Chapter 8 Real Estate Brokerage

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Chapter 8Real Estate Brokerage

• The Real Estate Sales Process
• Listing agreements (broker/owner relations)
• Marketing the property and qualifying buyers (the
  willing and able buyer)
• Presentation and negotiations
• Contracts and closing (transfer of title)

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Chapter 8Real Estate Brokerage

• Real Estate Brokers and Salespersons
• Licensing of salespeople and brokers
• Regulated through state agencies
• Transactions on ones own behalf
• Conducting transactions on behalf of others
• State license requirements
• Real estate brokerage regulation
• Suspension vs. Revocation
• Consumer protection

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Chapter 8Real Estate Brokerage

• Legal Aspects of the Broker-Client Relationship
• Agency law
• Principal employer (seller principal broker)
• Agent employee (broker subagent)
• Fiduciary relationship (principal for agent)

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Chapter 8Real Estate Brokerage

• The Role of Real Estate Brokers
• Broker representation
• Listing broker
• Obtains listing of property for sale
• Selling broker
• Actually sells the property
• Dual agent
• Single broker employed by both seller and buyer

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Chapter 8Real Estate Brokerage

• Broker-Seller Relationship (Sellers Agent)
• Open listing (Multiple Brokers Seller)
• Exclusive-agency listing (1 Broker Seller)
• Exclusive-right-to-sell listing (1 Broker)
• Multiple listing (Split Comm. - ERTS)
• Net listing (Overage Commission - Illegal)
• Sales price to seller set by broker who takes any
  residual or overage amount

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Chapter 8Real Estate Brokerage

• Brokers Right to a Commission
• Paid when broker either
• Sells the property, or
• Procures a ready, willing and able buyer

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Chapter 8Real Estate Brokerage

• Broker-Buyer Relationship (Buyers Agent)
• Buyers representation
• Types of buyer representation agreements
• Open (commission with broker assistance only)
• Exclusive Right (commission guaranteed)
• Compensating the buyers broker
• Fee Percentage
• MLS Commission

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Chapter 8Real Estate Brokerage

• Duties and Rights Under Agency Relationships
• Brokers duties
• Fraud and negligence
• False statement with intention to mislead
• Misrepresentation
• False statement but with no intention to mislead

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Chapter 8Real Estate Brokerage

• Fair Housing Laws
• Prohibit discrimination based on sex, race,
  color, religion, national origin, disabilities,
  or familial status
• Steering
• Selectively showing properties to prospective
  buyers based on their racial or ethnic background

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Chapter 8Real Estate Brokerage

• Methods of Agency Termination
• Sale of the listed property
• Time limit expires
• Mutual agreement
• Breach of duties
• Loss of contractual capacity (Death/Illness)
• Improvements are destroyed
• Property is taken by government under power of
  eminent domain

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Chapter 8Real Estate Brokerage

• Types of Brokerage Firms
• Franchises (Coldwell Banker, Century 21)
• Pay a fee of gross transactions to Franchiser
• Desk Fee Arrangements
• Paid Employment (pay fee to occupy office)
• Office Resources
• Shared Commission
• MLS Provides a networking and marketing
  advantage

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Chapter 8Real Estate Brokerage

• Compensation of Brokers
• 6-7 SFR
• 3-5 Commercial
• 7- 10 Land
• Salesman gets of Broker Comm.