all right good evening and welcome back guys uh today we're doing seller agency so we're not doing anything on the on the buyer side uh when i'm talking about seller agency i'm talking about the listing agent okay so we're only going to be talking about the listing agent today so their seller agency so seller's agents seek buyers for sellers and the property from a listing broker or a cooperating broker so this might confuse all y'all a little bit but the listing agent works for the seller but the selling agent works for the buyer and that can get a little confusing we'll go in a little more detail but the listing agent works for the seller and the selling agent works for the buyer um so cooperating brokers that's just basically saying on the mls we agree to give you three percent um so if you're selling your home you can expect to pay about six percent for uh realtors and then any fees on top of that for closing uh three goes to the buyer's agent and three goes to the seller's agent usually that's usually what it is and it'll say on the mls uh what you'll get if you bring a buyer so buyer's agents seek out the property for the buyer but the seller's agent seek out buyers for the seller if that makes sense um so when you get a listing agreement it's going to get you get about five days to get everything onto the mls um if you don't have everything ready and on there in five days uh someone could get sued and guess who's getting sued is it gonna um so as i was saying yeah you get three usually you get three percent for the sell but am i actually paying the three percent no it's the seller that's paying the three percent uh but six total um so let me ask you this right after you put a house on the mls and you put a sign out there what do you think the next thing you should do is the house you're selling department i'm so i'm the seller's agent or i'm the uh listing agent yeah so people are going to want to come and look at the property right and as we talked about yesterday remember box browning there's a lot of photoshopping going on so you don't actually know how the house really is until you go and see it yourself um so yeah you would open up you would hold an open house and people will come and look and hopefully you'll get a sewing agent from that um i don't know why the outline is right here but i guess we'll go over the outline it's after the first slide so it's kind of strange but there's we're going to go over listing agreements that's going to be express and implied agreements uh the types of listing agreements net listings we're going to go over exclusive agency exclusive seller agency that's going to be in-house sales and exclusive seller agency in practice we're going to go over the benefits of seller agency relationships the agency benefits to seller or landlord benefits the seller or landlord's agents and options for representing sellers we're also going to talk about non-exclusive seller agency disclosure issues disclosure issues of the seller's agent and of the seller's agent to the buyer all right so listing agreements remember the listing agreement is going between the broker and the seller not the agent and the seller the agent is acting on behalf of the broker but it's between the broker and the seller and it creates an express agency relationship so express just means it's either verbally or written i think if i've expressed verbally to you that i am your agent then we have an expressed agency or if we have been writing it's also been expressed that i'm your agent and then there's also implied agency and that's remember i was telling y'all yesterday if i think like your agent and i act like your agent i'm your agent so there's different types so you're going to want to try and avoid the implied agency if you can you might get pulled into something you didn't want to so most of the time it's going to be a verbally or written agency expression and the seller gives you authority and compensation so they basically give you authority to act on their behalf and they agree to pay a commission uh to you on completion but uh you might want to write this down uh commission is never a commission agreement is never in the contract it's going to be in the listing agreement that is where the the agreement of commission will be put so if you have a contract between a buyer and a seller there's not going to be a commission uh the it's not it's not gonna have the commission there you'll see the three percent right but it's listed first in the listing um so the seller gives you authority and compensation and then the broker agrees to market and place the client above their self so um like i said client comes first you're gonna have to place them above your wishes if i want the same house that my client wants then i have to you know i have to give some fun i can't purchase that house and also is to produce a ready willing and able buyer that is a big one uh i can almost promise you you will see ready willing mabel on the licensing exam um so if i'm ready i'm ready to buy the property i'm willing to buy the property and i've been and my lender sends to the agent that i'm also able to buy the property then i am guaran that i am entitled to a commission no matter what um if if the buyer i mean if the seller decides to pull out last second and i still had a ready willing and able buyer i'm still entitled to commission um and that might happen they just no i decide i'm not gonna sell this anymore but they say hey you know i did my job where's my compensation um so yeah if you bring a ready willing enabled buyer you are entitled to commission no matter what and it doesn't just mean somebody buys it if you've hurt somebody and that's really what i'm enabled and after they look at the inspection they decide that it's too much work to put on that they want to do whatever you still brought somebody who's very well enabled it's just after inspection did you get lists because nothing happened it depends on the i'm listening if it says you get commissioned for bringing this then yeah and not only is if like if you have it listed for a year and after that year nobody buys it and everything expires and you're listening to fires that they've never sold or whatever they decided to pull out because they won't do after that then you still get information but it's not like if one person comes looks at it and believes because of the inspection then you can just be like i get my money and i'm out like you still you still have to go through school buy another buyer to come feel it or whatever but if after two people come with the inspection then the seller just goes i'm done with this and if they back out then yeah so ready willing buyer that's a big one so there's like i was saying there's express uh there's express and implied agreements so first we're gonna go over express and that's clear and ambiguous like i said i've either expressed verbally or have expressed in writing than i am your agent uh written or oral and so the associates are going to be agents of the broker so i am an associate realtor under justin uh broker represents the seller either as the listing broker or is the agent of the listing broker thus a sub agent of the cell remember i was telling you yesterday if i don't have a representation agreement with my buyer then my duty is actually to the seller if the buyer tells me something like i can i can put 300 000 on this house but i want to put 250 then i would have to go to the seller and tell them that he could put 300 around the house they thought would you state that you want to start the video like how you said it i mean i would say it like he told me yeah he said like i can do two i can do 300 but i want to do 250 that's what i would tell them and i have to because i don't have a agreement of confidentiality and all that so if you don't have agreement your duty is to the seller so yeah i would be a sub agent of the seller and then there's applied agency that's going to be done by words or conduct so yeah like i said you you did something that made this person think that you're their agent so you became their agent and it's usually unintended you might not mean to do it but you did it and now you're an agent and there's an agreement a fee is not necessary so we didn't even agree on fees or anything like that i just entered into a an intentional applied agency with them um so there's non-fine douchery duties in texas um is honesty fairness and competency that's going to be your duties to your non-clients so customers not clients there's also good faith and disclosure of material facts we've talked about that before uh and trent also has rules for fairness but remember fairness does not always mean equal you can treat them fair but not eat good also you need to avoid misrepresentation and false promises this is basically just re-cementing things that we went over yesterday remember never guarantee anything to your clients and get you in a lot of trouble all right so now we're going to go to the fun stuff types of listing agreements so there's all kinds of listing agreements uh three total actually the first one is exclusive right to sell and so an exclusive right to sell means i got an exclusive right to soap yeah this is what you want you want an exclusive right to sell a lot of brokerages they will only do exclusive right to sell they won't do other ones they'll say hey no just walk away from that so an exclusive right to sell basically means that if i'm selling your property no matter who brings a buyer or no matter what happens i'm still gonna get paid if the house sells so you're guaranteed your commission so it's good in that situation you're going to probably give that person the best care that you can right because you're guaranteed a paycheck right um and that's going to be on like probably 90 99 of your listing contracts is going to be able to exclusive rights itself it's just better protection for us as agents and it gives your client the best care possible um yeah so even if the seller finds a buyer and brings the buyer and they do the whole contract and i wasn't even a part of it i still get my commission because i have an exclusive right to sell and that's that's used a lot in texas and there's also exclusive agency um this one you probably don't want to touch we'll go into more detail later but in an an exclusive agency of seller can basically they can sell the property behind your bag so if if the seller brings a buyer or they know someone and they bring a buyer and they get the contract you don't you don't get any commission you lost out they basically just cut you out of the deal and i think i told you once before sometimes your client will think that they're helping you i'm gonna call the other agent and talk to them but they're actually shooting you in the foot because then they go directly i have a question yes ma'am does that exclusive right to sell only apply to texas real estate or or does it apply to whatever section um like whatever mls you pertain to like if you have a realtor and a property that you want to get in like austin but you're not in that area or you're not like what's the word um you know what i mean it's just you no matter what as long as it's in texas because that's the only place i have a license to practice real estate i mean i can imagine that they would use exclusive right to sell in other states i don't know the laws of the other states but yeah i mean as far as in texas we in the listing agreement you can put in like the area basically i remember the quarter if you're not competent in like another area like if you're not competent in el paso or something would that exclusive right to sell still apply to you what if you sign the contract because if you're if you're selling remember you don't really need to know the area too much right because if you're buying you're going to be looking around and say oh this is the right place or this this is a bad part of the neighborhood you know all that but if you're selling it's just it's just on the market and you still should be somewhat competent but like in that situation if it was el paso i just wouldn't sign that like if they called me and said i have a property and they'll pass a list and we're going to lose brexit i just give it to somebody else because i don't want to drive out there to put a sign out i don't want to so as long as it's in texas if i sign that contract it is exclusively to me it's just a matter of if i want to take on that responsibility or not but once we sign that listing agreement yeah this is exclusively huge as long as it's in texas i've sold houses in dallas or i did a listing in galveston in houston and in college station so like i've and i got access to har like halfway through it so i was able to actually get into that mls to list it and everything but as far as luckily at the office here we kind of all have access like justin has access so we need to list something in el paso i don't have access to whatever mls that is but justin does so we can list it through justin basically i'm gonna be listening to him anyway yeah it would be under his name yes exactly that's what's under myself but yeah i imagine they use exclusive right to sell in other states i mean that's what you want right yeah it's the best protection for the agent and the best care for the client but yeah exclusive agency that your client can basically sell the property behind your back if they get a if they get a buyer you pretty much cut out of the deal and a lot of brokerages won't even touch that yeah it's just i mean you're not guaranteed a paycheck also i've seen situations where i bring for example i bring a client to come by the property as an agent but then once i leave the seller and that person start talking and then they do the whole deal behind my back and then she can claim that well she did the work so i don't get paid even though i technically brought the client to them so that's why we just like avoid that because it's not nevertheless your clients talk together even if you brought them they can't possibly be i promise that you'll get it so when you do that rep agreement tell them you don't you don't call any other agents don't do anything behind my head if you have any questions on real estate come to me but like the way that communication should always go is like client agent agent like it's always you never cross paths or whatever i never talk to another person's client we actually have a diagram okay yeah but so i was uh like i was talking to the other agent about something and then like two days later she called me and was like hey your client keeps calling me and my seller to ask questions about blank and blank and so i had to call my client and be like i know you're just trying to like get information quickly because she's super impatient so like if she asks me a question i'm in the shower by the time i get out of the shower she's already called 15 people to like figure it out and so i had to tell her like if you do that i lose my license so don't do that and she was a good family friend of mine so i know she's not like trying the best oh that's good yeah she's not trying to backstab me but i know some of those things that i had to like get onto her and be like i know you're just trying to help but that's not how this business works you have to talk to me and let me do like the conversations between the other people yeah i actually had that happen to me uh the others the other buyers agent didn't know exactly what to do on the on the transaction but she was a much older agent so i don't know uh but she actually gave my number to her client and her client called me and i was like are you are you the client of blanklin blank he's like yeah i was like all right well i can't talk to you i'll see you later so go ahead and if you have any questions just ask your agent bye and i told justin and he was like well he's not supposed to be calling he was like i know he's not supposed to be but he called me uh so that can't happen too and now i get to the worst of them all the open listing that that was the one where anyone could do anything it's basically brokerages all brokerages could list the property and whoever actually brings the buyer gets the money so yeah we have the example in my class about like having like 25 signs in your front yard yeah because every company comes out and puts out assignments it's just whoever whoever brings the buyer gets paid and you know in that situation the agents probably aren't going to work too hard are they yeah because they're yeah that's risky and you're not guaranteed a paycheck or anything it's even worse for the seller too um they could technically sell their property on very open listing but it they're actually hurting themselves by doing you know listing because they pay more no not necessarily pay more it's just they can pay less if they do it they don't think but it's just you're not going to get good service if i list stepping property still realistic yeah i'm not even going to try there's going to be 45 people listing it so what's the point of even worrying about it i'll just go through something else yeah well technically you only have one listing on the properties only one person but everybody else can put their signs out there yeah but yeah like you said you're not going to get carried right you're probably just going to go out there and stick a sign over there and see hey hopefully you're going to call whatever is usually like one or two listings that are over listings but they'll sit there for six months just because like nobody really is trying to be and then if i have a client who's like let's go look at that one fine yeah i feel like i have to go show it to him but like i'm not gonna i'm not gonna try to push him to buy it because i i haven't had like the client made me go to a open listing yet yeah you know i've had one and it was like we looked at it and they were like okay with it and then we left and they didn't they if they decided that's the one they wanted we're gonna have to like try to solidify that like i am their agent if they buy i guess like you have to like try to they're all is yeah you don't try to like make that a point then everything gets back in behind you and you know yeah never let you never let your your buyer talk to them so if you run into them with that um so this is a bit of a diagram about the exclusive right to sell listing so it's obviously going to start with the seller right it goes down to the listing broker into the buyers but it also has other brokers that can come in and now and they're going to go to the listing broker who's then going to go to the seller if that makes sense so it all it all is going to go to the listing broker buyers other brokers listing broker and then see this little dotted line there even if that just means that even if the seller procures uh a buyer you're still going to get paid so yeah if the buyer is secured by the seller you still get is still going to go to the listing broker i mean so buyers will go directly to the listing broker or whoever agent that he assigns to that property um so yeah like i said this is going to be the most protection for you and the best care for your client and if you all have any questions about these graphs please ask i know they can be kind of confusing so if you don't think of anything that's kind of you don't understand why this arrow's pointing that way or whatever just say something because you know i know they keep me kind of just asking questions yeah complicated um so yeah a little diagram there more on the exclusive right to sell as i said it's the greatest security for the broker and the most services for the seller because your guarantee of paychecks are going to work hard uh the broker is paid if anyone even the seller finds the buyer and tar form is on page 98 of your book it's basically just an example of an exclusive right to sell listing so if you want to check that out it is on the book and in the course materials all right so now we've got to exclusive agency diagram and this one's gonna be a little bit different so this is still the same here right everything's the same here we have other brokers that come in and they go to the listing broker correct same there then we go over here and that's where they can go behind your back and sell the property so if the seller secures a buyer you're cut out of the deal and you don't get paid a commission and that basically explains what exclusive agency is um like i said you probably won't be dealing with that in your career uh you may at some point but probably not too often or oh just typically turn them down when you get that off well not necessarily um usually people don't even try it off like you wouldn't have a cyclist agreement that says it might be selling nobody yeah that's just normal nobody basket in that situation you can try and explain to them why you want an exclusive bread so not just because i get paid because i'm going to work hard yeah but you still might say no i don't want to go back right yeah that's not what the open listening is like someone else wants to do it uh more on exclusive agency other brokers work through the listing broker but the seller may find their own buyer and pay no commission like i said so it's basically your broker is competing with your own client which you think that's a good thing to do do you ever want to compete with your client no you want to work for them so yeah it admit just imagine you with your client i would not want to do that yeah um and so here now we have a diagram of an open listing now this is going to be interesting so we still have the seller right starts with the seller okay now we have broker b and some buyers then we have broker a go straight to the seller and it can keep going it's going to be broker b c d e f g y all of that um so yeah basically whoever brings even the seller if broker a brings it the one the original one didn't get it broker c broker d all of that or if the seller gets the engine or gets the buyer uh so no matter what it's it it's just a mess usually and like i said there's only a couple people that do that at the time but they're not very successful at all because even if broker b is the one who puts it on the mls as like that one listing if broker a sees it as a client that's interested in it and it goes out to that property with them they technically brought the client like even though they saw it on the mls from this other broker it's them that got the call and found like match that property to their client or whatever so it's basically everyone is out for themselves it's a free-for-all i guess um so yeah it can get messy when you do an open listing uh some more on open listings uh the broker must be the procuring cause like i said it has to be the reason that the cell was made to be paid the seller reserves the right to sell the property and not pay a commission to the listing broker as i was saying if the seller finds a buyer he can just cut you out of the deal and the disadvantage is that it's not much incentive for the broker because you're not going to probably get paid um yeah so if a seller talks to another or if your seller or your buyer talks to another agent you can lose your commission that's why i'll probably i'll just reiterate that communication is is key i mean i would rather have my client call justin and be like your agent calls me too much to even rather not calling them enough don't even know yeah like just regular communication just be open about it just communicate with them and you'll be good um some net listings this is a really interesting one it refers to the way the broker is paid rather than the type of listing the seller determines the amount of money they will accept after subjecting costs to sell it's not illegal in texas and i'll explain what in that listing is so let's say a client comes to me and says i want 200 000 for my house now i want to do a net listing and i say okay uh so what if this house is worth five hundred thousand and that listing basically means he'll take he agreed to take the two hundred thousand and anything past that comes straight to me so if it's a if this house is actually worth 500 000 and he agrees to the 200 000 i would technically get a check for 300 um but when you do that you have to to actually have a legitimate net listing in texas you have to cook you have to go to the seller show them proof this is what your house is worth this is the appraisal this is what we have do you still only want to take 200 000 and if he says yes cool then i've got a net listing and i've got 300 anyway if he says no i don't want that i want to change that i want the four i want 450 and you get 50 or something like that um so you have to give them proof of what their house is actually worth and because this caused a lot of issues uh back in the day people were being very deceitful as to how much their house is actually worth and not telling them um everything says not illegal is because it is in a lot of other states it is illegal in a lot of other states it would make sense if it was yeah but instead they just came out with a law that basically says yeah you have to show them exactly what their house is worth and if they still agree do it they'll find it yeah but if you do that they're likely going to say okay no i'm going to take this and you can have whatever is left when they're going to take the lion's share um so that so that's a net listing that's not bad but they're housing for 250 somebody puts in at 247. then they come into inspections and after inspections they want to drop the price to this much and then this one's changed suddenly now they're selling the house for 235. and you get another so yeah so that can't happen as well yeah too much like that before somebody has a certain number you wouldn't so you can see why it would be illegal in a lot of states um you can really take i mean if you're a real estate professional you could take advantage of yeah you'll say oh yeah your house is worth 250 000. i put the house i'm in right now is like a two bed one bath the house from 1951 that's like falling apart but it's right behind north gate and the appraised value is 498 thousand dollars for like an 850 square foot house yeah you could just because of that yeah but if somebody came up to me and said i'll sell your house for 180 000 i'd be like sweet that sounds good like if you just don't know i think that's a great price for did you look at the house and go yeah that sounds great to me yeah yeah you're realizing that yeah i'm really looking at not really knowing what it's actually worth yeah but i mean as a buyer it's like if you're going to buy this one in the house wouldn't you take like you should take the consideration too that they're over charging your under that's usually like 70 or 80 of what it's actually worth is the tax rate value but also then that's showing what it's worth so like if i was to put the house in the market i'd probably put it up at 5 20 just see what happens because you might have people that go well that's it i'll tear the house down and build a super nice i have a nice backyard like people i just go like i'll build this nice thing put a pool in and suddenly you know now you have a million dollar house yeah or whatever yeah location is a big thing yeah uh commercial properties are a whole other ball game too yeah like the prices for a commercial property is ridiculous compared to a residential i think the actual house value on the cab for my property is like 78 thousand dollars and the land value is at 490 or whatever yeah it's just location yeah um i think we talked about that in a lot of contracts a bit yes location location it's a big thing i mean a house here of course is not going to cost the same as the exact same house in california on the beach so it's location so yeah that's a net listing you probably won't ever use that but if you do when they still agree to it good on you probably just made a bunch of money um so exclusive seller agency exclusive page seller's agency only represents the sellers and the buyer is always the customer so the buyer is not represented he would be a customer uh and it will clearly indicate that the buyer is not represented like i said exclusive seller agency so on an in-house sale brokerage represents seller only buyer is a customer that means i mean we're dealing with in-house sales right now like crazy because the market it's actually killing smaller firms like us because they want the full six percent so what they do is they if they get a buyer they only show that buyer listings from their office and if that buyer says i don't like any of those and then the agent would be like well that's all that's on the market right now but is it really all that's on the market no and they'll try and push you sometimes so that's actually how everything they're selling what they'll do is they'll put it on the market and then if i bring a buyer they'll just say hey you've got until this time to put your highest and best in and then they'll likely only accept an offer from there in their brokerage this house they're getting something out for now if you get ten of them especially you can probably talk to your client and but this one might be 5 000 less but they want to do but then you kind of talk them into like one from your own broker yeah like i was saying we put over 20 000 and put everything in the favor of the seller on a contract that i put in i still lost it and the house was already listed 40 000 over and we still put 20 more on it just to try it yeah and then she just texted me saying hey we went with another offer great we gave you everything i doubt it was better we gave you everything yeah yeah i doubt that the the offer was just much better someone in their firm so they were another situation like their uh agent and like which way didn't go with the contract within another even though it's not maybe not been as beneficial for selling i mean that would be like some sort of deceptive yeah it is but unfortunately yeah if you can't prove it um it's messed up but it's happening right now yeah and it's actually killing smaller and firms the seller believes it i mean i'd say it's 5 000 less than this other offer but since it's all a house you'll have better communication and we can keep things better and like it will get run smoother and sell the transfer yeah so it sounds good rather than have a really complicated transaction but it wouldn't have been complicated more with all these benefits your way yeah sometimes you have to be firm yeah sometimes you have to be firm if you if you're soft in this business you'll get stepped on and walked all over and i'm learning that part more the longer i'm doing this you just got me firm man i need to have like yellow pages the other day um it was one of those things that he did and they came in and told us music i don't have to say he probably shouldn't know that you might get trouble he said no you did good like i get that you're like scared that you might like ooh it now they're going to come after us he's like no you did and that's what you're hey you cannot do this we'll get sued i've had most of that so many brokers prefer in-house sales of course because yeah they're going to retain full commission they're gonna get that six percent um this also does happen with leases uh you might like if you have at least a client that's leasing there's certain there's no real like commission that happens with the lease so you might see one you get 50 percent of the first month's rent one you might see 25 or you might see a little higher i haven't seen higher than 50 but a lot of times they'll push the uh the ones with the higher commission yeah to them they're like hey these are the ones i found but in reality there's more but these ones have 50 commission uh so go look at these and that happens and it happens in the leasing as well but that is i'm talking about that in our class that's that is scary you can't you know you can't just do that you can't just show them good ones you can show them all of them and put that forever into the ones but it's not illegal to go look at 10 and there's three that you get a higher commission on so when those three when you walk in and you turn the lights on real quick and you're like oh look at this wonderful like there's nothing against that yeah but you just have to show them all let's say you have to go look how you have to jump you can push the ones with the higher commission for it they'll be like hey these are nice but as long as you show them other properties as well then you're not doing anything wrong so yeah that's happening a lot right now and it's it's not getting better it's getting worse um so exclusive seller agency in practice sally she's sally can either be the listening associate the selling associate with no relationship or she could be the selling associate with a prior relationship those are just different types of it you see there so the benefits of seller agency so the benefits to the seller and the landlord they're going to get a broad marketing a broad range of buyers you can give them advice and opinions which is very valuable to your client you can also negotiate contracts in their favor or in their on their behalf and their owed confidentiality as well so these are seller agencies these are going to be the benefits to a seller or a landlord what about the benefits never mind we have more benefits to the seller and landlords agents so you'll have a better understanding of the circumstances um if you if if something goes wrong with the contract and you ever have to call your client and tell them bad news just make sure that you have a solution or good news right after it otherwise your client will lose major faith in you so you say oh they picked us out of the contract however i'm working diligently too yeah or stuff like that you just want to explain to them the buyer backed out because of this but i already have it back up on the market all right we're going to do this and we're going to put it on here later yeah because if you call them and just say hey yeah we lost the contractors and they're like oh yeah all right great i guess but uh yeah so you have a better understanding of circumstances uh there's incentive to market there's also no conflict of loyalties everyone's loyal to each other in a cellar agency there's limited liability for the acts of the buyer's broker and this is going to be the most familiar to the public they know summer agency so options for representing sellers there's an exclusive seller representation there's the non-exclusive cell representation which is just that's going to be like your net and your open listings are getting non-exclusive uh then there's cooperative sales which is sub agency and that's going to be selling on the mls and then there's intermediary agency uh geo can can i as an agent be an intermediary well yes only the broker could be an intermediary he's a he's the only one to connect and every year we've talked about it before it's just basically they're they're working for both parties and if justin does that or someone does that he'll put he'll probably put one agent with the seller and then he'll put another agent with the buyer and then he'll keep a brick wall between the two yeah so you can't talk to each other about anything but technically only the broker can act as an engineer but he can still assign agents to it so that's a better um and that does happen i've actually we did i did one interview yeah yeah which is nice you get the six percent but you just got to be careful with what you say because you definitely get in a lot of trouble all right so the agency uh sub agency they're cooperative sales with the buyer agent or the sub agents uh so the definition of a sub agent that would be like i said uh i'm a sub agent of justin i'm a sub agent of my broker you can offer them sub-agency you can create sub-agency there's fiduciary duty owed to the seller and liability and ethics in sub-ag are in some agency as well there are certain liabilities and certain ethical things laid out in some agency so non-exclusive seller agency firms may choose to represent the buyer and sellers but not in the same transactions and that would be the intermediary if they did do that so you will show the buyer client other brokers listings only i'm going to usually show buyer in-house listings first like i'm saying yeah these are ours first so it's it as long as you show them other properties and not just the ones in your firm you're not really breaking any law you like i said you can push them towards those but um a lot of times they'll show you hey this is what we have in-house before they even go out and start looking for other properties if the buyer is not interested in the in-house properties that's when you get them to sign the buyer representation agreement because at that point you'll be representing them outside the brokerage you can if you bring a buyer to buy buy selling stephen's property and you call me saying you're looking for a house and i go show you stephen's house and you want it i'm still working for stefan and you're not represented by anybody so if you want to put in an offer you can tell me and i'll put in the offer and give it to seven but you don't get any of my you know i'm not gonna give you my opinion on price i'm not gonna negotiate for you you're just by yourself and i'm looking for something yeah and i'm just going to do the legal work for you yeah i'll just do the paperwork for you but i'll talk to stefan and start to negotiate and see if i can get a better deal out of you or whatever nobody's representing you and that's how you can get a six percent but that's kind of that's what if if you don't want stephen's house and that's the only one we have listed let's say then that point i need to buy a representation so i can actually represent you for looking at other houses so yeah like i said if you show them in-house as long as you show them other properties you're not really breaking the law but that's that's happening a lot right now so disclosure issues disclosures of seller's agent to the seller uh so the listing agent report um provides that form that form is i believe that on one point which one was that you know what that is i think that i think that's the seller's disclosure i believe there's so many numbers um yeah one one the listing agent informs the seller of these things the general company policies policies that we have at our firm the role of the buyer's agent the possibility of intermediary he's able to disclose that and if you do intermediary i don't think it's said both parties have to agree to it yeah so the buyer and the seller will have to agree that okay yeah you can work as an intermediary yeah because what you don't want is to sign our representation with stefan saying i'm gonna work for you work on your behalf and then suddenly i switched to an intermediary well then he asked me a question i'm like i can't answer that because now right now i'm not working for you anymore i'm just gonna pass the paper back pretty well yeah you don't get stuck in that place and he's like what um you'll also have to disclose the splitting of the commission how the commission is going to be split the opinion of price on the property for the seller and compensation from other party so any compensation that's made from another party you must disclose i believe most of this if not all of it will be in that form yeah the seller's disclosure notice and also stuff like the um the role of an agent something like that that's also the ids information for broker services it will tell you kind of like what a seller's agent is what a buyer's agent is what an intermediary does not like just a general outline of what they do not so much not a lot of specifics but just like a paragraph what each role is about um so that kind of accounts for that role inspires agent and possibility of internet it kind of explains that in the process uh some more disclosure issues now this is going to be the disclosure of the seller's agent to the buyer we just did the seller or the buyer the brokerage represents the seller not the buyer and the listing agent provides the representation disclosure to unrepresented buyers at first substantial dialogue um substantial dialogue just means the first time you really sit down and have a conversation with them that's what you would give them that representation agreement you cannot provide the buyer with advice that is adverse to seller negotiating position so basically you don't want to you don't want to give away some things that would diminish your seller's negotiating position yeah you see a lot of people are moving for they're moving for work and you start you know we start working a few weeks so we got to move out from this place that we're selling our house here well if you mention that to the buyer they can offer less because they know they you have to sell the house in the next you know 14 days so that might be the best offer you're getting those for whatever so you don't mention something better we need the money because of blank don't mention that because then they might they can offer less because if you really need the money you'll take less so so you'll you'll always be working in sellers best interest and you must disclose all material conditions of the property remember material facts is something that would change a buyer's decision to buy property and you will not disclose the seller's motivation you don't have to disclose why your seller is selling we probably shouldn't all right so our key points for this evening and then we have a few discussion questions like we have been having we went over express oil or written oral or written contracts so let's agency express our implied agency um conduct at parties early disclosure problems uh early disclosure avoid problems sorry written disclosure and brochures are helpful and distinguished between fair and equally fair is not always equal we also talked about seller sub-agent owes all full fiduciary duties to the seller and under the mls offering sub-agency is optional some brokers are more comfortable working with the seller side of the transaction which yeah it can be great to do the server side the transaction just expect to get a lot of goals depends some people like doing the buying inside don't you think it just yeah it just depends listings can be good but yeah you just sometimes then you have to deal with a ton of calls and texts and you don't have to put in a contract if someone is buying they do all the controversy so it's nice in that regard but yeah you'll get a lot of calls um so if the buyer is a customer they must be particularly careful not to provide client level service we've talked about what you can do for a client in the customer leads to implied are extensible ages all right suggestions for brokers are gonna be a broker sales meetings um you're going to review services offered by the listing agents um you're going to do an office policy we have one here so wherever you go whichever part you go to there's probably going to be an office policy and they're probably going to have their own expect written documentation that buyers understand that agency represents the seller not the buyer all right so discussion question one oh let's see don't make eye contact yeah don't don't make eye contact it could be you i'll leave that immediately so this question is actually a pretty difficult one yeah i i yeah you see it's it's a tough one lob it doesn't break it like oh that would mean a lot of to lobby the answer no no no point in the right direction okay um so one could have yeah it's going to be b the answer is what if i'm telling things to the buyer that i shouldn't be telling i would probably get besides that so you would think i would be representing the buyer too maybe right if you're telling information if i tell them hey if i call the buyer and i'm like well she's selling it for 300 but she'll take 250. yeah they could you know that might be signs that you are good for the buyer so what are the possible consequences of that well you know someone's gonna get sued someone's probably gonna lose their license um your transaction followed you will be cancelled out or that's like a breach of contract right yeah um what did they be sued for three times the damages well you technically could yes uh well no because that's not to set the trade brackets you would still be sued for the you know damages that they incurred uh but you would definitely you would be in a lot of trouble you'd probably lose your license and then your broker might even as well uh yes yes ms fear that is a breach of contract as far as that definitely the listing is with the broker not the agent so if i'm selling stephen's house and i told you much information about him he sees or he tells justin wherever i lose my license or whatever the listing is still up because it's through justin not really for me so justin can just be like all right yeah uh but you know the seller might just like drop you all together yeah yeah with a different firmware yeah re-listed what way that could happen and if you've reached that contract they're allowed to just withdraw from everything so you give away confidential information yeah it's not it's not cool man yeah it's not cool if i work for noblesville when i do that they're probably not going to trust seven which is the next person at the same time yeah all right so discussion question two what is the best way to handle the situation of selling your own listing to a buyer with whom you've had many prior business relationships oh see ya tisha looks busy how you doing miss mira you know all right yeah i'm good you want to do this one you want to take this one away or do you want to you know phone a friend um i'm rereading the question and see if i can come up with a good answer all right go for it no rush no pressure so you're selling your own listing which means you did not hire an agent correct so if you're selling your own listing no you are the you are the list you are the listening agent yes okay so you're selling it to a buyer with whom you've had plenty of relationships with so it's a buyer that you know intimately i'm selling stefan's house who i've listed but wyatt wants to buy it but i've done like five or six deals in the past why so i know him really well and like he works with me all the time or whatever right so what should you do in that sort of situation i mean i would still follow the same procedure which is give them a seller's disclosure i would still do the promulgated forms actually you don't have to do a propagated form you're selling your own home um you're selling it's your own listing so it's not going to be your house it's it's still your client's house but uh you're just selling a listing to a buyer that you know very well i mean yeah there may be like favoritism towards that person but ultimately my loyalty belongs to my customer so even though i have a good relationship with the buyer i can't i can't do anything to really benefit them because then i could lose my license yes you got it you killed it yeah you killed it yeah one thing i've i've actually had this happen this time in the past for me and basically i was kind of listing that a friend of ours from years ago whatever wanted to come in and buy and so i just was like cool and if you want to buy that house i think you would love eating you should work with them and i just like passed the buyer off to another agent in the firm that way it's not me trying to deal with my seller but also have like a good family friend come in and try to you know whatever that way they can be represented by somebody else so i don't have to worry about that you know amy is their agent at that point and then me and adam just can't talk about the transaction and also each other yeah that's what you should do in that situation is pass it off to someone else in the firm yeah i know this person treat them well yeah so what if it's like a two million dollar home and are you gonna get that commission if that's the case you're definitely to want to talk to your broker uh he might advise you or they might advise you on what you should and should not do but when it comes to something like this you won't be making that decision your broker will be it also depends on the person because like at one point i was selling a like a it was like a distant relative of ours it was like his house but my dad wanted to buy it after i listed it my dad decided he wanted to buy it or he was thinking about buying it and in that situation i can't like terminate my listing agreement and work for my dad but my dad like he owned a bunch of rental properties he like kind of knows the business his dad used to be a real estate broker way back in the day and they did a bunch of deals together and whatever so he kind of knows how real estate works so in that situation i could do what we're talking about earlier where i represent the seller and my dad's just on his own like you don't get any i'm not gonna give you any benefits you don't get any negotiating you're just a customer but my client is still the seller and if you want to put in an offer tell me how much i'll fill out the contract and send it over but i'm going to tell them you should cross out this you should ask for this you should put this in here or whatever and then if you agree to it we'll assign it we can still get going and we're good and that way i get full six percent but it's not i'm not representing those people i'm representing the seller and the buyer is just not represented by anybody right so in that situation you definitely want to talk to your broker yeah and yeah yeah i sat down for like an hour with justin just playing like the situation that we talked about like the possibilities of what we could do and he was like well if this if they know this you know i wasn't afraid of my dad like stumbling over something and then suddenly i'm scamming my dad at like a million dollars like i know that's not gonna happen because he knows what he's doing so i was comfortable like it was like a two hundred thousand dollar property i was like i'm comfortable that you know what you're doing you know what it's worth like you just tell me the number you want to put in i'll put it in and then we'll talk to the other guy and see what he says basically if you're just unsure [Music] they're always anything ever is easy for justin yeah yeah that is what meeting me was all right i guess that's one thing all right discussion three it's the last one we'll be done we're getting out a little bit early what should a listing broker say when the buyer asks the common question how low will the seller go this is a much easier one um what do you think come on i think that so it's a comes up to me and i'm representing the seller and the buyer asks me as the seller's agent how low will your solar go what do you think i should say to them you should say that i can't qualify to tell you you're on the right track yeah yeah you'd say i'm not i'm not allowed to disclose that information because we were talking about earlier that would be giving you giving away um their negotiation yeah it would be it would be giving away confidential information yeah so in that situation yeah i just feel like i'm sorry i can't disclose that i've had that happen to me before too yeah they keep pushing that oh yeah they'll try and push you in and do it if you think if they say it enough you'll just go fine yeah like it's after the first time you say it i go i can't do that after the 10th time i'll be like ah yeah yeah you hit that magic number of ten yes ten times that i can tell you now yeah the balls i can almost guarantee you you'll get that question at some point in your career i have and i was just like i can't disclose that thanks any other questions all right so we are done for the evening uh y'all's test is tomorrow good luck on that i think it's the finance one correct yeah i don't envy you i will say that finance was probably the hardest one at least for me as well it's not easy but good luck on that and we'll see y'all tomorrow for class remember you don't have until sunday to turn all the assignments for the previous three classes yeah after the test just focus on that you can knock out over the weekend or whatever get some of that done all right y'all good night guys bye