New This Month
Print Article Archives
Reprints / Subscriptions
Editorial Calendar
Media Kit
Popular Features
Architecture Guide
Cost vs. Value Report
Good Neighbor Awards
Handouts for Customers
Top 100 Companies
Take a Quiz
30 under 30
Young Professionals
REALTOR® Emeritus
Architecture Guide
Cost vs. Value Report
Good Neighbor Awards
Handouts for Customers
Top 100 Companies
Take a Quiz
30 under 30
Young Professionals
REALTOR® Emeritus |
 |
 |
|
|
 Understanding Agency, Introduction Component 1: Facilitator Talking Points Component 2: Agenda Component 3: Handout 1, How is an Agency Relationship Created? Component 4: Activity 1, Does This Make You an Agent Quiz Component 5: Activity 1, Answer Sheet for Agent Quiz Component 6: Handout 2, The Fiduciary Duties of an Agent Component 7: Handout 3, Types of Agency Brokerage Relationships with Consumers Component 8: Creating a Company Policy on Agency Component 9: Activity 2, What Sellers’ Subagents Can and Can't Do for Buyers Component 10: Activity 3, Scenarios for Recognizing Breaches in Fiduciary Duties Component 11: Activity 3a: Explanations of Scenarios on Fiduciary Duties Component 12: Other Resources |
Understanding Agency Relationships: Facilitator Talking Points These notes will guide you and your salespeople through a discussion and activities on definitions of agency and how it applies in real estate activities. Before you begin the sales meeting, do the following:
Conducting the Sales Meeting You are now ready to begin the meeting. Here is a step-by-step plan for introducing the topic and leading exercises that will increase your sales team's knowledge of agency relationships. Welcome (1-2 min.) 1. To get the meeting started, ask participants if they can remember when for all practical purposes, there was only one form of agency — when you represented the seller, period.
2. Ask participants why they believe this circumstance has changed. Background and goals (2 min.) Explain that agency has changed to meet the changing face of the marketplace. Today, there are many groups that recognize the benefits of working with real estate professionals. And each of these groups wants and needs to have their legal rights and interests protected. That’s where agency comes in. In this meeting, we will:
Handout 1: How is an Agency Relationship Created? (5 min.) Read the definition of agency in Handout 1. Point out to participants that only this agreement of representation by the parties is necessary to create an agency relationship. That is all that is required. Remind participants that no compensation need change hands to create an agency relationship and that, unless your law requires otherwise, an agency agreement does not have to be in writing to be binding. Activity 1: Does This Make You An Agent Quiz (5 min.) Let participants complete the short quiz on agency. Ask participants for the answers to each question, prompting yourself from the quiz Answer Sheet. Review the fiduciary responsibilities of an agent in Handout 2. Call on different participants and ask each to give an example of real estate sales activity or situation that demonstrates a particular duty. For example, a breech of loyalty is buying a property listed with your company and immediately reselling it at a profit to a developer who you know wants the parcel. This profit opportunity should have been the seller’s. Handout 3: Types of Agency Brokerage Relationships with Consumers (5 min.) Use Handout 3 to describe the types of agency permitted in your state. Adapt these general definitions to correspond to the specific definitions in your state before you print them out. If you need to review the types of agency permitted in your state, contact your state real estate licensing agency or visit the Association of Real Estate License Law Officials Web site. Creating a Company Policy on Agency (5-7 min.) If you don’t have a company policy on agency, see Component 8 of this tool kit, which describes how to create an agency policy for your company. If you choose, you may hand out this component to participants and ask them to discuss what types of agency they would like to see permitted at your company. If you do have an agency policy, use it as a basis to discuss what types of agency your company permits and what sorts of activities can be performed in each type of agency. Be prepared to explain why your company may not permit agency relationships that are legal in your state. Activity 2: What Sellers' Subagents Can and Can't Do for Buyers (5 min.) Discuss the most effective ways to help buyer-clients understand what you can and can’t do for them as a subagent of the seller. Ask participants for examples of what a seller’s agent can and can’t do for a buyer. Write these on a flip chart. Use the Explanation Sheet for Activity 2 to prompt your group for answers. If time permits, and your company allows buyer’s agency, ask participants to compare the seller subagency relationship with the activities that would be permitted if a salesperson were an agent of the buyer. Read each of the three scenarios for Activity 3 to the group. After reading each scenario, ask participants whether and how the agency relationship has been violated. Ask what the agent should have done differently to avoid any violation. Use the explanation of scenarios to assist you in this discussion. Activity 3a: Explanations of Scenarios for Recognizing Breaches of Fiduciary Duty If time permits, ask participants to describe any recent relationship they had with clients that might have presented agency conflicts. Discuss ways that these conflicts could be resolved in compliance with your state’s and your company’s agency guidelines. Adjourn. Thank participants for their time. Running Time: 46 min. Component 2: Agenda This information provides general legal information and should not be relied upon as legal guidance. Before acting, both the relevant laws and legal counsel should be consulted. This information should not be construed as specific legal advice nor as an opinion on particular facts, cases, or situations. |