the State section of this course to determine the rules in

Chapter 11 Flashcards Net ListingILLEGAL IN MOST STATES (Frowned upon in others.)Listing which states that seller is to receive a certain amount of money from the sale and any amount over this will be paid to the broker as a commission. Check the State section of this course to determine the rules in your area.When an agent works WITH a personthat individual is a CUSTOMER!Agentis a person who is empowered by contract to represent the interest of someone called a Principal comminglingthe practice of mixing a client's money with the agent's personal funds, is ILLEGAL Division of markets by location or price "Why don't you take the south side of town and our company will take the north side," is another statement that would also violate the Sherman Antitrust Law.ImpliedA contract under which the agreement of the parties is

demonstrated by their acts and conduct. Example: "I'll help

you buy a house; so don't work with anyone else because I will be your agent. Let's go look at some houses today." General AgentHandles multiple transactions of a client. The best example in real estate would be property management.Special AgentHandles one transaction for one seller of one property. The best example would be a licensee who is hired to sell one property for a client.EstoppelA legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct, or silence.AgreementsA copy of all real estate-related agreements and documents, including listing agreements, agency relationship statements, and transfer disclosure statements, must be given to the signing party immediately after the document is signed, under the Commissioner's Regulations. You must always give the buyer and seller a copy of any agreement once it's been signed.full disclosurebroker needs to tell seller when broker accept money from buyer Fiduciary Relationshiputmost trust CompensationEither the seller/landlord or the buyer/tenant may pay a broker. Whether the seller/landlord or buyer/tenant pay the commission has no bearing on the broker's choice of representation.

Real Estate AgentA person who is licensed by the CalBRE, who holds either a broker or salesperson license, and negotiates sales for other people.Real Estate BrokerA license holder (boss or owner of a real estate company) who is allowed to employ other real estate agents (whether salespersons or other brokers).Easton v. Strassburgerlisting and selling brokers need to disclose to prospective purchasers all facts materially affecting the value or desirability of the property Types of Agents1.Universal Agent2.General Agent3.Special Agent4.Agency Coupled With an Interest5.Single Agent6.Dual Agent Exclusive AgencyOnly one broker is allowed to act on behalf of the principal; however, if the owner sells the property him/herself, no commission is paid to the broker. Again, the selling broker will look to the listing broker for compensation. The seller can sell the property him/herself and pay no commission.Puffingis an exaggeration or superlative comment. While this can

be unethical, it is legal. SUBJECTIVE OPINION - Example:

"The transportation, shopping, and schools in this area are terrific." Sherman Antitrust Act prohibits:1.Price Fixing2.Group Boycotts3.Division of markets by location or price cooperating agentsone who attempts to find a buyer for the other broker's listing and THEN to act as the buyer's agent, RATHER THAN the subagent of the seller agency relationshipWhen one person is empowered by another to represent him in any type transaction OpenSeller retains the right to hire any number of brokers to sell his property. Whoever provides seller with a ready, willing, and able purchaser is entitled to a commission. If the seller sells the property without the aid of a broker, he/she pays no commission.Broker AssociateA real estate broker who has entered into a written contract to act as the salesperson/agent of another broker in connection with acts requiring a real estate license and to function under the employing broker's supervision.Conversionanother illegal accounting practice, is the unlawful misappropriation and use of a client's funds by a licensee.MUCH MORE serious violation Transfer Disclosure Statement-Identifies items of value on the property and whether these items are operational.-Asks seller to identify any structural or material defects.-Applies to residential dwellings of 1-4 dwellings.-Requires the signatures of the seller, buyer, and real estate agents, if any.-Race, creed or color is not a material fact and should not be disclosed , even though the

furnishing of such information is at the request of the principal, under the California Attorney General's opinion (Op. 69/263).-Does NOT mandate the disclosure of the cause of death of a current or former occupant or owner of AIDS, AIDS-related illness, or other contagious disease.-must be given to the prospective buyer as soon as is practicable - before OR within 3 days after the deposit receipt is signed.Dual AgentA real estate agent that represents both the buyer and the seller in the SAME transaction. In California, dual agency IS legal, but only with the knowledge and consent of both parties. Dual agencies are common in California, but are considered by many attorneys as a conflict of interest.We

will discuss dual agency in greater detail on Screens 9 and 10 of this chapter.What does an agent owe his/her principal? (C O A L N)1.Care2.Obedience3.Accounting4.Loyalty5.Notice (sometimes called Disclosure)