Work in the real estate industry
Assignment 2 (TVET)
STUDENT NAME Daniel Skrzypek
OTEN NUMBER N855096
Please read the “Guide to completing and submitting assignments” before you begin this assignment.
What you need to do
To successfully complete this assignment you must answer the following questions to demonstrate your knowledge. The assignment will be granted a result of “Competent” if the learning outcomes are achieved or “not yet competent” if not. If a result of “Not Yet Competent” is achieved you will be given the opportunity to resubmit your assignment.
Question 1: Describe the meaning of the term ‘Agency’ and identify the types of agency relationships that a real estate agent may enter into.
Definition of Agency: "Agency" means a fiduciary relationship between a principal and an agent arising out of a brokerage agreement whereby the agent is engaged to do certain acts on behalf of the principal in dealings with a third party. Duties: A licensee who provides services through a brokerage agreement for a seller, landlord, buyer, or tenant is bound by the duties of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting.
A. SELLER AGENCY: A SELLER'S AGENT has the duties, as defined by law, to represent the seller's interest in the sale of the property: this generally means a duty to seek a sale, lease, rent, or exchange at the price and terms stated in the brokerage agreement or a price and terms acceptable to the seller or landlord; present in a timely manner all offers and agreements to and from the seller or landlord; account for client funds; disclose all information relevant to the transaction as required by law to the client and maintain the client's confidentiality. These duties may be modified only by written agreement of the parties.
B. BUYER AGENCY: A BUYER'S AGENT has the duties, as defined by law, to represent the best interests of the buyer as a client: this generally means to seek real estate at the price and terms specified by the buyer or tenant: present in a timely manner all offers to and from the buyer or tenant on real estate interest: account for clients funds: disclose all information relevant to the transaction as required by law to the client and maintain the client's confidentiality. These duties may be modified only by written agreement of the parties.
C. SUB-AGENCY: A real estate broker, acting as agent for the SELLER or BUYER, must represent the client's best interest in the transaction.
The seller may also authorize subagents to represent him / her in marketing his / her property to buyers. The seller may be liable for actions of the broker and any subagents, when said actions occur within the scope of the agency relationship.
The buyer may also authorize subagents to represent him / her in locating property. The buyer may be liable for actions of the broker and any subagents, when said actions occur within the scope of the agency relationship.
D. DISCLOSED DUAL AGENCY: (UNDISCLOSED DUAL AGENCY IS ILLEGAL) A licensee acting for more than one party whose interests may differ in a transaction with the knowledge and written consent of all parties for whom the licensee acts. If a licensee represents a BUYER in a transaction involving a property which is listed by that same BROKER, or by that BROKER'S company, then a DISCLOSED DUAL AGENCY exists. When DISCLOSED DUAL AGENCY occurs, the full range of agency duties cannot be delivered to both parties. These agency duties will be modified by agreement, so that neither client will be given an unfair advantage. DUAL AGENCY must be disclosed and agreed to in writing by both clients. A DISCLOSED DUAL AGENT may not reveal confidential information regarding, but not limited to:
willingness of the seller to accept less than the asking price;
willingness of the buyer to pay more than what has been...
Please join StudyMode to read the full document