Unit One Quiz On Friday Amy completed all the paper work to apply for her license. She has purchased her E&O Insurance and sent in the paper work plus the fees to the Real Estate Commission. After waiting a week she has not received her license back from the state. She checked online and found herself registered with T.R.E.C. Which of the following procedures is correct for her to follow? Amy checked with her new broker and the broker said she could start practicing since seven working days had passed since her application was sent in. Amy may not start practicing until she receives her physical license. Since she is registered with T.R.E.C. on the state website she may start practicing. She must receive E&O Insurance conformation prior to beginning practice. Tim E. has been very successful with his team at Waldorf Realty. His team has out grown the space available for him in the office. Two doors down from the office in the shopping center they are currently in, is an empty space that Tim is considering leasing to move his team members to. This would give his Broker Betty J. room in the office to bring in additional agents. What options are there available to Tim and Betty? Betty J. as the principal broker would need to approve this move. the new quarters are in the same shopping center it would be O.K. for Tim to move his team two doors down. Tim would become the managing broker in the new office space. Tim and Betty would have to get another broker to act as the principal broker of the new location. Dana’s renewal date for her Errors and Omissions insure is different from her license renewal date and she forgot to the insurance. She didn’t discover the nonrenewal for 11 months. Which of the following statements is true? Since the renewal dates for the license and the insurance are different the Real Estate Commission will waive all penalty fees until August 1st 2018. The maximum fee Dana may face is $1600.00 Dana’s supervising broker is responsible to making sure all agents keep their insurance up to date so Dana would have no responsibility since the broker did not inform her of the due date. The maximum fee Dana may face is $500.00
62-13-405. Written disclosure. (a) If a licensee personally assists a prospective or seller in the purchase or sale of a property and the buyer or seller is not represented by this or any other licensee, the licensee shall verbally disclose to the buyer or seller the licensee's facilitator, agent, subagent or designated agent status in the transaction before any real estate services are provided. Prior to the buyer signing a contract the law further requires a disclosure form signed by the buyer disclosing that he/she is aware that you represent the seller. Buyers have a right to expect professional service from the agent and have their requests for public information promptly fulfilled. The exclusive buyer representation agreement would be single agency relationship with a buyer. 1260-02-.36 in the TREC law rules lists three items that such an agreement must advise and confirm in writing with a buyer. 1260-02-.36 EXCLUSIVE BUYER REPRESENTATION AGREEMENTS. An exclusive representation agreement is an agreement in which a licensee is engaged to represent a buyer in the purchase of a property to the exclusion of all other licensees. When entering into any such agreement a licensee must advise and confirm in writing to such buyer the following: (1) that the should make all arrangements to view or inspect a property through the licensee and should not directly contact other licensees; (2) that the buyer should immediately inform any other licensee the buyer may come into contact with (for example, at an open house) that he or she is represented by the licensee; and (3) whether the buyer will owe a commission in the event the buyer purchases a property without the assistance of the licensee through another licensee or directly from an owner. Authority: T.C.A. § 62-13-203, 62-13-401, 62-13-402, 62-13-404 and 62-13-405. This rule does not indicate requirements with other buyer agency relationships, only with exclusive buyer agency relationships. Single agency relationships with the buyer, the agent’s primary duty is to find property suitable for the buyers needs and their fiduciary responsibility is to the buyer. 62-13-405 above would apply to buyer representation the same as it does to seller agency representation. There are a few agencies in Tennessee that offer only representation of buyers and no representation to sellers.