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Duties and Responsibilities of Real Estate Broker
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Duties and Responsibilities of Real Estate Broker

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    Duties and Responsibilities of Real Estate Broker Duties and Responsibilities of Real Estate Broker Presentation Transcript

    • DUTIES AND RESPONSIBILITIES OF REAL ESTATE BROKER
    • RE/MAX Mumbai Gujarat Maharashtra For You and Your Customers!! Basic Customer Needs  Customers ask for what they want.  What they need is a whole lot more.
    • RE/MAX Mumbai Gujarat Maharashtra For You and Your Customers!!  So listen carefully with your eyes, ears and mind open, understand their requirements and act accordingly.  Provide accurate information, put up options and give alternatives.  Be fair and friendly to all your customers.
    • RE/MAX Mumbai Gujarat Maharashtra Train Yourself To gain more success, have more power within you, • Always be on time – Every time • Plan your day / week in advance.
    • RE/MAX Mumbai Gujarat Maharashtra Train Yourself • Engage your self in the high pay off jobs. • An efficient follow up system is the key to being successful.
    • RE/MAX Mumbai Gujarat Maharashtra Six steps for Handling Difficult Customers  Be patient, let your customers say what they want to and learn not to take what they are saying personally.  Don‟t get trapped in your negative filter about the customer Instead Focus on asking yourself the question, „What does this person need and how can I provide it?  Express empathy for the customer‟s situation by using empathetic Phrases and apologizing.
    • RE/MAX Mumbai Gujarat Maharashtra Six steps for Handling Difficult Customers  Work actively to solve their problem. Gather the information you need.  Double check all the facts with the mirroring technique.  Come to a mutual agreement on the solution with your customer.
    • Do Your Homework  Be on time, every time.  Plan your work and follow up.  Be patient with your customer.  Show Empathy.  Try to the solve their problem.
    • Do Your Homework  Listen carefully.  Provide accurate information and give options to them.  Be fair and friendly to all your customers.  Come to a mutual agreement in a win – win situation.
    • GUIDELINES FOR MEMBERS 1. In the conduct of your business, you have often to seek co-operation of other Estate Agents. In such an eventuality, please deal only with any one of the members of the Association 2. Before commencing work on a transaction with another agent or agents, settle the matter of the division of commission first.
    • 3. Report complaints to the Disputes Settlement Sub-Committee of the Association for disciplinary action. 4. If you are approached by a Member for business, however small, be courteous to him and extend to him your full co-operation. 5. If you are given information by another Member, you must not divulge the same to another, unless you are in a position to protect his interest or you have his permission to do so. GUIDELINES FOR MEMBERS
    • (6) If you are introduced to a client by another agent and that client is known to you, accept him as his client for that particular transaction (of which you had no knowledge) with good grace. (7) If you learn that your client has taken inspection of certain premises and now wants you to handle the transaction, please do not do it without the consent of the first agent. (8) Do not misrepresent facts and do not do anything to harm another members interest. (9) Deal only with Properties having clear titles. GUIDELINES FOR MEMBERS
    • GUIDELINES FOR MEMBERS 10. Help and Co-operate with the Builders. 11. Have Transparency in your Deals. 12. Discourage unhealthy competition. 13. Be a link between the Builder and the Buyer. 14. Follow Ethical values.
    • SCHEDULE OF RATES OF COMMISSION • SALE-PURCHASE – 2 % • GOODWILL – 5 % • LEASE/LEAVE & LICENCE – 2 Months Rent • PAYING GUEST – 1 Month Rent • FRANCHISING – 2 Month Rent • TIME SHARING – 10 % or as agreed upon
    • Make a Contract 1. Our company is Full Time Broking Company or Real Estate Agents Company. We are stock of property Information for buying / selling / Leasing etc. and it is our stock in trade and we are render our service to That client who engage us for rendering service of REAL ESTATE CONSULTANCY or Estate Agent on Fixed remuneration / Commission. 2. We are registered with The Estate Agents of India, Profession Tax No. Allotted , Income Tax PAN allotted Shop & establishment License Profession Tax Registration No Allotted , Service Tax Reg. Code allotted, we are also registered with many institutions and trusts. Our Bankers are ( Add Name of Bank ).
    • 3. We will charge late payment charges on delayed of payments of or Brokerage, Commission, Fees, Expenses, etc., as applicable {@ 2% P.M.} 4. Other terms and conditions will be as per the Customer Agreement or form signed by the client or the authorized signatory , as the case may be. 5. Service Tax applicable as per the rules and regulation. Make a Contract
    • 6. All the Rates & Charges are followed as per or terms and condition and as per the “SCHEDULE OF RATES OF COMMISSION” which is strictly enforced by the “THE ESTATE AGENT ASSOCIATION OF INDIA”. 7. Commission/ Brokerage/ Agency Fee/ Service Charges/ Terminal Charges under any name paid to us for service rendered shall not be refundable under any circumstances. 8. Subject to Bombay jurisdiction. Make a Contract
    • RE/MAX Mumbai Gujarat Maharashtra 9. T.D.S. applicable 10. Our registered address is : ( Brokers Address ) 11. We recommend you not to approach or negotiate for any things with our client Directly without knowing or informing us and if you do so then that is on your Risk and liability only. 12. Your co-operation is only make us success and it help us to compete your deal within stipulated time. Make a Contract
    • RE/MAX Mumbai Gujarat Maharashtra Don’t Misguide the Buyer 1. When a deal has been agreed some agents still show people around the property hoping for a better offer. 2. Value a property at a low price – and then sell it to a friend or colleague. 3. Use scare tactics such as pretending to receive offers to get people to make a people to make a higher offer.
    • RE/MAX Mumbai Gujarat Maharashtra 4. Neglect to pass on all offers to vendor in hope of achieving a higher one later on. 5. Refuse to reduce commission if the price is reduced. 6. Overvalue houses to secure business from sellers. 7. Supply customers with fake documents to help them secure a mortgage.
    • RE/MAX Mumbai Gujarat Maharashtra 8. Make up a very low offer. This shocks the seller into accepting a genuine offer which is far lower than the original valuation. 9. Fake evidence that other properties in the area have sold for an overly high price. 10.Erect for sale / sold signs at homes the agent had nothing to do with to give a false impression.
    • RE/MAX Mumbai Gujarat Maharashtra Tips to Avoid Fraud in Property Dealings • Research and analyse the market. • Approach a reputed real estate agent. • Personally inspect the property. • Get an independent property valuation. • Check the title deeds and other documents
    • RE/MAX Mumbai Gujarat Maharashtra Tips to Avoid Fraud in Property Dealings • Check your comfort level with the estate agent. • Be careful about known people who try to push the deal. • Hire a competent legal consultant.
    • RE/MAX Mumbai Gujarat Maharashtra Responsibilities of a Real Estate Broker • A real estate broker is an independent professional, who helps people to sell or buy their property, whether residential, commercial or even a self storage building . In doing this, the broker is supposed to be responsible for various types of duties to his clients. • The real estate broker will also arrange a meeting between the seller and the buyer. These meetings are very useful to discuss the terms and conditions of the transaction.
    • RE/MAX Mumbai Gujarat Maharashtra Responsibilities of a Real Estate Broker • The broker will be responsible for the title search part of the selling process. This process will review the past records related to the property, to find out that whether any discrepancy exists or not. • With the help of a broker, a buyer can search for suitable financing assistance from an eligible financial organization. This will also help to close a sale procedure, quickly and efficiently.
    • RE/MAX Mumbai Gujarat Maharashtra Responsibilities of a Real Estate Broker • Sometimes the brokers have additional expertise in legal aid and insurance aspect for the property. In that case, a buyer or seller does not have to search for a legal advisor to settle the legal issues on the transaction. Similarly, if the real estate broker can help in arranging insurance for the newly bought property, then the buyer can reduce half of this tension. • If there is any bargain related to the transaction of the property, the broker must follow the instruction of the seller and he will always try to get a reasonable price for the seller.
    • RE/MAX Mumbai Gujarat Maharashtra Responsibilities of a Real Estate Broker • The broker has to maintain an updated list of available properties, so that he can cater to many buyers and sellers simultaneously. His job is to gather many buyers for a single property and to show multiple properties to a single buyer. Thus, he is helping both the parties, to sell and to buy, within a minimum time. • Before showing a property to a buyer, a broker first should sit with him to know about his requirements and financial status. Also, for selling of properties, a real estate broker should know first, that what type of expectations does the seller have from his property? Once, he knows this information, he will be able to match his listing with the requirements.
    • RE/MAX Mumbai Gujarat Maharashtra Responsibilities of a Real Estate Broker • Most of the brokers have expertise on residential properties, whereas few of them have expertise on commercial properties. Whatever be his area of work, a broker should know each and every specific detail of property dealings at his location. • A broker should maintain a computer at his business place. This is to keep updated information on the property listing at a daily basis. Also, using the computer, a real estate broker can show pictures of the properties to the buyers.
    • RE/MAX Mumbai Gujarat Maharashtra Responsibilities of a Real Estate Broker • In dealing with the properties, the brokers must meet the regulations of standard environmental criteria settled by the state body, like the property should not deal with any toxic paint or improper ventilation system. • A broker also has certain obligations to his clients. As he is going to deal with the funds of his clients, there should be a trust factor working at the mind of his clients. Also, the broker should be eligible to perform accordingly to meet the faith of his clients.
    • RE/MAX Mumbai Gujarat Maharashtra Duties Of The Real Estate Broker Loyalty • One of the most fundamental duties an agent owes to the principal. The duty obligates a real estate broker to act at all times, solely in the best interests of the principal, excluding all other interests, including that of the broker. • An example of breach of loyalty is when a broker purchases a property listed with his/her firm, and immediately resells it at a profit. Such conduct is usually considered appropriate and lawful by persons who act at arms length, but a fiduciary would be considered to have stolen an opportunity for profit that rightfully belongs to the principal.
    • RE/MAX Mumbai Gujarat Maharashtra Duties Of The Real Estate Broker Sellers Agent Exclusive Buyer's Agent Must do everything possible to gain an advantage for the Seller. Must do everything possible to gain an advantage for the Buyer. Loyalty
    • RE/MAX Mumbai Gujarat Maharashtra Duties Of The Real Estate Broker Obedience An agent is obligated to promptly and efficiently obey all lawful instructions of his/her principal that conform to the purpose of the agency relationship. However, the duty does not include an obligation to obey unlawful instructions, such as instructions to not market a property to minorities or to misrepresent the condition of a property.
    • RE/MAX Mumbai Gujarat Maharashtra Duties Of The Real Estate Broker Sellers Agent Exclusive Buyer's Agent Must obey all lawful instruction of the Seller, is not obligated to obey instructions from the Buyer. Must obey all lawful instruction of the Buyer, is not obligated to obey instructions from the Seller. Obedience
    • RE/MAX Mumbai Gujarat Maharashtra Disclosure • An agent must disclose to the principal all known relevant and material information that pertains to the scope of the agency. The duty includes any facts affecting the value or desirability of the property, as well as any other relevant information pertaining to the transaction, such as the other party's bargaining position, the identity of all potential purchasers, information concerning the ability or willingness of the buyer to offer a higher price, any intent to subdivide or resell the property for a profit. Duties of The Real Estate Broker • An agent's duty of disclosure to his/her principal must not be confused with a real estate broker's duty to disclose any know material facts about the property value to non-principals. The duty to disclose known material facts is based on a real estate broker's duty to treat all persons honestly. The duty of honesty does not depend on the existence of an agency relationship.
    • RE/MAX Mumbai Gujarat Maharashtra Disclosure Sellers Agent Exclusive Buyer's Agent Must reveal any known material defects in the property. Must NOT reveal information about traffic problems, poor school system, declining property values, etc. since these items might make the property less desirable to Buyers. Must tell Buyer everything they can find out about the Seller including the motivation for selling and any reasons the Seller may have for wanting a quick sale. Must tell Buyer everything they can find out about the property, including traffic problems, poor school system, high crime rates, etc. Duties Of The Real Estate Broker
    • RE/MAX Mumbai Gujarat Maharashtra Confidentiality • An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property. • The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold know material facts about the condition of the seller's property from the buyer, or to misrepresent the property's condition. To do so constitutes misrepresentation and impose liability on both the broker and the seller. Duties Of The Real Estate Broker
    • RE/MAX Mumbai Gujarat Maharashtra Sellers Agent Exclusive Buyer's Agent Must tell the Seller everything they can find out about the Buyer, including all financial details they can obtain. Must conceal anything about the Seller that would help the Buyer gain an advantage, such as impending foreclosure, need to move in a hurry, need to sell to settle divorce, etc. Must keep all information about the Buyer confidential, including the Buyer's ability or willingness to pay more for the property than they are offering as well as the Buyers motivation for buying. Duties Of The Real Estate Broker Confidentiality
    • RE/MAX Mumbai Gujarat Maharashtra Duties Of The Real Estate Broker Reasonable Care and Diligence • An agent is obligated to use reasonable care and diligence when pursuing the principal's affairs. The standard of care expected of a buyer's or seller's real estate broker is that of a competent real estate professional. By reason of his/her license, a broker is considered to have skill and expertise in real estate matters superior to that of the average person.
    • RE/MAX Mumbai Gujarat Maharashtra Duties Of The Real Estate Broker Reasonable Care and Diligence Sellers Agent Exclusive Buyer's Agent Must prepare themselves through education and study to competently represent the Seller in all matters. Must prepare themselves through education and study to competently represent the Buyer in all matters.
    • RE/MAX Mumbai Gujarat Maharashtra Thank You