1. ESTATE AGENT AND OTHER PARTIES INVOLVED
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ESTATE AGENT AND OTHER PARTIES INVOLVED
Principal
A person or body who engages the services of an estate agent and is responsible for the payment of the estate agent’s fees in respect of the services rendered by such estate agent
Third parties
Any other person who may be linked in some way with a particular estate agency. Normally refers to the purchaser or tenant.
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2. The relationship between an agent and principal and third party
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The relationship between an agent and principal and third party
An agent is elected by the principal to carry out the principal’s instructions. The agents then has a relationship with the principal who is the agent’s employer. The agent also has a relationship with the third party when closing a deal.
A sub agent exists when the first agent uses the services of another agent. Here the sub agent cannot request payment with the principal as there is no relation ship between them. The relationship exists between the first agent and sub agent only.
15-May-18
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3. THE RESPONSIBILITIES OF A PRINCIPAL TO AN AGENT
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THE RESPONSIBILITIES OF A PRINCIPAL TO AN AGENT
As a client using the services of an agent the principal must pay all the fees due as agreed in the agreement
The principal must furnish the agent with all the relevant details of the property on offer or required. The details must be true and not falsified.
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4. THE RESPONSIBILITIES OF AN AGENT TO THE PRINCIPAL
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THE RESPONSIBILITIES OF AN AGENT TO THE PRINCIPAL
Agent must be honest and trustworthy
Must be professional
Be cost conscious and not take advantage of the principal
Information disclosed must be true and accurate
Agent has to act as the representative
Has to act in the best interest of the principal
Should not make personal gains from the agency
Should not oppose the principal wants and requests
Agent has to have a separate a/c for clients
All deposits from the purchaser has to be deposited into a separate a/c from the agent’s
Agent has to be loyal and follow all instructions by the principal
In terms of minimal deposit and other special instructions like chattels ( like ac units, or fittings included or not)
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5. Agent is responsible as per appointment
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Agent is responsible as per appointment
Even if a sub agent is appointed the first agent is responsible to the principal
Agent cannot act on behalf of the owner or purchaser without disclosing all information
An agent cannot collect fees from both the principal and third party, unless both the principal and third party have the knowledge and both parties agree.
In principle the agent represents the owner, therefore there will be a clash of interest if the agent also represents the third party
Agent should not take the opportunity to make personal gains for himself
An agent cannot buy the property from the principal unless the principal agrees to it.
This is to avoid the agent buying the property cheap and selling for a profit
15-May-18
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FIDUCIARY DUTY
A legal duty an agent owes his or her client in a real estate transaction
Acts on behalf of client with the utmost of care, integrity, honesty, confidentiality, and loyalty. The agent is a trusted advocated
A fiduciary relationship is therefore the most important legal relationship any 2 people can have. It is built on the highest trust where the agent is designated the legal caretaker of his client
15-May-18
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7. THE RESPONSIBILITY OF AN AGENT TO THE THIRD PARTY
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THE RESPONSIBILITY OF AN AGENT TO THE THIRD PARTY
Has to be honest to the third party
All pertinent information regarding the property must be disclosed
Cannot withhold information which may influence the sale or tenancy
Cannot give false information about the property such as future sale price or about existing or future facilities within the locality of the property
Can be considered fraudulent for any of the above actions. Can be reported to the Board and legal action can be taken
15-May-18
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8. THE IMPORTANCE OF LISTING
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THE IMPORTANCE OF LISTING
Listing means the obtainment from a principal, instructions to sell or buy or rent a property. It is in the form of writing.
Listing agent means an estate agent who obtains a listing and has been given the rights to sell or buy or rent the property by the principal
Multiple listing occurs when the listing estate agent is a member of a group of agents who have arrangements to exchange listings. Normally the listing agent obtains an exclusive right to sell or buy or let a property, but permits other estate agents in the group to show the property to prospective buyers, with the understanding that if the sale is made through the efforts of a sub-agent or co-agent other than the one who obtained the listing, the agency fee is split between the 2 agents on a pre agreed basis
The more listing an agent has, the more fees an agent can collect
Listings are assets to the agent
15-May-18
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