Post 301--Broker Relationships and
Responsibilities
Material
fact - CORRECT ANSWER-About the property
Related to the property
Principal able to complete the transaction
Special importance
Disclosing material facts about a seller's property - CORRECT ANSWER-To
client or customer
Even if it hurts your customer
Regardless of how pubic the material fact is
Listing agent has highest responsibility
Buyer agent is responsible to disclose if known
Answer questions to avoid misrepresentation
Willful - CORRECT ANSWER-intentional
Negligent - CORRECT ANSWER-Unintentional--failure to exercise reasonable
care
Omission - CORRECT ANSWER-Failure to disclose
Misrepresentation - CORRECT ANSWER-Communication of false info--lie
Dual Agency - CORRECT ANSWER-Disclosed and consensual
Not between two firms
Not automatic
Designated Agency - CORRECT ANSWER-Disclose names to client
No later than presentation of offer
Easier to practice in larger firms
"Dual Designated" agents
BIC or other authorized person may appoint
, Documents/Info gathered by Seller - CORRECT ANSWER-Sellers deed/title
Survey boundaries
Copy of restrictive covenants
HOA Bylaws/rules/dues/assessments
Balance due on sellers mortgage (short sale/foreclosure?)
Agency brochure - CORRECT ANSWER-Must be provided at first substantial
contact
Does not have to be signed
Does not form agency relationship
Commissions - CORRECT ANSWER-Negotiable
Not set by law
Firm cannot set rates
No "customary" fee for all firms
Deed Discloses - CORRECT ANSWER-Owners
Legal description
Type of ownership
Not a survey
Property Disclosure Statement - CORRECT ANSWER-Assist seller in
understanding form
Do not fill out for seller
Seller does not have to disclose but agent must
Consequences of not providing Property Disclosure Statement - CORRECT
ANSWER-3-day right to rescind (date of acceptance of contract/settlement or
occupancy of buyer whichever comes first)
Withdraw without penalty including due diligence fee
Lead Based Paint Amendment/Disclosure - CORRECT ANSWER-Must be
provided for all residential properties per 1978
Don't have to test
Buyer gets 10 days to do assessment before obligated to purchase property
Exceptions--elderly housing and 0 bedroom dwellings
Responsibilities
Material
fact - CORRECT ANSWER-About the property
Related to the property
Principal able to complete the transaction
Special importance
Disclosing material facts about a seller's property - CORRECT ANSWER-To
client or customer
Even if it hurts your customer
Regardless of how pubic the material fact is
Listing agent has highest responsibility
Buyer agent is responsible to disclose if known
Answer questions to avoid misrepresentation
Willful - CORRECT ANSWER-intentional
Negligent - CORRECT ANSWER-Unintentional--failure to exercise reasonable
care
Omission - CORRECT ANSWER-Failure to disclose
Misrepresentation - CORRECT ANSWER-Communication of false info--lie
Dual Agency - CORRECT ANSWER-Disclosed and consensual
Not between two firms
Not automatic
Designated Agency - CORRECT ANSWER-Disclose names to client
No later than presentation of offer
Easier to practice in larger firms
"Dual Designated" agents
BIC or other authorized person may appoint
, Documents/Info gathered by Seller - CORRECT ANSWER-Sellers deed/title
Survey boundaries
Copy of restrictive covenants
HOA Bylaws/rules/dues/assessments
Balance due on sellers mortgage (short sale/foreclosure?)
Agency brochure - CORRECT ANSWER-Must be provided at first substantial
contact
Does not have to be signed
Does not form agency relationship
Commissions - CORRECT ANSWER-Negotiable
Not set by law
Firm cannot set rates
No "customary" fee for all firms
Deed Discloses - CORRECT ANSWER-Owners
Legal description
Type of ownership
Not a survey
Property Disclosure Statement - CORRECT ANSWER-Assist seller in
understanding form
Do not fill out for seller
Seller does not have to disclose but agent must
Consequences of not providing Property Disclosure Statement - CORRECT
ANSWER-3-day right to rescind (date of acceptance of contract/settlement or
occupancy of buyer whichever comes first)
Withdraw without penalty including due diligence fee
Lead Based Paint Amendment/Disclosure - CORRECT ANSWER-Must be
provided for all residential properties per 1978
Don't have to test
Buyer gets 10 days to do assessment before obligated to purchase property
Exceptions--elderly housing and 0 bedroom dwellings
