1. Pre-test Page 9 Student Handout
Introduction
to Agency
Pre-test Page 9 Student Handout

2. 1. What is your brokerage agency policy? 1. Exclusive Buyer Agency
2. Exclusive Seller Agency
3. Split Agency 4. Dual Agency All in-company transactions
5. Split Agency Represents buyers/sellers Never both parties as dual agents
Exclusive Buyer Agency – Works only with buyers
Exclusive Seller Agency – Works only with sellers
Split Agency - Affiliated agents shall represent the seller when they list the property and shall act as a buyer's agent when working with a buyer.
Dual Agency
1) It is the policy of (brokerage name) to represent both buyers and sellers.
2) When an agent lists a property, all agents in the brokerage are appointed to represent the seller. Language reflecting this fact is included in our company listing agreement.
3) When an agent represents a buyer, all agents in the brokerage are appointed to represent the buyer. Language reflecting this fact is included in our company's buyer agency agreement.
Split Agency – No dual
Affiliated agents shall represent the seller when they list property and shall act as buyer's agents when working with buyers on any property not listed with the agent.

3. 2. List the three types of properties to which Ohio Agency laws apply.

4. 3. An agent is conducting an open house when a couple walks in the door and ask to look around. At this point the agent represents the ______.

5. 4. A potential buyer called and said, “You were referred to me by a mutual friend. We would like to schedule an appointment to see the property at 815 Main Street tomorrow at 3:00 p.m.” At this point, are you the buyer’s agent?
____Yes ____No

6. 5. All fiduciary duties are the same whether you are seller’s agent, buyer’s agent or dual agent ____True _____False

7. 6. Before reviewing the pre-approval letter that a potential buyer has secured from the lender, the agent must provide the buyer with which form? ______Consumer’s Guide ______Agency Disclosure

8. 7. A tenant signed a 12 month lease agreement
7. A tenant signed a 12 month lease agreement. Is the property manager required to provide the tenant with the Consumer’s Guide to Agency Relationships?

9. 8. Define fiduciary.

10. 9. Define confidential information.

11. 10. An agent does not have any legal duties to a customer
10. An agent does not have any legal duties to a customer ____True ____False

12. We will review the answers throughout the class.

13. Objectives 1. Define agency, dual agency and split agency
2. Distinguish the difference between a client and customer duties 3. Identify your brokerage company policy

14. Objectives
4. Analyze how agency is created Analyze the timing and purpose of the Consumer’s Guide to Agency Relationships for buyers and sellers
6. Analyze the timing and purpose of the Agency Disclosure Form

15. ORC
(A) “Agency” and “Agency relationship” mean a relationship in which a licensee represents another person in a real estate transaction.

16. Black’s Law Dictionary
client. 1. A person or entity that employs a professional for advice or help in that professional’s line of work.
Black’s Law Dictionary is used by attorneys and judges.

17. Black’s Law Dictionary
fiduciary. 1. A person who is required to act for the benefit of another person on all matters within the scope of their relationship; one who owes to another the duties of good faith, trust, confidence, and candor.

18. Black’s Law Dictionary
fiduciary. 2. One who must exercise a high standard of care in managing another’s money or property.

19. Modern Real Estate Practice
customer. The third party or nonrepresented consumer for whom some level of service is provided.

20. Creation of Agency 1. Listing Agreements 2. Buyer Agency Agreements
3. Tenant Representation Agreement 4. Property Management Agreement
5. Contract to auction real estate
Can be written or oral agreements

21. Black’s Law Dictionary
express agency. An actual agency arising from the principal’s written or oral authorization of person to act as the principal’s agent. i.e. Agency results from a formal agreement between the parties

22. Black’s Law Dictionary
implied agency. An actual agency arising from the conduct by the principal that implies an intention to create an agency relationship. i.e. Agency results from the behavior of the parties

23. ORC 4735.69 No, providing information does NOT create agency.
A licensee gave the buyer a list of lenders and property inspectors. Did this act create an agency relationship with the buyers?
ORC No, providing information does NOT create agency.
Assisting party who is not a client.
(A) A licensee may assist a party who is not the licensee’s client in a real estate transaction by doing any of the following:
(1) Providing information regarding lenders, inspectors, attorneys, insurance agents, surveyors, draftspersons, architects, schools, shopping facilities, places of worship, and other similar information;
(2) Providing market information or other information obtained from a property listing service or public records.
(B) A licensee who assists a party who is not the licensee’s client as permitted in division (A) of this section does not violate the agency relationship with the client, and provision of the services for that party neither forms nor implies any agency relationship with that party.

24. ORC (G) “Confidential information” means all information that a client directs to be kept confidential or that if disclosed would have an adverse effect on the client’s position in the real estate transaction,

25. Except to the extent the agent is required by law to disclose such information, and all information that is required by law to be kept confidential.

26. Modern Real Estate Practice
customer. The third party or nonrepresented consumer for whom some level of service is provided.

27. Was the word MONEY in the agency definitions?

28. MONEY does NOT create agency!

29. A contract or conduct creates agency.

30. 4735.53 Agency relationships permitted.
(A) The types of agency relationships a licensee may establish in a real estate transaction are limited to the following:
(1) An agency relationship between the licensee and the seller;
(2) An agency relationship between the licensee and the purchaser;
(3) A dual agency relationship between the licensee and both the seller and the purchaser;

31. (B) When an agency relationship is formed between a licensee and a client, ALL of the following also are considered the agent of that client:

32. (1) The brokerage with whom the licensee is affiliated and, except as provided in division (C) of section of the Revised Code, the management level licensees in that brokerage who have direct supervisory duties over licensees;
(2) Any licensee employed by, or affiliated with, the brokerage who receives confidential information from the agent of the client ;
(3) Any other licensee in the brokerage who assisted in establishing the agency relationship;
(4) Any licensee in the brokerage who specifically is appointed with the client’s consent to represent that client.

33. (C) Except as otherwise provided in divisions (B)(1) to (4) of this section, another licensee who is affiliated with the same brokerage as the licensee is NOT an agent of that client.
(D) A payment or the promise of a payment to a licensee does NOT determine whether an agency relationship has been created between a licensee and a client or between other licensees in the brokerage with which the licensee is affiliated and that client.

34. Use of the Agency Disclosure Form applies to residential homes
One-to-four family

35. Rental properties over 18 months

36. Commercial properties

37. Whether this is your home or this is your property….next slide….

38. Whether this is your home or this is your property….next slide….

40. The buyers and sellers want to know…what team are you on?

44. XYZ Realty (Dual Agent)
Split Agency

45. R. C. 4735. 62 provides for fiduciary duties that apply to ALL agents
R.C provides for fiduciary duties that apply to ALL agents. Then RC is in addition and specific to seller’s agents. R.C is in addition and specific to buyer’s agent. I think that needs to be made clear. The duties can never be waived, but the duties specific to the seller’s and buyer’s agent may be. They would have to fill out a Waiver of Duties Statement.
ORC Applies to ALL Agents Other duties will be discussed throughout the class.

46. What is the purpose of the Consumers Guide?
To inform consumers of the Brokerage Policy

47. 2. Dual Agency on in-company transactions
1. Split Agency
2. Dual Agency on in-company transactions
3. Exclusive Buyer Agency
4. Exclusive Seller Agency 5. Split Agency – No dual
Brokerage policies allowed in Ohio

48. When do you give me the Consumers Guide?

49. 4735.56 …prior to marketing or showing the seller’s real estate

50. What are the three things you do if the seller or buyer refuses to sign the receipt of the Consumer’s Guide?

51. Note it on the form Notify the broker/manager
Keep it for 3 years
Note it on the form

52. I am attending an Open House, are you required to give me the Consumers Guide when I walk through the door? No

53. Prior to showing the property
I made an appointment to see this house tomorrow afternoon at 3:00 p.m.
When do you give me the Consumers Guide?
Prior to showing the property

54. Prior to the prequalification
I asked you to prequalify me for a loan. When do you give me the Consumers Guide?
Prior to the prequalification

55. Prior to requesting financial information
The agent asked,
“Has your lender qualified you for a property that is listed for $250,000?”
When should the agent give the Consumers Guide?
As soon as the question is asked.
Prior to requesting financial information

56. Prior to discussing with the purchaser the making of an offer/lease
The agent asks,
“Would you like to make an offer on this property?”
When should the agent give the Consumers Guide?
Prior to discussing with the purchaser the making of an offer/lease

57. Prior to submitting an offer to purchase/lease
The agent is ready to submit an offer. When should the agent give the Consumers Guide?
Prior to submitting an offer to purchase/lease

58. Consumer’s Guide Given to the seller prior to marketing or showing the property

59. Consumer’s Guide Given to the buyer prior to
A pre-qualification;
Requesting financial information;

60. Discussing making an offer; or
Consumer’s Guide Given to the buyer prior to Showing the property, other than at an open house;
Discussing making an offer; or
Submitting an offer.

61. Disclose by that same medium Give document at first meeting
If one of the triggering events is happening by phone or , then the licensee must disclose by that same medium and give the Consumers Guide to the party at the first meeting.

62. When does the property manager give the Guide to the owner?
Before marketing or showing the rental property
Have the owner sign it before they enter into the property management agreement.

63. When does the property manager give the Guide to the tenants?

64. Provide to tenant if property is Commercial – Industrial – Retail or
Residential lease over 18 months
Before entering into lease agreement

65. Exceptions to Consumer Guide
Residential rental or lease agreements that can be performed in 18 months or less

66. Exceptions to Consumer Guide Referrals Foreign real estate
Sale of cemetery lots or interment rights

68. Transactions Specific means agent completes it
and the buyer/s sign BEFORE preparing the offer.
Have agents look at their Agency Disclosure statement.

69. A licensee selling property at auction shall, prior to the auction, verbally disclose to the audience that the licensee represents the seller in the real estate transaction.
Have agents look at their Agency Disclosure statement.

70. The licensee shall provide the agency disclosure statement described in section of the Revised Code to the successful bidder prior to the bidder’s signing a purchase contract.
Have agents look at their Agency Disclosure statement.

71. If you don’t know the seller/s name/s
Let the seller’s agent provide the info

72. I. Transaction Involving Two Agents in Two Different Brokerages
Used about 80% of the time.

73. Buyers sign Buyer’s agent gives to seller’s agent

74. Sellers sign BEFORE the offer is presented

75. II. Transaction Involving Two Agents in the Same Brokerage
Used about 15% of the time.

76. You can only check one section!

77. First Box Split Agency Brokerage Policy

78. Second Box Dual Agency on In-Company Transactions
II. Transaction Involving Two Agents in the Same Brokerage
Second Box Dual Agency on In-Company Transactions

79. III. TRANSACTION INVOLVING ONLY ONE REAL ESTATE AGENT
Used about 5% of the time.

80. III. TRANSACTION INVOLVING ONLY ONE REAL ESTATE AGENT
Dual Agent Must disclose personal, family or business relationship

81. Exclusive Buyer Agency OR Exclusive Seller Agency Other party – Not represented

83. Used based on your Company’s Policy or Business Model May be used in new construction

84. All sellers must initial and sign

85. All buyers must initial.

86. Signatures of all parties.

88. The Commission found
that an agent caused sellers he represented to execute a dual agency disclosure form when a dual agency relationship did not exist.

89. Fine - $500 3 hours CE – Agency Class

90. Agent failed to keep copies of the agency disclosure statements and HUD forms with respect to six (6) properties; he failed to keep complete records of all transactions for a period of three (3) years from the date of the transaction.

91. Fine $900 3 hours CE – Agency Class

92. The Commission found that the agent incorrectly completed the agency disclosure form; both sections I and II were completed, presenting conflicting information to the client.

93. Fine - $300 3 hours CE – Agency Class

94. Common Mistakes
Consumers Guide
Failure to give PRIOR to triggering events Failure to secure the signature

95. Common Mistakes
Agency Disclosure Fill out ALL sections (Do NOT fill out all sections.)

96. REMEMBER
Keep the Consumer’s Guide and the Agency Disclosure in the “dead” file when the deal falls through.

97. 1. What is your company’s agency policy? 1. Exclusive Buyer Agency
2. Exclusive Seller Agency
3. Split Agency 4. Dual Agency
5. Split Agency – No dual Find out if you don’t know!
Exclusive Buyer Agency – Works only with buyers
Exclusive Seller Agency – Works only with sellers
Split Agency - Affiliated agents shall represent the seller when they list the property and shall act as a buyer's agent when working with a buyer.
Dual Agency
1) It is the policy of (brokerage name) to represent both buyers and sellers.
2) When an agent lists a property, all agents in the brokerage are appointed to represent the seller. Language reflecting this fact is included in our company listing agreement.
3) When an agent represents a buyer, all agents in the brokerage are appointed to represent the buyer. Language reflecting this fact is included in our company's buyer agency agreement.
Split Agency – No dual
Affiliated agents shall represent the seller when they list property and shall act as buyer's agents when working with buyers on any property not listed with the agent.

98. 2. Define confidential information
2. Define confidential information. “Confidential information” means all information that a client directs to be kept confidential or that if disclosed would have an adverse effect on the client’s position in the real estate transaction.

99. 2. An agent is conducting an open house when a couple walks in the door and ask to look around. At this point the agent represents the ______ Seller

100. 3. A potential buyer called and said, “You were referred to me by a mutual friend. We would like to schedule an appointment to see the property at 815 Main Street tomorrow at 3:00 p.m.” At this point, are you the buyer’s agent? No

101. 5. All fiduciary duties are the same whether you are seller’s agent, buyer’s agent or dual agent False

102. 6. Before reviewing the pre-approval letter that a potential buyer has secured from the lender, the agent must provide the buyer with which form? Consumer’s Guide

103. 7. A tenant signed a 12 month lease agreement
7. A tenant signed a 12 month lease agreement. Is the property manager required to provide the tenant with the Consumer’s Guide to Agency Relationships? No

104. 8. Define fiduciary.
A person who is required to act for the benefit of another person on all matters within the scope of their relationship; one who owes to another the duties of good faith, trust, confidence, and candor.

105. 9. Define confidential information
9. Define confidential information. “Confidential information” means all information that a client directs to be kept confidential or that if disclosed would have an adverse effect on the client’s position in the real estate transaction…

106. Except to the extent the agent is required by law to disclose such information, and all information that is required by law to be kept confidential.

107. 10. An agent does not have any legal duties to a customer. False 4735
10. An agent does not have any legal duties to a customer False Assisting party who is not a client.

108. Remember… The buyers and sellers have the right to know if you are a Seller’s Agent Buyer’s Agent
Dual Agent.
The buyers and sellers want to know…what team are you on!

109. “Laws alone can not secure freedom of expression; in order that every man present his views without penalty there must be spirit of tolerance in the entire population.”
Albert Einstein

110. Save this template as a presentation (.ppt file) on your computer.
Using this PowerPoint break timer
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