Flashcards in Agency & Listings Deck (20)
The brokerage firm...
1. The brokerage firm owns all contracts.
2. BIC is responsible for the following:
All contracts, agency (employment), and purchase agreements. - Supervising all salespersons and brokers. - Has an agency relationship w/ the principal.
The agent's fiduciary duties to the principle include...
6. Reasonable care & skill
An agency relationship may be created by...
Written or Oral Agreement
⚡️MUST BE WRITTEN TO BE ENFORCEABLE⚡️
ILLEGAL in NC!
Confidentiality, as it pertains to Agency...
Agents must keep the principal's confidential information private.
( price, terms, motivation-PTM)
May release confidential info upon permission from principal.
An Agent's duty to third parties include...
1. Honesty, including disclosure of material facts.
a) Must disclose material facts that are known or should be known, even if the principal asks the agent to lie or keep silent.
b) Disclosure required for properties being sold "as is"
c) Must disclose all material facts but not interpret impact or meaning.
2. Fair dealing.
⚡️Special Agency⚡️is created when...
An agency is authorized to perform a particular act w/o the ability to bind the principal. (Advisory capacity only) (traditional "Broker")
Listing brokerage firm to
Buyer brokerage firm to
⚡️General Agency⚡️is created when...
An agent is authorized to perform a series of acts associated with the continued operation of a particular business. Agents have a limited ability to bind the principal.
(Traditionally a PROPERTY MANAGER
Salesperson or associate broker to employing broker.
Property manager to property owner.
⚡️Universal Agency⚡️is created when...
An agent is authorized to perform in place of the the principal. (Power of attorney). Agents have unlimited ability to bind the principal.
Agents authority comes from legal form called power of attorney.
Agent legally replaces the principal (can accept and reject offers for the principal)
Is created through an agent's actions.
a) advising an unrepresented third party - such as recommending an offer price.
A brokerage relationship disclosure form must be provided to the consumer at...
First substantial contact and before broker receives and confidential info.
Representing a buyer... Must disclose before showing.
Representing a seller... Must disclose before scheduling showing.
Brokers must disclose _______________ if they are a principal or have any interest in the property.
Automatic renewal clause...
Allowed for property managers
Earnest money clause
Stating the listing broker will hold the earnest money
Brokerage paid if property sells, regardless of who finds the buyer.
Maximum protection to brokerage; broker gives maximum effort.
Brokerage paid if property sells, property owner finds buyer.
Only the brokerage firm that procures the buyer gets paid.
Seller - ⚡️can sign open agreements w/ more than one brokerage firm⚡️
Sale to a buyer automatically terminates all other open listings with or without notice.
Must be signed by all property owners in order to be valid for the sale of the entire property.
Net proceeds formula
NP = Sales price - costs