Which Of The Following Cannot Be A Brokerage Service Agreement
Article 5-11 of the Regulations requires a Licensee to disclose in writing to a Customer any compensation that the Licensee expects and that is not payable directly by that Customer. Therefore, if a licensee is to receive a referral fee for the transfer of a client to another service provider, whether it is another licensee or another person providing real estate-related services (p.. B e.g., mortgage broker, appraiser, etc.), the licensee is required to disclose the details of this recommendation to the client. That information shall include: (a) the services are provided in relation to those services to a contracting entity or on behalf of a contracting entity; This exemption does not apply to the provision of commercial services if these services are provided in connection with a development unit, as this term is defined in the Real Estate Development Marketing Act – is opened in a new tab and the client is a developer of the development unit within the meaning of this legislation. See the exception below. Section 5-10 of the Rules requires that before providing trading services to or on behalf of a party, a licensee must disclose to that person the type of support or representation that the licensee will provide to that person. If the ”Certified Assistant” provides assistance or insurance, e.B. The letter of the purchase and sale agreement must clearly state in the contract who provides this support or representation – the authorized assistant, the main licensor, or both. When representing buyers, some licensees use an exclusive contract for the purchasing agency. If such a contract is used in the company, the contract determines the terms of the mediation relationship. If a written contract is not used, the commercial party may verbally agree that the licensee is the customer`s representative.
Whether the Agreement is oral or written, Licensee shall always use a written disclosure in accordance with Article 5-10 of the Rules. If the customer is the seller, the registration contract usually establishes the agency relationship. As stated above, a licensee has an unrelated duty of loyalty to a customer. However, it is common for a licensee to act for more than one seller at the same time and act for more than one buyer at the same time. Therefore, the duty of unreserved loyalty is generally limited to allow the licensee to act simultaneously on behalf of other buyers and sellers. To do this without violating its obligations, the Service Agreement must include limitations on the obligations owed by the Licensee to its Customer. The British Columbia Real Estate Association`s Standard Multiple Registration Contract Form contains restrictions that allow licensees to do business with multiple sellers and buyers at the same time without violating their obligations to their clients. .