Ch 17: Working with Buyers Flashcards
How long must a licensee keep a refused Consumer Notice on file?
Licensees must keep a copy of the signed/refused acknowledgement for 6 months.
In Pennsylvania, licensees are required to give what document to any party before he or she signs a buyer’s agency agreement?
Consumer Notice
What are the fiduciary duties owed to a customer?
There are no fiduciary/statutory duties owed to a customer.
What are the specific duties owed to clients when in an agency relationship?
Care
Obedience
Loyalty
Disclosure
Diligence
Accounting
Confidentiality
How many licensees are usually involved in a designated agency transaction?
Two licensees - one for the buyer and one for seller
How does designated agency work?
Designated agency refers to a situation where the buyer and the seller each have their own agent, but both agents work for the same broker.
In subagency, the agent bringing the buyer is working for which party?
The agent bringing the buyer is actually working for the seller as a subagent of the listing broker.
What is a dual agency?
Dual agency means that the listing licensee represents both the seller and the buyer in the same real estate transaction.
How does the law define the initial interview?
The initial interview is the first contact between a licensee and a consumer when a substantive discussion about real estate occurs.
What is the key to maintaining loyalty to a buyer?
Loyalty to the buyer is achieved by acting in the buyer’s best interest.
How is a mortgage loan pre-qualification figured?
You determine the debt-to-income ratio by looking at the buyer’s monthly gross income compared to the monthly debt that the buyer will pay for at least the next 10 months.
Which person preapproves a loan application?
Loan applications are preapproved by an underwriter.
About what percent of residential real estate transactions in the United States are in-house transactions
About 22 percent
What type of agency was created to avoid the problems with dual-agency?
Designated Agency was established.
What is the cash limit, when a Form 1099-MISC must be completed for compensation to a non-employee?
The Internal Revenue Service (IRS) requires that listing brokers who pay a cooperative commission in excess of $600 to an individual who is not their employee must complete a Form 1099-MISC. While this is not a new law, but not all real estate professionals are aware of this requirement.
What is another term used to describe an undisclosed dual agency?
Unintended dual agency or non-disclosed dual agency
What does Megan’s Law do?
Provides for community notification of certain convicted sex offenders
What section in the BAC informs the buyer to seek information regarding specific conditions or components of a property which are outside licensee’s area of expertise?
Paragraph 9. Expertise of Real Estate Agents
What section in the BAC informs the buyer that second-hand information regarding the description of the property may or may not be accurate?
Paragraph 13. Buyer Inspections
What section in the BAC form would you include additional documents that become part of the buyer’s contract?
Paragraph 15. Special Clauses
Subagency is uncommon now because:
buyer’s need an agent to represent their interests.
A seller’s agent working with a buyer will use methods specifically designed to get the buyer to sign the contract but a buyer’s agent will:
advise the buyers of pros and cons about any property.
What kind of agency describes a licensee representing the seller and buyer in the same transaction?
Dual agency
What agreement is known as the exclusive right to represent?
An exclusive buyer agency
