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

1. Discuss real estate agency law and the duties associated with fiduciary relationships
2. Explain the ways agency relationships can be created and terminated
3. Describe agency disclosure requirements and disclosure forms, and
   emphasize the potential penalties for failure to disclose required information in a timely fashion
4. Identify the different types of agency relationships
5. 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

1. Describe the purpose of listing agreements in real estate transactions
2. Contrast the key features of different types of listing agreements
3. Identify the required (legal) elements in every listing agreement, and explain the importance of core provisions
4. Discuss mandatory property disclosure requirements, and the forms used to make those disclosures
5. 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