RE-160 Chapter Notes - Chapter 9: Fiduciary, Disclose, Exaggeration

• School: Diablo Valley College
• Department: Business Accounting/Management/Marketing/Real Estate
• Course: RE-160
• Professor: Langager

Document Summary

Real estate transactions involve negotiations between individuals. Therefore, it is necessary to protect the parties involved with a wide range of legal and ethical requirements many of these protections are included in the laws of agency adopted by state legislatures. Not good, substance of contact must be clear what the relationship is with consumer. Most states have enacted laws that require brokers to disclose the nature of their agency relationships. Buyer"s agent is a fiduciary of the buyer. Act diligently to locate property that matches buyer"s criteria. Treat all sellers fairly, honestly, and with due care. Locate a buyer and keep the seller informed. Disclose negative factors that might adversely affect the property"s value. Keep any money deposits in a neutral location. Disclosure of all facts the licensee knows (or should be expected to know) that materially affect the value or desirability of the property. State law may require additional services or disclosures.