national interactive study group · microsoft powerpoint - natisg_session9 author: jbrandt created...
TRANSCRIPT
UNIT 9:
BOBRA TAHAN
HOWARD HARRIS
NATIONAL INTERACTIVE
STUDY GROUP
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Study Group Information
Please refer to your dashboard for the following:
Link to calendar of discussion topics
Links to discussion questions
Use this button on the Learning Management System tab to
access your dashboard:
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Setting up the room3
Setting up the room4
Contact Information
Bobra Tahan and Howard Harris both have access to
this account:
Please include the STATE where you will be taking
your exam anytime you reach out to us so we can
find the best resources for you.
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Unit 9:
TOPICS TO BE DISCUSSED:
Your questions
Brokerage relationships
Agency
Listing agreements
Material facts and disclosure
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BROKER RELATIONSHIPS
An agent is someone who represents a principal
and who’s owes the principal fiduciary obligations.
An agent is NOT a job title. You will be a real estate
salesperson or a broker associate. You may or
may not act as a agent depending on your state
law and brokerage firms policy.
The common law of agency is the underlying
foundation for all state law which is then further
defined by each states brokerage relationship law.
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BROKER OF RECORD
The Broker of Record is the AGENT to clients. All
associates in the office represent and are
AGENTS to the Broker of Record.
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BROKER OF RECORD
SALESPERSON ASALESPERSON BBROKER ASSOCIATE CSALES PERSON D
= AGENT TO CLIENTS
(BUYERS AND SELLERS)
ALL CONTRACTS BELONG TO THE B.O.R.
=AGENT TO THE
BROKER OF RECORD
ALL CONTRACTS YOU CREATE BELONG TO THE B.O.R.
O = Obedience
L= Loyalty
D = Disclosure
C = Confidentiality
A = Accounting
R= Reasonable skill and care
FIDUCIARY DUTIES9
QUESTION
Agents owe their principal the fiduciary obligations
of OLD CAR. What does the O in the acronym
stand for?
A. Obedience
B. Obligation
C. Oxymoron
D. Open House
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QUESTION
All listing agreements and buyer representation
agreements are contracts of the principal broker:
True
False
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QUESTION
For a property being sold “as is,” the agent has no
duty to disclose knowledge about a leaking roof:
True
False
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QUESTION
The duty of loyalty requires the agent to place the
principal’s interests above those of all others,
including the agent’s own self-interest:
True
False
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QUESTION
A neighbor tells her neighbor Sue, that she would
like to sell her home. Sue, who is a salesperson,
finds a buyer and calls the neighbor to tell her she
has found someone to buy her home. At this point
Sue:
A. is an implied agent for the neighbor
B. is an express agent for both parties
C. has no brokerage relationship with either party
D. is a general agent for the neighbor
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KEY POINT: CREATION OF AN AGENCY
An express agreement is created by a direct
statement; may be called a fiduciary agreement.
May be oral or written, depending on state laws.
Only written commission agreements are
enforceable
Implied agency is created through an agent’s
actions.
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QUESTION
A customer asks the listing agent for information on
the broker’s listing. The broker owes what obligations
to the unrepresented customer?
A. Disclosure, confidentiality, accounting and
reasonable skill and care.
B. Disclosure, accounting and reasonable skill
C. Fair practices, disclosure and accounting
D. Honesty, fair practice and disclosure
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QUESTION
An agent working for a principal has been given
limited power to bind the principal. The agent is
most likely:
A. A universal agent
B. A general agent
C. A special agent
D. An exclusive agent
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SPECIAL AGENCY
A Special agency is created when an agent is
authorized to perform a particular act without the
ability to bind the principal.
(in an advisory capacity only)
EXAMPLES:
Listing brokerage firm to seller
Buyer brokerage firm to buyer
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GENERAL AGENCY
General agency is created when an agent is
authorized to perform a series of acts associated with
the continued operation of a particular business. The
agent has a limited ability to bind the principal.
EXAMPLES:
Salesperson or broker associate to employing broker
Property manager to property owner
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QUESTION
The brokerage firm has an exclusive agency contract
and has put the property into MLS. A buyer’s agent
brings an offer for the property which is accepted. At
closing who will be paid a commission?
A. Only the listing brokerage
B. Both brokerage firms
C. Only the buyer’s brokerage
D. Neither brokerage firm.
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HOW CO-OP FEES WORK21
The seller of the
Listing Brokerage
has agreed to pay
a 5% fee for selling the home.
Listing firm offers 2.5% Co-op
fee to the buyer brokerage
firms in MLS
At closing
Listing side will receive 2.5%
Buyer side will receive 2.5%
Type of listing
Owner obtains buyer
Co-op agency obtains buyer
Listing agency obtains buyer
Someone else
obtains buyer
Exclusive
right-to-sell
Exclusive
agency
Open
$ $ $ $
$ $ $
$
©2014 Kaplan University School of Professional and Continuing Education 22
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WHEN DOES THE LISTING BROKER GET PAID
QUESTION
The buyer’s agent is being paid by the listing
brokerage via a co-op fee. In this case, the buyer’s
agent owes their fiduciary obligations to the:
A. party who is paying them
B. transaction since they are receive a co-op fee
C. seller and buyer
D. party who has employed them
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QUESTION
Listing contracts must have all of the following
EXCEPT:
A. Names of the parties
B. A negotiated commission clause
C. A liquidated damages or specific performance
remedy clause
D. A definite termination date.
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QUESTION
Sarah, a new salesperson at ABC Realty, has gotten an exclusive-right-to-sell contract for a home in her neighborhood. The contract calls for the brokerage to be an agent for the seller. Under the common law of agency this means
A. The brokerage owns the contract but Sarah will be acting as the agent for the seller, under direction of the principal broker.
B. Sarah owns the contract and has the agency relationship with the seller.
C. The principal broker and Sarah will be the seller’s agent with the rest of the firm acting as dual agents.
D. The firm owns the contract and has the primary agency relationship with the seller.
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QUESTION
A material fact is defined as any fact that might make a party
change his or her mind. Material facts must be disclosed in
real estate transactions. Which of the following is TRUE
about the disclosure?
A. The listing broker and seller are the only parties
responsible for disclosure
B. If the buyer has an inspection there is no need for the
seller to disclose
C. The brokers are responsible for full disclosure of all
facts to all parties
D. The brokers, seller and buyer must disclose all known
material facts
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QUESTION
A listing broker would be puffing if he made which
of the following statements?
A. “This house has the best views in the city.”
B. “The neighborhood is very safe.”
C. “ The schools here are the best in town.”
D. “This area is going to appreciate.”
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CONTACT INFORMATION
Any questions I missed or that you still have?
Remember if you think of something after class you can reach both Bobra Tahan and Howard Harris at:
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