Q1 You are at pool party and seller calls you his Real Estate Agent in front of the other people at the party. What do you do?

Answer Q1 You tell the seller that real estate agents are now called brokers because you no longer function as agents. Do it in a nice way but do it all the time.

        Q2  A Buyer, with whom you have a Transaction party relationship, tells you that he would pay more for the property than his initial offer. Do you tell this to the seller for whom you are performing as a Single Party Broker?

Answer Q2 No. This is information that you must keep confidential even when you are working as a Single Party broker for the seller. It's the law.

    Q3 Your company has a Transaction brokerage only policy. However, since you are helping your mother buy a house, it only makes sense that you have a Single Party relationship agreement with her. What do you do in this situation?

Answer Q3 Get your broker's permission to act as a Single Party broker in this one case. If broker will not give permission, then do not perform as a Single Party broker.

Q4 An agent from another company says his broker wants to do only Transaction brokerage, if he could get all the other brokers to do the same and not offer Single Party  services. What do you do or say to this?

Answer Q4 In a nice way, tell the agent that such talk could be federal anti-trust violation. It could get their licensses revoked and could lead to a 3-year jail term. Price fixing is illegal and so is term fixing.

Q5 You have a Single Party relationship with the seller and Transaction agreement with the buyer. You read in the newspaper that the seller’s company is closing down. What do you do?

Answer Q5 You don't say anything to the buyer. The news is pulic knowledge but you have a Single Party relationship to the seller, for whom you are working for the benefit of, and such information is not required by law to be disclosed.

Q6 An agent in your company has a policy of not mentioning brokerage status until the buyer is ready to make an offer. She says that there's "no sense mudding the waters with such technicalities" until we know the buyer is serious. What do you do?

Answer Q6 Nicely tell the agent that the law requires that you act in good faith and that such disclosure should be made at the earliest practical opportunity. A late disclosure could lead to a charge that she was acting as an illegal agent. Disclose early, be safe.

Q7 An agent in your company tells buyers and sellers to call her a real estate broker and she is only a provisional sales associate. What do you do?

Answer Q7 Do nothing. The agent by law can call herself a broker in this case.

Q8 A buyer, for whom you are working as a Transaction broker,  asks you to check into buying a house offered by a FSBO. You investigate and the deal is so good you buy it for yourself? Is this OK?

Answer Q8 While you do not have a duty of loyalty per se, you may not act in a dishonest or improper way. This is improper.

Q9 You are working with two buyers. One with a Single Party  agreement and one with a Transaction brokerage agreement. The transaction buyer asks you to check out a FSBO property. The deal is exceptional but instead of returning to the transaction buyer, who directed you to the property, you show the property to your Single Party buyer, with whom you have a duty to be working for the benefit of and the SP buyer buys the property. Is this OK?

Answer Q9 While you don't have a duty of loyalty, per se, you have a duty to be honest and to avoid improper behavior. This is both dishonest and improper.

Q10 You once had a transaction brokerage listing on a house that expired unsold. You now have a Single Party  brokerage agreement with a buyer who is interested in buying the same house now listed with another company. You know the seller once accepted an offer for $10,000 less then the list price but the buyer failed to get financing approved. You truly believe the seller would still take $10,000 less than the offering price.  Do you have to remain confidential about this fact since the brokerage agreement with the seller has ended? Does confidentially extend beyond the brokerage agreement?

Answer Q10 The duty of confidentiality extends beyond the listing period. You do not tell the seller.

Q11 You are a Transaction broker for both the buy buyer and seller. Your comps suggest that the house is $10,000 over-priced at $110,000. The buyer asks what you think the house is worth, what can you say?

Answer Q11 Without acting like an advocate of the buyer, you could in this case tell the buyer what you think the property is worth.

Q12 You are a Single Party broker for seller and a  Transaction broker for the buyer. Your comps suggest that the house is $10,000 over priced at $110,000. The buyer asks what you think the house is worth, what can you say?

Answer Q12 You tell the buyer that you can only quote the listed price becuase in this case you are working for the primary benefit of the seller as a Single Party broker. If you were a transaction broker for both sides, you could give an opinion of value.

Q13 A seller asks if you have a broker’s license. You are a provisional sales associate. You answer, I am a broker. Is this OK under the new law?

Answer Q13 No. You should have said you were a Provisional Sales Associate. Why? The question was license specific. In these cases you cannot call yourself a broker.

Q14 A seller asks you what a Single Party broker is. You answer that a Single Party broker  is the same thing as an agent; it is just the name we use for agent in Oklahoma.  Is this OK?

Answer Q14 No. If you say a Single Party broker is just like an agent you are risking being delcared an agent under the common law of agency which would be illegal. Do not use agency terminology; do not let parties think you are an agent!

Q15 An agent tells a seller that the law of agency in Oklahoma has been abrogated? Is this true?

Answer Q15 NO. The law of agency was not abrogated. Only the duties and responsibilites of a licensee under the common law of agency were abrogated. Agency still exists. Be careful.

Q16 You have a Transaction buyer who, in making an offer on your Single Party listing says, "I’ll pay $100,000 for the house even if the seller will not include the washer and dryer which we are asking in the purchase offer." Can you tell your Single Party seller that the buyer said this?

Answer Q16 No. Don't tell the seller. The fact that a buyer would pay the same for less, means his is willing to pay more. Don't get cute and think you can tell this to the seller because it doesn't affect the price the buyer is willing to pay.

Q17 A Transaction buyer, in making an offer on your Single Party listing says, "We’ve looked at over 100 homes over the last year and this is the only one that meets all our needs." Can you tell the seller this?

Answer Q17 No. This goes to motivation. You cannot give away the buyer's motivating factors.

Q18 You have a Single Party relationship with a  seller, what should you call the seller. Should you call the seller your Client or Principal? If not, what?

Answer Q18 Do not use agency terminology. Call the seller your employing Party or Party for whom you are performing services.

Q18 You have a Single Party relationship with a seller. Should you tell the seller that you are going to be his advocate and put his interests above all others including your own.

Answer Q19 No. Do not claim to be an advocate. An advocate is a classic example of an agent. You do not want to be called an agent because being an agent is now illegal!

Q19 You have a seller who is ready to sign a Single Party listing agreement but you are out of listing forms. Can you act as a Single Party broker before you have a written agreement since you have an oral agreement?

Answer Q20 NO. It is against the law to perform as a Single Party broker without a written agreement.

Q20 A buyer, for whom you have a Single Party agreement, says it is illegal for you to charge a commission based on the sale's price of a house because the higher the price he pays, the more money your make. This he says is adverse to your employing party’s interest. What do you tell the buyer?

Answer Q20 Tell the buyer the law allows for such commission arrangements; however, the buyer does not have to agree to it and other commission arrangements could be made.

Q21 An agent in your company tells you that as a Transaction broker you cannot provide benefits to the party but rather you can only assist a Transaction party. What is the truth here?

Answer Q21 Assisting entails providing a benefit or the intention of providing a benefit. Like the boy scout who said he had a very hard time doing his good deed. He assisted an old lady accross a busy street. What was so hard? She didn't want to cross the street. Without providing a benefit, one would not want to call the boy scout's actions "assisting".

Q22 An agent in your company tells a Transaction buyer that she will be the buyer’s advocate. Is this OK?

Answer Q22 NO. It is against the law to act as an advocate as a Transaction broker.

Q23 Your broker tells you that he does not want you to call yourselves agents, even though it is true you are still agents to your broker. Is this request by the broker reasonable?

Answer Q23 Yes, it is reasonable and it would be a good idea to get into the habit of never calling yourself an agent.

Q24 A broker at another company is running an ad saying his agents are very well trained? Is this illegal?

Answer Q24 Probably not. He has agents. They are his agents. But they are not agents of buyers and sellers. So while the ad may be accurate, it could lead to many misunderstandings.

Q25 A company's trade name is "The Seller's Agent" . This company  runs ads using its legal name. Is this OK since the company is not allowed by law to act as seller’s agents?

Answer Q25 Yes, this is legal because the new law allows a a company to use the word "Agent" in a trade name.

Q26 You tell your seller, with whom you have a Transaction brokerage listing, that there is no way he, as the seller, can be held vicariously liable for your actions? Is this a wise idea?

Answer Q26 This is a very bad idea. Tell seller that it is the intention of the Legislature that a Party not be held vicariously liable for the actions of a Transaction broker. You cannot guarantee what the courts will rule.

Q27 What should you say to buyers and sellers about vicarious liability?

Answer Q27 Say that it is the intention of the Legislature that a Party not be held vicariously liable for the actions of his Transaction broker. Do not over-sell this point!

Q28 Under what conditions could a party be held vicariously liable for the actions of his transaction  broker?

Answer Q28 When the party was reckless in selecting a Transaction broker. When the transaction broker acted in excess of his authority and became an agent. When the agreement was a sham from the start and the broker fully intended to work for the benefit of the party with whom he had a close relationship.

Q29 The seller of a house, you have listed as a Transaction broker,  gives you an order to fly the American flag whenever you are holding an open house. You say "sure". However, you have no intention of doing so as you think you have no duty of obedience when acting as a Transaction broker. Is this OK?

Answer Q29 NO. You must obey the order because you did not tell the seller at the time that you were not going to do it. To say you are going to do something, and then not do it, would be dishonest and improper.

    Brokerage Relationships Act Tapes

Last Update: 29 APR 2001
Web Author: Vince Mooney, 918-665-0478
Copyright ©2001 by Vince Mooney Real Estate School & Seminars  - ALL RIGHTS RESERVED