This document discusses agency in real estate transactions. It defines key terms like agent, principal, fiduciary duties and different types of agency relationships. It explains how agency relationships are formed and terminated. It also summarizes a landmark court case around dual agency disclosure. Real estate agents have fiduciary duties of care, obedience, accounting, loyalty, disclosure and confidentiality to their principal. Agents can represent buyers or sellers through single agency or both parties through dual agency with proper consent.
2022 NAR Profile of Home Buyers and SellersTom Blefko
The North Pointe Office of Berkshire Hathaway HomeServices Homesale Realty's sales meeting on March 7, 2023, covering the following topics: 1. VIP vendor Next Door Photos, 2. 2022 North Pointe Award Winners, 3. Upcoming Virtual Training Sessions, 4. Foreclosure Headlines, 5. 2022 NAR Profile of Home Buyers and Sellers.
These slides describe the main provisions of the Registration of Documents Ordinance of Sri Lanka and what should be observed by Notaries when submitting Deeds and Notices for registration. This is from a lecture in Conveyancing conducted for the final year students of the Sri Lanka Law College in 2007
Vitiating Elements in Formation of Contract: MisrepresentationPreeti Sikder
Students will be:
a) aware about the elements of misrepresentation
b) able to differentiate misrepresentation from fraud
c) informed about the difference between representation and promise
What Does a Recession Mean for the Real Estate Industry?Tom Blefko
Sales meeting for the North Pointe office of Berkshire Hathaway HomeServices Homesale Realty covering the following topics: 1. NEW Cinch Home Services' home warranty plans, 2. BHHS Awards Criteria, 3. Homesale Listing Packages, 4. Google Drive, 5. Cloze CRM, 6. Ninja Selling installation, 7. What does a recession mean for the real estate industry.
2022 NAR Profile of Home Buyers and SellersTom Blefko
The North Pointe Office of Berkshire Hathaway HomeServices Homesale Realty's sales meeting on March 7, 2023, covering the following topics: 1. VIP vendor Next Door Photos, 2. 2022 North Pointe Award Winners, 3. Upcoming Virtual Training Sessions, 4. Foreclosure Headlines, 5. 2022 NAR Profile of Home Buyers and Sellers.
These slides describe the main provisions of the Registration of Documents Ordinance of Sri Lanka and what should be observed by Notaries when submitting Deeds and Notices for registration. This is from a lecture in Conveyancing conducted for the final year students of the Sri Lanka Law College in 2007
Vitiating Elements in Formation of Contract: MisrepresentationPreeti Sikder
Students will be:
a) aware about the elements of misrepresentation
b) able to differentiate misrepresentation from fraud
c) informed about the difference between representation and promise
What Does a Recession Mean for the Real Estate Industry?Tom Blefko
Sales meeting for the North Pointe office of Berkshire Hathaway HomeServices Homesale Realty covering the following topics: 1. NEW Cinch Home Services' home warranty plans, 2. BHHS Awards Criteria, 3. Homesale Listing Packages, 4. Google Drive, 5. Cloze CRM, 6. Ninja Selling installation, 7. What does a recession mean for the real estate industry.
Massachusetts Continuing Education Course - 2 Credits
An interactive and informative course designed to review the most commonly used forms in a real estate transaction. We will look at federal, state and local forms. We will explore the difference between the laws and regulations and the policies and customs regarding their use.
Agents have a fiduciary relationship with their principals. Duties: disclosure (open and honest); confidentiality; accounting (keep the principals informed); obedience to legal and ethical limits; loyalty; skill and care
Serviced Apartment Ho Chi Minh For RentalGVRenting
GVRenting is the leading rental real estate company in Vietnam. We help you to find a serviced apartment for rent in Ho Chi Minh & Saigon. Discover our broad range of rental properties in Vietnam.
For more details https://gvrenting.com/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
Rams Garden Bahcelievler - Istanbul - ListingTurkeyListing Turkey
Implemented by Rams Global in Bahcelievler, the Rams Garden Bahcelievler Apartments includes 796 residences of different types from 2+1 to 5+1.
Next to the project, which will have 33 thousand square meters of green area, there will be 42 thousand 300 square meters of woodland. There will also be a 210-meter-long pond in the landscape of the project. There are 94.5 square meters of green space per flat.
Rams Garden Bahcelievler Apartments, which has 8 times more green space than the average of Istanbul with its 33 thousand square meters of green area located within a total of 75 thousand square meters, offers various housing options from 2+1 to 5+1.RAMS Garden has brought a lifeline to the construction industry.
Rams Global, which has signed projects in many places from Dubai to Phuket and delivered more than 20 thousand residences, is now starting new projects in Istanbul.
Rams Garden Bahcelievler is located 9 minutes from Metroport AVM, 5 minutes from Marmara Forum AVM, 12 minutes from Kazlıçeşme beach, 9 minutes from Yıldız Technical University, 7 minutes from Istinye University, 9 minutes from Ramada Hotel and Medicana Hospital.
https://listingturkey.com/property/rams-garden-bahcelievler-apartments/
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Total Environment Tangled Up In The Green - Residential Plots Where Nature an...JagadishKR1
Embark on a journey where lush landscapes and contemporary living converge at Total Environment's Tangled Up In The Green Residential Plots in Devanahalli, Bangalore. Surrounded by verdant expanses, these plots offer an idyllic setting for your dream home. Immerse yourself in the serenity of nature while enjoying the finest amenities and design, where every moment is a harmonious blend of luxury and tranquility.
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
3. THE POWER OF EQUITY BUILD-UP
3
2018
$150,000
- 5,250
$144,750
Sale Price
Down Payment
Mortgage (FHA)
Bought a house in
2023
$150,000
68,100
$218,100
136,737
5,250
$76,113
Sale Price
Appreciation (PA = 45.4%)
Home Value
Mortgage Payoff
Less: Down Pymt.
Equity
SOLD the house in
4. OVERVIEW
• Agency – The special relationship between a real estate licensee
and the parties represented in a real estate transaction
4
Page 247
5. OVERVIEW
• Agency is governed by two kinds of law:
1. Common Law – The rules of
society established by
tradition and court decisions
2. Statutory Law – Laws, rules,
and regulations enacted by
legislatures and other
governing bodies
5
Page 247-248
6. OVERVIEW
• The principal-agent relationship evolved from the master-servant
relationship under English common law
6
Page 248
7. LANDMARK COURT CASE
• So why is Agency such a serious issue?
• Dismuke vs. Edina Realty (1993) and Bokusky vs. Edina Realty
(1994)
7
8. LANDMARK COURT CASE
• Buyers sought $200 Million in earned
commissions over a six year period
involving over 6,000 transactions
• Sellers sought $75 Million in damages
claiming they were not represented
8
9. LANDMARK COURT CASE
9
• Case revolved around the adequacy of Edina Realty’s Dual Agency
Disclosure
• OUTCOME: Although Edina’s agents
provided the disclosure, the
document and agents did not
adequately explain the effects
of dual agency
10. AGENCY CONCEPTS
• Law of Agency defines the rights and duties of the principal and
the agent
10
Page 248
11. AGENCY CONCEPTS
• Definitions:
• Agent – Individual authorized and consents to represent the
interest of another
• Subagent – Individual who has been delegated some authority
or responsibility by another party
• Principal – Individual who hires the agent and delegates
responsibility of representing the principal
11
Page 248
12. AGENCY CONCEPTS
• Definitions: (cont’d)
• Agency – The fiduciary relationship between the principal and
agent wherein the agent is authorized to represent the principal
in a transaction
• Fiduciary Relationship – One in which the agent is placed in a
position of special trust and confidence to the principal
12
Page 248
13. AGENCY CONCEPTS
• Definitions: (cont’d)
• Client – Principal that receives advice and counsel (written
agreement exists between the parties)
• Customer – A non-represented consumer that receives some
level of service (no written agreement exists between the
parties)
• Nonagent – Middleman between a buyer and a seller
(transaction licensee)
13
Page 248
14. AGENCY CONCEPTS
• In Pennsylvania, a consumer is one who may engage a broker to
provide services under a variety of working relationships
• Buyer Agent, Designated Agent, Dual
Agent, Seller Agent, Subagent, and
Transaction Licensee
14
Page 249
15. AGENCY CONCEPTS
• Fiduciary Responsibilities – They are not just moral and ethical;
they are the law
15
Page 249
• Care
• Obedience
• Accounting
• Loyalty
• Disclosure
• Confidentiality
Under Common Law of
Agency, an Agent
owes principal
COALD+C
16. AGENCY CONCEPTS
• Figure 15.1 shows the obligations to
the Buyer if they are a Customer or
Client (principal)
16
Page 249-250
17. AGENCY CONCEPTS
• Fiduciary Responsibilities - Care
• Agents must exercise a reasonable degree of care while
transacting business entrusted to them
• Agents are liable to the principal
for any loss resulting from negligence
• Errors & Omissions Insurance (E&O)
covers liability for errors and
negligence
17
Page 251
18. AGENCY CONCEPTS
• Fiduciary Responsibilities - Obedience
• Agents must act in good faith obeying
the principal’s instructions
• Not obligated to obey instructions
that are unlawful or unethical
• Agent may be liable for any losses
principal suffers if they exceed
authority assigned
18
Page 251
19. • Fiduciary Responsibilities - Accounting
• Commingling – Mixing client monies
with personal or general business
funds is illegal
• Conversion – The illegal use of
entrusted money
• Required to give copies of documents
to all parties and retain for 3 years
AGENCY CONCEPTS
19
Page 251
20. • Fiduciary Responsibilities - Loyalty
• Requires that agents place the principal’s
interest above those of all others,
including the agent’s own self-interest
• Agents must disclose their interest
when selling their own real estate
and buying the real estate of their
principal
AGENCY CONCEPTS
20
Page 252
21. • Fiduciary Responsibilities - Disclosure
• Agent has duty to inform the principal
of all facts that might affect the
principal’s position in a transaction
• Includes material facts that the agent knows
or should have known
• Seller must disclose latent defects which may
not be discovered during inspection
AGENCY CONCEPTS
21
Page 252
22. • Fiduciary Responsibilities – Disclosure of Environmental Hazards
• Agent should ensure that their clients are aware of potential
issues with environmental health hazards
• Examples: Seller Property
Disclosure Statement,
Lead-based Paint Disclosure
AGENCY CONCEPTS
22
Page 253
Environmental
Hazards
23. • Fiduciary Responsibilities – Confidentiality
• Agent may not disclose the principal’s
financial condition
• Confidentiality does not extend to
material facts about the condition
of the property
• Anything learned about a client
must remain confidential forever
AGENCY CONCEPTS
23
Page 253
24. AGENCY CONCEPTS
• Client versus Customer Service:
• The Client is who the agent gives advice and counsel
• Agent works FOR the client (principal)
• The Customer is entitled to factual
information and fair and honest
dealings
• Agent works WITH the
customer
24
Page 253-254
25. CREATION & TERMINATION OF AGENCY
• The relationship must be consensual and is formed when the
principal delegates authority and the agent consents to act
25
Page 255
26. CREATION & TERMINATION OF AGENCY
• Agency Relationships may be created in two ways:
1. Express Agency – The parties formally express their intention
to establish an agency relationship and state its terms and
conditions
26
Page 255
Written
Oral
- or -
27. CREATION & TERMINATION OF AGENCY
• Agency Relationships may be created in two ways:
1. Express Agency (cont’d)
• In Pennsylvania, all exclusive contracts of employment must
be in writing
27
Page 255
Listing
Agreement
Buyer Agency
Agreement
28. CREATION & TERMINATION OF AGENCY
• Agency Relationships may be created in two ways:
2. Implied Agency – Occurs when the actions of the parties
indicate that they have mutually consented to an agency
agreement
• Licensee may create an
agency relationship
unintentionally, inadvertently,
or accidently by their actions
28
Page 255-256
29. CREATION & TERMINATION OF AGENCY
• Agency Coupled With an Interest – Relationship in which the agent
is given an interest in the subject of the agency (i.e. the property
being sold)
29
Page 256
30. CREATION & TERMINATION OF AGENCY
• The source of compensation does not determine agency
• An agent does not necessarily
represent the person who pays
the agent’s commission
• Written agency agreement
should state how the agent
is being compensated and
explain alternatives
30
Page 256
31. • Termination of Agency
• Completion, performance, or fulfillment of
the purpose
• Death or incapacity of either party
• Destruction or condemnation of property
• Expiration of the terms
• Mutual agreement
• Breach by one of the parties
• Operation of law (i.e. bankruptcy)
CREATION & TERMINATION OF AGENCY
31
Page 256
32. • An agent’s empowerment to represent the principal depends
solely on the authorization to do so
• Universal Agent – Empowered to do anything the principal
could do
• General Agent – Represent the principal in a broad range of
matters related to a particular business
• Special Agent – Authorized to represent the principal in one
specific act or transaction
TYPES OF AGENCY RELATIONSHIPS
32
Page 257
33. • Real Estate Licensing and Registration Act (RELRA) permits (but
does not require) broker to act as:
• Agent of Buyer (or Tenant)
• Agent of Seller (or Landlord)
• Dual Agent – Represent both parties in the same transaction
• Transaction Licensee – Nonagent
TYPES OF AGENCY RELATIONSHIPS
33
Page 257
34. • Single Agency – Agent
represents only one party in a
single transaction
TYPES OF AGENCY RELATIONSHIPS
34
Page 258
35. • Single Agency (Figure 15.2)
TYPES OF AGENCY RELATIONSHIPS
35
Page 303
Agent
(ABC Realty)
Client
Customer
Written Listing
Agreement
No Written
Agreement
36. • Single Agency (cont’d)
• Seller as Principal – Seller enters a
listing agreement with a broker to
market the seller’s real estate
TYPES OF AGENCY RELATIONSHIPS
36
Page 258
37. • Single Agency (cont’d)
• Buyer as Principal – A Buyer who
contracts with a broker to locate
property and represent the buyer’s
interests in a transaction
TYPES OF AGENCY RELATIONSHIPS
37
Page 258
38. • Single Agency (cont’d)
• Landlord as Principal – An owner
who employs a broker to market,
lease, maintain, or manage the
owner’s property
TYPES OF AGENCY RELATIONSHIPS
38
Page 259
39. • Single Agency (cont’d)
• Tenant as Principal – A tenant who
contracts with a broker to locate
property suitable for the tenant’s
specific purposes
TYPES OF AGENCY RELATIONSHIPS
39
Page 259
40. • Single Agency (cont’d)
• Subagency – Created when one
broker appoints another broker
to help perform client-based
functions on the principal’s
behalf
TYPES OF AGENCY RELATIONSHIPS
40
Page 259
41. • Subagency (Figure 15.3)
TYPES OF AGENCY RELATIONSHIPS
41
Page 304
Agent
(ABC Realty)
Subagent
(XYZ Realty)
Client
(Seller)
Customer
(Buyer)
Written Listing
Agreement
No Written
Agreement
42. • Dual Agency – Agent represents two principals in the same
transaction
• Must fulfill fiduciary responsibilities to one principal without
compromising the interests of the other
• Disclosed Dual Agency – Pennsylvania licensees may act for
more than one party in a transaction only with the knowledge
and written consent of all parties
TYPES OF AGENCY RELATIONSHIPS
42
Page 259-260
44. • Dual Agency (cont’d)
• Designated Agency – In Pennsylvania, a process that
accommodates an in-house sale in which two different affiliated
licensees are involved
• The Broker is a dual agent
• Written disclosure of this status is required
TYPES OF AGENCY RELATIONSHIPS
44
Page 260
45. • Dual Agency with Designated Agency
TYPES OF AGENCY RELATIONSHIPS
45
Broker
(ABC Realty)
Client
(Seller)
Written Listing
Agreement
w/Dual Agency
Clause
Written Buyer Agency
Agreement
w/Dual Agency
Clause
Client
(Buyer)
Agent B
(ABC Realty)
Agent A
(ABC Realty)
Designated
Agent for Seller
Designated
Agent for Buyer
Dual Agent
46. • Dual Agency (cont’d)
• Undisclosed Dual Agency – It might occur unintentionally or
inadvertently by agent’s words and actions
• Violation of license law
• Can result in rescission of contract, forfeiture of commission,
lawsuit for damages, and license issues
TYPES OF AGENCY RELATIONSHIPS
46
Page 260-261
47. • Transaction Licensee (Nonagency) – Not an agent of either party
• Licensee helps buyer
and seller with
paperwork
• Buyer and seller
negotiate sale without
representation
TYPES OF AGENCY RELATIONSHIPS
47
Page 261
48. • Disclosure of Agency – Mandatory that real estate licensees
disclose who they represent
• Pennsylvania Consumer Notice –
Disclosure summary for the
purchase, sale, or lease of
residential or commercial real
estate
CONSUMER NOTICE
48
Page 262
Figure 15.5
49. • Major Provisions of Consumer Notice:
• Statement advising parties that they are not represented unless
they sign a written agreement
• General duties owed to all parties
• Description of business relationships allowed in PA
• Contractual terms that must be in agreements
• Statement about the Real Estate Recovery Fund
CONSUMER NOTICE
49
Page 262
50. • Licensees must discuss the
Consumer Notice at the initial
interview or the first
substantive discussion between
a licensee and consumer about
the consumer’s needs
CONSUMER NOTICE
50
Page 262
51. • If initial meeting is via phone or e-mail, licensees are required to
make the following disclosure to consumer:
“The real estate law requires that I provide you with a written consumer notice that
describes the various business relationship choices that you may have with a real estate
licensee. Since we are discussing real estate without you having the benefit of the
Consumer Notice, I have the duty to advise you that any information you give me at
this time is not considered to be confidential, and nay information you give me will not
be considered confidential unless and until you and I enter into a business relationship.
At our first meeting I will provide you with a written Consumer Notice which explains
those business relationships and my corresponding duties to you.”
CONSUMER NOTICE
51
Page 262
52. • Make sure consumer is aware that
this document is not a contract
• It is only a disclosure
CONSUMER NOTICE
52
Page 264
53. • States that agents are REQUIRED to provide this document
to consumer
Question:
What should you do if the consumer refuses to sign?
CONSUMER NOTICE
53
Page 264
54. • The document describes the various agency relationships that
the licensee may enter into with the consumer
CONSUMER NOTICE
54
Page 264
Seller
Agent
Buyer
Agent
Dual
Agent
Designated
Agent
Transaction
Licensee
55. • Describes the duties that agents owe all consumers regardless of
representation status
CONSUMER NOTICE
55
Page 264
• Disclose conflicts of interests and financial interests
• Provide assistance with document preparation
• Advise consumer to seek expert advice beyond
licensee’s expertise
• Keep consumer informed
• Disclose financial interest in a service at the time
service is recommended
56. • Describes the duties that agents owe all consumers regardless of
representation status (cont’d)
CONSUMER NOTICE
56
Page 264
• Exercise reasonable professional skill and care
• Deal honestly and in good faith
• Present all documents associated with transaction
as soon as possible
• Comply with the Real Estate Seller Disclosure Law
• Account for escrow and deposit funds
57. • Indicates terms that are negotiable between the consumer and
licensee
CONSUMER NOTICE
57
Page 264
• Duration of licensee’s employment
• Licensee’s fees
• Scope of licensees activities
• Broker’s cooperation with sharing of fees
with other brokers
58. Before you disclose any financial
information to a licensee, be advised
that unless you select a business
relationship by signing a written
agreement, the licensee in NOT
representing you. A business
relationship is NOT presumed.
CONSUMER NOTICE
58
Page 264
• The last statement on the notice is: