If I represent the seller, can I advertise that I will rebate part of my commission to the buyer? A: Yes, but the ad must disclose that payment of the rebate is subject to the consent of the seller and if the rebate is contingent upon certain restrictions, such as the use of a particular service provider, the ad must contain a disclosure that payment of the rebate is subject to restrictions. [Rule 535.154(m)] A sales agent must also have their sponsoring broker's authorization to offer a rebate. However, a rebate to a buyer from a license holder may be subject to restrictions by the buyer’s lender. You should contact your broker or private attorney to find out how you should notify and obtain the consent of the buyer’s lender to address any impact the rebate may have on the determination regarding the buyer’s creditworthiness. Stay Compliant and Always Disclose, Disclose, Disclose!
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A broker, who is also the designated officer of a Business Entity, will have two license numbers; the individual broker’s license and the business entity broker’s license. Sales Agent’s requesting the sponsorship through the Relationship Management Tool (RMT) should verify the correct license number for their sponsoring broker PRIOR to submitting the online request. Once the fee is paid, the fee is non-refundable or transferrable. Once the request and payment are submitted, an email will be sent to the broker. The sponsorship will be in effect when the broker accepts the sponsorship request. At TexasBrokerSponsor.com we strive to be your broker sponsorship solution. We welcome experienced agents and newly licensed agents to become part of our growing Texas-wide agent team. If you looking to earn more on every sales or leasing transaction we can help make that happen Make 2017 the year you make the move to increase your income. When am I required to provide a broker price opinion or comparative market analysis on a property?12/14/2016 TREC Rule 535.16(c) provides two instances in which a real estate licensee is required to provide a broker price opinion (BPO) or comparative market analysis (CMA) on a property. The first instance is when a licensee negotiates a listing. For example, if a listing broker is negotiating the terms of a listing agreement with a seller, the listing broker must provide the seller with a BPO or CMA. Note: The rule does not provide for a specific time for a BPO or CMA to be given to the seller. However, the appropriate time would be when discussing the sales price.
The second instance in which a BPO or CMA is required is when a licensee is offering to purchase a property on his own behalf as a result of contact made while acting as a real estate agent. For example, a licensee represented a buyer and showed that buyer a specific property. After the buyer was no longer interested in the property, the licensee decided to submit an offer on that same property to purchase for himself. Since the licensee is submitting an offer on the property on his own behalf as a result of contact made while he was acting as a buyer’s agent, the licensee would now need to provide the seller with a BPO or CMA. reference source: TexasRealtors.com Under TREC’s rules (§535.2), brokers and salespersons need to maintain business records including transaction files. These records must be kept in a retrievable format, whether paper or electronic. Communications between clients or customers may be considered to be part of negotiations and may be important records in a transaction. Therefore, brokers and salespersons should develop protocols for how these communications are retained as part of the business record. Additionally, brokers and salespersons need to exercise care to avoid any statements in these communications that may be later construed as “misrepresentations” of any type, including but not limited to misrepresentations about the intentions of the client(s) with respect to making or accepting offers. The agent’s statements in an email need to avoid giving the impression that a “deal is done” or that “a party accepts” an offer or counteroffer unless that is clearly the intention of the client and is supported with documentation such as the proper signatures or initials on the written contracts. With few exceptions, agents do not have the authority to bind their clients, but they communicate for their clients regarding negotiations. That difference needs to be clearly understood by all those involved in the negotiations.
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No MLS Fees No Lockbox, supra, and key Fees No monthly fees OR Join our Realtor® affiliated company. No Monthly Fees Either! You've worked too hard to just let it fade away... Hang your real estate license with us from only $149.00 per year. Continue to sell real estate or not, continue to market yourself as a real estate agent; sell commercial properties, land, residential, possibly even business ventures. Work full-time, part-time, or work no-time, there are no transaction minimums or limits. Sell your moms house, sell your own house, or even buy yourself a house… You can hang your Texas real estate license, you can remain active, or relax and just enjoy life. You don’t even have to join the REALTOR® board and pay their outrageous fees if you don’t want to. Perfect for out of town brokers and agents, Apartment locators, or part-timers or agents simply taking a break or have other jobs and/or obligations, OR agents that simply want to hang their license. There are no minimum transactions required unlike other license hanging brokerages offering free real estate license hanging however setting a minimum transaction requirement or other hidden agendas, otherwise you’ll be charged a hefty amount for hanging your license with them. Also, some companies require you to join the Association of Realtors®, not here. Again, we don’t require you to consummate anything or join anybody… no minimums and no membership to any organizations, just pay our annual fee, hang your license and relax… or conduct real estate business as usual, it's up to you on how YOU want to conduct YOUR business. If you are aspiring to join an MLS / Realtor® company, but just don't have the funds yet available to pay the Realtor® dues, you can hang your license with us until such time you become financially viable to commit to the REALTOR® organization. If you desire an MLS or REALTOR® firm, we can help you also; you can transfer your license to our Realtor® company and have MLS privileges with one simple transfer form. Thank you! TexasBrokerSponsor.com Source: TREC ADVISOR - AUG. 2016
It has come to our attention at the Commission that in a hot market some buyers’ agents are drafting and adding problematic language into the contract, generally into the One to Four Family Residential Contract (Resale) Paragraph 11. Special Provisions. For example, something like this is inserted: “Buyer will pay above appraised value” or “Buyer will pay $1,000 more than any other offer.” In some communities, agents are adding language to special provisions written by a title company or the real estate brokerage’s attorney. All of these practices violate the License Act and Commission Rules. The following Q & A’s explain why! When can a license holder inserts language into paragraph 11, Special Provisions that makes the purchase price vary based on either other offers or an appraisal? Short answer: Never! Making the purchase price vary from the amount set out in the contract based on outside variables could affect the rights and remedies of one or both of the parties to the contract and is considered the unauthorized practice of law. Please note that license holders cannot draft inserts or addenda for these purposes either. Can an attorney for a license holder or an attorney for a title company draft language for such contingencies that the license holder can then recommend their clients insert into paragraph 11, Special Provisions? Short answer: No. License holders are prohibited from employing an attorney, directly or indirectly, to represent the interest of a party to a transaction when they are acting as an agent of their client. It creates confusion and possible conflict as to who the attorney represents and can create additional liability for the broker if the suggested language results in a problem down the road. Can an attorney for a party to a contract draft language for such contingencies that the party can then insert into paragraph 11, Special Provisions? Short answer: Yes. If a party to a contract is the attorney’s client, the party can then follow any advice the attorney gives the party regarding making changes to that particular contract. Keep in mind that the license holder may not recommend or make any additional changes to the contract, but simply follow the party’s instructions based on the party’s consultation with the party’s own attorney. Can an attorney for a license holder or an attorney for a title company draft a contract form or addendum for use by a license holder’s clients? Short answer: Only under very specific circumstances. If there is no standard contract form or addendum for that type of transaction promulgated by TREC, a licensed Texas attorney may prepare a standard contract form or addendum and authorize its use for a particular kind of transaction. Keep in mind that unless the attorney specifically authorizes the use of that form by all license holders or the general public, the license holder or title company who hired the attorney is the only one authorized by the attorney to use that form. In other words, license holders cannot legally use a contract or addendum form for their own clients that was created for another brokerage in a different transaction without express authorization from the attorney who created the form. “The pathway to TREC disciplinary action is sometimes paved with good intentions.” (Standards & Enforcement Services division staff attorney.) “I had good intentions,” however, is not a defense to a violation.
Your Helpful Personality May Not Always Help Many individuals who work in real estate brokerage have friendly personalities and like to “help” people. A sales agent or broker may do something in a transaction that is inappropriate not because they want to do wrong but because they believe a client expects it, has requested it, or will be pleased. The Commission hears about these situations when someone files a complaint against the license holder. For example: A busy client might ask an agent to “please go ahead and sign my name to that amendment.” That should not be done unless the agent has a valid power of attorney from the client. An energetic agent might have extra time before a showing appointment and decide to “tidy up” the residence by doing dishes and making beds before prospective buyers arrive. The occupant of the property may be offended and file a complaint. Yes, this happens. Source: TREC Advisor 20160201 The listing or sale of property for an owner who might not be competent to provide informed consent should be done with extreme caution. For example, the owner might be elderly and suffering from diagnosed dementia. In such a situation, the license holder should perhaps require that the owner’s attorney or someone with a power of attorney from the owner review the documents and provide necessary signatures on behalf of the owner. Responding to a complaint or lawsuit filed by a suspicious relative after the sale can be an unpleasant, expensive, and time-consuming experience. Being well-educated on these issues and using good judgment in your real estate brokerage activities can allow you to continue to be the “helpful” agent or broker that you want to be while still limiting the possibility of disciplinary action. - SOURCE: TREC Advisor 20160201.
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