BRE 101 ARU Agent as A Fiduciary Person Concept Discussion Response

Please respond to emily:

Name: Emily

Chapters # 3-4

Overview

Chapter 3 covers things you should know as an agent/broker before sighing on a seller such as the types of agencies and listings you can have. Chapter 4 Informs you about the listing package and breaks it down to describe what each section means for all of the documents. In chapter 4 the author also talks about the broker’s role in pricing (page 118).

Key Concept from Chapter 3

One of the important things about being an agent other than knowledge in the field is being a fiduciary person. This means the agent puts the needs of the client above their own. This includes providing material facts and creating a listing agreement with which the client is comfortable and confident. Being in a fiduciary relationship with your client builds trust between you and the client and potentially will get you referrals and expand your sphere of influence.

Key Concept from Chapter 4 

The listing package is available to relators on ZipForms plus. It includes 5 pages of documents listed on page 110 of the book. These documents include the (AD) Disclosure Regarding Real Estate Agency Relationship form and the Residential Listing Agreement, among other forms. The RLA form Is the Exclusive Authorization and Right to Sell. Which states that the broker has a right to their commissions during the agreed time period, also known as the Safe Harbor clause.

Key Concept from Chapter 3 or 4

Although a broker is required a certified third party for an appraisal they still need to provide the client/seller with an estimated listing price. To do so there are 3 common methods. The methods are the capitalization approach, the cost approach, or most commonly, the comparative approach. The comparative market analysis (CMA) is done by using a multiple listing sight and comparing other houses similar to your clients that are recently sold or currently listed and creating a price worthy of the property and likely to sell. 

Summary

Chapters #3-4 discuss the things that you as an agent/broker needed to know before and during the listing interview. Such as types of listings your client may want as well as your rights as a broker. Chapter 4 takes each document and informs you what each section of the document means and how to properly fill them out. You will also need to provide the customer with copies of some of the documents.