Work in the real estate industry
Assignment 2 (TVET)
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 ...view middle of the document...
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:
1. willingness of the seller to accept less than the asking price;
2. willingness of the buyer to pay more than what has been offered;
3. confidential negotiating strategy not disclosed in the sales contract as terms of the sale; or
4. motivation of the seller for selling nor the motivation of the buyer for buying.
If a consumer does not wish to have a licensee act on behalf of that consumer either as a seller agent or a buyer agent yet wishes to enter another relationship with the real estate brokerage firm, the licensee shall clearly describe, in writing, that relationship. The written description of that other relationship shall be signed by all parties to the relationship prior to any services being rendered.
Question 2: Identify two parties who might establish an agency relationship with a real estate agent outlining the purpose of the relationships
1 - The Real Estate Act Rules require that all industry members ensure their role in a transaction is clearly understood by their clients and third parties [Real Estate Act Rules, s.41(e)]. This means mortgage borrowers must clearly understand with whom their mortgage broker has a working relationship. Real Estate Council of Alberta research into mortgage brokerage/consumer relationships has demonstrated that consumers often do not clearly understand their relationship with the brokerage, the role of the brokerage and the relationship the brokerage may have with lenders.
Agency is a...