in this chapter: >express and implied agreements >agency disclosures >creating agency...
TRANSCRIPT
In this chapter:
> Express and implied agreements
> Agency disclosures
> Creating agency relationships with buyers
> When agency relationships change
3. How Agency Relationships Are Established
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EXPRESS AND IMPLIED AGREEMENTS
Agency relationships can be formed by:
•Express agreements
•Implied agreements
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Defining Express Agreements
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Defining Implied Agreements
Implied agreement may occur when licensee acts or speaks like an agent and consumer relies on those actions and statements
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Defining Implied Agreements
• Agency relationships can result even unintentionally, accidentally, or inadvertently
• Agency relationship can result from the conduct of the parties, regardless of either party’s intent, description, or understanding of relationship
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Defining Implied Agreements
• BALANCING ACT: Implied agency relationships may occur when an agent of a seller, who does not make the proper disclosures, works too closely with a buyer customer
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AGENCY DISCLOSURES
• Essential that clients and customers know forms of agency representation available to them
• Clients and customers also need to know whom real estate professionals represent
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Timely
• Disclosure to clients must take place before agreement is entered into
• Disclosure to customers must take place before substantive discussions about real estate needs
• This requirement applies to consumers that REALTORS® have met online
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Meaningful
• Disclosure must provide clear written explanation of all legal forms of brokerage relationships with consumers available under state law, even if the brokerage does not offer all of those options
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Written
• Many states have developed standard disclosure forms and mandated their use by all licensees within the state
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Agency Disclosure Reality Check
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WHEN AGENCY RELATIONSHIPS CHANGE
• BRIGHT IDEA: Discuss Possible Change in Agency Relationships with Client Before They Happen
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DISCLOSED DUAL AGENCY COMPLICATIONS
• Two buyer clients interested in the same property
• Yourself• Present or past client buyers• First-time buyers
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DISCLOSED DUAL AGENCY COMPLICATIONS
• Out-of-town buyers or corporate transferees
• Close friends or relatives • Present or past business associates• Buyer customers who require anonymity
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