon the listing agent receives a written offer from that buyer. When presenting the offer to the seller, the listing agent should:
Share any information she has about the buyer with the seller, including the buyer's financial ability or resources and needs or desires.
Bob and Mary both work for XYZ Realty. Mary is working with a buyer under an oral buyer agency agreement that authorizes dual agency. Bob's seller-client has NOT authorized dual agency in Bob's written listing agreement. Mary may:
Show the buyer the property if the seller orally consents to dual agency.
The fiduciary duty of a buyer's agent to assist a client in finding suitable housing, negotiating an offer, and directing the buyer to a lender would fall under:
Skill, care, and diligence
All of the following are true concerning square footage EXCEPT:
Stating the square footage typically is a required field in some Multiple Listing Service programs. The NCREC expects a listing agent who advertises square footage to be very accurate, allowing only a narrow margin of error. X The NCREC requires brokers to report square footage as a material fact. Square footage should be calculated based on the NCREC 's Residential Square Footage Guidelines or other comparable standards.
All of the following are impermissible sources of square footage information:
Tax records. Owner statements. Any documents from a previous transaction.
Which of the following is true when acting as a limited listing agent?
The Commission's agency rule doesn't apply because the broker is not offering full service. XX The broker must provide and explain the Working with Real Estate Agents brochure prior to first substantial contact. The broker and seller may have an oral agreement regarding the few services the broker will provide. The broker may disclaim any liability for relying on information from the seller.
Buyer qualification ratios are based on all of the following:
The borrower's gross monthly income. The housing expenses. Recurring monthly obligations.
All of the following are TRUE regarding the Working with Real Estate Agents brochure EXCEPT:
The brochure must be provided at first substantial contact in all sales transactions. If the first substantial contact is by phone, the brochure must be mailed within 3 days. X The buyer must sign the brochure before the agent can work as a buyer's agent. The brochure includes a place for disclosure of seller subagency and an acknowledgment by the prospective buyer of seller-agency or subagency status. **A mandatory agency information brochure that a licensee must give to and review with consumers in all real estate sales transactions no later than first substantial contact; it does not create agency.
Which of the following is FALSE regarding Commission expectations when a broker is acting as a buyer agent?
The broker should be alert to red flags and discover and disclose material facts. The broker should provide timelines and checklists to assist the buyer through the due diligence process. X It is sufficient if the broker advises the buyer of recommended inspections or investigations the buyer should perform during due diligence without requesting copies of the information the client obtains. The buyer agent should remain informed and be proactive throughout the transaction and advise and counsel their buyer-client.
In the foregoing situation, Bob or Mary may present an offer to either the seller or the buyer if all of the following have happened:
The buyer agency agreement is in writing and authorizes dual agency. The listing agreement is revised to authorize dual agency, at least as to this buyer. The company has written consent to both dual and designated dual agency from each client.
A broker knows that a city recently decided to extend water and sewer lines to a subdivision that has been plagued with poor water quality. The broker has a buyer who is interested in purchasing a property in the subdivision. What are the buyer agent's obligations when dealing with an unrepresented seller?
The buyer-agent must disclose to the seller that city water and sewer will soon be available.
To work with a buyer as a seller subagent, a broker who is not affiliated with the listing company must have consent from all of the following:
The buyer-customer. The listing company. The seller-principal.
How does dual agency impact the company's fiduciary obligations to each client?
The company owes the same fiduciary duties to both clients, but cannot fully perform its advisory or advocacy roles when acting as a traditional dual agent.
An oral buyer agency agreement minimally should address all of the following:
The consumer must expressly authorize the company to act as their buyer agent. It should address the compensation the company expects to receive if the buyer purchases using it as buyer agent. The buyer and broker should decide whether the buyer orally authorizes dual agency; if not, the buyer agent may only show the oral buyer-client other company's listings.
An oral buyer agency agreement minimally should address all of the following:
The consumer must expressly authorize the company to act as their buyer agent. It should address the compensation the company expects to receive if the buyer purchases using it as buyer agent. The buyer and broker should decide whether the buyer orally authorizes dual agency; if not, the buyer agent may only show the oral buyer-client other company's listings. **Remember oral agency doesn't have a time limit but should be reduced to writing prior to offer
Buyer agents should emphasize and discuss all of the following alerts in NCAR Form #201 with their buyer-clients except possibly:
The fact that the buyer-client may still owe the company the buyer-agency fee if they purchase a property after expiration of the agency agreement to which the buyer-company introduced them.
What is the agency relationship between the real estate company and its affiliated brokers?
The individual brokers are the agents and the company is the principal. ** Flow of agency: Client (principal) R.E.Firm (agent) Brokers affiliated with the firm (subagents)
Ricardo is showing a buyer a house as a seller subagent. The buyer tells Ricardo that he must build at least an 8-foot fence around the backyard of any house he purchases. Ricardo finds a great house for the buyer but it lacks a fenced yard and Ricardo fails to ask the listing agent whether fences are permitted. The buyer purchases the house and later learns that he cannot build a fence. Which of the following statements regarding these facts is true?
The listing agent had a duty to disclose in the listing information sheet that fences were not permitted. X Once Ricardo knew that the buyer had a particular need, that became a material fact and Ricardo had a duty to tell the buyer that it might not be permitted and the buyer should investigate. Neither Ricardo nor the listing agent had any responsibility to determine if fences were permitted. It was the unrepresented buyer's responsibility to check whether fences were allowed.
A provisional broker at her first listing presentation notices some cracks in the foundation wall during the walk-through, but doesn't ask her seller about them and says nothing in agent remarks. Seller checks "no representation" on the property disclosure form. Who may be guilty of omission?
The listing agent was aware of a potential problem, yet failed to inquire further or say anything to prospective buyers.
Which of the following statements is FALSE regarding Paragraph 11, "Earnest Money"?
The listing company should hold any earnest money paid in the transaction. If the earnest money is forfeited to the seller under the Offer to Purchase and Contract, then the listing company is entitled to receive 50% of the earnest money or the amount of their listing fee, whichever is less. XX If there is a dispute between the listing company and the seller over the earnest money, the escrow agent may pay the earnest money to the Clerk of Court under License Law. The Clerk of Court procedure applies to earnest money disputes between the buyer and seller.
A broker is contacted by a buyer who wants to see a property listed with another real estate company. The broker provides and reviews the WWREA with the buyer who signs the disclosure panel, but rejects any form of buyer representation. The listing company is not offering seller subagency. What may the broker do?
The only thing the broker can do is refer the buyer-customer to the listing company and request a referral fee.
How are "adjustments" made and to what properties?
The sale price of each comp is adjusted by subtracting an amount for superior features it has that the subject lacks and adding an amount for features the subject has that the comp lacks.
NCAR's Non-Exclusive Buyer Agency Agreement authorizes all of the following:
The selling company may accept compensation offered by the listing company or seller. The selling company may accept rebates, bonuses, or incentives offered by the listing company or seller as long as the selling company timely discloses those incentives to their buyer-client. The buyer-client is not obligated to pay a commission if the seller/listing company refuses to pay the selling company.
None of the following may be included in total square footage EXCEPT:
The two-car garage. X The area of the finished bedroom on the third floor with sloped ceilings no less than five feet up to seven feet or higher. The two-thirds of the heated, directly accessible basement that still has concrete floors and cinder block walls. The screened 14' x 20' sunroom with sliding windows, patio doors, and a ceiling fan.
A buyer agent may NOT reasonably rely on a listing agent's representations in the MLS IF:
There is a red flag that should cause a reasonable buyer agent to ask questions. The MLS listing states "square footage per tax records." The listing information says "buyer to verify."
Which of the following is FALSE regarding federal lead-based paint disclosure laws?
They apply to "target housing" defined as housing built before 1978. X An owner must test for the presence of lead-based paint. The owner must provide a written disclosure form to the buyer/tenant prior to offer whether the target housing is for sale or lease. An owner must state that they either know or do not know that there is lead-based paint.
A buyer who authorizes traditional dual agency in NCAR Form 201 acknowledges all of the following:
They understand that the agent may no longer advise or counsel either principal. The client must make their own decisions, but may seek legal counsel. The company's compensation will be greater and will be the amount disclosed in the agreement.
A buyer who authorizes traditional dual agency in NCAR Form 201 acknowledges all of the following EXCEPT:
They understand that the agent may no longer advise or counsel either principal. X The agent must disclose all information about each principal to the other. The client must make their own decisions but may seek legal counsel. The company's compensation will be greater and will be the amount disclosed in the agreement.
Which of the following services does the Company NOT agree to provide as a buyer agent?
To assist the buyer in locating a property that meets the buyers' criteria and negotiates an agreement on the best terms for the buyer-client. To disclose all material facts about the property or transaction of which the Company has actual knowledge. X To conduct due diligence on behalf of the buyer-client. To timely deliver all offers or counteroffers.
All of the following are true about Regulation Z under the Truth-in-Lending Act (TILA):
Trigger terms that will require full disclosure include the amount of the down payment, monthly principal and interest payment, the interest rate, etc. To avoid violating Regulation Z, brokers should avoid all numbers in their advertising except for the list price and the APR stated as such. It applies to anyone advertising any financing trigger term.
A "Protection Period":
Under the NCAR buyer agency forms, the buyer agent must provide written notice of properties shown to the buyer for which it claims a fee. An agreement between an unlisted property owner and a broker to secure payment for the broker if the property is sold to the particular buyer named in the agreement; it does not create a general listing, and may not create agency at all- only compensation for a buyer's agent.
What is NOT an exception to licensing requirements in property management:
Unlicensed salaried employees can collect rents, show properties, provide information, and complete forms. Employees of an entity managing is own property do not need a license. XX Unlicensed salaried employees can negotiate lease amounts, contract terms, or amounts to be paid. No license is required to manage an HOA
A broker who knows a buyer or seller is already represented by an agent, but who contacts the consumer and offers their services may:
Violate the Code of Ethics if a REALTOR. Incur civil liability for tortious interference with contract. Have a complaint filed against them with the NCREC.
At an open house, the listing agent must disclose his/her agency status to a prospective buyer:
When the prospect begins to talk about his/her property needs and ability to purchase.
All of the following statements are true regarding the Fair Housing Act:
While owners might discriminate in their hearts in the sale or lease of their property, no one may "publish" or announce that intent. It prohibits discrimination against members of protected classes in the sale or leasing of 1-4 family unit dwellings. The seven protected classes include race, religion, national origin, familial status, sex, disability, and color.
All of the following are examples of illegal boycotting under the Act EXCEPT:
X A company that instructs its agents not to recommend a named service provider because the BIC believes them to be incompetent and over-priced. A group of full-service listing companies who attempt to block MLS access by limited service listing agents. Buyer agents from three different companies who agree not to show buyer-clients limited listings because it's too much hassle dealing with the FSBO-seller. BICs from two companies who agree not to recommend or use a particular closing attorney or appraiser for whatever reasons.
Jim, a provisional broker, with XYZ Realty is explaining agency options to a prospective buyer. Which of the following statements would be accurate?
X If you hire our company as your buyer agent, we will protect and promote your interests and protect your confidential information, even if our agreement is oral. I can present your offer as long as we have a buyer agency agreement in writing before closing. Our firm practices designated agency. If we look at homes that are listed by our company, then my BIC will act as the designated agent for the seller and I can fully represent you as your designated buyer agent. You don't have to decide you want to hire me until you are ready to write an offer. Let's start out by me just showing you homes.
"First substantial contact" occurs in all of the following:
X The consumer asks for property information that is public record. The consumer begins talking about their personal needs, wants, and motivations. The broker begins asking questions regarding the consumer's needs, ability and time frame. Either the broker or the consumer begins acting as if an agency relationship exists. **When the consumer asks for property information that is public record that information isn't considered "first substantial contact."
The listing company is the escrow agent holding the earnest money deposit. The buyer fails to close and all agree that the seller is entitled to the earnest money under the Offer to Purchase and Contract. The company notifies their seller that they intend to release 50% of the earnest money to the seller and keep the other 50% for the company pursuant to the listing agreement. The seller objects and insists on receiving the entire amount of the earnest money. The listing company should
XX Obey the lawful directives of its principal and refund the entire earnest money to the seller. Hold the earnest money in its trust account as disputed funds until the company and principal-client agree how to divide. Use the disputed funds procedure under License Law and pay the earnest money to the Clerk of Court. Deduct the company's 50% under the listing agreement and pay the other 50% to the seller-client.
Which of the following is FALSE? A buyer agent/broker:
x Is not required to advise or counsel an experienced investor-buyer in a transaction. Should assess the needs and experience levels of their client. Should realize that the less experienced the buyer, the more guidance and counseling may be required by the buyer-agent. Is never relieved of their duties to discover and disclose material facts or honor their fiduciary obligations based on the client's level of expertise.
