Real Estate Brokerage Relationships
Agency relationship means the agency relationship created under this chapter or by written agreement between a real estate firm and a buyer and/or seller relating to the performance of real estate brokerage services.
Agent means a broker who has entered into an agency relationship with a buyer or seller.
Broker means broker, managing broker, and designated broker, collectively, unless the context requires the terms to be considered separately.
Business opportunity means and includes a business, business opportunity, and goodwill of an existing business, or any one or combination thereof when the transaction or business includes an interest in real property.
Buyer means an actual or prospective purchaser in a real estate transaction, or an actual or prospective tenant in a real estate rental or lease transaction, as applicable.
Buyer's agent means a broker who has entered into an agency relationship with only the buyer in a real estate transaction, and includes subagents engaged by a buyer's agent.
Seller means an actual or prospective seller in a real estate transaction, or an actual or prospective landlord in a real estate rental or lease transaction, as applicable.
Seller's agent means a broker who has entered into an agency relationship with only the seller in a real estate transaction, and includes subagents engaged by a seller's agent.
Dual agent means a broker who has entered into an agency relationship with both the buyer and seller in the same transaction.
Subagent means a broker who is engaged to act on behalf of a principal by the principal's agent where the principal has authorized the broker in writing to appoint subagents.
Confidential information means information from or concerning a principal of a broker that:
(a) Was acquired by the broker during the course of an agency relationship with the principal;
(b) The principal reasonably expects to be kept confidential;
(c) The principal has not disclosed or authorized to be disclosed to third parties;
(d) Would, if disclosed, operate to the detriment of the principal; and
(e) The principal personally would not be obligated to disclose to the other party.
Material fact means information that substantially adversely affects the value of the property or a party's ability to perform its obligations in a real estate transaction, or operates to materially impair or defeat the purpose of the transaction. The fact or suspicion that the property, or any neighboring property, is or was the site of a murder, suicide or other death, rape or other sex crime, assault or other violent crime, robbery or burglary, illegal drug activity, gang-related activity, political or religious activity, or other act, occurrence, or use not adversely affecting the physical condition of or title to the property is not a material fact.
Principal means a buyer or a seller who has entered into an agency relationship with a broker.
Real estate brokerage services means the rendering of services for which a real estate license is required under chapter 18.85 RCW.
Real estate firm or "firm" have the same meaning as defined in chapter 18.85 RCW.
Real estate transaction or "transaction" means an actual or prospective transaction involving a purchase, sale, option, or exchange of any interest in real property or a business opportunity, or a lease or rental of real property. For purposes of this chapter, a prospective transaction does not exist until a written offer has been signed by at least one of the parties.
Your Market Area
Develop Your Market - The new real estate broker must concentrate on developing new business.
Develop Your "Farm" - The listing farm takes time but produces results faster than waiting for the phone to ring. The listing farm is a select neighborhood in which the broker actively solicits business. Concentrating on a homogeneous neighborhood with rising property values will be more productive than an older neighborhood undergoing an economic decline. Statistics can be obtained from the local MLS as to the number of sales or property turnovers in particular areas. Look for a minimum rate of eight turnovers in the past year as an ideal area to start farming. The first tool an broker will need is a good quality map of the neighborhood, area, or subdivision. This map may be obtained from the County courthouse or local title company. Become familiar with the area. Know the streets, parks, schools, shopping areas by name, municipal offices, and organization buildings. Begin keeping an ownership record of properties in the area. Sources for ownership can be from title company records, city directories, reverse telephone directories, property tax files, and from several electronic locator software programs.
Time Pattern - Avoid night calls if possible unless a firm appointment has been established and confirmed prior to the appointment. This is for consideration of the owner and for the safety of the salesperson.
Weekends - Reserve the weekend to allow time to work with new buyers and to show listed property to them.
There are aspects of marketing that are not fun, but must be done in order to be successful.
Working With FSBOs - For Sale By Owners (FSBO) is one of the challenges a real estate licensee deals with routinely. Many people feel they have the expertise to sell their own property without the assistance of a broker. Many simply don't know a broker or they may know too many brokers and do not want to alienate any of them by listing with any particular one. Remember they want to sell their property or it would not be for sale. Calling the owner and obtaining an appointment to inspect the property is the first step. During the inspection take notes and make favorable comments to the owner. Describe the service you and your company offer sellers and offer to compile a comparative market analysis for the owner. Asking some technical questions will help to determine the seller's ability to handle the sale of their property. Ask about their buyer qualification questions, about financing, appraisal, and title information. The answers to these questions should help determine if the seller is qualified to handle a sale of the property or if they are in need of a broker's assistance. Ask for the listing if brokers assistance is apparent.
Canvassing - Telephone canvassing can be an effective tool for obtaining listing appointments. Usually it requires about twenty-five calls to obtain one listing appointment. Be prepared before starting on a telephone campaign. At least be familiar with the property values in the area you will be making call to. Also, beware of the Federal Do Not Call List.
The Real Estate Commissioner is:
B) appointed by the legislature
C) promoted within the department
D) appointed by the governor
A licensee is holding an open house with a listed house and a neighbor comes in to view the property. The neighbor would known as:
A) a customer
B) a client
C) a 3rd party
D) a subagent
A auto parts store owner decided to sell her store. She told a worker that if he found a buyer, she would pay him $3,000. When the worker found a buyer, the shop owner refused to pay the $4,000. The worker is entitled to:
A) nothing since he was not licensed
B) pursue actions since it was a commercial sale
C) costs and legal costs if suing
D) $3,000 plus costs
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