Term
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Definition
| A buyer is a transferee in a residential real property transaction. This includes a person who executes an offer to purchase residential real property from a seller through an agent, or who has engaged the services of an agent with the object of entering into a residential real property transaction as a transferee. |
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| is an agent who is acting as a buyer's agent and a seller's agent or as a tenant's agent and a landlord's agent in the same transaction. |
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Term
| what is a designated sales agent? |
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Definition
| is a licensed real estate sales associate or associate broker, working under the supervision of a real estate broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction. |
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Term
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Definition
| s an "agent of an agent." A broker who brings the buyer to the listing agent is a subagent of the listing broker. Licensees who work for the listing broker or for the selling (cooperating) broker are the subagents of their respective brokers. |
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Term
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Definition
| is an agent who represents only one person in the transaction, either the buyer or the seller. The other party to the transaction would be the single agent's customer. |
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Term
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Definition
| in seller agency the real estate agent represents the seller only as the principal. |
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| selling or cooperating broker. |
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Definition
Any broker who is not the listing broker
The selling broker can either be the seller's subagent or the buyer's broker. |
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Term
| How is subagency created? |
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Definition
| Subagency is created by the agreement of the people who are involved in the transaction. |
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Term
| How does a cooperating broker accept a unilateral blanket offer of subagency? |
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Definition
| If a unilateral offer of subagency is in place, the cooperating broker accepts it by showing the property to a buyer customer. |
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Term
| What obligations does a subagent of the seller owe to the seller and what obligations does the subagent owe to the buyer? |
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Definition
The subagent owes the seller the same fiduciary responsibilities he or she would owe to any client.
The subagent owes customer level services to the buyer – honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property. |
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Term
| true or false:dual agency must be disclosed to both the buyer and the seller. Both parties must agree in writing to the dual agency relationship. |
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Definition
| true; f the dual agency relationship is not disclosed and agreed to in writing, it is known as undisclosed dual agency. If this situation occurs, the agent has breached his or her fiduciary responsibilities to the client and has also violated the license law in most states. |
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Definition
| Dual agency is permitted in many states only with disclosure and informed consent. |
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| true or false:In addition, if undisclosed dual agency is a violation of the license law, it can result in penalties such as reprimand, fines, and license suspension or revocation. |
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Definition
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Term
| Single licensee dual agency |
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Definition
| occurs when real estate licensee tries to represent the seller as a client and the buyer as a client in the same transaction. |
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Term
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Definition
| occurs when two agents in the broker's firm represent both the seller and the buyer in a single transaction. Even though the parties are represented by two different agents, the broker is a dual agent. |
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Term
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Definition
Designated agency means that a broker may designate one or more licensees to act exclusively as the agent of the seller or landlord, and designate one or more licensees to act exclusively as the agent of the buyer or tenant in the same transaction. This arrangement must also be disclosed to both parties and the broker must obtain the written consent of both the buyer and the seller.
The broker is still a dual agent in the transaction, but by designating separate agents for each principal, the individual client's interests are protected. |
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Term
| Some states also allow a licensee to act in a non-agency capacity, called a transactional broker. |
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Definition
Must advise the consumer that he or she is not acting as an agent or advocate for the consumer and should not be provided with confidential information
Owes the additional duty of limited confidentiality and may not disclose the following information:
The seller or landlord will accept a price that is less than the asking listing price.
The buyer or tenant will pay a price greater than the price submitted in a written offer.
The seller or landlord or the buyer or tenant will agree to financing terms other than those offered. |
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Term
| true or false: With regard to compensation in cooperative sales, the listing broker will be the person who handles the commission splits for the transaction. |
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Definition
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Term
| If an agent enters into an agency agreement with a buyer, the agent becomes the buyer's agent. this is also known as |
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Term
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Definition
| Some brokers, more so in commercial than in residential transactions, negotiate their agency agreement to state that they will receive a non-refundable up-front retainer fee. This helps the broker page out buyers who may not really be serious about buying. In this type of situation, at closing the retainer is credited to the amount of commission the buyer owes and the broker receives the balance. |
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Definition
Since as we learned earlier the payment of compensation does not determine the agency relationship, there is no legal reason that the buyer must pay the compensation in the buyer agency relationship. As a matter of fact, the most common compensation arrangement is the traditional commission arrangement between the listing broker and the cooperating broker. In this arrangement the seller pays the commission, which is split between the listing agent and the buyer agent, and the buyer pays nothing.
Alternatively, the buyer can agree that his or her buyer's agent will receive a certain percentage of the purchase price or a flat fee. If the commission split from the listing broker is equal to or greater than this agreed upon amount, the buyer pays nothing. If the split is less than the agreed upon amount, the buyer pays the difference at closing. |
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Term
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Definition
| In this arrangement, the buyer pays his or her buyer broker directly upon the closing of the property purchase. When this arrangement is in place, the buyer agent will inform the seller and the listing broker that compensation will be direct and the buyer agent will refuse the offer of a commission split for the cooperating sale. |
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| List four ways an agency agreement can be involuntarily terminated. (Other correct answers can be found on page 39.) |
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Definition
Death or incapacity of either party
Condemnation of the property
Destruction of the property through fire, vandalism or natural disaster
Bankruptcy |
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