chapter 4 30 hr broker transition courser

Salesperson to Broker Transition Course 30 Hrs : 

Salesperson to Broker Transition Course 30 Hrs Copyright © 2011 by Kaplan, Inc. All rights reserved. Chapter 4 Agency Issues

Introduction: 

Introduction Agency Defined: A Relationship in which a real estate broker or licensee, whether directly or through an affiliated licensee, represents a consumer by the consumer’s consent, whether express or implied, in a real property transaction © 2011 by Kaplan, Inc. Page 63 Illinois Agency Is “Statutory law” ( Real Estate License Act 2000

Consumer Client Customer Overview: 

Consumer Client Customer Overview © 2011 by Kaplan, Inc. Extra

Consumer Client Customer Duties: 

Consumer Client Customer Duties © 2011 by Kaplan, Inc. Extra No Duties Ministerial Acts ( page 73) Fiduciary Duties Page 63 Agency Duties

Level of Services: 

Level of Services Consumer Interested in Services, no duties Client is the Principal the Agent works “For”. Customer Agent Works “With ” Duties “factual information”, “honest dealing", "Material Disclosures” and offer “Ministerial Acts” but never receives advice and counsel or confidential information about the client without specific consent from the client. © 2011 by Kaplan, Inc. Page 64

Types of Agency Relationships: 

Types of Agency Relationships Universal ( many duties/activities with broad powers) General ( some duties but one activity ) Special ( one specific activity for one specific act) Designated Agent ( authorized by one to act for another) Disclosed dual Agent © 2011 by Kaplan, Inc. Page 65 Real Estate Agent Property Manager

Designated Agency: 

Designated Agency Contractual relationship between a sponsoring broker and a client (i.e. Seller and Broker) in which one or more licensees associated with or employed by the broker are designated as agent of the client (page 66) Licensees presumed to represent the consumer they are working with as designated agents for the consumer unless written agreement exists between the sponsoring broker and the consumer, or licensee is performing only ministerial acts on behalf of the consumer © 2011 by Kaplan, Inc. Page 65

Designated Agency : 

Designated Agency Section 15-50 a,b,c © 2011 by Kaplan, Inc. Page 65 “Brokerage Agreements”… sponsoring broker ( managing broker) will “designate “ an agent to act for that party ( seller buyer, landlord , tenant Exchangor, Exchangee

Accepted Designated Agency Activities : 

Accepted Designated Agency Activities Agency disclosures are required. © 2011 by Kaplan, Inc. Page 66 Contemporaneous Offers ( representing two buyers and showing them the same property) Page 113

Accepted Designated Agency Activities : 

Accepted Designated Agency Activities Dual Agency ( forms on page 70 Fig 4.3 , page 72 Fig. 4.4) © 2011 by Kaplan, Inc. Page 67 Is legal but Written notice and consent before agent acts as a dual agent The Act Spells out exactly what you can and cat do as a Dual Agent ( page 71)

Customer Duties: 

Customer Duties Treat all customers honestly and ethically Disclosure of latent material adverse facts g to the physical condition of the property Must disclose to unrepresented customer in writing that the licensee is not acting as the customer’s agent © 2011 by Kaplan, Inc. Page 73 Do Not Owe “Client” Level (fiduciary) Duties

Ministerial Acts: 

Ministerial Acts Licensee may perform ministerial acts for a customer without violating any brokerage agreement with a client and performing those ministerial acts for the customer will not be construed in a manner that forms a brokerage agreement with the customer . Ministerial acts are informative or clerical in nature. © 2011 by Kaplan, Inc. Page 75 Do not Rise to “Agency” Duties

Minimum Services: 

Minimum Services Accept delivery of and present to the client offers and counteroffers Assist the client in developing, communicating, negotiating, and presenting offers, counteroffers, and notices Answer the client’s questions © 2011 by Kaplan, Inc. Page 76 Do Not Pertain to OPEN listings

Duties After permission of Agency: 

Duties After permission of Agency Account for All monies Keep Confidential Information Confidential © 2011 by Kaplan, Inc. Page 76 Unless it becomes Public or you have written permission to disclose

Chapter 4 Agency Issues Review Quiz: 

Chapter 4 Agency Issues Review Quiz © 2011 by Kaplan, Inc. Page 78