REAL 4000 Exam 1 Study
Questions and Answers
What Do Brokers Do? - -• Bring buyers and sellers together
• In real estate needs • Physically• Emotionally
• Collect commission for a successful transaction
- What Special Knowledge Can a Broker Offer? - -Prices and terms in current
market
Marketing approaches that work
Legal obligations of buyers and sellers
Properties in market
Potential customers and their needs
Procedures and requirements of transaction
- law of agency - -Governs relationship between a principle (client) and
someone charged to act on agent behalf
- universal agent - -Power to act for principal in all matters
- general agent - -Power to act within limits of a business or employment
relationship
- special agent - -Power to act in a specific event
- duties or fiduciary responsibilities of agent - -- Confidentiality - Never
betraying confidential information
- Obedience -Following instructions of the principal fully
- Accounting - Keeping principal informed about financial aspects of
assignment
- Loyalty - Never subordinating the best interest of principal
- Disclosure - Being completely open and honest
- Skill and care - Representing principal as agents would represent
themselves
- Duties of Principal - -- Open
- Honest
- Fair
- broker earns commission from Listing contracts - -A broker earns a
commission by finding a ready, willing and able buyer for the specified price
and terms
- exclusive right of sale - -agent is compensated if anyone finds a buyer
, - exclusive agency - -agent is compensated if any agent finds a buyer, but
not if owner does
- open listing - -agent is compensated only by finding a buyer
- Listing Contract - -Traditionally created special agent relationship
A contract for services, not for real estate
Usually a contract between seller and broker
Increasingly between buyer and broker
Frequently has involved subagency through MLS
(MLS - Multiple Listing Service)
- solution to dual agency - -designated agent
buyer agent by law
transaction broker
- designated agent - -Brokerage representing both sides appoints a
separate agent for each party
- buyer agent by law - -Salesperson showing a house becomes buyer agent
unless declaring otherwise
- transaction broker - -Not an agent for buyer or seller
• Also called facilitating or intermediary broker
- single agent - -• Dealing honestly and fairly
• Loyalty
• Confidentiality
• Full disclosure
- Licensing of brokers and salespersons - -Must be licensed to provide real
estate transaction services for others including:
• buying, auctioning, renting, selling, appraising, leasing, exchanging
- salesperson - -must work for a broker
- broker - -can operate own brokerage agency
- Anti-Discrimination Laws Affecting Real Estate Services - -Title VIII of the
Civil Rights Act of 1968 prohibits discrimination by race, color, religion,
national origin, sex, familial status, and handicap, including:
•Refusing to rent or sell
•Offering different terms and conditions
•Selective advertising
•"Blockbusting"
Questions and Answers
What Do Brokers Do? - -• Bring buyers and sellers together
• In real estate needs • Physically• Emotionally
• Collect commission for a successful transaction
- What Special Knowledge Can a Broker Offer? - -Prices and terms in current
market
Marketing approaches that work
Legal obligations of buyers and sellers
Properties in market
Potential customers and their needs
Procedures and requirements of transaction
- law of agency - -Governs relationship between a principle (client) and
someone charged to act on agent behalf
- universal agent - -Power to act for principal in all matters
- general agent - -Power to act within limits of a business or employment
relationship
- special agent - -Power to act in a specific event
- duties or fiduciary responsibilities of agent - -- Confidentiality - Never
betraying confidential information
- Obedience -Following instructions of the principal fully
- Accounting - Keeping principal informed about financial aspects of
assignment
- Loyalty - Never subordinating the best interest of principal
- Disclosure - Being completely open and honest
- Skill and care - Representing principal as agents would represent
themselves
- Duties of Principal - -- Open
- Honest
- Fair
- broker earns commission from Listing contracts - -A broker earns a
commission by finding a ready, willing and able buyer for the specified price
and terms
- exclusive right of sale - -agent is compensated if anyone finds a buyer
, - exclusive agency - -agent is compensated if any agent finds a buyer, but
not if owner does
- open listing - -agent is compensated only by finding a buyer
- Listing Contract - -Traditionally created special agent relationship
A contract for services, not for real estate
Usually a contract between seller and broker
Increasingly between buyer and broker
Frequently has involved subagency through MLS
(MLS - Multiple Listing Service)
- solution to dual agency - -designated agent
buyer agent by law
transaction broker
- designated agent - -Brokerage representing both sides appoints a
separate agent for each party
- buyer agent by law - -Salesperson showing a house becomes buyer agent
unless declaring otherwise
- transaction broker - -Not an agent for buyer or seller
• Also called facilitating or intermediary broker
- single agent - -• Dealing honestly and fairly
• Loyalty
• Confidentiality
• Full disclosure
- Licensing of brokers and salespersons - -Must be licensed to provide real
estate transaction services for others including:
• buying, auctioning, renting, selling, appraising, leasing, exchanging
- salesperson - -must work for a broker
- broker - -can operate own brokerage agency
- Anti-Discrimination Laws Affecting Real Estate Services - -Title VIII of the
Civil Rights Act of 1968 prohibits discrimination by race, color, religion,
national origin, sex, familial status, and handicap, including:
•Refusing to rent or sell
•Offering different terms and conditions
•Selective advertising
•"Blockbusting"
