agency relationship
scope of duties imposed on broker arising out of the representation authorized by employment form.
exclusive agent
agent acting exclusivly on behalf of one party in a transaction
exclusive right to buy listing agreement
written employment agreement by a broker & prospective buyer of re employing and entitling the broker to a fee wen property is purchased during the listing period.
exclusive right-to-buy listing
written employment agreement by a broker & a prospective . Buyer employing & entitling the broker to a fee when property is purchased during the listing period.
REO (Real Estate Owned) property
property acquired by a mortgage holder through foreclosure
unilateral employment agreement
oral or written agreement obligating broker to use best efforts to fulfill client's RE goals without imposing a due diligence duty until a match is located - commonly called an open listing.
bilateral employment agreement
written exclusive employment agreement that obligates the broker to exercise due diligence to fulfill clients re objectives in exchange for the promise to pay a fee under various circumstances
what conduct by a broker or brokers agent raises status of relationship with a potential buyer to that of agent?
Providing information on properties other than those listed by the broker/seller's agent raises legal status to that of buyers agent.
at what point are special agency duties owed to a potential buyer
Duty arises when broker enters into an exclusive right to buy OR presents property info to an unlisted buyer that broker has agreed to locate a property for
what is the due diligence obligation of a broker to a buyer under exclusive right to buy
constant and continuing effort to locate qualifying properties while keeping buyer informed of their efforts
Does a unilateral employment agreement between broker and buyer obligate broker to due diligence
no - this is simply a best-effort with no requirement of constant continuous
When a broker presents data on any property what obligations arise no matter what relationship exists between the two
Wha additional requirements does obligation of due diligence impose when evaluating a particular property for acquisiion
broker must
Gather readily available data on property
assist in analysis and consequences of property data
Advise buyer in conscientious effort to care for & protect their best interests
Due diligence requirement arising from either oral or written agreem
Wen does an agency relationship require due diligence vs simply best effort?
best effort is required on an open listing until a specific property/ buyer is identified and pursued then due diligence is required
due diligence required on exclusive listing. All agency relationships carry fiduciary duty of loyalty & full disclosure
at what point in an open listing to buy does a broker's obligation to client switch from best effort to one of due diligence
When information is delivered on a specific property, broker becomes obligated to use due diligence to:
gather avaialable property data
assist in analysis
advise the buyer regarding property & any proposed transaction
When acting as a buyer's agent due diligence includes...
disclosing facts about the integrity of property
recommending investigative activiywhich agent knows might influence buyers conduct in negotiations
safety clause in buyer's listing allows broker to collect a fee for services rendered during listing period if ...
info specific to a property was provided during listing period
on expiration of listing, buyer is given itemized list identifying properties buyer's agent brought to buyers attention (this perfects brokers right to fee)
buyer enters into negotiations with
When might a broker typically accept a lower fee than wat is listed in buyers listing agreement
If property purchased is listed with another broker
what are the sections in a buyers listing agreement
Brokerage services
Broker fee
property sought
signitures