General - Chapter 5 Lesson 3 Flashcards
(19 cards)
Buyer agency agreement
written contract between buyer and broker stipulating commission
What does buyer agency agreement do?
Grants broker right to represent buyer AND buyer responsible for paying
Exclusive buyer agency agreement
gives broker exclusive right to represent a buyer’s interest in purchasing a property (exclusive right to represent)
Exclusive Agency Buyer Agency Agreements
limits buyer to representation however only owes commission if licensee associated with brokerage finds suitable property
Subagent
an agent of an agent; a person given authority by an agent to assist in carrying out orders of that agent’s principal
Nonexclusive Buyer Agency Agreements
buyer can enter into any number of brokerage agreements, broker only earns commission if they introduce property
Required elements:
compensation, duration, names, signatures, min services, obligations of buyer
Common (not required) elements
Wants/needs for prop, anti-discrimination clause, broker protection clause
Broker protection clause
entitles broker to commission if buyer purchases prop agent introduced them to shortly after agreement expires
Duties of a buyer’s agent…
follow buyer’s lawful instructions (obedience), loyal to buyer, promote buyer’s best interests, disclose facts, maintain confidential, account, reasonable skill and care
Licensees to be entitled to compensation…
hold active real estate license and under valid buyer agency agreement
Compensation is usually due when…
meeting of the minds occurs
Buyer’s broker must tell their client about compensation…
from cooperating brokers, from both parties to a transaction, and to a referring broker
Dual agency
broker represents both parties in a transaction
agents can also represent…
tenants and landlords (commercial)
tenant representation agreement
written contract that creates an agency relationship between a broker and a tenant
Whats included in a tenant representation agreement
rent range, desired location and amenities, compensation, qualifications and consent to pay fees
Tenant’s broker will…
Locate suitable prop, negotiate lease terms, write offers, advocate for tenant, and keep tenant’s personal information confidential
Exclusive listing agreement w/ property owner seeking a tenant
Between: prop owner + broker
