Client Representation Agreements Flashcards
Exclusive Right to Sell (Listing Agreement)
exclusive agreement with one broker; seller pays broker regardless of who sells the property (most commonly used type in CT)
Exclusive Agency (Listing Agreement)
exclusive agreement with one broker; seller retains right to sell without owing compensation to broker
Open Listing (Listing Agreement)
nonexclusive agreement with multiple brokers; only selling broker is compensation
Exclusive Right to Represent Buyer
exclusive agreement with one broker; broker is entitled to compensation regardless of who located property; allowed but not typically used in CT
Exclusive Agency Right to Represent Buyer
exclusive agreement with one broker; broker is only entitle to compensation if broker locates property
Open Right to Represent Buyer
nonexclusive agreement with multiple brokers; only broker that locates the property is compensated
Negotiate
includes showing the buyer any property, discussing an offer with the buyer, engaging in the negotiation on behalf of the buyer or giving advice to the buyer about particular real estate; buyer agency agreement must be entered into before any negotiations
Preliminary Activities for Buyer
licensee may conduct preliminary activities before a written buyer representation agreement including give property info, give info on licensee’s firm, give info on mortgage rates and lending institutions
Three Steps Before Working with a Buyer
ask if they are being represented by another firm, explain your firm’s policy on agency and customer relationships, tell the buyer not to provide confidential information unless and until the buyer and licensee have entered into an agency relationship
Commission Rates
the amount or rate of compensation is not fixed by law it is set by each broker individually and may be negotiable between you and the broker
Net Listing
a listing contract in which the broker receives as a commission all excess monies above a minimum sales price agreed on by the broker and seller; prohibited by CT state law
Interest in Property
licensees who have a present or contemplated interest in a property listed with them must disclose that interest to all parties concerned; must also disclose any relationship that exists to the seller or buyer
Material Facts
an important fact about real estate or the transaction which influence the buyer or seller’s decision; duty to disclose about a property or transaction and cannot misrepresent or conceal; applies even when the licensee does not represent a party
Non Material Facts
a fact related to whether a property occupant has or had a disease, emergency illness or health condition listed by the Public Heath Commissioner or the fact that there was a death or felony on the property is not considered material - however if the purchaser or tenant advises in writing that this information is important to their decision then the owner does have a duty to disclose
Sales Price
must be accurately represented; must state the actual selling price