This document discusses the principles of agency in real estate. It defines the different types of agency relationships like universal agent, general agent, special agent, and power of attorney. It also outlines the fiduciary responsibilities agents have to their principals, including the duties of care, obedience, accounting, loyalty (confidentiality), and disclosure. Finally, it covers how agency is created with sellers and buyers through listing and buyer agreements, and the requirement for agents to disclose their business relationships and various roles using a Consumer Information Statement.
This document provides an overview of dual agency and brokerage relationships under Massachusetts law. It defines key terms like agency, principal, client, and fiduciary. It explains the requirements for dual agency, including obtaining written consent from both buyer and seller. A dual agent's duties are to treat both clients honestly and impartially by disclosing defects and presenting all offers. The document outlines different types of brokerage relationships like seller agency, buyer agency, and designated agency. It also discusses proper disclosure of relationships and compensation methods.
This document provides consumers with information about different types of agency relationships they may enter into with real estate licensees: seller's agent, buyer's agent, dual agent, and designated agent. It also describes transaction licensees. Regardless of the relationship, all licensees owe consumers duties to act with reasonable care, deal honestly, present all offers/counteroffers, and disclose conflicts of interest. Certain contractual terms like fees, duties, and cooperation with other brokers must be addressed in a signed agreement.
Real estate brokers and sales associates are licensed by state governments to arrange real estate transactions. Brokers can oversee sales associates. The real estate sales process involves listing presentations, marketing properties, presenting offers, negotiating contracts, and closing. Brokers owe fiduciary duties to their clients and must always act in the client's best interest.
This document outlines the different types of agency relationships that can exist between real estate licensees and consumers. It discusses seller agents, buyer agents, dual agents, and designated agents. Seller agents represent the interests of sellers, buyer agents represent buyers, and dual agents represent both parties. Designated agents assign specific licensees within a brokerage to represent either buyers or sellers. The document also describes transaction licensees, who provide services but do not have an agency relationship, and are prohibited from disclosing certain negotiating details.
People selling their homes want to deal with one person. Agents have a system for show requests that is the most convenient for all of the parties involved. A buyers agent will have a fiduciary responsibility to represent the buyers interest and not those of the seller.
This document contains information about an individual named P. Divya Bharathi with roll number 18UR55 in B.Com 2nd year class. It then defines an agent as a person who acts on behalf of another and discusses the various duties an agent owes to their principal. It proceeds to classify agents into special, general, and universal agents based on their scope of authority and nature of work. It also distinguishes between mercantile and non-mercantile agents, providing examples of different types of agents such as factors, auctioneers, brokers, bankers, and del credere agents. The document concludes by discussing sub-agents and substituted agents.
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
The document summarizes key information about agency in real estate transactions. It discusses the fiduciary responsibilities of agents, including care, obedience, accounting, loyalty, disclosure, and confidentiality. It also describes different types of agency relationships such as single agency, subagency, dual agency, and transaction licensees. The summary concludes by outlining the major provisions that must be disclosed in the Pennsylvania Consumer Notice about the duties of agents and various business relationships allowed.
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
This document discusses agency in real estate transactions. It defines key terms like agent, principal, fiduciary duties and different types of agency relationships. It explains how agency relationships are formed and terminated. It also summarizes a landmark court case around dual agency disclosure. Real estate agents have fiduciary duties of care, obedience, accounting, loyalty, disclosure and confidentiality to their principal. Agents can represent buyers or sellers through single agency or both parties through dual agency with proper consent.
This document provides an overview of dual agency and brokerage relationships under Massachusetts law. It defines key terms like agency, principal, client, and fiduciary. It explains the requirements for dual agency, including obtaining written consent from both buyer and seller. A dual agent's duties are to treat both clients honestly and impartially by disclosing defects and presenting all offers. The document outlines different types of brokerage relationships like seller agency, buyer agency, and designated agency. It also discusses proper disclosure of relationships and compensation methods.
This document provides consumers with information about different types of agency relationships they may enter into with real estate licensees: seller's agent, buyer's agent, dual agent, and designated agent. It also describes transaction licensees. Regardless of the relationship, all licensees owe consumers duties to act with reasonable care, deal honestly, present all offers/counteroffers, and disclose conflicts of interest. Certain contractual terms like fees, duties, and cooperation with other brokers must be addressed in a signed agreement.
Real estate brokers and sales associates are licensed by state governments to arrange real estate transactions. Brokers can oversee sales associates. The real estate sales process involves listing presentations, marketing properties, presenting offers, negotiating contracts, and closing. Brokers owe fiduciary duties to their clients and must always act in the client's best interest.
This document outlines the different types of agency relationships that can exist between real estate licensees and consumers. It discusses seller agents, buyer agents, dual agents, and designated agents. Seller agents represent the interests of sellers, buyer agents represent buyers, and dual agents represent both parties. Designated agents assign specific licensees within a brokerage to represent either buyers or sellers. The document also describes transaction licensees, who provide services but do not have an agency relationship, and are prohibited from disclosing certain negotiating details.
People selling their homes want to deal with one person. Agents have a system for show requests that is the most convenient for all of the parties involved. A buyers agent will have a fiduciary responsibility to represent the buyers interest and not those of the seller.
This document contains information about an individual named P. Divya Bharathi with roll number 18UR55 in B.Com 2nd year class. It then defines an agent as a person who acts on behalf of another and discusses the various duties an agent owes to their principal. It proceeds to classify agents into special, general, and universal agents based on their scope of authority and nature of work. It also distinguishes between mercantile and non-mercantile agents, providing examples of different types of agents such as factors, auctioneers, brokers, bankers, and del credere agents. The document concludes by discussing sub-agents and substituted agents.
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
The document summarizes key information about agency in real estate transactions. It discusses the fiduciary responsibilities of agents, including care, obedience, accounting, loyalty, disclosure, and confidentiality. It also describes different types of agency relationships such as single agency, subagency, dual agency, and transaction licensees. The summary concludes by outlining the major provisions that must be disclosed in the Pennsylvania Consumer Notice about the duties of agents and various business relationships allowed.
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
This document discusses agency in real estate transactions. It defines key terms like agent, principal, fiduciary duties and different types of agency relationships. It explains how agency relationships are formed and terminated. It also summarizes a landmark court case around dual agency disclosure. Real estate agents have fiduciary duties of care, obedience, accounting, loyalty, disclosure and confidentiality to their principal. Agents can represent buyers or sellers through single agency or both parties through dual agency with proper consent.
Elderly care conference 2017 - Workshop stream A - the legal framework: share...Browne Jacobson LLP
This presentation covers what the difference between a share sale and an asset sale is. Key documents involved in a transaction, due diligence, how to address risks and limitation of liability.
Step by Step guide for commercial properties for sale in raipur.pptxDeepakSahu81622
This document provides a step-by-step guide for purchasing commercial properties for sale in Raipur, India. It outlines hiring a commercial real estate agent to assist with the process, making a list of requirements, finding suitable properties, making an offer, conducting due diligence which includes inspections and permits, signing a purchase agreement, and finally closing on the property purchase. The process ensures the buyer's interests are protected at each step when acquiring a commercial investment property.
This document provides an overview of the home buying process and services offered by the real estate agent, Dmitriy Kuferberg. It discusses agency relationships and buyer representation agreements, the benefits of having a buyer's agent, and the services Kuferberg provides to buyer clients, which include helping define needs and search for homes, making offers, and guiding clients through the entire buying process. The document also notes that Kuferberg is committed to helping clients achieve their dream of homeownership and treats all parties fairly.
This document provides consumers with information about real estate licensee relationships and responsibilities. It explains that licensees can act as seller agents, buyer agents, dual agents, or transaction licensees. Regardless of the relationship, all licensees must act with reasonable care, deal honestly, present all offers/communications, and disclose conflicts of interest. Consumers should acknowledge receiving this form, and licensees should provide it during the initial interview.
The document provides an overview of the home buying process including getting approved for a mortgage, determining needs, searching for a home, conducting due diligence like inspections, making an offer and negotiating, and completing the closing. It highlights common pitfalls like not being pre-approved, overextending on affordability, rushing the process, and not having representation. It also describes resources available on the William Raveis website to aid in the process.
Laurus Title Group provides short sale processing services to help customers navigate the complex short sale process. They have a team of experienced negotiators around the country to assist with short sales. Disclosure of all relevant information is important, as hiding details can jeopardize closing deals. The short sale process takes time due to the need to get approval from multiple parties like lien holders and insurers.
Carmen Queral is a buyer's agent who provides home buying services to clients. She will listen to clients' needs and wants and use a customized plan to find the right home. As the buyer's agent, her role is to represent the buyer, find the best property for their interests, negotiate on their behalf, and handle the purchase details. She guides buyers through the entire home buying process, including financing pre-approval, making offers, inspections, and closing. Her goal is to make the process as simple as possible for clients.
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
The document provides an overview of agency relationships in real estate transactions. It defines key terms like principal, agent, fiduciary duties and discusses how agency relationships are created and terminated. It also describes different types of agency relationships like single agency, subagency, and disclosed dual agency. Single agency refers to representing only one party, either the seller or buyer. Subagency involves one broker appointing another to assist. Dual agency occurs when an agent represents both parties with their written consent.
Real estate professionals must understand and be able to explain representation to their customers and clients. It is essential everyone in a transaction understands who the agent is working for. This course explains the Laws concerning Agency in detail.
This document provides tips for buying property at auction. It advises that buyers should do their homework by registering interest in properties, obtaining pre-approval for financing, and determining their maximum bid price in advance. On auction day, the highest bidder becomes legally obligated to purchase the property if their bid meets or exceeds the seller's reserved price. Post-auction, the buyer must pay a deposit, insure the property, and use a solicitor for settlement. Overall, the document recommends preparing finances and knowing one's limit before bidding to ensure getting the desired property.
Real estate licensees owe consumers several duties regardless of the business relationship, including exercising reasonable skill and care, dealing honestly, and presenting all offers and communications. Key contractual terms like fees, duties, and sharing arrangements must be addressed in a written agreement. The Real Estate Recovery Fund exists to reimburse consumers who obtain civil judgments against licensees for fraud but are unable to collect. Consumers should be advised that no representation is presumed without a signed written agreement selecting a business relationship.
Looking to buy a property and not sure where to start? Don't worry I've created a Buyers Package that easily outlines the steps to your next home purchase. Take a look through and please contact me with any questions...and remember, when it comes to Real Estate, all you need is Lav!
The document provides information for buyers and sellers of residential real estate in South Dakota. It discusses the mission of the South Dakota Real Estate Commission to protect consumers in real estate transactions. It also outlines various terms related to real estate agency relationships and types of representation available to buyers and sellers. The document provides guidance on important steps and considerations for both buying and selling a home.
The document discusses real estate commissions and the roles of listing and buying agents. It explains that the seller typically pays the total commission, usually 5-8% of the home's sale price, which is then split among the brokers and agents. Listing agents are responsible for marketing the home and managing showings, offers, and negotiations. Buying agents help clients find homes, make offers, and navigate the process up until closing. Both agents invest significant time and resources to assist clients through what is typically a complex real estate transaction.
This document discusses the requirements for a valid real estate contract, remedies for breach of contract, the role of real estate agents and brokers, and taxation implications of real property sales. A valid contract requires legal capacity of parties, mutual agreement through offer and acceptance, consideration, a lawful purpose, and being in writing. In the event of default, the nondefaulting party can pursue money damages, liquidated damages, rescission of the contract, specific performance, or recovery of expenses. Real estate agents and brokers represent buyers or sellers through listing agreements, which can be open, exclusive, or exclusive right-to-sell.
Duties and Responsibilities of Real Estate BrokerRE/MAX Gujarat
The document discusses the responsibilities and guidelines for real estate brokers. It provides tips on how brokers should handle customers, including listening carefully to understand their needs, providing accurate information and alternatives, and coming to a mutual agreement. Brokers are advised to be on time, plan their work, engage in high-paying tasks, and have an efficient follow-up system. The document also outlines schedules of commission rates and guidelines for members, including dealing with other agents, maintaining transparency, and helping builders. It provides tips to avoid fraud and misguiding buyers in property dealings.
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The document provides information on the duties and responsibilities of a real estate broker. It discusses that brokers should listen carefully to customer needs, provide accurate information and alternatives, and be fair and friendly. It also outlines tips for brokers to be successful like being on time, planning ahead, and engaging in high payoff tasks. The document discusses handling difficult customers, tips to avoid property fraud, and the responsibilities of brokers which include arranging meetings, title searches, financing assistance, and maintaining an updated property list. It also outlines broker duties like loyalty, obedience, disclosure, confidentiality, and reasonable care and diligence.
Dan starr realtor - the economic functions of real estate brokerageDanStarrRealtor
Real estate enables the economy as it does only comunicate about houses, but it speaks about almost everything that you see. It gives the space for businesses to achieve and it gives off a reputation that a country is doing well. It also paves way to more job event especially those who are in the construction industry.
The purpose of the course is to address regulatory aspects of operating a real estate brokerage in Texas, including agency law, business entity requirements, record keeping, advertising rules, and complaint procedures. Brokers must have policies ensuring licensee competency within authorized specialties. Agency relationships and duties of loyalty, care, and accounting are established through actual authority, ratification, or ostensible authority.
Elderly care conference 2017 - Workshop stream A - the legal framework: share...Browne Jacobson LLP
This presentation covers what the difference between a share sale and an asset sale is. Key documents involved in a transaction, due diligence, how to address risks and limitation of liability.
Step by Step guide for commercial properties for sale in raipur.pptxDeepakSahu81622
This document provides a step-by-step guide for purchasing commercial properties for sale in Raipur, India. It outlines hiring a commercial real estate agent to assist with the process, making a list of requirements, finding suitable properties, making an offer, conducting due diligence which includes inspections and permits, signing a purchase agreement, and finally closing on the property purchase. The process ensures the buyer's interests are protected at each step when acquiring a commercial investment property.
This document provides an overview of the home buying process and services offered by the real estate agent, Dmitriy Kuferberg. It discusses agency relationships and buyer representation agreements, the benefits of having a buyer's agent, and the services Kuferberg provides to buyer clients, which include helping define needs and search for homes, making offers, and guiding clients through the entire buying process. The document also notes that Kuferberg is committed to helping clients achieve their dream of homeownership and treats all parties fairly.
This document provides consumers with information about real estate licensee relationships and responsibilities. It explains that licensees can act as seller agents, buyer agents, dual agents, or transaction licensees. Regardless of the relationship, all licensees must act with reasonable care, deal honestly, present all offers/communications, and disclose conflicts of interest. Consumers should acknowledge receiving this form, and licensees should provide it during the initial interview.
The document provides an overview of the home buying process including getting approved for a mortgage, determining needs, searching for a home, conducting due diligence like inspections, making an offer and negotiating, and completing the closing. It highlights common pitfalls like not being pre-approved, overextending on affordability, rushing the process, and not having representation. It also describes resources available on the William Raveis website to aid in the process.
Laurus Title Group provides short sale processing services to help customers navigate the complex short sale process. They have a team of experienced negotiators around the country to assist with short sales. Disclosure of all relevant information is important, as hiding details can jeopardize closing deals. The short sale process takes time due to the need to get approval from multiple parties like lien holders and insurers.
Carmen Queral is a buyer's agent who provides home buying services to clients. She will listen to clients' needs and wants and use a customized plan to find the right home. As the buyer's agent, her role is to represent the buyer, find the best property for their interests, negotiate on their behalf, and handle the purchase details. She guides buyers through the entire home buying process, including financing pre-approval, making offers, inspections, and closing. Her goal is to make the process as simple as possible for clients.
LCAR Unit 15 - Agency in Real Estate - 14th Edition RevisedTom Blefko
The document provides an overview of agency relationships in real estate transactions. It defines key terms like principal, agent, fiduciary duties and discusses how agency relationships are created and terminated. It also describes different types of agency relationships like single agency, subagency, and disclosed dual agency. Single agency refers to representing only one party, either the seller or buyer. Subagency involves one broker appointing another to assist. Dual agency occurs when an agent represents both parties with their written consent.
Real estate professionals must understand and be able to explain representation to their customers and clients. It is essential everyone in a transaction understands who the agent is working for. This course explains the Laws concerning Agency in detail.
This document provides tips for buying property at auction. It advises that buyers should do their homework by registering interest in properties, obtaining pre-approval for financing, and determining their maximum bid price in advance. On auction day, the highest bidder becomes legally obligated to purchase the property if their bid meets or exceeds the seller's reserved price. Post-auction, the buyer must pay a deposit, insure the property, and use a solicitor for settlement. Overall, the document recommends preparing finances and knowing one's limit before bidding to ensure getting the desired property.
Real estate licensees owe consumers several duties regardless of the business relationship, including exercising reasonable skill and care, dealing honestly, and presenting all offers and communications. Key contractual terms like fees, duties, and sharing arrangements must be addressed in a written agreement. The Real Estate Recovery Fund exists to reimburse consumers who obtain civil judgments against licensees for fraud but are unable to collect. Consumers should be advised that no representation is presumed without a signed written agreement selecting a business relationship.
Looking to buy a property and not sure where to start? Don't worry I've created a Buyers Package that easily outlines the steps to your next home purchase. Take a look through and please contact me with any questions...and remember, when it comes to Real Estate, all you need is Lav!
The document provides information for buyers and sellers of residential real estate in South Dakota. It discusses the mission of the South Dakota Real Estate Commission to protect consumers in real estate transactions. It also outlines various terms related to real estate agency relationships and types of representation available to buyers and sellers. The document provides guidance on important steps and considerations for both buying and selling a home.
The document discusses real estate commissions and the roles of listing and buying agents. It explains that the seller typically pays the total commission, usually 5-8% of the home's sale price, which is then split among the brokers and agents. Listing agents are responsible for marketing the home and managing showings, offers, and negotiations. Buying agents help clients find homes, make offers, and navigate the process up until closing. Both agents invest significant time and resources to assist clients through what is typically a complex real estate transaction.
This document discusses the requirements for a valid real estate contract, remedies for breach of contract, the role of real estate agents and brokers, and taxation implications of real property sales. A valid contract requires legal capacity of parties, mutual agreement through offer and acceptance, consideration, a lawful purpose, and being in writing. In the event of default, the nondefaulting party can pursue money damages, liquidated damages, rescission of the contract, specific performance, or recovery of expenses. Real estate agents and brokers represent buyers or sellers through listing agreements, which can be open, exclusive, or exclusive right-to-sell.
Duties and Responsibilities of Real Estate BrokerRE/MAX Gujarat
The document discusses the responsibilities and guidelines for real estate brokers. It provides tips on how brokers should handle customers, including listening carefully to understand their needs, providing accurate information and alternatives, and coming to a mutual agreement. Brokers are advised to be on time, plan their work, engage in high-paying tasks, and have an efficient follow-up system. The document also outlines schedules of commission rates and guidelines for members, including dealing with other agents, maintaining transparency, and helping builders. It provides tips to avoid fraud and misguiding buyers in property dealings.
Duties and Responsibilities of Real Estate BrokerManaan Choksi
The document provides information on the duties and responsibilities of a real estate broker. It discusses that brokers should listen carefully to customer needs, provide accurate information and alternatives, and be fair and friendly. It also outlines tips for brokers to be successful like being on time, planning ahead, and engaging in high payoff tasks. The document discusses handling difficult customers, tips to avoid property fraud, and the responsibilities of brokers which include arranging meetings, title searches, financing assistance, and maintaining an updated property list. It also outlines broker duties like loyalty, obedience, disclosure, confidentiality, and reasonable care and diligence.
Dan starr realtor - the economic functions of real estate brokerageDanStarrRealtor
Real estate enables the economy as it does only comunicate about houses, but it speaks about almost everything that you see. It gives the space for businesses to achieve and it gives off a reputation that a country is doing well. It also paves way to more job event especially those who are in the construction industry.
The purpose of the course is to address regulatory aspects of operating a real estate brokerage in Texas, including agency law, business entity requirements, record keeping, advertising rules, and complaint procedures. Brokers must have policies ensuring licensee competency within authorized specialties. Agency relationships and duties of loyalty, care, and accounting are established through actual authority, ratification, or ostensible authority.
Semelhante a Section 7 General Principals of Agency.pptx (20)
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A Gathering of Minds
We were thrilled to see a diverse group of attendees, including local certified PMI trainers and both new and experienced members eager to contribute their perspectives. The workshop was structured into three dynamic discussion sessions, each led by our dedicated membership advocates.
Key Takeaways and Future Directions
The insights and feedback gathered from these discussions were invaluable. Here are some of the key takeaways and the steps we are taking to address them:
• Enhanced Resource Accessibility: We are working on a new, user-friendly resource page that will make it easier for members to access training materials and real-world application guides.
• Structured Mentorship Program: Plans are underway to launch a mentorship program that will connect members with experienced professionals for guidance and support.
• Increased Networking Opportunities: Expect to see more frequent and varied networking events, both virtual and in-person, to help you build connections and foster a sense of community.
Moving Forward
We are committed to turning your feedback into actionable solutions that enhance your PMI journey. This workshop was just the beginning. By actively participating and sharing your experiences, you have helped shape the future of our Chapter’s offerings.
Thank you to everyone who attended and contributed to the success of the Community Skill Builders Workshop. Your engagement and enthusiasm are what make our Chapter strong and vibrant. Stay tuned for updates on the new initiatives and opportunities to get involved. Together, we are building a community that supports and empowers each other on our PMI journeys.
Stay connected, stay engaged, and let’s continue to grow together!
About PMI Silver Spring Chapter
We are a branch of the Project Management Institute. We offer a platform for project management professionals in Silver Spring, MD, and the DC/Baltimore metro area. Monthly meetings facilitate networking, knowledge sharing, and professional development. For more, visit pmissc.org.
3. Agency
• The role of a broker as the agent of his or her principal is a fiduciary
relationship that falls within the requirements of the law of agency.
• A fiduciary relationship is one of trust and confidence in which an
agent is responsible for the money and/or property of others.
• It requires putting the principal's interest above all others, including
the broker's own interest.
4. Agency
• The agent is also known as a fiduciary.
• Not all relationships in real estate involve agency!
5. Client / Customer (Very Important)
• A client is someone to whom a broker acts as an agent.
• So, a seller who hires a broker as a seller's agent to list her home for
sale is a client.
• The buyer who is interested in a showing is the broker's customer.
• The broker does not have an agency relationship with the customer.
However, the broker has to deal honestly and fairly with a customer.
6. Types of Agency
• Universal Agent (not a real estate agency)
• General Agent
• Special Agent
• Attorney-in-fact (created by a power of attorney)
7. Universal Agent
• A universal agent has authority to represent the principal in all
matters that can be delegated.
• A universal agent may be authorized to enter into any contract on
behalf of the principal without prior permission.
8. Universal Agent
• For example, a universal agent would normally be appointed by a
court to attend to the needs of someone who was mentally
incompetent.
• Universal agency is not a real estate relationship.
9. General Agent
• A general agent represents the principal in a broad range of matters.
• The general agent may bind the principal to any contracts within the
scope of his or her authority.
10. General Agent
• An example of a general agent would be a property manager
responsible for running a large building. The agent finds tenants,
collects rents, and hires and supervises maintenance personnel,
among other duties.
• In this example, the general agency would be created by a property
management agreement.
11. Special Agency
• A special agent is authorized to represent the principal in one specific
capacity only.
• A real estate broker is traditionally a special agent hired by a buyer or
seller to locate a willing seller of a suitable property or a willing buyer.
12. Special Agency
• As a special agent, the broker is not authorized to buy or sell the property
or to bind the principal to any contract.
• The broker is not authorized for example to make an offer or accept an
offer on behalf of the client.
13. Power of Attorney
• Another type of agency is created by a power of attorney.
• Called an attorney-in-fact, the individual is authorized to act for someone
else in a legally binding capacity.
• A power of attorney is created with a legal written authorization that
stipulates the specific areas of authority in which the agent may act.
14. Power of Attorney
• An attorney-in-fact can sign a deed conveying property or execute a
mortgage and note to secure financing for a borrower.
• In these cases, the power of attorney document needs to be signed by
the principal in front of a notary public and recorded in the public record.
16. Duties Associated with an Agency (COALD)
• Care
• Obedience
• Accounting
• Loyalty (confidentiality)
• Disclosure
17. Duty of Care
• Must exercise a reasonable degree of care and diligence on behalf of the
principal.
• Expected to have expertise in real estate matters greater than that
possessed by the average person.
• They may be liable to the principal for any loss resulting from negligence or
carelessness.
18. Examples Duty of Care
• Assist a seller in arriving at a reasonable listing price
• Discover and investigate material facts about the property and the buyer
• Negotiate the highest possible sale price
19. Examples Duty of Care
• Meet deadlines and closing dates
• Advise the seller on ways to affect the sale.
• Failure to do any of the above could be a breach of the duty of care.
20. Standards of Care
• Brokers are held to higher expectations than salespersons.
• Brokers are unwise to represent themselves as experts if they are not.
• The duty of observing an appropriate standard of care is the responsibility
of the agent whether experienced or not.
21. Duty of Obedience
• The agent is obligated to obey the principal's lawful instructions.
• The agent must not obey unlawful or unethical instructions
22. Examples – Duty of Obedience
Must Do
• 24-hr showing notice
• No showings before 9:00am.
• Hold harmless notice prior to
showing
Must Not Do
• Violating fair housing laws
• Not disclosing defects
• Hiding buyer's finance issue.
• Try bidding low.
23. Duty of Accounting
• Agent is obligated to safeguard and account for all client money or
property.
• Broker must deposit all client funds into the broker trust account.
• Brokers to give duplicate originals of all documents to all parties upon
execution and to keep copies of documents for six years.
24. Duty of Accounting
• Broker must not to commingle business or personal funds with client
funds or to keep interest they earned on client funds in the escrow
account.
• An agent may not make any secret profit.
25. Duty of Loyalty (Confidentiality)
• Agent must always place a principal's interests above those of others
including the agent's own interests.
• Agent cannot disclose any confidential facts that might harm the
principal's bargaining position.
• Duty of confidentiality continues after the transaction is consummated.
26. Duty of Loyalty (Confidentiality)
• A seller's agent may not disclose that the principal will accept a price
below the list price.
• A buyer's broker cannot reveal the buyer’s willingness to pay more than
offered for a property.
• Brokers or salespersons must not buy property listed with them for
themselves without first notifying the principal that it is for themselves or
a family member.
27. Duty of Loyalty (Confidentiality)
• Agents may not sell property in which they have a personal interest
without informing the purchaser of that interest and including a
provision in the contract.
• Agent may not profit at the expense of the principals except through the
agreed-on commission.
• Profiting from a client's misfortune is, likewise, not permitted.
Discouraging co-broker’s to allow time to find the buyer, for example.
28. Duty of Disclosure (Notice)
• All facts or information that could impact the principal's business or
decisions.
• Pertinent information whether or not the client asks.
• Information that might affect the object of the agency
29. Duty of Disclosure (Notice)
• True value of the property
• A buyer's agent must communicate to the buyer any information about the
seller's willingness to accept a lower price, about other offers, or about the
value of the property.
• No confidentiality would apply to the seller's disclosures if made to a
buyer's broker.
30. Duty of Disclosure (Notice)
• The law considers that any notice given the agent has been given to the
principal.
• The agent therefore has a duty to pass on any material information; all
written offers must be presented immediately.
• The broker who is a seller's agent must volunteer any facts that might be
of value to the seller.
• Details of the buyer's financial condition should be disclosed
31. Duty of Disclosure (Notice)
• Buyer has indicated a willingness to pay a higher price.
• Broker has an obligation to explain to the seller matters that might
otherwise escape notice or be misunderstood.
• Buyer's broker is obligated to pass on to the buyer any information that
might help the buyer's negotiating position.
32. General Duty of Fair Dealing
• Real estate licensees are required to deal fairly and honestly with all
parties.
• Responsibilities of agent to customers and third parties, including
disclosure, honesty, integrity, accounting for money
34. Creation of Agency With Sellers and Buyers
• The special agency relationship between a broker and a seller or a broker
and a buyer is generally created by an exclusive listing agreement or an
exclusive buyer agency agreement.
• Neither agreement is required to be in writing by New Jersey and agency
can easily be created without a written agreement.
• Broker has must reject agency contracts that violate the ethics or the law.
35. Disclosure of Agency
• N.J.A.C. 11:5-6.9 contains NJREC rules regarding the disclosure of
agency.
• Licensees required to present a Consumer Information Statement to all
sellers, buyers, landlords, and tenants on the sale or rental of all one- to
four-family residential properties or vacant one-family lots.
• Short-term rentals held for not more than 125 consecutive days are
excluded from the formal written disclosure requirement, although
licensees still must disclose their business relationship in the transaction.
36. Disclosure of Agency
• A Consumer Information Statement (CIS) is not required for
commercial transactions.
• The Consumer Information Statement describes the types of business
relationships a real estate agent can enter into with a customer or
client and the duties associated with each relationship.
37. CIS Business Relationships
• A seller’s agent
• A buyer’s agent
• A disclosed dual agent
• A transaction broker
• A seller’s agent on properties on which the firm is acting as a seller’s
agent and transaction broker on other properties.
38. Seller’s Agent
• Works only for the seller.
• Has fiduciary duties to the seller.
• Has duty of honesty and fair dealing when working with buyers.
• Must disclose defects of a material nature affecting the physical
condition of the property which a reasonable inspection by the
licensee would disclose.
39. Buyer’s Agent
• Works only for the buyer.
• Has fiduciary duties to the buyer.
• Has duty of honesty and fair dealing to the seller.
• Must not misrepresent any facts material to the transaction such as
the buyers financial qualifications and must disclose defects of a
material nature affecting the physical condition of the property which
a reasonable inspection by the licensee would disclose.
40. Seller’s Agent/Buyer’s Agent
For Sale
Listing
Broker
Buyer
Broker
Listing
Agent
Buyer
Exclusive Listing
Agent of Seller
Buyer is Customer
Agent of Broker
Subagent of Seller
Excl Buyer Agent
Agent of Buyer
Seller is Customer
41. Dual Agency
• A disclosed dual agent works for both the buyer and the seller in the
same transaction.
• To work as a dual agent, a firm must first obtain the informed written
consent to dual agency from both the buyer and the seller.
• Most likely to occur when a licensee with a real estate firm working as a
buyers agent shows the buyer properties owned by sellers for whom that
firm is also working as a seller’s agent or sub-agent.
42. Dual Agency
• Because the licensee has a fiduciary duty to both buyer and the seller,
the licensee must have express permission of a party prior to
disclosing confidential information to the other party.
• Such information includes the highest price a buyer can afford to pay
and the lowest price a seller will accept and the parties’ motivation to
buy or sell.
43. Dual Agency
• A brokerage firm acting as a disclosed dual agent will not be able to put
one party’s interest ahead of those of the other party
• A brokerage firm likewise, cannot advise or counsel either party on how to
gain an advantage at the expense of the other party on the basis of
confidential information obtained from or about the other party.
• [See consent to dual agency form]
44. NJ Dual Agency Disclosure Requirements
• Explains fully the legal duties that will and will not be available from
him or her.
• Disclose any other business relationships that might affect the
proposed transaction.
• Obtains the buyer’s and seller’s written informed consent to the
brokers acting as a dual agent
45. NJ Dual Agency Disclosure Requirements
• Advises that each party may want to consult a lawyer.
• The broker is not allowed to accept compensation from both the
buyer and the seller in the same transaction. The dual agent may be
paid by either the buyer or the seller, but never by both.
46. Disclosed Dual Agent
For Sale
Listing
Broker
Buyer
Listing
Agent
Buyer
Agent
Exclusive Listing
Seller is a Client
Buyer is a Client
Agent of Broker
Subagent of Seller
Subagent of Buyer
Agent of Broker
Subagent of Buyer
Subagent of Seller
47. Transaction Broker
• NJ License Law does not require licensees to work in the capacity of an
agent when providing brokerage services.
• A transaction broker works with a buyer or a seller or both in the sales
transaction without representing anyone.
• A transaction broker does not promote the interests of one party over
those of the other party to the transaction.
48. Transaction Broker
• Licensees with such a firm would be required to treat all parties honestly
and to act in a competent manner, but they would not be required to keep
confidential any information.
• A transaction broker can locate qualified buyers for a seller or a suitable
property for a buyer.
• They can then work with both parties in an effort to arrive at an agreement
on the sale or rental of real estate and perform tasks to facilitate the
closing of a transaction.
49. Transaction Broker
• A transaction broker primarily serves as a manager of the transaction.
• Communicates information between the parties to assist them in arriving
at a mutually acceptable agreement and in closing the transaction
• Cannot advise or counsel either party on how to gain an advantage at the
expense of the other party.
50. Transaction Broker
• Owners considering working with transaction brokers are advised to sign a
written agreement with that firm which clearly states what services that
firm will perform and how it will be paid.
• In addition, any transaction brokerage agreement with a seller or a
landlord should specifically state whether a notice on the property to be
rented or sold will or will not be circulated in any Multiple Listing System of
which that firm is a member.
51. Transaction Broker
For Sale
Broker Buyer
Buyer
Transaction Mgr.
Seller is Customer
Buyer is Customer
No Agency Exists
No advice given to either party
Any information that comes into
the possession of the broker is
passed to the other side.
52. Furnishing the CIS Disclosure
• Real estate agents are required to furnish a CIS before any discussion of a
seller’s/landlord’s or buyer’s/tenant’s motivation or financial situation is
initiated.
• If the first discussion takes place by telephone or in a social setting, the
seller or buyer must still be verbally informed about the possible agency
relationships and alerted to their implications.
53. Furnishing the CIS Disclosure
• The statement should then be furnished at the next meeting, or included
with the first email, fax, mail, or delivered material.
• If no discussion of motivation or financial situation has taken place, the
agent must furnish a CIS before any property (listed or unlisted) is shown.
54. Furnishing the CIS Disclosure
• The regulations do not require that the CIS be signed by the parties as to
their acknowledgment of receipt of the CIS or by the licensee as to the
declaration of business relationship.
• However, in the event that a broker’s office policy requires that a CIS be
signed, the regulations do provide language that a licensee may use as an
option for obtaining the required signatures.
55. Furnishing the CIS Disclosure
• If the CIS is signed, a copy of the signed CIS is to be retained by the broker
when a sale or rental is consummated for six years.
• Sellers and buyers must acknowledge receipt of the CIS on all offers,
contracts, and leases.
56. Other Written Disclosure of Agency
• Every listing, offer, contract, and lease prepared by a licensee must set
forth the broker’s relationship with the parties involved.
• If a signed CIS is not attached, offers, contracts, or leases must also
contain the client or customer’s acknowledgment that the CIS was
received prior to the first showing of the property.
• In addition, when more than one firm is involved, the licensee preparing
the document must include a statement indicating how the other firm has
described its agency status in that transaction.
57. Other Written Disclosure of Agency
• Listing agreements prepared by a seller’s agent must state whether
subagency is being offered to cooperating firms and whether the seller
has authorized sharing the commission with subagents, buyer’s brokers,
or transaction brokers.
• If so, the agreement must state the amount of the share.
• When other licensees inquire about a listing, it is the responsibility of the
listing agent to determine whether the other agent is functioning as a
buyer’s broker, a subagent of the seller, a transaction broker, or a disclosed
dual agent, in order to judge what confidential information may be shared.
58. Termination of Agency
• Death or incompetency of either
party
• Destruction of the property
• Expiration of the term of the
agency
• Mutual agreement
• Renunciation by the agent
• Revocation by the principal
• Bankruptcy of either party
• Fulfillment of the objective
59. Termination of Agency
• A seller or buyer, acting in good faith, has a right to fire a broker (for
cause) or to rescind the brokerage agreement at any time.
• When a broker is discharged prior to the agreed upon date, the broker may
be entitled to reimbursement for out-of-pocket expenses, such as
advertising and multiple listing service fees.
• The contractual provisions of the contract may be enforceable until
expiration.
60. Inadvertent Agency
• Licensee must be careful not to give the buyer the impression that he or
she is the agent’s client if no buyer agency agreement exists.
• Even if it is not the intention of the agent to create a formal agency, the
courts may infer that agency exists if the licensee acts “as an agent.”
• Salespeople working with customers should be careful at all times not to
use such terms as “my buyer,” or refer to a customer as a “client.”
61. Inadvertent Agency
• These could have the effect of creating agency liability for the licensee to
the buyer
• Inadvertent agency could lead to inadvertent and undisclosed dual agency.