Duties of agent - Answer- OLDCAR
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Resasonable care
Types of Agents
Special vs General -
... [Show More] Answer- = "limited agency", must follow the instruction of the principal, not allowed to sign or accept any term on behalf of the prinicipal (client)
= can represent the principal, (client)common examples are a property manager and the broker agent relationship / a license holder will act for the broker or principal
IRS Independent Contractor Status rules for a general agent - Answer- Commissions must compensate the sales agents..
• There may be a policies and procedures manual .
• The sales agent shall pay his own business expenses. •
The sales agent cannot be made to attend sales meetings.
• The sales agent cannot be made to attend training seminars.
• The sales agent cannot be made to work set hrs
Termination of agency relationships - Answer- • When the purpose of the agency is completed
• The expiration of the period stated in the listing contract
At any time by mutual agreement.
• Death or incapacity of either party.
• Condemnation or destruction of the property.
• Bankruptcy of either party.
• Operation of law.
• Revocation of the broker's license.
• Abandonment by the agent.
• Revocation of the agreement at any time by the principal.
• Termination of the agreement at any time by the broker
Sherman Anti-Trust Act and commission rates - Answer- Commission rates must always be a matter of negotiation between the broker and the client
Details in a valid listing - Answer- Paragraph 1. Parties: Identifies the parties.
Paragraph 2. Property:
Paragraph 2.A. Land:
Paragraph 2.B. Improvements:
Paragraph 2.C. Accessories:
Paragraph 2.D. Exclusions:
Paragraph 2.E. Owners' Association:
Paragraph 3. Listing Price:
Paragraph 4. Term:
Paragraph 5.A. Broker's Fee:
Paragraph 5.B. Earned:
Paragraph 5.C. Payable:
Duties of the principal and the definitions of those duties - Answer- • Compensation
• Reimbursement
• Indemnification=means that the principal will protect the agent from suffering a loss due to the agent's reliance on information received from the principal.
• Performance
Elements of a valid listing agreement - Answer- • The signatures of all of the owners and the listing agent
• A legal description of the property, including the street address
• The list price of the property as set by the seller
• A definite starting (commencement) and ending (termination) date
• The agreement to pay a stated commission (compensation) to the broker, usually a percentage
1. ____ CMA
2. ____ Net listing
3. ____ Listing agreement
4. ____ Open listing
5. ____ Exclusive agency
a. States that the seller can list his or her property with multiple competing brokers
b. Contract with a seller that gives the broker the right to find a purchaser for his or her property
c. The seller lists the property with only one broker, but can sell it him or herself without paying a commission
d. The real estate broker's commission is the difference between the minimum net established by the seller and the actual seller's net
e. Analysis based on properties that have recently sold that are most similar to the subject - Answer- 5. c. 4. a. 3. b. 2. d. 1 e
listing agreement - Answer- is an employment contract used by sellers to employ a real estate broker or brokerage firm, to find a buyer for their property.
Disclosure requirements for the agent to customers and client - Answer- Disclosure of all Material Facts — The license holder must disclose all facts that he or she knows or should reasonably be expected to know that materially affect the value of or desirability of the property.
Honest Dealing — An agent may not deceive, defraud, or otherwise dishonestly deal with a customer.
Reasonable Care and Skill in Performance — This means that an agent will be held to the standards of knowledge, expertise, and ethics that are spelled out in the Texas Real Estate License Act.
Agency by actual authority [Show Less]