Client Representation Agreements

Question 1

Exclusive Right to Sell (Listing Agreement)

Answer 1

exclusive agreement with one broker; seller pays broker regardless of who sells the property (most commonly used type in CT)

Question 2

Exclusive Agency (Listing Agreement)

Answer 2

exclusive agreement with one broker; seller retains right to sell without owing compensation to broker

Question 3

Open Listing (Listing Agreement)

Answer 3

nonexclusive agreement with multiple brokers; only selling broker is compensation

Question 4

Exclusive Right to Represent Buyer

Answer 4

exclusive agreement with one broker; broker is entitled to compensation regardless of who located property; allowed but not typically used in CT

Question 5

Exclusive Agency Right to Represent Buyer

Answer 5

exclusive agreement with one broker; broker is only entitle to compensation if broker locates property

Question 6

Open Right to Represent Buyer

Answer 6

nonexclusive agreement with multiple brokers; only broker that locates the property is compensated

Question 7

Negotiate

Answer 7

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

Question 8

Preliminary Activities for Buyer

Answer 8

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

Question 9

Three Steps Before Working with a Buyer

Answer 9

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

Question 10

Commission Rates

Answer 10

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

Question 11

Net Listing

Answer 11

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

Question 12

Interest in Property

Answer 12

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

Question 13

Material Facts

Answer 13

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

Question 14

Non Material Facts

Answer 14

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

Question 15

Sales Price

Answer 15

must be accurately represented; must state the actual selling price

Question 16

Property Condition Disclosure

Answer 16

sellers are required to provide prospective buyers with a report in all residential real estate transactions

Question 17

Off Site Conditions

Answer 17

potential liability exists for failure to disclose offsite hazardous waste conditions and properties on which hunting and shooting take place; CT law excuses both the seller and the sellers agent of liability if the seller provides a written notice to potential purchasers of the availability of DEEP lists

Question 18

Agency Disclosure

Answer 18

a licensee representing a seller or landlord in a residential transaction is required to make a written disclosure of whom he or she represents in the transaction to any unrepresented party in the transaction

Question 19

Internet Advertising Requirements

Answer 19

licensee’s name & office address, name of broker that the licensee is affiliated with, all states where the licensee is licensed, last date that the property information was updated

Question 20

Signs

Answer 20

brokers must obtain written consent to place for sale or for rent signs on the seller or landlords property and must have a valid listing contract