WRAR DR - Brokerage Relationships


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This program is an in-depth explanation of the many agency relationships in Massachusetts. We will explore the process, procedure and forms needed to create these relationships. Creation of good policy and practices will be discussed. Emphasis will be on Designated and Dual Agency.

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WRAR DR - Brokerage Relationships

  1. 1. 2/2/2014 1
  2. 2. 2/2/2014 Agency Relationships 2
  3. 3. 2/2/2014 Types of Agency  Seller Agency  Traditional Agency  Designated Agency  Sub‐Agency  Consent from Seller  Specific Language  Buyer Agency  Traditional Agency  Designated Agency 3
  4. 4. 2/2/2014 Types of Agency Traditional Disclosed Dual Agency Single Licensee Two Agents Designated Disclosed Dual Agency Single Licensee 4
  5. 5. 2/2/2014 Types of Agency  Facilitation  Buyer or Seller  Duty to accountability  Confidentiality “unless otherwise agreed” 5
  6. 6. 2/2/2014 If you thought…. Facilitation = Someone who does LESS WORK during the transaction Increase Seller liability Is not licensed You are wrong! 6
  7. 7. 2/2/2014 Facilitation May be appropriate: When your agent does not know the consumer When a buyer will not enter into a written buyer agency agreement When you time and duties may be limited e.g. want to put in one offer on one house When you already represent another party 7
  8. 8. 2/2/2014 Disclosure 8
  9. 9. 2/2/2014 Disclosures Agency disclosure 254 CMR 3:00 (13) a. Agency disclosure for real estate agents representing the seller or buyer. A real estate broker or salesperson shall provide to a prospective purchaser or seller of real estate a notice developed and approved by the board which clearly discloses the relationship of the broker or salesperson with the prospective purchaser or seller of the real estate. The notice, developed by the Board, shall be provided to a prospective purchaser or seller at the time of the first personal meeting between the prospective purchaser or seller and the broker or salesperson for the purpose of discussing a specific property. 9
  10. 10. 2/2/2014 An Agent’s View of Disclosure Anytime after I meet you but before you write an offer A form where the consumer choses the relationship A creation of buyer agency Only buyers Always and forever 10
  11. 11. 2/2/2014 Disclosures 2010 Agency Disclosure Investigation 2014 Another investigation? 11
  12. 12. 2/2/2014 Current Agency Disclosure Form Disclosure to a Buyer of Seller Agency 12
  13. 13. 2/2/2014 Agency disclosure to other agents According to the REALTOR Code of Ethics, it is the duty of an agent to disclose to another agent their relationship with the buyer 13
  14. 14. 2/2/2014 Consent and Notice  Dual Agency  Consent  Specific language  Notice  Designated Agency  Consent  Specific Language  Notice 14
  15. 15. 2/2/2014 Events 15
  16. 16. 2/2/2014 Teams What is the division of duties? Do they interact with the consumer? What is the physical structure? What is the team leaders philosophy? What does it mean to represent different parties? 16
  17. 17. 2/2/2014 Open House Who are they? Listing Agent Non Listing Agents Team Members Duties and responsibilities Confidentiality Protecting the property Selling or prospecting Marketing vs Agency All agents can participate in marketing the property 17
  18. 18. 2/2/2014 Walk‐Ins Who do you already represent? Do you have consent from your current client? Dating or Marriage? 18
  19. 19. 2/2/2014 Me, Myself and I Single Agent Dual Agency Informed Consent ‐ a person’s approval or permission for an action to occur that is based on full disclosure of facts needed to make an intelligent decision. To enable the client to make an intelligent decision such facts and information should include alternatives from which to chose knowledge of liability, limitations of choices. 19
  20. 20. 2/2/2014 Me, Myself and I Was there a client first? Double Dipping Fiduciary Duties 20
  21. 21. 2/2/2014 Offers and Beyond 21
  22. 22. 2/2/2014 Prior to Offer Does your client know who represents whom? Does your client know everything about compensation? Does your client know everything you know? Does your client know if, when and what you must keep confidential? Does your client know what is not confidential and by whom? 22
  23. 23. 2/2/2014 Prior to Offer Does your agent know the difference between: Duty to discover Duty to disclose Source and resource 23
  24. 24. 2/2/2014 During the Offer Acting timely Acting lawfully Offer presentation Funds Financial qualifications Presentation of Offer 24
  25. 25. 2/2/2014 Offer to Close Acting Timely McCarthy v Tobin Owen v Kessler Contingencies Release of contract Escrow Funds 25
  26. 26. 2/2/2014 Office policy and education I. Company Policy – Your company should have a clear and defined policy on agency. II. Encourage/require/offer an agency training course – ABR SRS 26
  27. 27. 2/2/2014 Thank you for Attending Jody O’Brien The RE/Education Company Committed to Professionalism in Real Estate through Education Blog www.reeducator.wordpress.com Presentation www.slideshare.net/ReEducationCompany Social Media www.twitter.com/reeducator www.youtube.com/msreeducator www.facebook.com/reeducator www.linkedin.com/in/reeductor 27