Outline: Agency (4 hours) · Real Estate Training Institute

2024 Agency (4 hours). Real Estate Training Institute

Real Estate Agency Overview

Welcome
Introduction to Real Estate Operations
Client Relations and Trust Building
Marketing Strategies in Real Estate
Property Transaction Process
Market Analysis in Real Estate
Legal and Regulatory Compliance
Technological Advancements in Real Estate
Challenges Facing Real Estate Agencies
Strategies for Success and Growth
Ten Most Frequently Made Claims Against Real Estate Licensees
Quiz

The Agency Relationship

Welcome
A Comprehensive Strategic Approach
The Agency Relationship
Four Types of Agency
Buyer Agency
Buyer Agency: Exclusive Representation of Buyer Interests
Seller Agency: Exclusive Representation of Seller Interests
Dual Agency: Representation of Both Buyer and Seller
Designated Agency: Separate Representation Within the Same Firm
Unrepresented Persons: Rights and Responsibilities
Duties and Responsibilities of Real Estate Agents
Fiduciary Duties: Loyalty, Obedience, Diligence, Disclosure, Confidentiality Accountability and Reasonable Skill and Care
Compliance with Legal and Regulatory Requirements
Transparency and Disclosure in Agency Relationships
Listing Agreements and Seller Representation
Exclusive Right-to-Sell Listing
Exclusive Agency Listing
Open Listing
Responsibilities of Seller’s Agents in Property Marketing, Negotiation, and
Disclosure
Buyer Representation and Buyer Agency
Services Provided by Buyer’s Agents
B. Procuring Cause and Compensation for Buyer’s Agents
Evolution of Buyer Representation Laws and Practices
Dual Agency and Designated Agency
Legal Implications and Challenges of Dual Agency
Duties of Dual Agents to Both Parties
C. Benefits and Limitations of Designated Agency
Legal Developments and Lawsuits in Real Estate Agency
Recent Legal Cases and Court Rulings
B. Implications for Real Estate Practices and Regulations
Ensuring Compliance and Best Practices
Quiz

Agency Services

Introduction
Authority of Agency
Delegated Authority: Definitions
Express authority: Definition and characteristics
Implied authority: Assumptions and implications
Apparent authority: Third-party perspectives and legal ramifications
Vicarious Liability: Definition and scope of vicarious liability
Agency by Ratification: Understanding agency by ratification
Termination of Agency
Methods of terminating agency relationships
Mutual agreement and unilateral revocation
Automatic termination and exceptions
Quiz

Improving Agency Disclosure

Introduction
Definition of real estate agency
Overview of the roles and responsibilities of real estate agents
Importance of agency disclosures in real estate transactions
Consumer Understanding and Challenges
Research on consumer comprehension of real estate agency disclosures
Barriers to effective communication of agency roles
No Disclosure or Awareness of Disclosure
Common misconceptions among consumers regarding agent
representation
State Laws Not Requiring Timely Disclosure
Complexity on Agent Roles: Consumer Disclosures
Complexity and Diversity of State Agency Laws Defining Agent Roles
Disclosure Forms Long, Legal and/or Poorly presented
Whom the Agent Represents
Possible Switch from Single to Dual Agency or Transaction Brokerage
Acknowledgement that dual; Agents Work with but Represent Either Seller or Buyer
Acknowledgement that assigned agency Designated May Face Conflicts of Interest
Criteria of Effective Disclosures
Essential elements of effective agency disclosures
Strategies for simplifying disclosure language and format
Importance of testing the effectiveness of disclosures
Improving Real Estate Agency Disclosures
Best practices for presenting disclosures to consumers
Recommendations for industry stakeholders to enhance disclosure
practices
Role of government in improving disclosure requirements and
enforcement
Regulatory Compliance and Enforcement
Overview of regulatory agencies responsible for enforcing agency disclosure laws
Penalties for non-compliance with disclosure requirements
Resources available to consumers for reporting violations of disclosure laws
Quiz

Agency level and Quality of Service

Introduction
Overview of the importance of selecting the right real estate agent.
Understanding the role of real estate agents in buying and selling properties.
Challenges and considerations in the agent selection process.
Factors Influencing Agent Selection
Identifying factors important to buyers and sellers in selecting an agent.
Assessing agent experience, professionalism, and expertise.
Understanding the significance of local knowledge and responsiveness.
Consumer-Based Ratings and Reviews
Introduction to consumer-based ratings and reviews platforms (e.g., Zillow, Realtor.com, Yelp).
Analyzing and interpreting agent ratings and reviews.
Identifying potential biases and limitations of consumer reviews.
Agents Role in the Process
Consumer Reliance on Agents
Buyers and Sellers involvement
Search for an Agent
Past Relationships
Limited Searches
Zillow and Realtor
Home buyer and home seller needs
Navigating real estate agent websites and online platforms.
Searching for agent profiles, listings, and sales experience.
Maximizing the use of online tools for informed decision-making.
Disciplinary Actions and Regulatory Considerations
Exploring disciplinary actions taken against real estate agents by state regulators.
Understanding the implications of regulatory issues on agent reliability.
Strategies for verifying agent credentials and compliance with regulations.
Effective Communication and Negotiation
Developing communication strategies when interacting with real estate agents
Sales Experience
Quiz

Value Added for Consumers by the Top 10% Real Estate Professionals.

Welcome
Role and responsibilities of real estate agents
Importance of agent performance in residential transactions
Evaluating Real Estate Agent Performance
Metrics for assessing agent performance
Data analysis techniques in evaluating agent effectiveness
Case studies on top-performing agents
Evidence of Negotiation Skills
Principles of negotiation in real estate transactions
Strategies for effective negotiation
Top Performing Agents
Defining Characteristics
Is High Performance persistent?
Does Market Reward Top Performing Agents
Market Conditions and Agent Strategies
Understanding different market cycles (hot, cold, balanced)
Adaptation of agent strategies based on market conditions
Quiz

Who is going to pay me?

Introduction
Overview of the real estate industry
Importance of commissions in real estate transactions
Introduction to lawsuits and antitrust allegations against NAR and real
estate brokerages
Background of Commission Lawsuits
Overview of the lawsuits against NAR and real estate brokerages
Key allegations in the lawsuits
Significance of the legal battles for the real estate industry
Examination of Allegations
Commission Concealment Rules
Impact on competition and pricing
Alleged anticompetitive effects
Free-Service
Influence on commission negotiations
Commission-Filter Rules and Practices
Effects on home listings and buyer choices
Allegations of steering and reduced competition
Lockbox Policy
Restrictions on access and competition
Implications for non-NAR affiliated brokers
Legal Proceedings and Proposed Settlement
Overview of legal proceedings in the commission lawsuits
Analysis of the proposed settlement with NARPotential implications of the settlement on the industry
Impact on Real Estate Market and Consumers
Potential effects on commission rates and pricing
Implications for real estate agents and brokerages
Considerations for home buyers and sellers
ADDENDUM
The Settlement – MARCH 15, 2024 (Amendment to Lesson)
Update Outline:
Introduction
Announcement of the agreement reached by the National Association of REALTORS® (NAR) to resolve nationwide claims brought by home sellers regarding broker commissions.
Details of the Agreement
Overview of the parties involved in the settlement.
Denial of wrongdoing by NAR regarding the Multiple Listing Service (MLS)
cooperative compensation model rule.Financial terms: NAR to pay $418 million over approximately four years.
Key Achievements
Release of most NAR members and many industry stakeholders from liability.
Preservation of consumer choice in cooperative compensation.
Mechanism for certain brokerage entities and MLSs to obtain releases efficiently.
Exceptions to the Agreement
Exclusion of agents affiliated with HomeServices of America and its related companies.
Exclusion of employees of remaining corporate defendants named in the covered cases.
Additional Provisions of the Agreement
Implementing a new MLS rule prohibiting offers of broker compensation on the MLS.
Requirement for MLS participants working with buyers to enter into written agreements with their buyers.
Effective date of these changes: mid-July 2024.
Statements from NAR Leadership
Nykia Wright, Interim CEO of NAR, emphasizing the benefits of the settlement.
Kevin Sears, NAR President, highlighting NAR’s commitment to the future and leading the industry forward.
Quiz

Legislative and Regulatory Restrictions on Competition

Title: Exploring the Impact of Rebate Bans on Real Estate Markets
Introduction to Rebate Bans
Definition of rebate bans in the real estate industry
Explanation of their significance for consumers and market competition
Overview of states where rebate bans are currently enforced
Understanding the Department of Justice’s Actions
Explanation of the Department of Justice’s role in enforcing antitrust laws
Overview of the civil antitrust lawsuit filed against the Kentucky Real Estate Commission
Discussion on the allegations and implications of the lawsuit
Case Study: Kentucky Real Estate Commission Lawsuit
Detailed examination of the lawsuit, including its filing and settlement
Analysis of the impact of the settlement on consumers and market competition
Exploration of the reasons behind the DOJ’s intervention and its significance
Quiz

Denial of Equal Service

VIDEO
Introduction to Housing Discrimination
Definition and types of housing discrimination
Historical context and impact on marginalized communities
Legal frameworks and protections (e.g., Fair Housing Act)
Forms of Housing Discrimination
Disparate Treatment – Refusal of service – Differential treatment based on race, ethnicity, gender, etc.
Disparate Impact – Policies or practices with discriminatory effects – Redlining and lending discrimination
Segregation and Exclusion – Racial steering – Residential segregation patterns
Case Studies and Real-world Examples
Analysis of recent investigations and studies on housing discrimination
Examination of discriminatory practices in housing markets
Impacts on communities and individuals
Legal and Regulatory Frameworks
Overview of fair housing laws and regulations
Enforcement mechanisms and agencies (e.g., HUD, state regulators)
Landmark court cases and precedents
Strategies for Combating Housing Discrimination
Advocacy and Community Engagement – Grassroots movements and community organizing – Coalition-building and partnerships
Education and Awareness Training programs for real estate professionals and housing providers – Public awareness campaigns
Policy Interventions – Advocating for legislative reforms – Implementation of affirmative housing policies
Legal Remedies – Filing complaints and pursuing legal action – Legal aid and support services for victims of discrimination
Role of Stakeholders
Governmental agencies and regulatory bodies B. Nonprofit organizations and advocacy groups C. Real estate industry stakeholders
Community members and residents
Conclusion: Advancing Fair Housing Principles
Reflection on course themes and key learnings
Call to action for promoting fair housing practices
Commitment to ongoing advocacy and social justice efforts
Quiz

MISSISSIPPI SPECIFIC

Mississippi Real Estate Commission

Introduction
Overview of the real estate industry
Role and duties of real estate professionals
History and development of real estate in Mississippi
Real Estate Law and Regulations
Laws governing real estate transactions in Mississippi
Regulatory framework and enforcement mechanisms
Ethical standards and professional conduct
Real Estate Principles and Practices
Property types and classifications
Legal descriptions and deeds
Agency relationships and duties to clients
Real Estate Transactions
Listing agreements and buyer representation
Contract negotiation and drafting
Disclosures, contingencies, and inspections
Marketing and Advertising
Marketing strategies for real estate professionals
Advertising regulations and fair housing practices
Digital marketing techniques and social media platforms
Quiz

Inside the Agency

Course Overview
Introduction to Mississippi Real Estate Brokerage
Importance of understanding state regulations and ethics
Fundamentals of Real Estate Practice
Role of responsible brokers and affiliated licensees
Supervision requirements and ethical considerations
Mississippi Real Estate License Law Overview
Cooperating Broker Agreements
Cooperation with out-of-state brokers
Commission division and listing control
Sign placement and advertising requirements Consequences for non-compliance
Office Management and Branch Offices
Requirements for responsible broker’s office
Licensing and management of branch offices
Broker Responsibilities for Salespersons
Accountability and oversight of licensee actions
Payment Practices and Compensation
Restrictions on payments to unlicensed individuals
Compensation for inactive or transferred licensees
Compliance with Mississippi Real Estate Commission
Communication and response requirements
Consequences for non-compliance with regulations
Broker Price Opinion (BPO)
Authorization and standards for providing price opinions B. Distinction between price opinions and appraisals
Documentation of Offers
Requirements for documenting offer acceptance or rejection B. Providing copies of documents upon request
Selling Own Property
Limitations and consequences for licensees selling their own property
Working with a Real Estate Broker
introduction to Real Estate Agency Relationships
Overview of agency relationships in real estate transactions
Importance of understanding agency roles for consumers
Introduction to the Agency Disclosure Form
Seller’s Agent
Role and responsibilities of a seller’s agent
Fiduciary duties owed to the seller
Duty of honesty and fair dealing to both parties
Buyer’s Agent
Role and responsibilities of a buyer’s agent
Fiduciary duties owed to the buyer
Duty of honesty and fair dealing to both parties
Disclosed Dual Agent
Understanding disclosed dual agency
Responsibilities of a disclosed dual agent
Limitations on disclosure and loyalty
Property Condition Disclosure Statement (PCDS)
Historical obligations of agents regarding PCDS
Changes in responsibilities as of March 14, 2023
Implications for real estate transactions
Unrepresented “Customer”
Definition of a customer in real estate transactions
Working with a seller’s agent as a customer
Importance of seeking independent advice
Disclosure Acknowledgment Form
Purpose and Significance of the Disclosure Form
Client options for representation (client vs. customer)
Instructions for completing and signing the form
Quiz

Agency Relationship Disclosure

Introduction to Agency Relationships
Definition of agency
Fiduciary responsibilities of agents
Importance of disclosure in real estate transactions
Types of Agency Relationships
Single agency vs. disclosed dual agency
Roles and obligations of brokers, agents, clients, and customers
Disclosure Requirements
Written disclosure requirements for single agency relationships
Informed consent for disclosed dual agency
Handling disclosure when parties are unavailable
Importance of confirming disclosure in writing
First Substantive Meeting
Understanding the significance of the first substantive meeting
Requirements for buyer’s agents and seller’s agents
Exemptions and exceptions to the first substantive meeting
requirement
Real Estate Teams and Groups
Definition and purpose of real estate teams
Requirements for forming and operating real estate teams in Mississippi
Advertising guidelines for real estate teams
Compliance and Documentation
Understanding the importance of compliance with agency disclosure rules
Handling situations where parties decline to acknowledge receipt of disclosure forms
Dual Agency Agreement
Introduction to Dual Agency Representation
Definition of disclosed dual agency
B. Explanation of licensee representing both buyer and seller
C. Importance of written consent from both parties
Responsibilities of Disclosed Dual Agent
Representation without detriment to either party’s interests B. Fiduciary duties to both seller and buyer
C. Exceptions to duties of full disclosure and undivided loyalty
Limitations on Disclosed Dual Agent
Restrictions on disclosing certain information
Requirements for written instructions from respective parties
Consent requirement from both seller and buyer
Quiz

Dual Agency Confirmation Form

Description of the form as an addendum to the Offer to Purchase
Explanation of the information provided in the form
Significance of informed consent from seller and buyer
Quiz

PCDS in Agency

Introduction to Real Estate Disclosure Laws
Key Provisions of Senate Bill 2647
Detailed analysis of Senate Bill 2647
Changes to liability for real estate licensees
Revision of disclosure requirements
Implications for sellers, buyers, and licensees
3: Disclosure Requirements and Compliance
Types of information required for disclosure
Identification of reliable sources for property information
Compliance requirements for real estate licensees
Best practices for ensuring compliance with disclosure laws
4: Noncompliance and Legal Implications
Consequences of noncompliance with disclosure laws
Understanding material vs. non-material facts
Legal implications for property owners and real estate licensees
5: Recent Amendments and Updates
Overview of recent amendments to disclosure laws
Changes in disclosure requirements and liabilities
Effective date and implementation of amendments
Impact on real estate transactions in Mississippi
6: Best Practices and Recommendations
Strategies for effective disclosure management
Role of real estate professionals in facilitating disclosure
Tips for sellers and buyers in navigating disclosure requirements
Ethical considerations and professional responsibilities
Quiz