Real Estate - Level 9, Chapter 4 - Subagency and No Agency

Real Estate - Level 9, Chapter 4 - Subagency and No Agency Flashcards The client has an exclusive agency relationship with only the named individuals in the agency agreement - designated agency cooperating brokerage/brokeris an agency arrangement in which two brokerages collaborate to achieve a real estate transaction for a specific piece of property; so, a broker who brings a buyer to another broker (who has a listing) is a cooperating broker.Rather than represent the interests of either principal, I perform ministerial acts to facilitate the transaction - no agency Does vicarious liability work for cooperating brokers?Yes What don't transaction coordinators do?They do not enter into an agency relationship with either party to the transaction.ministerial acts for license holders include: 1. Showing properties2. Disclosing actual facts about property condition3. Comparing a property to other properties on the market no agency*before you are a client*you are still a customer*can not expect the broker to work in their best interest (because there is no agency) the subagentworks FOR the principal and WITH the customer. That never changes.What is TRUE of ministerial acts?they include making factual comparisons.I am a transaction coordinator with NO agency relationship with either party to the transaction - no agency I involve two unaffiliated brokers working together to achieve a real estate transaction - subagency In a no agency transaction, the transaction coordinator

(facilitator):

does NOT have an agency relationship or fiduciary duties with either party I am a cooperating broker helping an unaffiliated broker find a buyer for his seller-client - subagency subagencyoutside brokers and agents who help listing agent; listing broker's own agents; is a form of agency that arises when an agent enlists the use of other agents to accomplish a client's goal.no agency equalsno fiduciary In some ways, this form of agency is similar to dual agency - designated agency My agent is also the agent for the person from whom I'm buying a home - dual agency What's the problem with a cooperating broker? Alyssa works for KW.Emily is her seller.Dan works for REMAX.Daniel is his buyer.Dan brings Daniel to Alyssa to

buy Emily's house.When Broker Dan enters into a subagency relationship with Broker Alyssa, Broker Dan is now a subagent of Seller Emily, NOT Buyer Daniel's agent.Broker Dan will need to immediately disclose this information to Buyer Daniel and ensure he gives Seller Emily all fiduciary duties.

Is subagency legal in Georgia?Yes, but it is rarely practiced The broker has no fiduciary duties for ministerial acts they perform. When this occurs, it is known as no agency Subagency is a form of agency that arises when an agent (Agent A) enlists the use of other agents (Agent B) to accomplish the goal of that agent's (Agent A's) principal.

TRUE I represent both parties to an in-house real estate transaction - dual agency In Georgia, a transaction coordinator is sometimes called amiddleman

A subagent works for the principal and with the: customer

In a no agency transaction, the facilitator will be expected

to provide:

• Reasonable care and skill2. Honesty and fair dealing3.

Confidentiality and impartiality4. Disclosure of material facts regarding the property subagentIf sara (potential buyer) is my CUSTOMER, I am the subagent for the seller until I make Sara my CLIENT.*subagent = no representation going on.transaction coordinator/facilitator/intermediary is a broker who facilitates a transaction absent of any agency relationship with either party to the contract.what do transaction coordinators, facilitators, or intermediaries do?

• They ONLY coordinate or facilitate a transaction and

don't involve those complicated and binding fiduciary duties.2. They act as ONLY intermediaries between buyers and sellers, landlords and tenants.MLS/multiple listing serviceA multiple listing service that contains descriptions of most of the homes that are for sale. This computer-based service is used to keep up with properties that are listed for sale.subagency1. A subagent is an agent of an agent.2. A subagent can be an unaffiliated cooperating broker.3. Subagency offers are typically communicated to cooperating brokers via the MLS.4. The subagent owes all the same fiduciary duties to the principal that the principal's representing broker owes.5. A buyer brought to a real estate transaction by a seller's subagent has no one looking out for their interests.