Week 1 Assignment
Purpose: The purpose of your weekly assignments is to create a quick reference study guide to assist you in preparing for the California Real Estate Salesperson License Exam
Instructions: Respond to the prompts listed below in all parts (part 1- no need to write complete sentences)
PART 1: Study Guide
Chapter 1: Real Estate Agency Relationships
Discuss real estate agency law and the duties associated with fiduciary relationships
Explain the ways agency relationships can be created and terminated
Describe agency disclosure requirements and disclosure forms, and
emphasize the potential penalties for failure to disclose required information in a timely fashion
Identify the different types of agency relationships
Summarize the practical aspects of agency relationships in daily business activities, with emphasis on activities and behaviors that could result in disciplinary actions or other penalties
Chapter 2: Listing Agreements & Property Disclosures
Describe the purpose of listing agreements in real estate transactions
Contrast the key features of different types of listing agreements
Identify the required (legal) elements in every listing agreement, and explain the importance of core provisions
Discuss mandatory property disclosure requirements, and the forms used to make those disclosures
Summarize the legal issues and duties real estate agents should be aware of during the process of establishing and implementing a listing agreement relationship with a property seller
PART 2: C.A.R. Residential Listing Agreement
Find the following contract provisions in the C.A.R. Residential Listing Agreement (Exclusive Authorization and Right to Sell) form and note which section of the form they appear in.
Seller warranties Property description
Listing price and terms Hold harmless clause
Safety clause alternatives Lockbox authority
Authority to accept deposits Compensation negotiable
Mandatory mediation Seller receipt of copy
Payment to cooperating brokers Commission rate or amount
Agency agreement and term Items included/excluded
Section 1: ____________________
Section 2: _____________________
Section 3, bold print: ____________
Section 3A: ____________________
Section 3A (1), (2), and (3): ________
Section 3D: _____________________
Section 4: _____________________
Section 6: _____________________
Section 7: _____________________
Section 8: _____________________
Section 12: _____________________
Section 19: _____________________
Below section 21, bold print: _____________________
PART 3: Which Disclosure is Required
Match each transaction listed below with the correct property disclosure requirement.
Transfer disclosure statement Supplemental statutory disclosure form
Mello-Roos disclosure Natural hazard disclosure statement
Lead-based paint disclosure No disclosure required
______ 1.Sale of home with special assessment lien
______ 2.Sale of residence located near military site
______ 3.Condo owner selling unit
______ 4.Duplex owner selling his interest to co-owner
______ 5.Sale of home built in 1970
______ 6.Sale of property located in flood zone
PART 4: Agency Do’s & Don’ts
For each of the following actions, indicate whether it’s something a real estate agent is or is not allowed to do.
1. Receiving compensation from the seller even though you signed a buyer representation agreement with the buyer
2. Disclosing material facts or latent defects, even if it hurts the client’s chances of selling the property
3. Disclosing information about a former resident’s HIV/AIDS condition
4. Having the parties sign the agency disclosure form and agency confirmation statement at closing, to save time
5. Representing both the buyer and the seller, with their written consent
6. Withholding material information from your principal because you don’t want to upset her
7. Withholding material information from the other party because you think it might confuse him or scare him off
8. Disclosing confidential information about a past client that is helpful to a new client
9. Using information from another agent’s visual inspection of a property instead of doing your own inspection
10. Receiving compensation for just introducing a buyer and a seller (even though you don’t do any other work on the transaction)
11. Acting in ways that contradict your agency representation disclosure