Real Estate Section 3
NON-EXCLUSIVE
must prove procuring cause to earn a commission
Listing automatically ends with the death of the seller,
Broker destruction of property, but not death of salesperson
Seller pays full commission to the Listing Broker
It is divided among the companies
Ministerial Acts
Are for clients and customers
When working as a designated agent
you cannot ask advice from other agents, you can only ask your broker
When a deal falls apart and buyer and seller cannot agree on earnest money dispersal
broker should interplead in court
Specific performance lawsuit
forces a party to carry out his/her obligations under a contract
If Seller ask you not disclose a serious adverse defect/material fact and you honor it;
Seller and Broker would be liable
Dual agent
If the seller reveals his bottom line, only disclose with written contract
The 3 ways to handle Trust Funds when selling as an agent your personally owned properties ARE
List with your broker and put funds in his trust acct
With your Broker's permission list with another broker and put funds in his acct
Open your own trust acct with your broker's permission and register with GREC (within 30 days)
Fair Housing act doesnt cover
Current illegal drug users
You can always count on an earnest money refund if you
Withdraw your offer prior to acceptance
Commission on an Option is paid once
The Option is excerised
Option to buy price is determined when
Negotiating the original option agreement
Earnest money
is not a requirement of a valid, binding contract. Know all parts want earnest money can be
Commissions are determined by
listing broker and seller
You receive two offers
Tell seller to accept or counter on one offer and reject the other or reject both
Sherman Anti- Trust Act
Federal Law against monopolies
Special stipulations
are used to fully express the intent of the parties when not covered in the pre-printed fill in the blank forms
If owner instructs you as the property manager to do something that might harm the owner and/or tenant:
You must inform owner of potential danger prior to doing the task...such as, removing a loose railing on the outside deck could harm the tenant and cause them to sue the landlord
1st counter and additional counters reject the previous offer
seller cannot go back and accept a previous counter
When a seller receives and accept an offer,
it becomes binding when communicated back to the buyer
Market allocation
is not illegal when agreed between 2 agents in the same office or company
Spousal approval contingency
is legal if approved by all parties in a contract
What is a tie-in?
illegal under Sherman Anti-Trust Act... where builder requires to buy one lot to get another
redlining
Restricting you to higher interest rate mortgages despite your credit bc of race
Two types of Exclusive listings ARE
Exclusive Agency & Exlusive Right to Sell
Exclusive Agency
you agree to let one agent and their brokerage (basically, the company they work for) be the only ones to market your home
Exclusive Right to sell
a type of listing contract you enter into with a real estate agent
signing agent is the only person allowed to market and sell your property for a certain amount of time
Misrepresentation and an ethical violation
Illegal to use anything other than the true sales price in publications to keep prices higher
Disclosing how you prequalify buyers
Not required prior to signing a brokerage agreement
Death of an owner
Terminates a current listing and unsigned offers
Designated agency
You are not acting as a dual agency
Illegal acts under Sherman Anti-Trust Acts:
Tie-Ins, Market Allocations, Price Fixing (commissions) Boycotting Denying Membership.
Seller asks you not to disclose a defect
Tell him you cannot honor the request
Dual Agency:
Permissible if allowed in office policy; must have written informed consent of all parties
How to calculate a down payment. Loan to value ratio. In the case of a mortgage, this would be the mortgage amount divided by the property's value.
taking the loan amount and dividing it by the value of the asset or collateral being borrowed against
What Panic Selling/Blockbusting?
Investors will start to sell their investment properties all at once. This will cause a big drop in the prices of these properties & it is illegal under Fair Housing
Fiduciary
a legal relationship that is confidential between two parties
escrow account
part of your monthly loan payment is deposited to cover some of the costs associated with home ownership; no hiding monies
Designated agent
assigned to a client
Contract for Deed
Vendor/Seller; Vendee/Buyer
You/Broker always get paid with an
Exclusive Right to Sell listing
Under RESPA, federal law,
no kickbacks allowed
At minimum, you must do an amendment to extend
a contingency, so it doesn't expire
Under age buyer, contract binding on
Seller only
puffing
the exaggeration of material facts
Seller asks the race of the buyer, and you refuse to answer
Does not break your fuduciary duties
Exclusive Agency Agreement
the fact the seller can still sell without paying a commission
Regardless of the offer or how many times a Seller may have refused an offer at a particular price,
you always present all offers
Brokers can only send licenses to
GREC
A licensee can only
complete forms for someone who is a client
Can have license suspended for not giving copies of
Signed listing to all parties involved
An owner is not required
to notify a licensee when not re-newing a listing
A Broker cannot
contact a seller who is currently under a listing agreement with a different Broker
Earnest money can be anything
of value as long as its agreed upon
Agency created on National level can either be
Implied or verbal
When is your commission is earned?
When a ready, willing, and able buyer is found
How to terminate a contract
Contact party and negotiate an end date to that contract
Requirements for a valid contract
a legal purpose, legally competent parties, agreement by offer and acceptance, consideration, and consent
Fair Housing Laws of 1866, 1968 and 1988
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Fudicuary Duties
Real estate agent must act in the best interests of their clients and not their own interests
Transaction Broker all are
Customers; Only ministerial acts.