Unit 1: Seller Agency in Illinois
Mitch, your seller client, asked you about the tax ramifications of selling his townhome. What's your best response?
"That's not my area of expertise. You should ask your tax advisor."
Listing Agent Actions Certain actions are required of the listing agent. What are those required actions?
-Act with honesty and integrity toward clients and the general public. -Use reasonable skill and care with all parties in the transaction process. -Disclose any material and relevant facts to all parties in the transaction as soon as possible. -Disclose all compensation sources to all parties involved in the transaction as soon as possible. -Comply with all laws, regulations, statutes, and obligations established by federal, state, and local governments.
As a seller's agent, you owe specific duties to your seller. Which of these are duties you owe?
-Advocate for the seller. -Seek a sale of the property at the best price available or a price acceptable to the seller. -Inform the buyer that you represent the seller. **You advocate solely for the seller and seek a sale at the best price available or a price that's acceptable to the seller. You also need to inform buyers that you represent the seller.
Beyond your duties as a seller's agent, there are also specific tasks you should perform on behalf of your client. What tasks do you need to perform for the seller?
-Market and sell the property. -Ensure that earnest money from the buyer is deposited. -Inform the seller of the responsibility to make all required property condition disclosures. -Negotiate contract terms in accordance with the seller's wishes. -Communicate all offers and counter-offers to the seller.
Next Steps with the Jeffersons Since the Jeffersons are not currently represented, what does Jeanette need to do if she wants to represent both the Jeffersons and her current client, seller Amanda, in this transaction?
-Provide the Jeffersons with the Disclosure and Consent to Dual Agency form -Help the Jeffersons understand what dual agency is and how it would affect them -Obtain signatures from the Jeffersons consenting to dual agency, if that's their decision -Obtain Amanda's signature consenting to dual agency, if she agrees to it **All of these actions need to occur before Jeanette can act as the Jeffersons' agent. Since Amanda is already Jeanette's client, she's already received the dual agency disclosure, which was included in the listing agreement that she signed. Her signature on the listing agreement indicates that she has been informed of what dual agency is; it isn't a consent to dual agency unless she also initials or signs the section indicating consent to dual agency.
Listing Agent Duties As the seller's representative in a real estate transaction, you'll have several duties. What are some of these duties?
-Put the property on the market. -Advertise and market the property to attract buyers. -Assist the seller through the transaction. -Protect the seller's interests throughout the process.
As a seller's agent, the seller is your _________
Client
As a seller's agent, the buyer is your _________
Customer
In Illinois, the ______ is the licensee who represents the client's interests, on behalf of the sponsoring broker.
Designated agent the sponsoring broker named
The listing agreement spells out the scope of your authority and the duties you owe your seller client. But there are some other items worth discussing with your client when you put an agency agreement in place. Which of these items are good to discuss with your seller at the time you both sign the listing agreement, and which are better discussed at another time?
Good to discuss: -Other agents who show the property may be acting as buyer's agents -Arrangements for showing the home (such as leaving the home, opening blinds, days/times to avoid, etc.) -Commissions related to the transaction Another time: -What to do if the house appraises for a different amount than the agreed-upon sale price
Broker Harry represents Sally, who's selling her home in Wheaton to Ted, whom broker Betty represents. Both Harry and Betty work for Donald, the sponsoring broker at ABC Brokerage. Name the designated agent(s) in this scenario.
Harry and Betty
Jim is a listing agent. What offers must he present to his client, and when?
He must present all offers as soon as is practical.
As we've mentioned a few times already, an agency relationship is created by an agreement. Which one of these agreements will you use to become the seller's agent?
Listing agreement **This is a common agreement that a seller's agent would use.
Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers?
Multiple listing clause. **An MLS capital is a marketing organization who brokers members make their own executive listings available through other brokers page 89
Who's the Dual Agent? Amanda, who's selling her home, signed an exclusive right-to-sell agreement with licensee Jeanette at ABC Realty. Jeanette's colleague at ABC Realty, Rob, has a buyer client who's interested in Amanda's home. Rob's client submits an offer, and Jeanette helps Amanda with a counter-offer. Which party is the dual agent in this situation?
No one **There's no dual agency here, even though Jeanette and Rob work at the same firm.
Disclosing to Unrepresented Consumers Sadly, the sale with Rob's client falls through, so Jeanette puts Amanda's property back on the market. This time, a couple attending the open house, the Jeffersons, immediately fall in love with the home. They ask Jeanette how they can make an offer as soon as possible, and Jeanette learns they're not represented by a real estate licensee. What's the first written disclosure that Jeanette should make at this point?
Notice of no agency relationship **It's important to make consumers aware right away when you're not acting as their agent, so they don't disclose confidential information to you.
Legal Actions Which one of these actions may Jeanette legally perform for the Jeffersons before obtaining consent to dual agency?
Okay: -Refer the Jeffersons to another licensee from Jeanette's firm Not okay: -Advise the Jeffersons regarding the importance of a home inspection -Write up the offer from the Jeffersons -Discuss the price range the Jeffersons would be willing to offer **If Jeanette would prefer not to act in the capacity of dual agent, if her firm doesn't allow dual agency, or if her clients refuse consent to dual agency, the best thing to do is to refer the customer to another licensee. That licensee may be someone from the same firm without creating a dual agency situation due to the way designated agency works in Illinois.
Listing Agreement Responsibilities In addition to the actions we just discussed, the listing agreement also outlines some responsibilities of a listing agent. What is considered as a responsibility or not a responsibility?
Responsibility: -Present all offers to the client as soon as practical. -Maintain client confidentiality. -Remain loyal to the client. -Advise the client when to obtain advice from another professional. Not a responsibility: -Obey all client orders without question.
Gertrude and Mary Gertrude is a seller who has an exclusive listing agreement with Derrick, a licensee. She meets Mary, another licensee, and asks Mary what actions a "good" broker would take to aggressively market her home. She seems to feel that Derrick isn't doing the best job for her, and Mary senses she's casting about for a new listing agent. Sure enough, Gertrude finally blurts out, "I wish I hadn't listed my property with Derrick. How can I get out of my agreement and find a new agent?" Is Mary allowed to discuss a potential future brokerage agreement with Gertrude?
Yes. Mary would be acting within the law because Gertrude initiated the contact.
When is a Licensee Allowed to Solicit That Listing? Laura is a licensee who discovers that an old school friend, Marvin, is selling his home. The property's been on the market for some time, and Laura suspects that Marvin's current agent isn't properly representing him. Which three actions must Laura take in order to legally solicit this listing? a.) Provide Marvin with a Notice of Solicitation disclosure b.) Make a written request to the current agent for information about the type of agreement and its expiration date c.) Receive confirmation of delivery of her written request to the other broker d.) Wait 14 days without receiving a response to her written request
b.) Make a written request to the current agent for information about the type of agreement and its expiration date c.) Receive confirmation of delivery of her written request to the other broker d.) Wait 14 days without receiving a response to her written request **Laura must take these actions, and Marvin's agent is required to respond within 10 days of receiving the request. If Laura doesn't receive his response after 14 days, she's allowed to contact Marvin and solicit the listing.
A relationship where the licensee represents the seller in a real estate transaction
seller agency
