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January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
1
![](3D"master45_image001.gif")
![](3D"master45_image002.gif")
![3D"Chapter](3D"slide0001_image003.gif")
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
2
I. Agency
=
=
nAn agent is a party who is authorized =
to represent a principal in business dealings with third persons.
Places agent in position =
of
highest good faith towards principal =
and
creates a fiduciary
relationship.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
3
Creation of =
Agency
=
=
nAgency can be created by;
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<=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man";
display:none'>
n 1. Agreement
n 2. Ratification
n 3. Estoppel
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
4
Agency Creat=
ed by
Agreement
=
=
nAgreement – May be Express or Implied.
Real Estate
Agency is normally created by =
Express
Agreement (written agreement) as a contract.
n ~ Unilateral Contract – one party promises to do =
someth=
ing. Seller promises to pay the broker a
commission, broker promises nothing. (unusual)
n ~ Bilateral Contract – Seller promises to pay broker =
a commiss=
ion
upon sale of property, broker promises to use=
“Due
Diligence.”
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
5
Agency Creat=
ed by
Estoppel
=
=
=
Agency by Estoppel occurs when an
agent is acting “as
if” they are the agent of a principal, that principal
knows that they are acting as their agent, =
and
the principal does nothing to correct the =
representation.
=
The principal has probably barred
their defense that the agent does not represent
them.
=
<=
span
style=3D'mso-special-format:nobullet;display:none;color:#CC9900;mso-color-=
index:
4;font-family:Wingdings;font-size:65%'>nHow is this negative? The agent may make <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>unsubstantiated
statements or promises, and the principal will be liable for those
promises.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
6
Agency by
Ratification
=
nPrincipal can become bound by ratifying a=
cts
of an agent who acted beyond th=
eir
authority, or a person who acted as an agent when they =
were
not an agent. Requires;
n a. Agent acts as principals
representative.
n b. Principal to have been capab=
le of
authorizing the act.
n c. Principal to have knowledge =
of a
material fact(s).
n d. Principal to ratify entire ac=
t of
agent.
n e. Principal to ratify before t=
hird
party withdraws.
n f. Written ratification if deal=
ing in
real estate.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
7
B. Agents Authority
=
=
nTo do everything necessary for =
effecting the purpose of
the agency and to make
representation of fact on behalf of the
principal.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
8
Actual and
Ostensible Authority
=
=
nActual Authority – Is the authority a
principal intentionally c=
onfers
upon the agent, or by want of ordinary care, allows agent to believe that he or she possesses certain
authority.
nOstensible Authority – Authority a princi=
pal
intentionally or by want of ordinary
care, causes or allows third persons to b=
elieve
the agent has.
n 1. Principal is liable to third
persons who have, in good <=
span
style=3D'mso-tab-count:2;width:9.81%'> faith and without want of or=
dinary
care, relied upon the ostensible authority of agent to their detrimen=
t.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
9
Receipt of
Deposits by Broker
=
=
=
Current California Listing Contra=
cts
authorize the broker to accept an earnest money
deposit in the name of the principal. However;
=
a. If a
broker is not authorized, broker becomes buyer’s agent for the
deposit.
=
=
b. Broker
cannot hold uncashed checks unless directed to do so.
c. Deposit
never belongs to broker.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
10
Duties Toward
Principal
=
=
nThe broker, and the broker’s salespeople=
=
owe a definite loyalty to their clients and =
are placed in a position of trust. They may not obtain any advantage over the principal =
=
by the slightest misrepresentation, concealment, duress or adverse pressure of <=
span
style=3D'position:absolute;top:72.5%;left:5.99%;width:88.2%;height:7.5%'><=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man";
font-size:120%'>any kind.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
11
C. Duties of the Agent Toward
Principal
=
=
1.Cannot use confidential relations=
hip
to his or her own benefit. No secret profits.
<=
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<=
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5;font-family:Wingdings;font-size:60%'>n6. When a listing does not authorize the broker to =
accept a deposit but the bro=
ker
finds a purchaser
who= is advised of the lack of an authorization but
accepts a deposit anyway, the deposit is held by
the broker:
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hol= ds an option she must inform the buyer that
she= is acting as:
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<=
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5;font-family:Wingdings;font-size:60%'>n14. A licensed real estate broker took an
ex= clusive agency listing from an owner
for= a 90 day term. After the broker had =
expended considerable time =
and
expense
in trying to locate a buyer, the owners
so= ld it themselves during the listing period.
Un= der these circumstances the broker was
en= titled to:
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5;font-family:Wingdings;font-size:60%'>n15. An agency relationship is usually created
be= tween a real estate broker and his or her
cl= ient through:
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5;font-family:Wingdings;font-size:60%'>n19. Assume that on December 28, the broker
te= lephoned the sellers and advised them that
he= had just shown the property to Mr. and
Mr= s. Kane. If the owners sold the property
to = Mr. and Mrs. Kan in January of the = following year: =
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------=_NextPart_01C4FD5A.E097DF70
Content-Location: file:///C:/C95A9D69/Chapter9ContractsPartII_files/slide0061.htm
Content-Transfer-Encoding: quoted-printable
Content-Type: text/html; charset="windows-1252"
Slide 1
------=_NextPart_01C4FD5A.E097DF70
Content-Location: file:///C:/C95A9D69/Chapter9ContractsPartII_files/master01.htm
Content-Transfer-Encoding: quoted-printable
Content-Type: text/html; charset="windows-1252"
numSlds )
gSldJumpIdx =3D numSlds;
if ( gSldJumpIdx >=3D 0 ) {
if ( gSldJumpIdx =3D=3D 0 )
gSldJumpIdx =3D 1;
var jumpTo =3D parseInt(gSldJumpIdx);
gSldJump =3D 0; gSldJumpIdx =3D "";
win.GoToSld( parent.GetSldList().mList[jumpTo-1].mSldHref )
}
}
}
function _KDH()
{
if( event.keyCode =3D=3D 8 ) {
event.returnValue =3D 0;
parent.GoToPrevSld();
}
}function DocumentOnClick()
{
if( IsNts() || parent.HideMenu() ) return;
if( ( g_allowAdvOnClick && (window.name=3D=3D"PPTSld") && !parent.IsFrames=
Mode() ) ||
(event && event.keyCode=3D=3D32) ) {
=09
if( g_animUseRuntime && g_animMainSequence && g_animMainSequence.cangonex=
t )
return;
parent.GoToNextSld();
}
}
var g_supportsPPTHTML =3D SupportsPPTHTML(), g_scaleInFrame =3D 1, gId=3D""=
, g_bgSound=3D"",
g_scaleHyperlinks =3D false, g_allowAdvOnClick =3D 1, g_showInBrowser =
=3D 0, gLoopCont =3D 0, gUseSldTimings =3D 1;
var g_showAnimation =3D g_supportsPPTHTML && SupportsPPTAnimation() && ( (w=
indow.name=3D=3D"PPTSld" && !parent.IsFramesMode()) || g_showInBrowser );va=
r g_animManager =3D null;
var g_animUseRuntime =3D false;
var g_animItemsToHide, g_animInteractiveItems, g_animSlideTime;
var g_animMainSequence =3D null;
var ENDSHOW_MESG=3D"End of slide show, click to exit.", SCREEN_MODE=3D"Fram=
es", gIsEndShow=3D0, NUM_VIS_SLDS=3D88, SCRIPT_HREF=3D"script.js", FULLSCR_=
HREF=3D"fullscreen.htm";
var gCurSld =3D gPrevSld =3D 1, g_offset =3D 0, gNtsOpen =3D gHasNts =3D gO=
tlTxtExp =3D 0, gHasNarration =3D 0, gOtlOpen =3D true
window.gPPTHTML=3DSupportsPPTHTML()
var gMainDoc=3Dnew Array(new hrefList("slide0001.htm",1,-1,1),new hrefList(=
"slide0002.htm",1,-1,1),new hrefList("slide0003.htm",1,-1,1),new hrefList("=
slide0004.htm",1,-1,1),new hrefList("slide0005.htm",1,-1,1),new hrefList("s=
lide0006.htm",1,-1,1),new hrefList("slide0082.htm",1,-1,1),new hrefList("sl=
ide0083.htm",1,-1,1),new hrefList("slide0084.htm",1,-1,1),new hrefList("sli=
de0085.htm",1,-1,1),new hrefList("slide0086.htm",1,-1,1),new hrefList("slid=
e0087.htm",1,-1,1),new hrefList("slide0088.htm",1,-1,1),new hrefList("slide=
0089.htm",1,-1,1),new hrefList("slide0090.htm",1,-1,1),new hrefList("slide0=
091.htm",1,-1,1),new hrefList("slide0092.htm",1,-1,1),new hrefList("slide00=
93.htm",1,-1,1),new hrefList("slide0094.htm",1,-1,1),new hrefList("slide013=
6.htm",1,-1,1),new hrefList("slide0095.htm",1,-1,1),new hrefList("slide0096=
.htm",1,-1,1),new hrefList("slide0097.htm",1,-1,1),new hrefList("slide0098.=
htm",1,-1,1),new hrefList("slide0099.htm",1,-1,1),new hrefList("slide0100.h=
tm",1,-1,1),new hrefList("slide0101.htm",1,-1,1),new hrefList("slide0102.ht=
m",1,-1,1),new hrefList("slide0103.htm",1,-1,1),new hrefList("slide0104.htm=
",1,-1,1),new hrefList("slide0105.htm",1,-1,1),new hrefList("slide0106.htm"=
,1,-1,1),new hrefList("slide0107.htm",1,-1,1),new hrefList("slide0108.htm",=
1,-1,1),new hrefList("slide0109.htm",1,-1,1),new hrefList("slide0110.htm",1=
,-1,1),new hrefList("slide0111.htm",1,-1,1),new hrefList("slide0112.htm",1,=
-1,1),new hrefList("slide0113.htm",1,-1,1),new hrefList("slide0114.htm",1,-=
1,1),new hrefList("slide0115.htm",1,-1,1),new hrefList("slide0116.htm",1,-1=
,1),new hrefList("slide0117.htm",1,-1,1),new hrefList("slide0118.htm",1,-1,=
1),new hrefList("slide0119.htm",1,-1,1),new hrefList("slide0120.htm",1,-1,1=
),new hrefList("slide0121.htm",1,-1,1),new hrefList("slide0122.htm",1,-1,1)=
,new hrefList("slide0123.htm",1,-1,1),new hrefList("slide0124.htm",1,-1,1),=
new hrefList("slide0125.htm",1,-1,1),new hrefList("slide0126.htm",1,-1,1),n=
ew hrefList("slide0127.htm",1,-1,1),new hrefList("slide0128.htm",1,-1,1),ne=
w hrefList("slide0129.htm",1,-1,1),new hrefList("slide0130.htm",1,-1,1),new=
hrefList("slide0131.htm",1,-1,1),new hrefList("slide0132.htm",1,-1,1),new =
hrefList("slide0133.htm",1,-1,1),new hrefList("slide0134.htm",1,-1,1),new h=
refList("slide0135.htm",1,-1,1),new hrefList("slide0137.htm",1,-1,1),new hr=
efList("slide0138.htm",1,-1,1),new hrefList("slide0139.htm",1,-1,1),new hre=
fList("slide0041.htm",1,-1,1),new hrefList("slide0042.htm",1,-1,1),new href=
List("slide0062.htm",1,-1,1),new hrefList("slide0063.htm",1,-1,1),new hrefL=
ist("slide0064.htm",1,-1,1),new hrefList("slide0065.htm",1,-1,1),new hrefLi=
st("slide0066.htm",1,-1,1),new hrefList("slide0067.htm",1,-1,1),new hrefLis=
t("slide0068.htm",1,-1,1),new hrefList("slide0069.htm",1,-1,1),new hrefList=
("slide0070.htm",1,-1,1),new hrefList("slide0071.htm",1,-1,1),new hrefList(=
"slide0072.htm",1,-1,1),new hrefList("slide0073.htm",1,-1,1),new hrefList("=
slide0074.htm",1,-1,1),new hrefList("slide0075.htm",1,-1,1),new hrefList("s=
lide0076.htm",1,-1,1),new hrefList("slide0079.htm",1,-1,1),new hrefList("sl=
ide0077.htm",1,-1,1),new hrefList("slide0078.htm",1,-1,1),new hrefList("sli=
de0080.htm",1,-1,1),new hrefList("slide0081.htm",1,-1,1),new hrefList("slid=
e0060.htm",1,-1,1),new hrefList("slide0061.htm",1,-1,1));
/*********************************************
Frameset functions
These functions control slide navigation
and state of the frameset.
**********************************************/
function FullScrInit()
{
g_allowAdvOnClick =3D GetCurSld().mAdvOnClk
document.body.style.backgroundColor=3D"black"
document.oncontextmenu=3Dparent._CM;
document.onkeydown =3D _KDH;
document.ondragstart=3DCancel
document.onselectstart=3DCancel
self.focus()
}
function Redirect( frmId )
{=09
var str=3Ddocument.location.hash,idx=3Dstr.indexOf('#'), sId=3DGetSldId()
if(idx>=3D0) str=3Dstr.substr(1);
if( window.name !=3D frmId && ( sId !=3D str) ) {
obj =3D GetObj("Main-File")
window.location.href=3Dobj.href+"#"+sId
return 1
}
return 0
}
var MHTMLPrefix =3D CalculateMHTMLPrefix();=20
function CalculateMHTMLPrefix()
{
if ( document.location.protocol =3D=3D 'mhtml:') {=20
href=3Dnew String(document.location.href)=20
Start=3Dhref.indexOf('!')+1=20
End=3Dhref.lastIndexOf('/')+1=20
if (End < Start)=20
return href.substring(0, Start)=20
else=20
return href.substring(0, End)=20
}
return '';
}
function GetTags(base,tag)
{
if(g_supportsPPTHTML) return base.all.tags(tag);
else return base.getElementsByTagName(tag);
}
function UpdNtsPane(){ if(frames["PPTNts"]) PPTNts.location.replace( MHTMLP=
refix+GetHrefObj( gCurSld ).mNtsHref ) }
function UpdNavPane( sldIndex ){ if(gNavLoaded) PPTNav.UpdNav() }
function UpdOtNavPane(){ if(gOtlNavLoaded) PPTOtlNav.UpdOtlNav() }
function UpdOtlPane(){ if(gOtlLoaded) PPTOtl.UpdOtl() }
function SetHasNts( fVal )
{
if( gHasNts !=3D fVal ) {
gHasNts=3DfVal
UpdNavPane()
}
}
function ToggleOtlText()
{
gOtlTxtExp=3D!gOtlTxtExp
UpdOtlPane()
}
function ClearMedia()
{
// Clear any sounds playing before launching another browser window. Other=
wise,
// in fullscreen mode, you'll continue to hear the sound in the frames mod=
e.
if (PPTSld.pptSound) PPTSld.pptSound.loop =3D 0;
}
function FullScreen()
{=20
if ( PPTSld.g_animUseRuntime )
PPTSld.document.body.pause();
ClearMedia();
var href =3D ( document.location.protocol =3D=3D 'mhtml:') ? FULLSCR_HREF =
: FULLSCR_HREF+"#"+GetHrefObj(gCurSld).mSldHref;
if(PPTNav.event.ctrlKey) {
var w =3D (window.screen.availWidth * 1.0) / 2.0
var h =3D w * (PPTSld.g_origH * 1.0) / PPTSld.g_origW
win =3D window.open( MHTMLPrefix+href,null,"toolbar=3D0,resizable=3D1,top=
=3D0,left=3D0," + "width=3D"+ w + ",height=3D" + h );
if( win.document.body && PPTSld.g_animUseRuntime )
win.document.body.PPTSldFrameset=3Dwindow;
}
else
{
win =3D window.open( MHTMLPrefix+href,null,"fullscreen=3Dyes" );
if( win.document.body && PPTSld.g_animUseRuntime )
win.document.body.PPTSldFrameset=3Dwindow;
}
}
function ToggleVNarration()
{
rObj=3DPPTSld.document.all("NSPlay")
if( rObj && !PPTSld.g_animUseRuntime ) {
if( (rObj.playState =3D=3D 1)||(rObj.playState =3D=3D 0) )
rObj.Play()
else if( rObj.playState =3D=3D 2 )
rObj.Pause()
else
return;
}
else if( PPTSld.g_animUseRuntime )
{
narObj =3D PPTSld.document.all("narrationID")
if( narObj )
narObj.togglePause()
}
}
function GetCurSldNum()
{ =20
obj=3DGetHrefObj(gCurSld)
if( obj.mOrigVis =3D=3D 1 )
return obj.mSldIdx
else =20
return gCurSld
}
function GetNumSlds()
{ =20
if( GetHrefObj(gCurSld).mOrigVis =3D=3D 1 )
return GetSldList().mNumVisSlds;
else
return GetSldList().mList.length
}
function GetSldNum( href )
{
for(ii=3D0; ii 1 )
PopSldList();
else if( !IsFramesMode() ) {
if( gLoopCont )
GoToFirst()
else
EndShow()
}
}
function GoToPrevSld()
{
ii=3DgCurSld-1
if( ii > 0 ) {
obj=3DGetHrefObj(ii)
while ( obj && ( obj.mVis =3D=3D 0 ) && ( ii>0 ) )
obj=3DGetHrefObj(--ii)
if( ii =3D=3D 0 ) ii=3D1
GoToSldNum(ii)
}
}
function GoToFirst(){ GoToSld( GetHrefObj(1).mSldHref ) }
function GoToLast()
{
ii=3DGetSldList().mList.length
if( ii !=3D gCurSld )
GoToSld( GetHrefObj(ii).mSldHref )
}
function GoToSldNum( num )
{
if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue
obj =3D GetHrefObj( num )
obj.mVis=3D1
gPrevSld=3DgCurSld
gCurSld =3D num;
PPTSld.location.replace(MHTMLPrefix+obj.mSldHref)
if( IsFramesMode() ) {
UpdNavPane(); UpdOtlPane(); UpdNtsPane()
}
}
function GoToSld( href )
{
if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue
GetHrefObj( GetSldNum(href) ).mVis=3D1
PPTSld.location.replace(MHTMLPrefix+href)
}
function SldUpdated( id )
{
if( id =3D=3D GetHrefObj(gCurSld).mSldHref ) return
gPrevSld=3DgCurSld
gCurSld=3DGetSldNum(id)
if( IsFramesMode() ) {
UpdNavPane(); UpdOtlPane(); UpdNtsPane()
}
}
function PrevSldViewed(){ GoToSld( GetHrefObj(gPrevSld).mSldHref ) }
function HasPrevSld() { return ( gIsEndShow || ( gCurSld !=3D 1 && GetHrefO=
bj( gCurSld-1 ).mVis =3D=3D 1 )||( GetCurSldNum() > 1 ) ) }
function HasNextSld() { return (GetCurSldNum() !=3D GetNumSlds()) }
function CloseWindow() {
if( HideMenu() ) return;
=09
var event =3D PPTSld.event;
if( !IsFramesMode() && event && (event.keyCode=3D=3D27 || event.keyCode=3D=
=3D32 || event.type=3D=3D"click" ) )
window.close( self );
CatchNumKeys( self, event );
}
function Unload() { gIsEndShow=3D0; }
function SetupEndShow() {
gIsEndShow=3D1;
PPTSld.document.body.scroll=3D"no";
PPTSld.document.onkeypress=3DCloseWindow;
PPTSld.document.onclick=3DCloseWindow;
PPTSld.document.oncontextmenu=3D_CM;
}
function EndShow()
{
if( IsFramesMode() ) return
if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue
doc=3DPPTSld.document
var dir =3D doc.body.dir
if( dir !=3D "rtl" ) dir =3D "ltr";
doc.open()
doc.writeln(' 0) {
PushSldList(sldList,fEnd);
gCurSld =3D 1;
}
else
if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue
}
function PushSldList(arr,fEnd) {
var ii =3D gSldStack.length;
gSldStack[ii] =3D new SldList(arr,gCurSld,fEnd);
GoToSld( gSldStack[ii].mList[0].mSldHref );
}
function PopSldList() {
if (gSldStack[gSldStack.length-1].fEndShow)
EndShow()
else {
gCurSld =3D gSldStack[gSldStack.length-1].mCurSld;
gSldStack[gSldStack.length-1] =3D null;
gSldStack.length--;
var sldList =3D gSldStack[gSldStack.length-1];
GoToSld( sldList.mList[gCurSld - 1].mSldHref );
}
}
var custShowList=3Dnew Array();
/*********************************************
Navigation button implementation
There are 2 types of buttons: ImgBtn, TxtBtn
implemented as function objects. They share
a similiar interface so the event handlers
can call SetActive, for example, on a button=20
object without needing to know exactly=20
what type of button it is.
**********************************************/
//----------------------------------
function ImgBtn( oId,bId,w,action )
//----------------------------------
{
var t=3Dthis
t.Perform =3D _IBP
t.SetActive =3D _IBSetA
t.SetInactive=3D _IBSetI
t.SetPressed =3D _IBSetP
t.SetDisabled=3D _IBSetD
t.Enabled =3D _IBSetE
t.ChangeIcon =3D null
t.UserAction =3D action
t.ChgState =3D _IBUI
t.mObjId =3D oId
t.mBorderId=3D bId
t.mWidth =3D w
t.mIsOn =3D t.mCurState =3D 0
}
function _IBSetA()
{
if( this.mIsOn ) {
obj=3Dthis.ChgState( gHiliteClr,gShadowClr,2 )
obj.style.posTop=3D0
}
}
function _IBSetI()
{
if( this.mIsOn ) {
obj=3Dthis.ChgState( gFaceClr,gFaceClr,1 )
obj.style.posTop=3D0=20
}
}
function _IBSetP()
{
if( this.mIsOn ) {
obj=3Dthis.ChgState( gShadowClr,gHiliteClr,2 )
obj.style.posLeft+=3D1; obj.style.posTop+=3D1
}
}
function _IBSetD()
{ =20
obj=3Dthis.ChgState( gFaceClr,gFaceClr,0 )
obj.style.posTop=3D0=20
}
function _IBSetE( state )
{
var t=3Dthis
GetObj( t.mBorderId ).style.visibility=3D"visible"
if( state !=3D t.mIsOn ) {
t.mIsOn=3Dstate
if( state )
t.SetInactive()
else
t.SetDisabled()
}
}
function _IBP()
{
var t=3Dthis
if( t.mIsOn ) {
if( t.UserAction !=3D null )
t.UserAction()
if( t.ChangeIcon ) {
obj=3DGetObj(t.mObjId)
if( t.ChangeIcon() )
obj.style.posLeft=3Dobj.style.posLeft+(t.mCurState-4)*t.mWidth
else
obj.style.posLeft=3Dobj.style.posLeft+(t.mCurState-0)*t.mWidth
}
t.SetActive()
} =20
}
function _IBUI( clr1,clr2,nextState )
{
var t=3Dthis
SetBorder( GetObj( t.mBorderId ),clr1,clr2 )
obj=3DGetObj( t.mObjId )
obj.style.posLeft=3Dobj.style.posLeft+(t.mCurState-nextState)*t.mWidth-obj=
.style.posTop
t.mCurState=3DnextState
return obj
}
//-----------------------------------------
function TxtBtn( oId,oeId,action,chkState )
//-----------------------------------------
{
var t=3Dthis
t.Perform =3D _TBP
t.SetActive =3D _TBSetA
t.SetInactive=3D _TBSetI
t.SetPressed =3D _TBSetP
t.SetDisabled=3D _TBSetD
t.SetEnabled =3D _TBSetE
t.GetState =3D chkState
t.UserAction =3D action
t.ChgState =3D _TBUI
t.mObjId =3D oId
t.m_elementsId=3D oeId
t.mIsOn =3D 1
}
function _TBSetA()
{
var t=3Dthis
if( t.mIsOn && !t.GetState() )
t.ChgState( gHiliteClr,gShadowClr,0,0 )
}
function _TBSetI()
{
var t=3Dthis
if( t.mIsOn && !t.GetState() )
t.ChgState( gFaceClr,gFaceClr,0,0 )
}
function _TBSetP()
{
if( this.mIsOn )
this.ChgState( gShadowClr,gHiliteClr,1,1 )
}
function _TBSetD()
{ =20
this.ChgState( gFaceClr,gFaceClr,0,0 )
this.mIsOn =3D 0
}
function _TBSetE()
{
var t=3Dthis
if( !t.GetState() )
t.ChgState( gFaceClr,gFaceClr,0,0 )
else
t.ChgState( gShadowClr,gHiliteClr,1,1 )
t.mIsOn =3D 1
}
function _TBP()
{
var t=3Dthis
if( t.mIsOn ) {=20
if( t.UserAction !=3D null )
t.UserAction()
if( !t.GetState )
return
if( t.GetState() )
t.SetPressed()
else
t.SetActive()
} =20
}
function _TBUI( clr1,clr2,lOffset,tOffset )
{
SetBorder( GetObj( this.mObjId ),clr1,clr2 )
Offset( GetObj( this.m_elementsId ),lOffset,tOffset )
}
function Offset( obj, top, left ){ obj.style.top=3Dtop; obj.style.left=3Dle=
ft }
function SetBorder( obj, upperLeft, lowerRight )
{
s=3Dobj.style;
s.borderStyle =3D "solid"
s.borderWidth =3D 1=20
s.borderLeftColor =3D s.borderTopColor =3D upperLeft
s.borderBottomColor=3D s.borderRightColor =3D lowerRight
}
function GetBtnObj(){ return gBtnArr[window.event.srcElement.id] }
function BtnOnOver(){ b=3DGetBtnObj(); if( b !=3D null ) b.SetActive() }
function BtnOnDown(){ b=3DGetBtnObj(); if( b !=3D null ) b.SetPressed() }
function BtnOnOut(){ b=3DGetBtnObj(); if( b !=3D null ) b.SetInactive() }
function BtnOnUp()
{
b=3DGetBtnObj()
if( b !=3D null )
b.Perform()
else
Upd()
}
function GetNtsState(){ return parent.gNtsOpen }
function GetOtlState(){ return parent.gOtlOpen }
function GetOtlTxtState(){ return parent.gOtlTxtExp }
function NtsBtnSetFlag( fVal )
{
s=3Ddocument.all.item( this.m_flagId ).style
s.display=3D"none"
if( fVal )
s.display=3D""
else
s.display=3D"none"
}
function _BSetA_Border(){ b =3D gBtnArr[this.mObjId]; if( b !=3D null ) b.S=
etActive() }
function _BSetI_Border(){ b =3D gBtnArr[this.mObjId]; if( b !=3D null ) b.S=
etInactive() }
function _BSetP_Border(){ b =3D gBtnArr[this.mObjId]; if( b !=3D null ) b.S=
etPressed() }
function _BSetA_BorderImg()
{=20
b =3D gBtnArr[this.mBorderId]=20
if( b !=3D null && this.mIsOn && !b.GetState() ) {
obj=3Dthis.ChgState( gHiliteClr,gShadowClr,2 )
obj.style.posTop=3D0
}
}
function _BSetI_BorderImg()
{=20
b =3D gBtnArr[this.mBorderId]
if( b !=3D null && this.mIsOn && !b.GetState() ) {
obj=3Dthis.ChgState( gFaceClr,gFaceClr,1 )
obj.style.posTop=3D0
}
}
var gHiliteClr=3D"THREEDHIGHLIGHT",gShadowClr=3D"THREEDSHADOW",gFaceClr=3D"=
THREEDFACE"
var gBtnArr =3D new Array()
gBtnArr["nb_otl"] =3D new TxtBtn( "nb_otl","nb_otlElem",parent.ToggleOtlPan=
e,GetOtlState )
gBtnArr["nb_otlElem"] =3D new TxtBtn( "nb_otl","nb_otlElem",parent.ToggleOt=
lPane,GetOtlState )
gBtnArr["nb_nts"] =3D new ImgBtn( "nb_nts","nb_ntsBorder",10,parent.ToggleN=
tsPane )
gBtnArr["nb_nts"].SetActive =3D _BSetA_BorderImg;
gBtnArr["nb_nts"].SetInactive =3D _BSetI_BorderImg;
gBtnArr["nb_ntsBorder"] =3D new TxtBtn( "nb_ntsBorder","nb_ntsElem",parent.=
ToggleNtsPane,GetNtsState )
gBtnArr["nb_ntsElem"] =3D new TxtBtn( "nb_ntsBorder","nb_ntsElem",parent.To=
ggleNtsPane,GetNtsState )
gBtnArr["nb_prevBorder"] =3D gBtnArr["nb_prev"]=3D new ImgBtn( "nb_prev","n=
b_prevBorder",30,parent.GoToPrevSld )
gBtnArr["nb_nextBorder"] =3D gBtnArr["nb_next"]=3D new ImgBtn( "nb_next","n=
b_nextBorder",30,parent.GoToNextSld )
gBtnArr["nb_sldshw"]=3D new ImgBtn( "nb_sldshw","nb_sldshwBorder",18,parent=
.FullScreen )
gBtnArr["nb_sldshwBorder"] =3D new TxtBtn( "nb_sldshw","nb_sldshwBorder",pa=
rent.FullScreen,null )
gBtnArr["nb_sldshwBorder"].SetActive =3D _BSetA_Border;
gBtnArr["nb_sldshwBorder"].SetInactive =3D _BSetI_Border;
gBtnArr["nb_sldshwText"] =3D new TxtBtn( "nb_sldshw","nb_sldshwText",parent=
.FullScreen,null )
gBtnArr["nb_sldshwText"].SetActive =3D _BSetA_Border;
gBtnArr["nb_sldshwText"].SetInactive =3D _BSetI_Border;
gBtnArr["nb_voice"] =3D gBtnArr["nb_voiceBorder"] =3D new ImgBtn( "nb_voice=
","nb_voiceBorder",18,parent.ToggleVNarration )
gBtnArr["nb_otlTxtBorder"] =3D gBtnArr["nb_otlTxt"]=3D new ImgBtn( "nb_otlT=
xt","nb_otlTxtBorder",23,parent.ToggleOtlText )
gBtnArr["nb_ntsBorder"].m_flagId=3D "nb_nts"
gBtnArr["nb_ntsBorder"].SetFlag =3D NtsBtnSetFlag
gBtnArr["nb_otlTxt"].ChangeIcon=3D GetOtlTxtState
/*********************************************
Context menu implementation
_CM() is the function that's hooked up to
the oncontextmenu event. Once we're asked to
show the menu, we first build it by creating
DIVs on-the-fly. Then we position it=20
within the screen area so it doesn't get
clipped.
Creating the DIVs using createElement() means
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Slide 1
2.Must disclose all material facts =
to
principal.
3.Must use reasonable care and skill.
<=
/div>
------=_NextPart_01C4FD5A.E097DF70
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4.Must obey directions of the principal.
5.Must render an account on demand.
6.May not act for two principals in
negotiations
without knowledge and consent of both.
without knowledge and consent of both.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
12
=
D. Liabilities of Agent
Toward Third Parties
Toward Third Parties
=
Agent is liable for:
<=
/div>
<=
span
style=3D'mso-special-format:"numbullet3\,1";color:#CC9900;mso-color-index:=
4;
position:absolute;left:-7.53%;top:.49em;font-size:65%'>1.Injury
to the victim’s property or person.
<=
span
style=3D'mso-special-format:"numbullet3\,1";color:#CC9900;mso-color-index:=
4;
position:absolute;left:-6.84%;top:.49em;font-size:65%'>2.Negligent
and fraudulent misrepresentations.
a.May be statement made recklessly and carelessly =
without
sufficient knowledge to justify statement.
b.May be from “silence” – known material facts that broker
or salesperson should disclose whether asked for
or not. If principal supplies agent with false information
and agent repeats such misrepresentati=
ons,
agent is not liable.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
13
E. Rights of Agent Against Princ=
ipal
=
=
nBroker is entitled to commission when:
n1. B=
roker
produces a buyer “ready, willing and
able to purchase” upon the exact terms of the
listing.
able to purchase” upon the exact terms of the
listing.
n a.<=
span
style=3D'mso-tab-count:1;width:2.06%'> “Ready and willing” denotes a
buyer willing to enter int=
o a
binding unconditional contract.
n b.<=
span
style=3D'mso-tab-count:1;width:2.06%'> “Able” buyer is financially =
able
to buy.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
14
=
=
nOr;
n2. Br=
oker
secures a valid binding contract upon terms
and conditions agreeable to the seller.
n a. If seller and buyer later res=
cind,
broker still earns commission based on listing contract.
n3. S=
eller
makes property unmarketable.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
15
Termination =
of
Agency
=
=
nThe agency may be terminated by acts of the parties or
by operation of law as follows:
1.Mutual agreement.
2.Renouncement by the agent.
3.Revocation by the principal.
4.Expiration of the term.
5.Extinction of the subject matter.
6.Death or incapacity of either
principal or agent.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
16
II.
Listings (Authorization to Sell or Acquire.)
=
=
nA contract by which a principal <=
/span>employs an agent to do certain things for the principal.
This may authorize the agen=
t to
sell, lease, buy or exchange
property, or to negotiate a loan.<=
/span>
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
17
A. Exclusive Right to Sell List=
ing
=
=
<=
span
style=3D'mso-special-format:nobullet;display:none;color:#CC9900;mso-color-=
index:
4;font-family:Wingdings;font-size:65%'>nA contract in which=
the
seller agrees to pay the broker a commission regardle=
ss
of who sells the property.
1. a. Seller must pay if seller sells the property.
b. If
another broker sells the property.
c. Another
broker sells the property.
2. Must have a definite termina=
tion
date.
=
<=
span
style=3D'mso-special-format:nobullet;display:none;color:#CC9900;mso-color-=
index:
4;font-family:Wingdings;font-size:65%'>n3. Usually contains a “Safety C=
lause”
– provides for commissi=
on if
sale is made within specified time after listing
expires to buyer introduced during the listing period =
and
buyers name was included on a list given to seller =
within
3 days after the expiration of the listing.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
18
B. Exclusive Agency Listing
=
nA contract in which the seller of the
property employs a broker to sell a
property themselves, or through another real estate broker. The
unique feature in this agency is that the seller can sell the property themselves. If they sell the =
property themselves they do not owe a commission to =
=
anyone.
n1. Seller
reserves the right to sell the property themselves.
n2. Can
be given to only one real estate broker.
n3. Must
have a definite termination date. (All Exclusive <=
/i><=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man";
font-size:87%'> List=
ings
must have a definite termination date.)
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
19
Open Listing=
=
=
nA contract between the seller and broker whereby =
the
seller authorizes the broker to act on a non-=
exclusive
basis.
nThe “Open Listing” can be given to more than one <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>broker. The broker who is the “procuring cause=
” will
be paid, however, the seller retains the right to =
sell
the property themselves.
nThe Open Listing does not have to have a definite <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>termination
date.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
20
Open Listing=
=
=
nA good memory list for the Open Listing
is;
1.Usually no termination date given.
2.Any number of agents can have a listing.
=
=
3.Seller not required to notify agent in event of sale.
<=
/span>
4.Sale cancels all open listings.
5.Seller may sell the property themselves without having to pay a commission.
6.Broker who is “Procuring Cause” is one who earns commission.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
21
Net Listing<=
/span>
=
=
A listing contract in which the
compensation is not definitely determined but permits
agent to retain all money received in excess of t=
he
listed price set by the seller.
1.Agent
must disclose amount of compensation prior to or at =
time
principal binds himself or herself to
transaction.
2.Perfectly
legitimate but principal should be fully informed
of compensation to avoid a charge of fraud or misrepresentation.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
22
Exclusive
Authorization to Acquire
=
=
nOften Called A “Buyer Contract” it is similar to a =
listing,
but a listing on the buyer, or the buyers =
loyalty.
nIt is a contract between the buyer and the agent, that =
=
exclusively
gives that agent the right to find a suitable property for the buyer, =
and
if they do, the buyer will guarantee the agent is
paid a commission.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
23
Multiple Lis=
ting
Service
=
nGroups of brokers cooperate with each oth=
er
on their listings, the promi=
se
being that they will pay a pre-determined commissi=
on
if their listing is sold by another participating
agent.
n1. Listing
broker agrees to split commission with selling <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man";
font-size:87%'> broker.=
n2. Multiple
listing form is usually “Exclusive Right to Sell.
n3. Prearranged
schedule of commissions and commission splits =
are
prohibited by Justice Department.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
24
Miscellaneous
Provisions
=
=
1.Broker must be lice=
nsed
at time authorized act is performed but not
necessarily when commission is paid.
2.All listings for the
sale, or lease for more than one year, or the exchange of real property must be in writing.
<=
span
style=3D'font-size:87%'>3.Listing cannot be
recorded whether notarized or not.
4.Salesperson may take
listing on broker’s behalf but l=
isting
belongs to the broker.
5.Copy of listing mus=
t be
given to each party who signs contract at time of
signing.
6.All listings for the
sale of residential property of one to four units or a mobilehome must include the following notice in boldface type.
(see next page)
<=
/div>
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
25
Listings Must
Contain The Following
nNOTICE: The
amount or rate of real estate commission is not fixed by law. They are
set by each broker individually and may be negotiable between the sel=
ler and
broker.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
26
=
III. BROKER’S DISCLOSURE
OF AGENCY RELATIONSHIP
OF AGENCY RELATIONSHIP
=
=
At the outset of any
negotiations with a seller or a buyer, the broker is required to make two disclosures.
A.General Disclosure =
to
seller and/or buyer regarding real e=
state
agency relationship –Disclosure form must be given to seller and/or buyer and a signed acknowledgement obtained.
B.Specific Disclosure=
or
Agent’s Status – Listing agent a=
nd
selling agent must give written notice of status to every party entering contract.
Disclosure may be included in the
contract or given on a separate d=
ocument.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
27
A. General Disclosure - Agency<=
/span>
=
=
1.Type of Transaction – A sale or
exchange of real property, a lease for more than 1
year, or a sale under a real property sales
contract.
2.Type of Property – Real property
improved with one to four dwelling units or a
mobilehome. Excludes
sale of land or individual lots to be used
for residential development.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
28
=
=
1.
n3. Who
Must Comply – Broker and broker’s associates.
n
n a. Real Estate Broker – When ac=
ting
for seller only, buyer only, or both seller and buyer; acting for lessor,
lessee, or both; vendor, vendee, =
or
both.
n b. Real Estate Associate – Since
broker bears responsibility for all acts of his or her associate=
licensee=
s,
associates must also comply when acting for bro=
ker in
any of the above situations.
“Associate” includes (1) salesperson licensee, (2) broker licen=
see working=
under
another broker’s license.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
29
4. When to Comply
=
=
nThe agent, broker or associate, must give seller or buyer
the Disclosure form and obtain signed acknowledgement
of receipt at the following times:
a.To seller at time of listing by t=
he
listing agent before seller signs listing.
=
b.To seller prior to presentation of
offer by selling agent when selling agent is not a=
lso
listing agent.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
30
=
=
c.If selling agent does not present
offer directly to seller, listing agent may deliver
selling agent’s copy, that’s the usual manner, the
alternative method would be Disclosure by
Certified Mail to seller, without required signe=
d acknowledgement.
d.To buyer at time of offer by the
selling agent before buyer signs offer.
e.If buyer writes own offer, selling
agent must deliver Disclosure to buyer by ne=
xt
business day following receipt of offer.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
31
Refusal to
Acknowledge
=
=
nShould the Seller or the Buyer refuse to =
acknowledge
a receipt for the disclosure the agent or
the broker should describe the
situation in detail, in writing, make it a part of the
file and keep the written testimony for future
reference.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
32
Specific
Disclosure
=
=
=
=
Specific Disclosure of agents age=
ncy
position =
should
be given to every party involved in the transaction
to every party entering into a contractual =
purchase
agreement, listing agreement, or rental agreement.
=
First you make them aware of the
positions, and you finalize your position on a separ=
ate
form or in the body of the contract.
=
=
All of the CAR contracts have a
specific place for the agent to disclose their agency
position.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
33
=
=
1.Listing Agent – Must disclose to
seller before seller signs listing contract,
whether agent is acting:
n a.<=
span
style=3D'mso-tab-count:1;width:2.38%'> Exclusively as seller’s agen=
t, or
as
n b.<=
span
style=3D'mso-tab-count:1;width:1.8%'> Agent for both the seller and=
the
buyer. (Dual Agency).
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
34
Dual Agency<=
/span>
=
nDual Agency – Broker represents both buyer and <=
/span><=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>seller
and owes the fiduciary duty to both.
n a.<=
span
style=3D'mso-tab-count:1;width:1.93%'> Is thought to put broker in
precarious position because of inherent conflict of interest.
n b.<=
span
style=3D'mso-tab-count:1;width:1.85%'> In dual agency agent represe=
nts
two principals. This is different from sub-agency, <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'> sub-agency is created through
cooperating brokers in the same board of realtors <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'> representing the same
principal.
n
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
35
Options
=
=
nOptions are contracts in which one party (the
optionor)
gives the other party (the optionee)
the right to purchase or lease real
property upon specific terms within a pre-specified time
period, in exchange for actual
consideration.
nAn Option is a contract to keep an offer open.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
36
Essential
Characteristics of An Option
=
=
1.The option must be in writing.
2.Actual consideration must pass to=
the
optionor.
n a.<=
span
style=3D'mso-tab-count:1;width:2.12%'> May be cash, a check, a prom=
issory
note or another thing of value.
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> May be as little as 5=
¢
n c. If an unsecured promissory note, option cannot be assigned without the consent of the =
optionor.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
37
=
=
3.Optionor retains the consideration
whether option is exercised or not.
<=
/span>
4.Can be in the form of an exclusive
right to purchase or a lease, or in the fo=
rm
of privilege of first right of refusal to purchas=
e or
lease.
5.Optionor cannot sell or lease the
option property to anyone other than the optionee
during the term of the option.
6.Optionee has no right of use or
possession.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
38
B. Options Held by Agents=
=
nIf a broker who holds a listing also takes an option on
the property, broker is placed in a dual position of
agent and principal. If broker
exercises option, he or she must:
n1. A=
dvise
buyer that he or she is acting as a principal 1and not as owner's agent.
n2. R=
eveal
all facts to owner (including anticipated profit)
and obtain owner/optionor written approval.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
39
V. Purchase Contract &=
amp;
Receipt for Deposit
=
=
nSince most offers to purchase include a money deposit
known as “Earnest Money”, the contract of sale
(Purchase
Contract) is also a receipt for the =
deposit
and is known as a Deposit Receipt. The following
slides is a review of the key factors of a =
purchase
contract.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
40
A. Initial Offer
=
nThe initial offer must communicate the offeror’s =
desire
to enter into a binding contract.
Further;
n
1.Be communicated to the offeree.
2.State the contractual intention.
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3.Be definite and certain in its terms.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
41
B. Acceptance
=
=
=
Acceptance requires the offeree to
properly agree to the terms of the offer.
1. Offeree must have knowledge of the offer.
=
2. Acceptance must be absolute and unqualified.
3. Acceptance must be within stated time limit.
4. Must be stated and communicated to offeror.
5. Must be as specified in the offer.
=
=
6. Once these terms are met, death, insanity, will <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'> not terminate the offer.
=
;
<=
span
style=3D'visibility:hidden'>1.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
42
C. Termination of Offer<=
/div>
1. Lapse of specified
time.
3. Failure of Offeree =
to
accept offer as written.
4. Rejection by
offeree.
5. Death or insanity.&=
#13;
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=
=
The offer may be
terminated before acceptance by;&=
#13;
2.Revocation Offeror may withdraw offer at anytime =
prior to acceptance by the offeree and notification of acceptance to them.
=
6.Supervening Illegal=
ity,
offer becomes illegal before a=
ccepted.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
43
Escrow Compa=
ny or
Agent
=
=
nA contract to sell a single family resid=
ence
by a developer cannot contain a conditio=
n requiring escrow services to be performed by an escrow entity in which the developer <=
span
style=3D'position:absolute;top:56.49%;left:5.99%;width:88.2%;height:7.5%'>=
has a financial interest.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
44
Contingencie=
s
=
nIf the offeror wants to make any condition or act subject
to a specified contingency, the clause should =
be
preceded with any of the following:
n
n1. “=
Offer
subject to”
n2. “=
Offer
contingent upon”
n3. “=
Offer
conditioned upon”
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
45
Interim Occu=
pancy
Agreement
=
=
nIf the buyer is going to take possession=
=
prior to the close of escrow, the buyer is <=
span
style=3D'position:absolute;top:40.5%;left:5.99%;width:104.11%;height:7.5%'=
>really a renter, a tenant.
The parties should enter into a rental
agreement called an “Interim Occupancy Agreement”.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
46
Termite, Pest
Control, Certification
=
=
nUsually a termite report and certificatio=
n or
clearance is required by the buy=
er,
and the lender. When a termite or=
pest control certification is required, the certification m=
ust be delivered to the buyer by the seller or the agent of the <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man";
font-size:87%'>seller before the close of escrow.
nIn actual practice, the termite report and
clearance are delivered to the es=
crow
holder, the buyer must be aware of the report, should =
have
a copy, the escrow should not close until there is a
clearance by the Pest Control Company p=
ertaining
to the required or agreed upon work.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
47
Termite
Reports Types of
=
=
nTwo types of recommendations can be made by a licensed
pest control operator.
1.A report that lists work needed to
repair or correct existing damage. <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>(Section
I)
2.Report which lists recommended wo=
rk
that should be done to correct conditi=
ons
that are likely to lead to infestation.
(Section II)
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
48
Termite Fact=
ors
=
=
n1. A=
pest
control operator must give a copy of any report
to the owner, even when the inspection was
ordered by another party.
n
n2. P=
est
control reports are filed in Sacramento and copies
are available upon request to the Structural Pest Control Board.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
49
VI. Disclosure Responsibilities =
of Brokers and Sellers<=
/span>
=
=
nReal Estate Brokers and sellers are <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man";
font-size:120%'>statutorily required to make a thorough =
inspection of property being offered for sale and make written disclosures as to its =
=
condition.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
50
A. Brokers Responsibility Case L=
aw
=
=
nRequired by case law, and statute. (CC Section 2079).
n1. E=
aston
Vs. Strassburger – Court held that a broker acting as an agent in the =
sale
of a residential property ahs a duty to the
prospective buyer, not only to disclose material facts a=
bout
the property known to the broker, but also a “=
duty
to conduct a reasonably competent and diligent
inspection of property . . . In order to discov=
er
defects . . . “ that <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>should
have been disclosed.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
51
A. Brokers Responsibility by Civ=
il
Code
=
=
nThe Civil Code has broker requirements at Civil =
<=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>Code
Section 2079.
nRequires listing broker and cooperating broker to conduct
a reasonably competent and diligent visual =
inspection
of the property and to disclose to any pro0spective
purchaser, all facts materially affecting the
value or desirability of the property that such <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>and
investigation would reveal.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
52
Civil Code 2=
079
Outlined
=
=
na. A=
pplication
– applies to purchases of residential real
property comprising one to four dwelling units.
nb. S=
tandard
of Care – The degree of care owed by the broker is that which a reason=
ably
prudent real estate licensee would exerci=
se
and is measured by the degree of knowled=
ge
through education, experience and examina=
tion
that is required to obtain a real estate
license.
n
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
53
=
=
=
c. Area to be inspected – does not include areas that a
re reasonably and normally inaccessible to such
an inspection.
d. Time Limit for Legal Action – Legal action for failure
to disclose must be commenced within 2 years
from date of possession or close of escrow.
=
e. Buyer Responsibilities – Buyer has a duty to <=
/span>exercise
reasonable care to protect himself or herself,
including those facts which are known to
or within the diligent attention and observation of =
the
buyer.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
54
B. Seller’s Responsibilities
=
=
nCivil Code Section 1102 requires seller, or seller’s =
agent
to provide transferee with seller’s written =
disclosures
relating to conditions of seller’s property. Section 1134.5 requires seller to disc=
lose <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man"'>to
buyer whether, during course of seller’s ownership
or previous knowledge, any structural addition
or alterations were made with or without benefit of appropriate permit.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
55
=
n1. Condition
of Property Disclosure Form - Transfer Disclosure Statement (TDS).
n2. Applies
to – transfers of one to four family welling units by sale, installment sale, lease with option to purchase, <=
/span>=
or ground lease coupled with improvements. Excludes certain types of transfers such as trustee’s sale, court sale, estate sale, or sale of regulated subdivision =
property.
n3. Time
Limit for Delivery – The disclosure must be delivered:
n a. As soon as practicable befor=
e the
transfer by sale, or;
n b. Before execution of the cont=
ract
if an installment sale, ground lease, or lease/option.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
56
=
=
n4. <=
/span>Right
of Recission – If the deliver of the disclosure
statement (TDS), or any amendment =
to
the disclosure statement (TDS) the
transferee may terminate the offer within:&#=
13;
n
<=
/div>
n a.<=
span
style=3D'mso-tab-count:1;width:2.13%'> Three days if delivery was m=
ade in
person.
n b.<=
span
style=3D'mso-tab-count:1;width:2.03%'> Five days if delivery was ma=
de by
mail.
n b.<=
span
style=3D'mso-tab-count:1;width:1.79%'> Before execution of the cont=
ract
in the case of an installment sale, ground lease or lease/option.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
57
=
n5. Limit of Liability – Neither the
transferor nor the transferor's agent =
is
liable for any error, inaccuracy, or o=
mission
of any information that is required to be delivered provided the
information:
n
na. Was
within the personal knowledge of the transferor or the transferor’s agent.
nb. Was
based on information timely provided by public agencies or professional parties (contractor, engineer, geologist, etc), and
nc. Ordinary
care was exercised in obtaining and transmitting the
information.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
58
=
=
n6. <=
/span>Cooperating
Brokers – If more than one broker is acting in the transaction, t=
he
broker who has obtained the transferee’s offer shall deliver the Disclosure Statement unless =
the
transferor has given written instructions to the contrary. If the transferee’s broker cannot o=
btain
the Disclosure Statement and does not have written assurance =
from the transferee that the
statement has been received, the broker shall advise the transferee in <=
/span>=
writing of his or her rights=
to
Disclosure Statement.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
59
=
=
n7.
Failure to Comply – Failure to comply with any provision of this law will not =
in its=
elf,
validate the
transaction. Any <=
span
style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro=
man";
font-size:120%'> party =
who
willfully or negligently violates the provisions of t=
he law
will be liable for actual damages
suffered by the transferee.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
60
Other Disclo=
sures
=
=
nIn addition to disclosures regarding the condition of <=
/span>the
property, following disclosures are required.
n
A.MELLO-ROOS Bonds – A
Mello-Roos Community Facilities District is formed by a local government. Bonds=
are sold to finance
police and fire services, parks, schools and etc., in that
district. Seller is responsible f=
or
disclosing any such tax liens or may authorize agent to do so.
B.EARHTQUAKE FAULT ZO=
NE –
Seller or Seller’s agent must disclose whether property is locate=
d in
official earthquake fault zone.
Zones were delineated and adopted by State as part of
Alquist-Priola Special Studies Zone Act of 1972.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
61
=
=
C.FLOOD HAZARD ZONE – Seller’s agent
must disclose the flood hazard zone in
which the property is located. Flood insurance rate maps are
issued by the Federal Emergency Management Agen=
cy. (FEMA)
D.MILITARY ORDINACE – Some sites we=
re former
defense sites that have potential ordinance and
similar explosive type contaminants. Seller must disclose if property is within
one mile of such site as designated by U.S.
Department of Defense.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
62
=
=
nE. L=
EAD-BASED
PAINT HAZARDS – Many housing units built prior to 1978
used lead-based paints. The federal Real Estate
Disclosure and Notification Rule requires seller=
s to
disclose to agents and buyers of any lead-bas=
ed
paint hazards.
nF. W=
ILDLAND
FIRE AREA – Seller must disclose to buyer if
property is located in an officially designated State
Fire Responsibility area. These <=
/span>areas
are found on maps, issued by California Department
of Forestry and Fire Protection and are generally w=
ild
land areas.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
63
=
=
nG. LA=
NDSLIDE
INVENTORY REPORT – Since this may be a
material fact, seller should provide this report. County records will disclose if property
is or is not located in an area with a high
or moderately high potential for bedrock landslides,
or mud-debris flows during periods of exceptionally
high rainfall or seismic shaking.
n
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
64
=
=
H.ENVIRONMENTAL HAZARDS – A guide for homeowners, buyers, landlords and tenants. This booklet identifies common environmental hazards, describes the risks of each, how to mitigate them and lists sources of additional information.
=
n
n 1. Discusses hazards of asbesto=
s,
radon, lead, mold and formaldehyde;
n 2. Seller or seller’s agent must
disclose existence of hazards if either has actual knowledge of them.
=
;
n 3. If there are no know hazards,
delivery of booklet relieves seller and agent of duty to provide furthe=
r informa=
tion.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
65
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
66
=
=
1.If Mr. Smith were to give an opti=
on
to Mr. Avery to purchase his land, the
option would be considered:
n a.<=
span
style=3D'mso-tab-count:1;width:2.38%'> An easement
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> A voluntary lien
=
c. A contract to keep an offer open
n d.<=
span
style=3D'mso-tab-count:1;width:2.12%'> A purchase contract
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
67
=
=
2.The relationship between a real
estate broker and his or her principal is which=
of
the following?
n a.<=
span
style=3D'mso-tab-count:1;width:2.38%'> A fiduciary
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> An agency
c. Both a and b
n d.<=
span
style=3D'mso-tab-count:1;width:2.12%'> Neither a nor b
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
68
=
=
3.A broker, who is authorized under=
a
listing agreement to accept a deposit,
receives a $900 deposit from a buyer and uses it =
to
pay for an extended vacation. If the broker refused to restore
the money, the party(s) liable for the loss would
be the:
n a.<=
span
style=3D'mso-tab-count:1;width:2.38%'> Broker only
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> Seller only
c. Broker and seller
n d.<=
span
style=3D'mso-tab-count:1;width:2.12%'> Broker and buyer
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
69
=
=
4.The words “procuring cause” would
have an important meaning to which of the
following?
a. A dispute over a commission on open listing
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> When securing a listing
=
n c.<=
span
style=3D'mso-tab-count:1;width:2.38%'> The sale of government land&=
#13;
n d.<=
span
style=3D'mso-tab-count:1;width:1.85%'> A law suit against a licensee
involving fraud
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
70
=
=
5.The owner of a single family residence gave various =
brokers open listings on his property. Which of the following statements is correct regarding the brokers who hold an open listing?
6.
n a. No signs may be placed on the
property
n b. Each listing must have a fin=
al and
definite termination date
c. Each listing is cancelled wh=
en the
property is sold
n d. Each broker will participate=
in
the selling commission if each has advertised the property
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
71
who= is advised of the lack of an authorization but
accepts a deposit anyway, the deposit is held by
the broker:
a. As the agent of the purchaser
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> As the agent of the seller&#=
13;
n c.<=
span
style=3D'mso-tab-count:1;width:2.38%'> As the agent of the escrow
n d.<=
span
style=3D'mso-tab-count:1;width:2.12%'> Illegally
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
72
hol= ds an option she must inform the buyer that
she= is acting as:
n a.<=
span
style=3D'mso-tab-count:1;width:2.38%'> An optionor
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> A grantor
n c.<=
span
style=3D'mso-tab-count:1;width:2.38%'> An agent
d. A principal
n
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
73
=
=
8.An option:
n a.<=
span
style=3D'mso-tab-count:1;width:2.38%'> Requires the optionee to com=
plete
the purchase
b. Keeps an offer open for a specified period of
time
time
n c.<=
span
style=3D'mso-tab-count:1;width:2.38%'> Gives the buyer a lien on the
property
n d.<=
span
style=3D'mso-tab-count:1;width:1.88%'> Results in a commission to t=
he
broker if the
optionee does not exercise the option
optionee does not exercise the option
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
74
=
=
9.A real estate broker took a net listing on a property for <=
span
style=3D'position:absolute;top:14.49%;left:12.17%;width:94.94%;height:5.5%=
'>$130,000, for a three month term. After the broker had spent $250 advertising the property a prospect wants to make an offer of $130,200 for the property. Under these ci=
rcumstances:
n a. The broker does not have to =
submit
the offer to the seller
b. The broker must submit the o=
ffer
to the seller
n c. If the offer is accepted, the
seller must pay the broker a 6% commission
n d. The broker could be discipli=
ned by
the Real Estate Commissioner for taking a net listing=
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
75
=
=
10.A written agreement which promise=
s to
pay a commission to the listing agent, =
no
matter who sells the property, is an:
n a.<=
span
style=3D'mso-tab-count:1;width:2.38%'> Option
n b.<=
span
style=3D'mso-tab-count:1;width:2.12%'> Open listing
c. Exclusive Right to Sell listing
n d.<=
span
style=3D'mso-tab-count:1;width:2.12%'> Exclusive Agency listing
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
76
=
=
11.Under which of the
following circumstances
would a broker be liable to a buyer?
would a broker be liable to a buyer?
a. Makes
a misrepresentation to the buyer based
on false information given the broker by the seller.=
on false information given the broker by the seller.=
=
b. Executes
a sales agreement under a power of
attorney granted by the seller. <= /div>
attorney granted by the seller. <= /div>
n c. Accepts a deposit from the b=
uyer
and loses it
but is not authorized to accept a deposit under
the listing agreement.
but is not authorized to accept a deposit under
the listing agreement.
=
d. Places
the buyer’s check in the broker’s trust
account at the seller’s request.
account at the seller’s request.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
77
=
=
12.Which of the following is correct
with
regard to a net listing:
regard to a net listing:
n a.<=
span
style=3D'mso-tab-count:2;width:6.63%'> It is illegal to use in
California
n b.<=
span
style=3D'mso-tab-count:2;width:6.0%'> It gives the broker the right=
to
convey
title to the property.
title to the property.
c. The broker is obligated to disclose
to = the seller the full amount of compensation that is expecte= d to be
re= ceived from the sale, prior to the
se= ller’s acceptance of the offer.
to = the seller the full amount of compensation that is expecte= d to be
re= ceived from the sale, prior to the
se= ller’s acceptance of the offer.
n d.<=
span
style=3D'mso-tab-count:2;width:7.79%'> It operates the same as an o=
ption.
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
78
=
13. A contract between the seller of a home and a real
estate
broker, whereby the seller agrees to pay the broker a
com= mission provided the broker procures a buyer
“re= ady, willing and able” to buy and the broker agrees
to use due “diligence”, is called a:
broker, whereby the seller agrees to pay the broker a
com= mission provided the broker procures a buyer
“re= ady, willing and able” to buy and the broker agrees
to use due “diligence”, is called a:
n a.=
Unilateral executory contrac=
t
n b.=
Bilateral executory contract=
c. Unilateral
executed contract
d. Bilateral
executed contract
n
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
79
ex= clusive agency listing from an owner
for= a 90 day term. After the broker had
in trying to locate a buyer, the owners
so= ld it themselves during the listing period.
Un= der these circumstances the broker was
en= titled to:
n a.=
A full commission
b. No commission
n c.=
Half of the agreed commissio=
n
n d.=
Advertising expenses =
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
80
be= tween a real estate broker and his or her
cl= ient through:
n a.=
An implied contract
n b.=
Estoppel
c. An express contract
n d.=
Ratification
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
81
=
=
16.A broker took a listing for 90 da=
ys
and
during the listing term, the owne= r is
declared to be mentally incompetent.
At that point, the listing: <= /span>
during the listing term, the owne= r is
declared to be mentally incompetent.
At that point, the listing: <= /span>
n a.<=
span
style=3D'mso-tab-count:1;width:.96%'> Is binding
n b.<=
span
style=3D'mso-tab-count:1;width:.61%'> May be enforced thorough a su=
it for
specific performance
n c.<=
span
style=3D'mso-tab-count:1;width:.95%'> Is enforceable if the broker
produces a
a buyer “ready, willing and able” to buy <= /span>
a buyer “ready, willing and able” to buy <= /span>
d. Is void
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
82
=
=
nThe following questions refer to =
the completed
Exclusive Authorization and Right to Sell contract
on the following p= age
Exclusive Authorization and Right to Sell contract
on the following p= age
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
83
=
=
17.The listing can be recorded by:&#=
13;
n a.<=
span
style=3D'mso-tab-count:2;width:6.63%'> The seller
n b.<=
span
style=3D'mso-tab-count:2;width:6.37%'> The buyer
n c.<=
span
style=3D'mso-tab-count:2;width:6.63%'> The broker
d. No one
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
84
=
=
18.Which of the terms of the
Exclusive
n Aut=
horization
and Right to Sell contract
n on =
the
following page:
n
n a. The second trust deed violat=
es the
Real Estate
Broker’s Loan Law
Broker’s Loan Law
n b.<=
span
style=3D'mso-tab-count:1;width:1.83%'> The second trust deed has a
balloon payment
n c.<=
span
style=3D'mso-tab-count:1;width:2.38%'> The second trust deed contai=
ns
an
alienation clause
alienation clause
d. None of the preceding
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
85
te= lephoned the sellers and advised them that
he= had just shown the property to Mr. and
Mr= s. Kane. If the owners sold the property
to = Mr. and Mrs. Kan in January of the = following year: =
n a.<=
span
style=3D'mso-tab-count:1;width:2.03%'> The broker is entitled to a =
full
commission
b. The broker is entitled to no commission
=
n c.<=
span
style=3D'mso-tab-count:1;width:2.09%'> The broker can take legal ac=
tion
to block
the sale
the sale
n d.=
The seller must reimburse the
broker for advertising costs
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
86
=
=
20.Assume that at the time a broker secured the
listing he verbally
assured the sellers that this
was an exclusive ag= ency listing. If the
owners relied on th= is and during the listing
period, they sold t= he property themselves:
was an exclusive ag= ency listing. If the
owners relied on th= is and during the listing
period, they sold t= he property themselves:
n a. They would be obligated to p=
ay the
broker his full commission
b. They would not be liable for=
a
commission
n c. The buyers could refuse to
complete the
purchase because of the misrepresentation
purchase because of the misrepresentation
n d. The broker would be subject =
to a
fine for
misrepresentation
misrepresentation
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
87
January 05
Chapter 9 - Felde - Contracts Part II - Robert Rooks
88
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span
style=3D'font-family:Garamond;mso-ascii-font-family:Garamond;mso-special-f=
ormat:
lastCR;display:none'>
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n
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