New Mexico Real Estate Brokerage Relationships

Slide 2: Disclaimer This presentation is provided by Lou Tulga CCIM  CRB solely for educational purposes and does not constitute legal or other advice. Viewing or downloading of these materials is for personal use only and does not create assignment of ownership of document design or content. 10/21/07 2

Slide 4: II. NM Real Estate License Law “For all regulated real estate transactions first executed on or after January 1, 2000, no agency relationship between a buyer, seller, landlord or tenant and a brokerage shall exist unless the buyer, seller, landlord or tenant and the brokerage agree, in writing, to the agency relationship. No type of agency relationship may be assumed by a buyer, seller, landlord, tenant or licensee, or created orally or by implication” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 4 All Rights Reserved

Slide 5: II. NM Real Estate License Law “A brokerage may provide real estate services to a client pursuant to an express written agreement that does not create an agency relationship and no agency duties will be imposed on the brokerage” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 5 All Rights Reserved

Slide 6: II. NM Real Estate License Law “ A brokerage may provide real estate services to a customer without entering into an express written agreement and without creating an agency relationship and no agency duties will be imposed on the brokerage” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 6 All Rights Reserved

Slide 7: II. NM Real Estate License Law “The Commission shall promulgate rules governing the rights of clients or customers and the rights and responsibilities and the duties of a brokerage in those brokerage relationships that are subject to the jurisdiction of the Commission” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 7 All Rights Reserved

Slide 8: II. NM Real Estate License Law “Agency relationship means the fiduciary relationship created solely by an express written agency agreement between a person and brokerage, authorizing the brokerage to act as an agent for the person according to the scope of authority granted in the express written agreement for real estate services…” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 8 All Rights Reserved

Slide 9: III. NM Real Estate Commission RULES “Agency: the fiduciary relationship created solely by the express written agency agreement between a person and a brokerage, authorizing the brokerage to act as agent for the person according to the scope of authority granted in that express written agreement for real estate services subject to the jurisdiction of the Commission” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 9 All Rights Reserved

Slide 10: II. NM Real Estate License Law “Agent means the brokerage authorized, solely by means of an express written agency agreement, to act as a fiduciary for a person and to provide real estate services that are subject to the jurisdiction of the Commission; in the case of an associate broker, agent means the person who has been authorized to act by that associate broker’s qualifying broker” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 10 All Rights Reserved

Slide 11: II. NM Real Estate License Law “Brokerage means a licensed qualifying broker and the licensed real estate business represented by the qualifying broker and its affiliated licensees” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 11 All Rights Reserved

Slide 12: II. NM Real Estate License Law “Brokerage relationship means the legal or contractual relationship between a person and a brokerage in a real estate transaction subject to the jurisdiction of the Commission 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 12 All Rights Reserved

Slide 13: II. NM Real Estate License Law “Client means a buyer, seller, landlord or tenant who has entered into an express written agreement with a brokerage for real estate services subject to the jurisdiction of the Commission” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 13 All Rights Reserved

Slide 14: II. NM Real Estate License Law “Customer means a buyer, seller, landlord or tenant who uses real estate services without entering into an express written agreement with a brokerage subject to the jurisdiction of the Commission” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 14 All Rights Reserved

Slide 15: III. NM Real Estate Commission RULES “Designated Broker: a qualifying broker or associate broker who is designated in writing by a qualifying broker to serve as exclusive agent or exclusive transaction broker for a seller, landlord, buyer or tenant in a real estate transaction” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 15 All Rights Reserved

Slide 16: III. NM Real Estate Commission RULES “Dual Agency created by express written agreement that modifies existing exclusive agency agreements to provide that the brokerage agrees to act as a facilitator in a real estate transaction rather than as an exclusive agent for either party to the transaction.” 10/21/07 16

Slide 17: III. NM Real Estate Commission RULES “Facilitator: The role of a broker in either a dual agency or transaction broker relationship whereby the existing exclusive relationships with a seller client and a buyer client are modified so that the broker impartially facilitates the transaction” 10/21/07 17

Slide 18: III. NM Real Estate Commission RULES “Principal: any person who authorizes or employs another to do certain acts on behalf of that person” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 18 All Rights Reserved

Slide 19: II. NM Real Estate License Law “Transaction Broker means a qualifying broker, associate broker or brokerage that provides real estates services without entering into an agency relationship” 10/21/07 Copyright(c) 2007 Lou Tulga CCIM 19 All Rights Reserved

Slide 20: III. NM Real Estate Commission RULES “Transaction Brokerage: A brokerage relationship providing real estate related services without agency, either to clients by means of an express written agreement which does not provide for agency or to a customer with no written agreement” 10/21/07 20

Slide 21: IV. Miscellanies Transaction Brokerage Professional Duties  New Mexico Real Estate License Law  NM Real Estate Commission Broker Duties  Realtor® Code of Ethics  Contractual Obligations with Clients  10/21/07 21

Slide 22: IV. Miscellanies Using Lou’s “Wheel” to make rational  choices in providing real estate services TASK ROLE RELATIONSHIP 10/21/07 22

Slide 23: Property Management New Builder Exclusive Rep Absentee Client/Customer ROLE Seller/Buyer Brokerage Building/Tenant Rep Exclusive Representative Facilitator TASK Making Rational Choices RELATIONSHIP Transaction Brokerage Agency 10/21/07 23

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