Ch. 6 - Agency Disclosures and Agreements Flashcards

Ch. 6 - Agency Disclosures and Agreements Flashcards Where do licensees typically get the listing forms they use in their office?Most of these forms are provided by the local real estate board REBNY (Real Estate Board of New York), NYSAR (New York State Association of Realtors®), Westchester Association of REALTORS, NAR (National Association of REALTORS®) and multiple listing services.What is an important thing to remember about the enforceability of listing agreements?They should be in writing to be enforceable.Exclusive Right to Sell ListingUnder this listing arrangement, the broker employed is entitled to a commission no matter who sells the property during the listing period. (Even the Seller) What should a licensee do if a buyer, seller, landlord or tenant refuses to sign the disclosure form?

• Note the names of the consumer buyers or tenants.- Note

the date, time and reason for refusal.- Show the property.- Upon return to the office, complete an affidavit and attach the original disclosure to this and have it notarized immediately, keep a copy of the form and give a copy to the broker who will keep it on file for at least three years.All exclusive listing contracts must contain a definite termination date trueA licensee could be subject to disciplinary action for receiving a commission for a transaction if the agreement did not have a definite end date.In an exclusive right to rent agreement, under what conditions will the broker receive a commission?The owner will pay the broker a commission at either the execution of the lease or at the time of occupancy, even if the owner or someone else rents the property.According to Real Property Law 443, the agent must keep a copy of the signed agency disclosure for..

• years

What does the Rental of Property paragraph of a listing agreement do?This paragraph gives the broker the exclusive right to rent the property and receive a commission for doing so, if the owner decides to rent it during the term of the listing agreement.What does the In-House Sales paragraph of the exclusive right to represent agreement say?This paragraph describes the fact that if the buyer client is interested in any property that is listed by the same broker who represents the seller, there is a conflict. It goes on to explain in detail the options the buyer would have if this situation comes up.What must an owner do if he or she does not want the cooperating broker present when the listing broker presents an offer?The owner must give the listing broker a letter stating that he or she does not want cooperating brokers present. The broker can then give a copy of that letter to any cooperating broker who obtains a purchase offer.How does a net listing create a conflict of interest for a broker?It violates the broker's fiduciary responsibility of putting the client's interests above his or her own.What must a person do who is selling property that has no utility electric service?Provide written notice of that fact to the prospective purchaser or the purchaser's agent prior to accepting a

purchase offer.

What does the Seller's Statement paragraph of the Property Condition Disclosure form stipulate?That anything contained in the statement is based on the seller's actual knowledge at the time of signing.Open listing agreementA contract between a seller of real estate and a real estate broker in which the broker has a nonexclusive right to sell the property.only the one broker who brings the ready, willing and able buyer to the seller or who finds the right property for a buyer will receive the commission.What is the major difference between- an exclusive right to sell listingand- an exclusive agency listing?With exclusive right to sell, the broker has the exclusive right to market the property and receive a commission regardless of who procures the buyer.With exclusive agency, the owner retains the right to find a buyer and sell the property and owe the exclusive broker no commission.Net ListingThe broker agrees to sell the property in order to achieve a net price to the owner, and anything which is received above the net price is the broker's commission. A net listing is prohibited by the licensing law in many states.What does the non-exclusive paragraph of an open listing state?It states that the owner is retaining the right to sell the property him or herself and owe the broker no commission.It also states the owner's right to list the property with other brokers.Give an example of a situation in which an agent can change his or her agency designation with a client.With client consent, a buyer agent can become a dual agent for a sale involving one of his or her own listings.What happens if a seller fails to provide a Property Condition Disclosure form to a buyer before the buyer signs the contract?The buyer will receive a $500 credit against the purchase price of the property at closing.What is another name for the exclusive right to represent agreement?Buyer's agency or buyer's broker agreement.Prior to what year is there a possibility of lead based paints being present in the property?1978 Agency disclosure must be presented under the following

circumstances:

• The listing agent must provide the agency disclosure to a

seller or landlord prior to entering into a listing agreement.- A seller's or landlord's agent must provide the disclosure to a buyer, buyer's agent, tenant or tenant's agent at the time of first substantive contact.- A buyer's or tenant's agent must provide the disclosure to the buyer or tenant prior to entering into a buyer's agency agreement.- A buyer's or tenant's agent must provide the disclosure to a seller, seller's agent, landlord or landlord's agent at the time of first substantive contact.Listing AgreementA contract between an owner (as Principal) and a real estate broker (as agent) by which the broker is employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission

In an exclusive right to sell agreement, under what conditions will the seller still owe the broker a commission within a specified time period after the agreement expires?If the owner sells the property to someone to whom the broker showed the property during the term of the listing agreement.Describe an open listing.An open listing is a non-exclusive listing that allows a seller or buyer to engage a number of different brokers to sell or help purchase property. The broker who brings the buyer or finds the suitable property gets the commission. If the owner sells the property or the buyer finds his or her own property, no commission is owed to any broker.Exclusive Agency Listing Agreementgives a broker the right to market and sell a property for a specified time period, while the owner retains the right to find a buyer and sell the property without owing the broker a commission.When does a first substantive contact with a potential client take place?The first substantive contact takes place when the parties come together and share details and information about a property.According to Real Property Law 443, the agent must give a copy of the signed agency disclosure to the seller, buyer, landlord or tenant true bilateral employment contractsmeaning that the owner hires the broker and promises to pay a commission in exchange for the broker's promise to locate a "ready, willing and able" buyer or tenant for the owner.How long must an agent keep the signed copy of the agency disclosure form?

• years

What kinds of information are sellers NOT required to disclose about a property?Sellers do not have to disclose information regarding the

following:- Occupants who have AIDS or any other illness

that is not transmitted through the occupancy of a dwelling.- Properties where a death occurred due to natural causes, accidents, suicide, or murder, or where any crime occurred that is punishable as a felony.