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Flashcards in Buyer Rep Decision and Agreement Deck (29):
1

When does buyer agency exist?

Buyer agency exists when the broker represents the buyer exclusively in the real estate transaction.

2

When would a salesperson be more likely to receive a commission?

If the buyer was a client instead of a customer

3

What would be the only exception to every real estate office working with a buyer-client?

An independent office that doesn't belong to the local board or MLS and will not cooperate with any other offices.

4

What does FSBO stand for?

For Sale by Owner

5

Three ways to create agency

In writing, orally, or through the actions of the salesperson. Of course, in writing is still the best way to create agency.

6

commission could be received in three different ways:

The seller could pay the commission.
The buyer could pay the commission.
The seller and the buyer could both pay the commission.

Most time seller

7

Which is the most important reason a buyer would want to become a client?

He or she will be in the strongest negotiating position possible.

8

When the buyer is a customer, what is the type of representation?

There is no representation when a buyer is a customer.

9

When working with a buyer’s agent, under what circumstance might a buyer-client consider it to be a conflict of interest?

When he or she finds out the broker is also representing the seller for the property the buyer wishes to make an offer on

10

What is all representation, including tenant representation, about?

The broker and salespeople putting the needs of the client first

11

Buyer agency can be terminated when and by whom?

Buyer agency can be terminated at any time by the broker or the client.

12

Tenant representation is frequently found where?

Commercial real estate representation

13

A buyer’s agent should clarify the types of services to be offered to the buyer-client.

These include:

Assisting in determining favorable financing
Providing information relating to market values
Giving advice during contract negotiations
Structuring the offer to purchase
Assisting in related services such as insurance

14

The buyer's agent should mention

the potential need for the buyer to consult with other expert advisors, such as CPA, attorney, etc.

15

Some key points to consider in buyer’s broker agreements would include: `

Role of the agent
Conflicts of interest
Termination date and reasons for termination
Exclusivity of representation
Compensation

16

List three services that need to be clarified by the buyer agent to the client.

Assisting in determining favorable financing
Providing information relating to market values
Giving advice during contract negotiations

17

Agents know that an exclusive-right-to-sell or exclusive-right-to-buy agreement provides what?

Better control over the transaction

18

Unnecessary risks are taken when brokers do what with buyer agency agreements?

Write their own agreements

19

Here are a few misconceptions still heard today about buyer's agency:

Buyer agency must be created by written agreement to be lawful.
Buyer agency is too complicated for the average buyer or seller to understand.
Buyer agency is not recognized by lenders.
Buyer agency increases the risk of procuring cause disputes.
Buyer agency is illegal.
Buyer agency is prohibited by State laws or MLS rules.
Buyer agency does not permit the seller to pay the commission or allow the listing broker to split commissions with the buyer's agent.

20

Name two advantages of exclusive buyer agency. (See screen 30 for other correct answers.)

Buyers have greater confidence that they will see all the properties available from every source.
Buyer loyalty to the agent increases under an exclusive buyer agency agreement.

21

A buyer's agent is held to the same standard of performance in dealing with the buyer that the listing broker is held to in dealing with whom?

The Seller

22

How do we refer to an agent who ultimately caused the buyer to purchase the home and earned the commission?

Procuring cause

23

The reason licensees like buyer agency so much today

is that the buyer will be loyal and will stay with the salesperson to purchase a home.

24

Tenant representation

is common in commercial real estate. A corporation can contact a broker to find a spot to lease. The broker could form agency with the tenant and negotiate the best lease possible. The commission could be paid by the landlord, the tenant, or both.

25

Another way that buyer agency ends

agreement expires

26

Some of the advantages of exclusive buyer agency are:

Buyers have greater confidence that they will see all the properties available from every source.
Buyer loyalty to the agent increases under an exclusive buyer agency agreement.
An exclusive buyer's agent is more likely to be able to charge retainer fees because buyers are confident of the commitment they receive from the broker.
It reduces the possibility of the unauthorized representation of more than one party because exclusive buyer's brokers do not take listings.
Exclusive buyer agency tends to prevent mistakes in negotiating objectives that often occur when brokers move from one role to another.

27

Regarding Texas licensing laws and the common law

the buyer's agent is held to a higher standard of skill and care in working with the buyer than is a subagent of the seller or the seller's listing agent, who works with the buyer on a customer basis.

28

Buyer's agents have a duty to their clients to

thoroughly investigate and completely disclose all facts that rely on a buyer's decision to buy.

be honest and deal fairly with sellers, but they owe no duty to advise and counsel sellers.

29

The agent who ultimately caused the buyer to purchase the home and earned the commission is generally the

procuring cause agent