in this chapter: >express and implied agreements >agency disclosures >creating agency...

In this chapter:

> Express and implied agreements

> Agency disclosures

> Creating agency relationships with buyers

> When agency relationships change

3. How Agency Relationships Are Established

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EXPRESS AND IMPLIED AGREEMENTS

Agency relationships can be formed by:

•Express agreements

•Implied agreements

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Defining Express Agreements

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Defining Implied Agreements

Implied agreement may occur when licensee acts or speaks like an agent and consumer relies on those actions and statements

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Defining Implied Agreements

• Agency relationships can result even unintentionally, accidentally, or inadvertently

• Agency relationship can result from the conduct of the parties, regardless of either party’s intent, description, or understanding of relationship

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Defining Implied Agreements

• BALANCING ACT: Implied agency relationships may occur when an agent of a seller, who does not make the proper disclosures, works too closely with a buyer customer

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AGENCY DISCLOSURES

• Essential that clients and customers know forms of agency representation available to them

• Clients and customers also need to know whom real estate professionals represent

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Timely

• Disclosure to clients must take place before agreement is entered into

• Disclosure to customers must take place before substantive discussions about real estate needs

• This requirement applies to consumers that REALTORS® have met online

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Meaningful

• Disclosure must provide clear written explanation of all legal forms of brokerage relationships with consumers available under state law, even if the brokerage does not offer all of those options

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Written

• Many states have developed standard disclosure forms and mandated their use by all licensees within the state

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Agency Disclosure Reality Check

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WHEN AGENCY RELATIONSHIPS CHANGE

• BRIGHT IDEA: Discuss Possible Change in Agency Relationships with Client Before They Happen

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DISCLOSED DUAL AGENCY COMPLICATIONS

• Two buyer clients interested in the same property

• Yourself• Present or past client buyers• First-time buyers

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DISCLOSED DUAL AGENCY COMPLICATIONS

• Out-of-town buyers or corporate transferees

• Close friends or relatives • Present or past business associates• Buyer customers who require anonymity

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