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REALTOR® Emeritus |  | Risk management Controlling Transaction Risks | | ||
|  Three Lines of Defense Against Risk Keeping Risks Under Control Controlling Transaction Risks Agency Disclosure Avoiding Antitrust Risks Minimizing Liability from Contracts Fair Housing Risks Controlling Personnel Risks Communications Policies to Minimize Risks Insuring Against Risks More Resources: Controlling Business Risks Code of Ethics: Controlling Business Risks | Test Your Agency IQ Answer true or false to the following statements. Note that state agency laws vary, so the outcome in your state might be different. 1. In many states, you can create an agency relationship without a written contract. T F 2. The listing broker generally has fiduciary responsibilities only to the seller. T F 3. You are an agent of a prospective seller if you discuss his property with him, even if you decide not to take the listing. T F 4. You work for a brokerage that has a listing on a property. During an open house, you show the home to a prospective buyer, who later makes an offer. You are an agent of this buyer because you showed the property. T F 5. A person can be an agent of a principal whether or not any compensation is involved. T F Answers: 1. T; 2. T; 3. F. 4. F 5. T 4 'D's' for an Effective Agency Policy When preparing your company’s agency policy, be sure that you: 1. Decide what forms of agency you will provide after reviewing your state’s laws and regulations. 2. Disclose your agency relationship with clients before a listing agreement or contract is entered. 3. Disperse knowledge about your agency policies by training your sales associates in the meaning of agency and the proper disclosure procedures. 4. Document your efforts with a written disclosure form and written consent from buyer and seller. TIP: Review your agency policy regularly to be sure it’s still consistent with current laws and practices. 10 Tips for Creating Your Agency Policy > | |