Post-License Ch.6 Summary Notes
The Seller’s Real Property Disclosure Statement discloses the overall condition of the home, to the best of the sellers’ knowledge.
- The sellers fill out the information themselves.
- Keep copies of the Disclosure Statement at the home.
- Make the sellers aware of the legal responsibilities of disclosure.
Do some investigating of your own and find out about things like association fees.
If ownership requires payment to a community association, a Disclosure Summary must be given to the buyer before any contract is executed.
Make sure buyers know your opinion is just an opinion.
Make the buyer aware of any known material defects. Recommend a Home Inspection.
Types of Agency
- Transaction Broker
- Single Agent
- No Brokerage Relationship
- Designated Sales Associate – nonresidential transactions and requested by the custom
A single agent can transition to a transaction broker. The principal must agree and sign a written consent.
Limited representation means that a buyer or seller is not responsible for the acts of the licensee. These types of agency apply only to the sale of residential property.
A buyer or seller enters into an agency agreement with a broker.
These disclosure requirements do not apply to rental or lease property, unless it includes an option to buy.
The Brokers’ Relationship Act
- Disclosed dual agency is forbidden.
- Transaction brokers provide a limited form of nonfiduciary representation.
- The scope of this law is to apply only to residential sales.
- Disclosure requirements do not apply to Non-residential transactions; Auctions or Appraisals.
Compensation itself does not create an agency relationship.
The agency relationship is governed by statutory and common law.
First Contact means the beginning of the initial communication between a licensee and a seller or buyer except in situations where the licensee knows that the potential buyer or seller is already represented.
First Contact does not include:
- Encounters that do not involve getting confidential information, the execution an agreement for representation or negotiations.
- Responding to general factual questions.