-
Licenses are obtained through the
- - Connecticut Real Estate Commission
- -which is part of
- - Connecticut Department of Consumer Protection
-
Activities of licenses can be found at
- - Connecticut General Statutes
- - Chapter 392
-
Regulations and regarding the conduct of RE licenses enacted by
Real Estate Commission
-
There are 2 categories of real estate licenses (agents)
- .
- 1) Broker
- - enters into brokerage relationship with clients
- 2) Salesperson
- - works on behalf of broker
- - supervised by a broker
-
Limitations of licensees or agents
- .
- - cannot give legal advice
- - should provide a minimum of 2-3 names of REPs that require separate licenses
-
REPs that require separate licenses
- .
- - attorney
- - mortgage brokerage
- - appraisal
- - home inspection
- - insurance counseling
-
Broker
- .
- - enters into brokerage relationship with clients
- - is a special agent
- - brings together buyer and seller to locate a buyer and obtain an offer
- - individual or entity that performs following activities for another person and for compensation
- 1) lists for sale
- 2) sales
- 3) buys
- 4) exchanges
- 5) rents or collect rent
- 6) resells a mobile home
- .
- - broker/brokers must have at least 51% owning of the entity
- - cannot convey the property
-
How much of owning of the entity broker must have?
- broker/brokers must have at least 51% owning of the entity
-
Salesperson
- .
- - person affiliated with broker
- - in CT usually, independent contractor
- - can only work for another broker with the express knowledge and consent of the designated broker by
- - registering with the Real Estate Commission
- - paying fee
-
Designated or sponsoring broker
- broker that the salesperson is affiliated with
-
Unlicensed personal
- .
- - are not authorized to perform any real estate brokerage activities
- - Administrative Assistant
- - Personal Assistant
- - Clerical Support Staff
- - Closing Secretary
-
Permitted Activities for Unlicensed personal (16)
- .
- 1) answer and forward calls to licensee
- 2) transmit listings and changers MLS
- 3) follow up on loan commitments after a contract is negotiated
- 4) assemble documents for closing
- 5) Secure Public documents from City Hall, Courthouse Etc.
- 6) have keys made for company listings
- 7) right and prepare ads, flyers and promotional materials
- 8) record/deposit earnest money and other trust funds
- 9) type contract forms under the direction of licensee
- 10) monitor licenses and personal files
- 11) compute commission checks
- 12) please signs on property
- 13) order items of routine repair as directed by licensee
- 14) act as a courier
- 15) schedule appointments for licensees to show property
- 16) measure property
-
Prohibited Activities for Unlicensed personal (10)
- .
- 1) host
- - open houses
- - kiosks
- - home show booth or fairs
- 2) show property
- 3) answer any questions on listing, title, financing, closing
- 4) contact cooperating brokers regarding any negotiations or open transactions
- 5) discuss or explain a contract, purchase offer, agreement
- 6) be paid on the basis of commission
- 7) negotiate or agree to any commission, commission split for a referral fee
- 8) place calls regarding license
- - cold calling
- - soliciting listing
- - contacting "for sale by owner" or expired listings
- 9) attend inspections or walk-throughs unless accompanied by licensee
- 10) act as decision maker
-
Nonresident licensing
- .
- - broker licensed in another state
- - enters into an agency contract for the sale
- - consider to be unlicensed
- - not entitled to collect a commission or compensation
-
License Reciprocity
- .
- - standard of practice
- - active licensee from another jurisdiction is allowed to engage in real estate brokerage activities
- - subject to Special License Law Requirements
- - list of states that have reciprocity agreements with CT
- - Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nebraska, New York, Ohio, Oklahoma, Rhode Island
-
Agency
- .
- - is legal representation of a relationship between a broker and a client
- - broker provides Fiduciary Relationship
- - from Connecticut Real Estate Commission
-
NOT-Agency
- .
- - broker is not representing the client
- - broker provides some level of service in honest and fair manner (not Fiduciary Relationship)
-
Principal
- .
- - hires agent
- - broker hiring salesperson
- - Employment Agreement
- - client (seller, buyer, landlord or tenant) hiring salesperson/broker
- - RE Transaction
-
Agent
- .
- - represents principal
- - salesperson representing broker
- - Employment Agreement
- - salesperson/broker representing client (seller, buyer, landlord or tenant)
- - RE Transaction
-
Customer
- Non-Represented Consumer (NOT-Agency)
-
Listing Agreement
- agency agreement with seller
-
Buyer Agency Agreement
- .
- - agency agreement with buyer
- - In CT must be written to
- - collect payment for services
- - comply with Connecticut RE licensing law
-
In CT client can be
- .
- - seller
- - buyer
- - landlord
- - tenant
-
Agency runs to
- broker (not individual salesperson)
-
Fiduciary Responsibilities
COLD-AC
- Care
- Obedience
- Loyalty
- Disclosure
- |
- Accounting
- Confidentiality
-
Confidential information is...
- .
- - facts concerning a person’s
- - assets
- - liabilities
- - income
- - expenses
- - motivation to purchase, rent or sale
- - previous offers received or made
-
Single Agency
- broker corresponds only one party in a transaction
-
Dual Agency
- .
- - broker corresponds both the buyer and the seller in the same transaction
- - firm's Agency Agreements must contain a statement that the potential exists for the firm to be a dual agent
- - Informed Consent required from both clients
- - Dual Agency Consent Agreement must be signed by buyer and seller
- - prior to executing a purchase, sale or lease contract
- - before buyer makes an offer
-
Designated Agency
- .
- - broker corresponds both the buyer and the seller in the same transaction with different designated agents
- - buyer and seller must agree to designated agency
- - Dual Agency / Designated Agency Notice and Consent Agreement is used
- - before a buyer makes a written offer
-
Disclosure of Agency to Unrepresented Person
- .
- - CT requires Mandatory Written Disclosure of Agency Representation to unrepresented prospective customer
- - required notice form is called
- - Real Estate Agency Disclosure Notice Given to Unrepresented Person
- - disclosure must be given at the beginning of the first personal meeting
- - should not be given to prospective buyer at an open house (pamphlet)
-
Subagency
- .
- - brokers who represent a seller will allow other brokers to introduce buyers to the seller's property
- - not permitted in CT without the written consent of the person being represented
- - consent must include the name and license number of licensees to be appointed
- - does not apply to leasing transactions (but not to lease-to-purchase transaction)
-
Amount of Compensation
- .
- - integral part of the contract between a broker and a client
- - calculated as a percentage of a propertie's sales price
- - can be paid by seller or buyer
- - not subject to Usury Law
- - no maximum allowed
- .
- - it is not fixed by law
-
Usury Law
- no maximum allowed
-
Reasonable Cause for Payment
- .
- - In case of Listing Agreement
- - if the seller defaults on the sales contract
- - broker is still entitled to a Commission
- - if the buyer produced by the broker defaults
- - broker has no recourse against the seller for collecting a commission - broker may sue the buyer to recover damages
- - In case of Buyer Agency Contract
- - according to the provisions of the agreement
-
Broker’s Lien
- .
- - broker has the right to place a lien on the real estate to secure payment of compensation
- - section 20-325a of the Connecticut General statutes
- - Broker represents seller
- - claim of lien must be recorded prior to conveyance
- - Broker represents landlord
- - claim must be recorded within 30 days after the tenant takes possession
-
Claim for the broker's lien must include (6)
- .
- 1) name of the property owner
- 2) commission amount
- 3) name of the broker
- 4) broker’s license number
- 5) description of the real estate
- 6) statement sworn to and signed by the broker
-
Notice of Commercial Lease Commission Rights
- .
- - broker who is entitled to future commission for commercial lease transaction can protect his right to receive that commission in the event the landlord sells the property
- - Notice of Commission Rights must be recorded in the municipal land records
- - within 30 days of execution of the lease
- - or (whatever is later)
- - when the tenant takes occupancy of the leased property
-
Referral Fees
- .
- - broker or salesperson may receive a referral fee from other brokers
- - but not for the referral of the buyer to an attorney or mortgage broker or lender (or vice versa)
-
Mortgage Brokerage Service Fees
- .
- - broker can act as a mortgage broker
- - it is not usual
- - must be for negotiation or arranging for a mortgage loan
- - must not be for the referral of the buyer to a mortgage lender
- - when broker or salesperson receives a commission for sale, additional fee can be received only with full disclosure statement
-
Record Retention
- - broker required to retain certain brokerage records for 7 years
- - offers and counter-offers
- - contract
- - leases
- - agency agreement and disclosures
- - escrow and trust account checks
-
Individual or entity that performs following activities for another person and for compensation
- enters into brokerage relationship with clients
- is a special agent
- brings together buyer and seller to locate a buyer and obtain an offer
Broker
-
Person affiliated with broker
Salesperson
-
Can salesperson work for another broker?
Salesperson can only work for another broker with the express knowledge and consent of the designated broker by registering with the Real Estate Commission paying fee
-
broker that the salesperson is affiliated with?
Designated or sponsoring broker
-
Broker licensed in another state
- .
- - Nonresident licensing
- - consider to be unlicensed
- - not entitled to collect a commission or compensation
-
Active licensee from another jurisdiction is allowed to engage in real estate brokerage activities
License Reciprocity
-
Legal representation of a relationship between a broker and a client
- Agency
- - broker provides Fiduciary Relationship
-
Relationship when broker is not representing the client
- NOT-Agency
- - broker provides some level of service in honest and fair manner (not Fiduciary Relationship)
-
Person that hires agent
Principal
-
Person that represents principal
Agent
-
Non-Represented Consumer
Customer
-
Agency agreement with seller
Listing Agreement
-
Agency agreement with buyer
Buyer Agency Agreement
-
Broker corresponds only one party in a transaction
Single Agency
-
Broker corresponds both the buyer and the seller in the same transaction
Dual Agency
-
Broker corresponds both the buyer and the seller in the same transaction with different agents
Designated Agency
-
Mandatory Written Disclosure of Agency Representation
CT requires Mandatory Written Disclosure of Agency Representation to unrepresented prospective customer
-
Real Estate Agency Disclosure Notice Given to Unrepresented Person
is a required notice form to disclose Agency to Unrepresented Person
-
Brokers who represent a seller will allow other brokers to introduce buyers to the seller's property
- - Subagency
- - not permitted in CT without the written consent of the person being represented
-
How Amount of Compensation is calculated?
- calculated as a percentage offer properties sales price
-
No maximum allowed...?
Usury Law
-
When claim of Broker’s Lien must be recorded if Broker represents landlord?
- claim must be recorded within 30 days after the tenant takes possession
-
When claim of Broker’s Lien must be recorded if Broker represents seller?
- claim of lien must be recorded prior to conveyance
-
Broker who is entitled to future commission for commercial lease transaction can protect his right to receive that commission in the event the landlord sells the property
- Notice of Commercial Lease Commission Rights
-
When Notice of Commission Rights must be recorded in the municipal land records
- .
- - within 30 days of execution of the lease
- - or (whatever is later)
- - when the tenant takes occupancy of the leased property
-
Broker or salesperson may receive a referral fee from other brokers
Referral Fees
-
Broker required to retain certain brokerage records for?
7 years
|
|
