In this chapter: >Working for clients and with customers >Duties to clients >Responsibilities to customers >Additional considerations >Undisclosed relationships.

In this chapter:> Working for clients and with customers> Duties to clients> Responsibilities to customers> Additional considerations> Undisclosed relationships with vendors> Breach of duties to clients> Fair housing

2. Duties to Clients and Responsibilities to Customers

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WORKING FOR CLIENTS AND WITH CUSTOMERS

• Agents work for clients and with customers

• Agents owe duties to their clients and have responsibilities to customers

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WORKING FOR CLIENTS AND WITH CUSTOMERS

• Relationship between agent and client is legally binding

• Agents have responsibilities to customers to treat them honestly

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DUTIES TO CLIENTS: OLD CAR

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Duties and Disclosed Dual Agency

• In states that allow for disclosed dual agency, the duties of confidentiality, undivided loyalty, and full disclosure cannot be reconciled between two clients

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RESPONSIBILITIES TO CUSTOMERS

HonestyAccountingReasonable SkillDisclosure (Material Fact and Agency)

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ADDITIONAL CONSIDERATIONS WHEN WORKING WITH CLIENTS

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BREACH OF DUTIES TO CLIENTS

• What happens when real estate agents knowingly or unknowingly violate their duties?

• The term is breach of duty.

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Penalties

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Penalties

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UNDISCLOSED RELATIONSHIPS WITH VENDORS

• You must disclose any potential financial benefit you or your brokerage firm would receive, beyond referral fees, from the customer or client’s business.

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FAIR HOUSING & BUYER REPRESENTATION

• Easy way to remember federally protected classes:

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Which Law Prevails?

• Federal fair housing laws always apply

• Federally protected classes can be added to, but never removed

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FAIR HOUSING & BUYER REPRESENTATION

• SUGGESTED SCRIPTS: How to Respond to Fair Housing Issues

• Buyer: “What is the racial composition of this neighborhood? Do you service any areas that I would feel at home in? What kinds of people live in this neighborhood?”

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FAIR HOUSING & BUYER REPRESENTATION

• SUGGESTED SCRIPTS: How to Respond to Fair Housing Issues

• Buyer: “How are the schools in this area? Are they good? Are the schools integrated?”

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FAIR HOUSING & BUYER REPRESENTATION

• SUGGESTED SCRIPTS: How to Respond to Fair Housing Issues

• Buyer: “Why don’t you just pick out some nice properties in a safe area for us? Would you live here?”

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Statement of Fair Housing Policy

• Include fair housing policy language in your buyer representation agreement

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Statement of Fair Housing Policy

• BRIGHT IDEA: Equal Professional Services Model

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Statement of Fair Housing Policy

• Real estate professionals who continually evaluate their performance are likely to perform well.

• Ask yourself questions in Figure 2.7.

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