This concludes Chapter 11. Below is a brief summary which you can review before you take your chapter quiz.
An Agent is a person who is empowered by contract to represent the interest of someone called a Principal. The relationship between the two is called an agency relationship and the agent is called a Fiduciary.
Creation of Agency: Written or expressed; Implied; Ostensible Agency; Ratification.
In California, there are three ways to create agency: by agreement, by ratification, and by estoppel.
When an agent works FOR a principal, that person is a client. When an agent works WITH a person, that individual is a customer.
Types of Agents: Universal, General, Special, Single and Dual Agent.
A Good Agent chooses who he/she wishes to represent; Communicates the decision to all parties; Conducts business in a manner that is consistent with the choices made and communicated.
An agent owe his/her principal: Care; Obedience; Accounting; Loyalty; Notice (Disclosure).
Things an agent owes 3rd party customers: Honesty, Accuracy and Disclosure of defects.
Material defects must be disclosed regardless of whom the agent represents.
Dual Agency: a broker CAN represent both parties in a transaction. Dual agency is legal, but only with the knowledge and consent of both parties.
Commissions:
Sherman Antitrust Act prohibits Price Fixing, Group Boycotts and Division of markets by location or price.
Brokers and Salespeople are responsible for their own FICA and Social Security.
All independent contractors should have an "Independent Contractor's Employment Contract" that clearly defines their responsibilities and obligations.
Listing Agreements (between seller and broker): Exclusive right to sell; Exclusive Agency; Open; Net Listing; Agency Coupled with an Interest.
A seller may withdraw a listing before the broker spends time and money. However, the owner CANNOT cancel a listing to sell a property directly to a buyer brought by the broker.
Agency Disclosure Requirements:
A broker deposit the buyer's money in the appropriate account within 3 business days following receipt of the funds. If a broker accepts a check as an earnest money deposit, then he must make full disclosure to the seller.
During the time between the receipt of the check by the broker and the acceptance of the purchase offer by the seller, the broker must record a receipt of the check on broker's trust fund records and hold the check in a safe place.
Promissory notes are NOT equivalent to cash.
Commingling (mixing a client's money with the agent's personal funds) is illegal. Conversion, also illegal, is the unlawful misappropriation and use of a client's funds by a licensee.
The Transfer Disclosure Statement (Identifies items of value on the property) must be provided by both seller and broker within 3 days after the deposit receipt is signed.
Real Estate Agent: holds either a broker or salesperson license, and negotiates sales for other people.
Real Estate Broker: A license holder allowed to employ other real estate agents.
Real Estate Salesperson: holds a salesperson license, and MUST be employed a real estate broker.
Broker Associate: A real estate broker who has entered into a written contract to act as the salesperson/agent of another broker.
A subagent for the seller has fiduciary duties to BOTH the seller and the appointing broker.
A cooperating agent is one who attempts to find a buyer for the other broker's listing and then to act as the buyer's agent, rather than the subagent of the seller. A cooperating broker is a non-listing broker who also works to sell the listed property.
Agreements between brokers do NOT NEED to be in writing. An agreement between a broker and a salesperson must ALWAYS be in writing.
Real estate licensees may still be treated as independent contractors for both federal and state personal income tax purposes, depending upon the fact situation.
An individual will not be considered an employee for state income tax purposes if:
No. | Subject | Date | Views |
---|---|---|---|
Notice | 부동산 용어사전 | 2019.04.15 | 2372 |
Notice | 부동산 용어 (A to Z) | 2019.03.03 | 1601 |
111 | TEST 18 | 2019.03.23 | 630 |
110 | Chapter 18 Conclusion | 2019.03.23 | 209 |
109 | TEST 17 | 2019.03.23 | 257 |
108 | Hudson Yards | 2019.03.16 | 106 |
107 | TEST 17 | 2019.03.10 | 237 |
106 | Chapter 17 Conclusion | 2019.03.10 | 146 |
105 | TEST 16 | 2019.03.10 | 175 |
104 | TEST 15 | 2019.03.07 | 130 |
103 | Chapter 15 Conclusion | 2019.03.07 | 448 |
102 | TEST 14 | 2019.03.07 | 116 |
101 | Chapter 14 Conclusion | 2019.03.07 | 131 |
100 | TEST 13 | 2019.03.07 | 165 |
99 | Chapter 13 Conclusion | 2019.03.07 | 108 |
98 | TEST 12 | 2019.03.06 | 353 |
97 | TEST 11 | 2019.03.06 | 159 |
» | CHAPTER 11 | 2019.03.06 | 135 |
95 | TEST 10 | 2019.03.05 | 235 |
94 | Chapter 10 | 2019.03.05 | 252 |
93 | SUMMARY 9 | 2019.03.05 | 78 |
92 | TEST 9 | 2019.03.05 | 184 |
91 | Chapter 8 Quiz | 2019.03.04 | 144 |
90 | Chapter 8 Conclusion | 2019.03.04 | 272 |
89 | DEED | 2019.03.04 | 94 |
88 | warranty deed 여섯 가지의 covenant | 2019.03.04 | 96 |
87 | Chapter 7 (TEST) | 2019.03.04 | 153 |
86 | Chapter 6 Quiz | 2019.03.04 | 441 |
85 | TEST 5 - Correction | 2019.03.02 | 258 |
84 | Chapter 5 Conclusion | 2019.03.02 | 103 |
83 | Condominium Ownership and Time Shares | 2019.03.02 | 96 |