As I look forward to getting licensed to being a realtor here in Idaho Falls, Idaho, with the Group Real Estate, I am going back through all the pieces that I need to get the test passed and move on to a career as a Realtor, selling homes in Idaho Falls, helping customer to client, and making a stamp for myself. To start out, I have been going through the State book yet again. It has been some time since I have done any type of studying, so I have been going back through, from the beginning of it all, to prepare.
Agency – The Works
The Idaho Real Estate Representation Act was created to identify in clear fashion what the duties and many obligations exist between the consumer and the real estate agent and the brokerage that he/she represents. Any real estate transaction that a licensed real estate agent is to be in involved in will be governed over by the agency representation. There are several steps and certain procedures to create an agency relationship between a licensee and a buyer or seller from the ‘first initial business contact’ to confirmation of the rep agreement and acknowledgement of disclosure.
This has been smashed into your head over and over as you have taken the courses and started into the notion that you want to be a real estate agent. When do you give the Agency Disclosure Brochure? The first substantial business contact. This is adopted and approved by the Idaho Real Estate Commission. Each and every brokerage shall keep a signed and dated record of a buyer or seller’s copy, receipt, or initial copy (whether it be solid or online) of the blue brochure.
This blue brochure goes on with making sure the type of agency is stated and disclosed, as well as the various types of representation that are offered by the brokerage. This doesn’t obligate the signor to any contractual type relationship with that agent or the brokerage, it merely showcases that there is proof that the prospective buyer or seller received the blue brochure. As a soon to be licensee make sure you are using the most up to date version.
In Idaho there are 4 types of brokerage relationships:
Limited Dual agency representation
Limited Dual agency with assigned agents
Nonangency is done with the customer is not represented in a real estate transaction. There are still duties, however, and obligations that need to be followed and met. These need to be met and cannot be nullified. Assisting the buyer and seller in the sale or purchase, performing acts of honesty, using good faith and using reasonable skill and care in the transaction, properly accounting for monies placed in the care of the brokerage, and disclosing to the buyer customer or seller customer any adverse material fact actually know or reasonable should be known.
Limited Dual Agency with is only with an expressed written contract authorizing limited dual agency, can a brokerage represent both the buyer and the seller. The key word here is ‘limited.’ Certain limitations abide here as to not have any conflict of interest, and to not cause any advantage to be had from one party, or the other. The brokerage, through limited dual agency, may, at any time, assign different licensees to each client to represent and act solely on the behalf of that client. If this is done, this will give better communication between the licensee and the client they are representing.
Assigned agency is is when the brokerage has assigned separate sales associates to act on the behalf of separate clients, the designated broker, however, maintains acting as a limited dual agent. The broker will supervise the assigned agents with their duties to their respective clients and refrain from advocating on the behalf of any one client over the other. The broker will also refrain from disclosing, without permission, any and all confidential information of any other client with whom the brokerage has an agency relationship.
As you start in to your agency confirmation with your client, you will start off directly with the purchase and sale agreement. This is where you will establish the agreement and agency type that you will have with your client. This is very important, and after the blue brochure, you will do this before you embark on your journey in helping them sell or buy their home.
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