that's all.
Distinguish among agency relationships in general business dealings:
recognize or treat as different a business or organization established to provide a particular service affecting all or most people as regular occupation business or transaction.
there is a law for agency. an agency is created when a person delegates another person to work on his/her behalf. like an associate going into a broker an agency relationship is created. this relationship is governed by a law called the law of agency which is the body of law which the agency relationship falls under. in order to live within the law, 3 need to be paid attention to mainly, common, statutory and administrative. common; occurring, found, or done ofter. statutory; required, permitted, or enacted by statute. administrative; relating to the running of business. common law is the unwritten law that is custom and written by judges in case law. common law moved here from England. this common law was accepted and stated that all servants must be loyal to their masters. later on, common law turned into agency law. and i have no idea what agency law means. common law
noun
the part of English law that is derived from custom and judicial precedent rather than statutes. Often contrasted with statutory law .
• the body of English law as adopted and modified separately by the different states of the U.S. and by the federal government. Compare with civil law .
• [as adj. ] denoting a partner in a marriage by common law (which recognized unions created by mutual agreement and public behavior), not by a civil or ecclesiastical ceremony : a common-law husband.
• [as adj. ] denoting a partner in a long-term relationship of cohabitation.
common law
Judge-made law manifested in decrees and judgments of the courts (case law) as opposed to statutory law.
statutory law is written in legislature -- chapter 475 and 455 - licensing law contributes to chapter 475 and 455 and is part of license law and statutory law. statutory |ˈsta ch əˌtôrē|
adjective
required, permitted, or enacted by statute : the courts did award statutory damages to each of the plaintiffs.
• (of a criminal offense) carrying a penalty prescribed by statute : statutory theft.
• of or relating to statutes : constitutional and statutory interpretation.
DERIVATIVES
statutorily |-ˌtôrəlē| adverb
adjective
required, permitted, or enacted by statute : the courts did award statutory damages to each of the plaintiffs.
• (of a criminal offense) carrying a penalty prescribed by statute : statutory theft.
• of or relating to statutes : constitutional and statutory interpretation.
DERIVATIVES
statutorily |-ˌtôrəlē| adverb
statutory law
Written statutes and rules enacted by the legislature.
Administrative law; created by administrative agencies in forms of rules, regulations, orders, and decisions. chapter 475 gives the frec the power to oversee real estate in Florida.
administrative law
Body of law created by administrative agencies in the form of rules, regulations, orders, and decisions.
agency laws, real estate laws, frec rules, affect relationships between licensees, buyers, sellers, and the public. So you have a principal real estater who is in charge of an agent, and then you have people who deal at arms length. people who deal at arms length are opposite of those dealing with fiduciaries. Fiduciary is much more trustworthy and guaranteed fair. An at arm's length can be compared to a caveat emptor -- beware. Attorney (agent) client (principal) -- is the extent of this fiduciary or at arm's length? So you have a universal agent who can make decisions, then you have a general agent who can oversee decisions but not make them, then you have a special agent who can deal with 1 thing and decide on 1 thing.
- universal: power of attorney
- general: property manager
- special: CPA
- Transaction broker: buyer and seller
- Single agent broker: buyer or seller
- No broker: facilitator
- transaction both, single 1, no none
dual agent
A broker who
represents as a fiduciary both the buyer and the seller in a residential
real estate transaction; dual agency is illegal in Florida.
fiduciary
Occurs when a broker
is in a relationship of trust and confidence with the broker as agent
and the seller or the buyer as principal.
There are legal provisions that apply only to residential real estate transactions: residential:
A provision is a clause in the law.
Chapter 475 mandates the provisions and laws in real estate transactions. There are a certain few that apply particularly to real estate. You have to disclose things in residential real estate that you don't have to in others.
RESIDENTIAL: is the sale of 4 or fewer units that were improved, 4 or fewer units that were unimproved, and 10 or fewer acres of agricultural land.
A residential disclosure does not need to be stated in a nonresidential transaction, a rental unless the rentee decides to purchase less than 4 units and improve them, an auction, an appraisal, "dispositions of any interest in business enterprises or business opportunities, except for property with four or fewer residential units." what does that mean?
There are legal provisions that apply only to residential real estate transactions: residential:
A provision is a clause in the law.
Chapter 475 mandates the provisions and laws in real estate transactions. There are a certain few that apply particularly to real estate. You have to disclose things in residential real estate that you don't have to in others.
RESIDENTIAL: is the sale of 4 or fewer units that were improved, 4 or fewer units that were unimproved, and 10 or fewer acres of agricultural land.
A residential disclosure does not need to be stated in a nonresidential transaction, a rental unless the rentee decides to purchase less than 4 units and improve them, an auction, an appraisal, "dispositions of any interest in business enterprises or business opportunities, except for property with four or fewer residential units." what does that mean?
5.
final settlement of a matter. so, in business less than 4 residential units. so in a real estate residential business enterprise transaction you don't need the disclosure if it's less than 4 residential units. If you enter in a transaction broker relationship where you trust the broker to be the seller or buyer, then you need no disclosure. There are disclosures that need to be stated under residential real estate provisions in chapter 475.
Describe the duties of a transaction broker:
You are a transactional broker unless specified as a single agent or a no brokerage relationship. So a transaction broker can represent buyer and seller but can't enter into a fiduciary relationship with both. "
adjective
You cannot promise complete allegiance to a customer. You must be fair on the playing field. Transaction without fiduciary: you can not demand undivided loyalty from a licensee. Limited representation allows licensee to facilitate a real estate transaction between buyer and seller. No brokerage: deal honestly and fairly, disclose all known facts that affect residential property, account for all funds. Transaction: deal honestly and fairly, disclose all known facts that affect residential property, account for all funds, use skill, care, and diligence, present all offers and counteroffers, exercise limited confidentiality, perform additional duties that are mutually agreed to. Single agent: gloves come off, you are cold. deal honestly and fairly, disclose all known facts affecting the residential property, account for all funds, use skill care and diligence, present all offers and counteroffers, Confidentiality, Obedience, Loyalty, Disclosure (full). Single agent relationship Their are duties single agents have to their principals. A seller or buyer may want to be represented by a real estate broker. A broker is a single agent representing the seller as a fiduciary in selling or a fiduciary for buyer in buying. Florida real estate license law defines single agent as:
You are a transactional broker unless specified as a single agent or a no brokerage relationship. So a transaction broker can represent buyer and seller but can't enter into a fiduciary relationship with both. "
transaction broker
A broker who provides
limited representation to a buyer, a seller, or both in a real estate
transaction, but who does not represent either party in a fiduciary
capacity or as a single agent.
In a transaction the buyer or seller is a customer and not a principal. The customer is not responsible for the acts of a licensee.
Chapter 475 says that a customer may not be represented by a broker in a transaction.
customer
A member of the public
who is or may be a buyer or a seller of real property and may or may
not be represented by a real estate licensee in an authorized brokerage
relationship.
A customer chooses limited representation. You may enter into a transaction relationship with a buyer and seller in real estate if both are you customers.
The transaction broker who represents on a customer basis are 7:
1. Deal honestly and fairly. Licensees owe good faith and honesty to customers. Anything the broker says hold her accountable.
2. Account for all funds. Transaction money is considered a trust fund/escrow fund. Money entrusted to a broker is separate from broker funds. Broker can't touch trust/escrow money until the transaction is over. Keep records and report to the DBPR: book, account, record... chapter 475 says what you have to do.
3. Use skill, care, and diligence. HIV must be disclosed: federal fair housing act. Broker be informed of zoning. Homicide, suicide, death disclosed. Although, it is your choice to disclose.. you will not be reprimanded for not.
4. You must disclose all material facts: cracks, leaks.
5. You must disclose offers and counteroffers even if in contact.
6. Exercise limited confidentiality unless waived in writing. Never say you will pay more or take less. Never say why you are selling. That you will agree to alternate financing terms, or any other information asked to remain confidential.
7. Don't go too far in representation. You must not pass your scope of "customer" limited relationship... You can not get into a fiduciary relationship.
1.
Law. a person to whom property or power is entrusted for the benefit of another.
2.
Law. of or relating to the relation between a fiduciary and his or her principal:
a fiduciary capacity; a fiduciary duty.
3.
of, based on, or in the nature of trust and confidence, as in public affairs:
a fiduciary obligation of government employees.
4.
depending on public confidence for value or currency, as fiat money.
single agent
A broker who
represents either the buyer or the seller (but not both) and has a
fiduciary relationship with the party represented.
A single agent has to rep. one or the other. A transaction can represent both limited, or provide a transaction space but do no brokerage. In a single agent, the broker is the agent and the buyer OR seller is the principal. The "principal" is who the party is with the agent. A subagent assists the agent in a single agent transcation:
subagent
A person authorized to assist and represent the agent and whose duties are delegated by the original agent. Subagent has the same duties. Associates (both broker and sales) are subagents for the broker's principals. Associates owe the same fiduciary duties to the principals as the broker. You really have to like the broker or the associate. An associate can be an employee or a contractor but still has fiduciary duties. Which title is for tax purposes.
Single agent has 9 duties as opposed to 7.
1. Deal honestly and fairly.
2. Loyalty. An agent cannot breach the duty of undivided loyalty to the fiduciary. The agent cannot act contrarily to the interests of the principal. Principal means to make his or her priorities more important than anyone else's. Loyalty is faithfulness. A broker or anyone else cannot profit at the expense of the principal, it is court ordered (case law).
-Obtain the best price, act on behalf, not acting for parties with adverse intentions, never concealing the identity of the purchaser in order for the principal to sell (real estate seems like a shady business)... those who have gone before... what did they do?, disclosing to the agent if the agent becomes personally interested in the principals property, never advancing the agents interest at the expense of the principal.
3. Confidentiality. keep your mouth shut, plainly. a secret is a secret.
4.
5. Account for all funds and record, book keep, for the DBPR.
6. Full disclosure: let it all out.
7. Skill, care, and diligence in the transaction:
to the buyer. See Topic 4.4: Transaction Broker Relationship for explanation.
The nine duties listed above apply to all real estate transactions (residential and otherwise) when the parties have agreed to a single agent relationship (see below).
Transaction relationships, broker can rep buyer and a no brokerage for the seller. Cannot represent the buyer as a single agent if the broker has a transaction relationship with the seller. Broker is single agent for seller > no brokerage for buyer. Transaction for buyer > no brokerage for seller. Single agents only have to follow 4 more things than transaction agents: COLD - confidentiality, obedience, loyalty, disclosure.
Then, there's the no broker relationship. Purpose, duties, and requirement of a no brokerage relationship disclosure. In a no brokerage relationship you must deal honestly and fairly, disclose all known facts that materially affect the value of the real property not readily observable...and account for all funds.
Transaction broker not in a fiduciary relationship works with a customer.
No brokerage broker not in a fiduciary relationship works with a customer.
Single agent works with a fiduciary in a principal relationship. Relationship must be identified, agreed upon, and signed before showing the property. Write down everything that happens, like if a buyer or seller refuses to sign a disclosure statement.
"Under Florida law, it is presumed that all licensees are operating as transaction brokers unless another brokerage relationship is established. Therefore, there is no requirement to give a written transaction broker disclosure notice to the buyer and/or the seller." -- that's no fun.
There are 6 situations under the real estate license law that do not constitute a brokerage relationship:
1. When the licensee knows the single agent or transaction broker represents a prospective seller or prospective buyer.
2. during an open house when confidential info not exchanged
3. casual encounters that do not illicit confidential info. negotiations concerning price, terms, and conditions of a sale.
4. when responding generally to an ad of property for sale.
5. General facts and negotiation terms.
6. let potential buyer know agent is acting on behalf of owner.
"If during any of the situations described above, a member of the public begins to provide confidential information or begins to negotiate concerning price, terms, and so forth, the licensee would at that point present the person with the appropriate disclosure notice depending on the circumstances and desire of the parties." When buyer turns from potential to serious a contract enters and is signed.
"The statement is true. If the disclosure document is incorporated into a listing or buyer broker agreement, a signature line must be inserted immediately following the disclosure information. It is not sufficient to only have a signature line at the bottom of the listing or buyer broker agreement."
"The statement is true. The duty to disclose all known facts that materially affect the value of residential real property that are not readily observable to the buyer is a single agent duty, a transaction broker duty and a no brokerage relationship duty."
Transition to another relationship:
change, passage, move, transformation, progression.
Transition from a single agent (fiduciary) to a transaction broker (customer).
You can change as long as you give consent (agree, accept, approve). The change of relationship must be in writing and can happen at any time. Chapter 475 sets this rule and the principal buyer or seller must sign or initial the consent. The broker has to keep acting as a single agent if the principal will not sign. Disclosure notice paper requires the buyer or seller to sign. It's called a consent to transition. A firm represents a person as a single agent. Then a person comes in to the firm to find a purchase. This is the only firm the person visits. He wants that and only that firm to represent him in buying a home. So he wants a single agency. So he has to sign a single agent agreement before the finding can begin. A single agent sale cannot coincide with a single agent buy. An illegal dual agent is created if the firm enters a dual agent by ficuciaring buyer and seller. If the house want to be purchased, a transaction relationship must be entered.
- Confidentiality. Much of the information a broker gains while employed by the principal is confidential. An agent may not reveal to a third party, without the principal's permission, personal or private information that might lessen the principal's bargaining position. For example, a licensee may not tell a buyer that a seller is forced to sell owing to poor health or loss of a job without the principal's permission. Brokers may not divulge confidential information learned during the course of the single agency even after the transaction is concluded and the agent-principal relationship is ended. A broker is never free to use confidential information to the disadvantage of or reveal any harmful or unfavorable information about a former principal.
- Obedience. An agent is obligated to act in good faith according to the principal's lawful instructions. The broker-agent is at all times obligated to act in conformity with the principal's instructions as long as those instructions are legal and relevant to the contractual relationship. If a broker feels that carrying out the principal's legal directions will harm the principal, then the broker must promptly inform the principal of all known facts along with the broker's opinion. However, if the principal will not change the instructions, the broker must either carry them out or withdraw from the relationship.
5. Account for all funds and record, book keep, for the DBPR.
6. Full disclosure: let it all out.
7. Skill, care, and diligence in the transaction:
- Skill, care, and diligence in the transaction. A broker's obligations extend beyond merely selling a listing or locating a suitable property for a buyer. A real estate broker holds himself or herself out to the public as specially qualified by reason of experience, ability, and knowledge. If a broker's principal is a buyer, then the broker should attempt to obtain the property at the lowest price possible. If the broker's principal is a seller, then the broker should try to get the seller the most favorable price. This includes researching a property thoroughly to advise the seller of a reasonable listing price. Brokers should discuss with their principals any anticipated tax consequences and advise them to seek expert tax advice when appropriate. The duty of using skill, care, and diligence does not end with the signing of a contract. It continues via numerous services by the agent until the transaction is closed. If an agent does not perform with the required degree of skill, care, and diligence, the agent becomes liable to the principal for the damages the principal may have sustained and may be disciplined by the FREC.
- Present all offers and counteroffers in a timely manner. See Topic 4.4: Transaction Broker Relationship for explanation.
- Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. See Topic 4.4: Transaction Broker Relationship for explanation.
to the buyer. See Topic 4.4: Transaction Broker Relationship for explanation.
The nine duties listed above apply to all real estate transactions (residential and otherwise) when the parties have agreed to a single agent relationship (see below).
Transaction relationships, broker can rep buyer and a no brokerage for the seller. Cannot represent the buyer as a single agent if the broker has a transaction relationship with the seller. Broker is single agent for seller > no brokerage for buyer. Transaction for buyer > no brokerage for seller. Single agents only have to follow 4 more things than transaction agents: COLD - confidentiality, obedience, loyalty, disclosure.
Then, there's the no broker relationship. Purpose, duties, and requirement of a no brokerage relationship disclosure. In a no brokerage relationship you must deal honestly and fairly, disclose all known facts that materially affect the value of the real property not readily observable...and account for all funds.
Transaction broker not in a fiduciary relationship works with a customer.
No brokerage broker not in a fiduciary relationship works with a customer.
Single agent works with a fiduciary in a principal relationship. Relationship must be identified, agreed upon, and signed before showing the property. Write down everything that happens, like if a buyer or seller refuses to sign a disclosure statement.
"Under Florida law, it is presumed that all licensees are operating as transaction brokers unless another brokerage relationship is established. Therefore, there is no requirement to give a written transaction broker disclosure notice to the buyer and/or the seller." -- that's no fun.
There are 6 situations under the real estate license law that do not constitute a brokerage relationship:
1. When the licensee knows the single agent or transaction broker represents a prospective seller or prospective buyer.
2. during an open house when confidential info not exchanged
3. casual encounters that do not illicit confidential info. negotiations concerning price, terms, and conditions of a sale.
4. when responding generally to an ad of property for sale.
5. General facts and negotiation terms.
6. let potential buyer know agent is acting on behalf of owner.
"If during any of the situations described above, a member of the public begins to provide confidential information or begins to negotiate concerning price, terms, and so forth, the licensee would at that point present the person with the appropriate disclosure notice depending on the circumstances and desire of the parties." When buyer turns from potential to serious a contract enters and is signed.
"The statement is true. If the disclosure document is incorporated into a listing or buyer broker agreement, a signature line must be inserted immediately following the disclosure information. It is not sufficient to only have a signature line at the bottom of the listing or buyer broker agreement."
"The statement is true. The duty to disclose all known facts that materially affect the value of residential real property that are not readily observable to the buyer is a single agent duty, a transaction broker duty and a no brokerage relationship duty."
Transition to another relationship:
change, passage, move, transformation, progression.
Transition from a single agent (fiduciary) to a transaction broker (customer).
You can change as long as you give consent (agree, accept, approve). The change of relationship must be in writing and can happen at any time. Chapter 475 sets this rule and the principal buyer or seller must sign or initial the consent. The broker has to keep acting as a single agent if the principal will not sign. Disclosure notice paper requires the buyer or seller to sign. It's called a consent to transition. A firm represents a person as a single agent. Then a person comes in to the firm to find a purchase. This is the only firm the person visits. He wants that and only that firm to represent him in buying a home. So he wants a single agency. So he has to sign a single agent agreement before the finding can begin. A single agent sale cannot coincide with a single agent buy. An illegal dual agent is created if the firm enters a dual agent by ficuciaring buyer and seller. If the house want to be purchased, a transaction relationship must be entered.
designated sales associates
Two real estate
licensees from the same brokerage company designated to represent the
buyer and the seller as single agents in nonresidential transactions.
Real property vs. nonresidential. (not requiring or providing facilities for people to live on the premises)... containing or suitable for commercial premises rather than private houses. Keep both your successful files (sold) and dead files (failed to close).
Actions that will terminate an agency:
Action: the fact or process of doing something, typically to achieve an aim.
Terminate: bring to an end.
Relationship is terminated when the transaction broker or single agent broker objectives have been accomplished according to the terms of the contract that created the relationship. A principal can break the single agency if any fiduciary responsibilities are breached which include:
Fulfilling the brokerage relationship (finding a ready, willing, and able buyer), parties mutually agree to terminate the single agent relationship, terms of the agreement expire (after a reasonable time), broker renounces (formally abandons) the single agency relationship by giving notice to the principal or notice to the transaction broker customer, principal revokes (puts an end to operation of) single agent or customer revokes transaction broker (in which case the principal or customer may be liable for damages such as advertising costs, travel expenses, research, etc), seller or broker dies, buyer or buyer broker dies before finding a suitable property, property is destroyed or condemned by eminent domain: eminent domain
noun Law
the right of a government or its agent to expropriate private property for public use, with payment of compensation, or the principal or customer goes bankrupt.
noun Law
the right of a government or its agent to expropriate private property for public use, with payment of compensation, or the principal or customer goes bankrupt.
https://www.google.com/maps/place/Pinnacle+Realty+Group/@28.0332357,-82.6477003,11z/data=!4m5!1m2!2m1!1sREALTOR!3m1!1s0x0000000000000000:0x0da9c168237bd387 What I want.
No comments:
Post a Comment