Agency Relationships: Fiduciary Duties | Real Estate Prep Exam Videos

[@TheRealEstateClassroom]

More study materials at TheRealEstateClassroom.com Join us on Facebook: facebook.com/TheRealEstateClassroom

[@ashmearlove]

Qq

[@TheRealEstateClassroom]

😁

[@DraGnFly007]

Always the best site to help me understand the meanings! No babbling. No grand standing! Just gets right to it! Bravo!!!

[@TheRealEstateClassroom]

Thank you... I really appreciate your comment. Best of luck with your studies! :o)

[@nirvanalopez5799]

love all his videos, always clear and effective. he uses examples and literally sounds like he cares you understand the information. Also for some reason all the hand talking and the white board makes me feel like I'm in a classroom with an actual teacher. so thank you!

[@TheRealEstateClassroom]

Thank you for the awesome comments. I appreciate it! Glad we are part of your study routine ;o)

[@CarmenO]

I literally JUST got back my test results and I passed! Thanks to you and your channel! It was so hard finding good quality information anywhere but so happy I eventually found yours. THANK YOU!

[@TheRealEstateClassroom]

Hii Carman... sorry that I am a little late with my response here but I just wanted to say Congratulations on passing your exam. You obviously put in the time to study properly and passing both sections of the exam is no joke! I wish you the best of luck in your new venture. It can be hard getting started but once it starts rolling skies the limit! BEST OF LUCK!

[@ninatan3279]

I like the way these videos are made as they are short, gets to the point and it explains important points which does not overwhelm a student.

[@TheRealEstateClassroom]

Thank you

[@sonsofjorge7730]

very helpful. you summarized and made me understand in 15 minutes what took me a semester in a formal class and still didn't understand anything

[@msyoyoa1]

OLD CAR IS A GREAT WAY TO REMEMBER

[@TheRealEstateClassroom]

It's an excellent way to remember 😁

[@punyanepal5700]

I went through lots of videos about real estate term and topics explanation.. But you are outstanding amongst anyone. The Most beautiful Part is, you are explaining with board and pen with perfect example. Heads Up! Sir. Thanks.

[@TheRealEstateClassroom]

Thank you

[@ericbouler7758]

Memory Tool: D.O.R.A.L. Disclosure, Obedience, Reasonable Skill & Care, Accounting, Loyalty. He pretty much says this in the video, and I am sure there are several ways to interpret the fiduciary duties that an Agent owes their principal. D.O.R.A.L. is in my Real Estate book. Great video! 👍

[@itscallietaylor]

This video has helped me so much. I am getting my license for NY and failed my quiz on this chapter. This video made me comprehend the information much better then reading it. Thank you!

[@TheRealEstateClassroom]

Hi Callie... That's what we love to hear! Keep studying and keep watching these videos! :o)

[@osamadaloul]

That is a clear and straight-to-the-point explanation. Many, many thanks to you

[@TheRealEstateClassroom]

You're welcome

[@krisprad440]

Thank you for great knowledge

[@TheRealEstateClassroom]

you're welcome

[@nadasabir8022]

I love your teaching method! Especially the repetition to really remember the concept . Thank you !

[@TheRealEstateClassroom]

Thank you... my method of teaching is by design. Some don't like but that how I do it. Thanks for leaving me a comment :o)

[@LaBestia13]

From my licensing course in Texas, it helped me remember using the acronym OLD CAR; your #4 being Skill is very similar to Reasonable care, so using the same ideology, now the acronym becomes OLD SAC :) Great info overall on all your videos, Paul. I am using your videos to prep for my EXAM PREP assessment exam which will help me understand where are my weak areas to focus on for the national and state exams. Thank you!

[@TheRealEstateClassroom]

Glad it was helpful! Thank you for the comment

[@hecmary3]

Thank you so much for your videos, I'm so glad I found your channel.

[@TheRealEstateClassroom]

Thank you, Im glad you found it. Thank you for taking a few minutes to leave a comment!

[@BernieMack1080]

Paul is a very good teacher!!! 💯🎯🤝🏼

[@TheRealEstateClassroom]

Thank you... I really appreciate the comments... :o)

[@sasodee8992]

It is perfect video will be great to provide us with most common questions

[@TheRealEstateClassroom]

Thank you

[@joannesantos8]

Paul Thank you for going over Transactional Broker. I was confused with the definition. I had six questions on my text book test. I understand it better :)

[@TheRealEstateClassroom]

Hi Joanne... you're welcome... thank you for leaving a comment... Keep studying 😁

[@HYKim-to8nu]

You are good teacher 👍 thank you

[@TheRealEstateClassroom]

Thank you!

[@christopherhillsofficial]

Not working for my real estate license, but I am teaching myself contracts as I am looking to wholesale properties.

[@TheRealEstateClassroom]

You might consider getting your license. Many states are starting to require licensing to do wholesaling anyway :o)

[@shinaward4976]

Your content is phenomenal keep it coming ❤

[@TheRealEstateClassroom]

Thank you

[@TheRealEstateClassroom]

That's actually a great question. The answer lies within the agency law of each state. So you would not see that question on the National Portion of the exam. However, if your state has such a disclosure law which considers a haunted house to be an adverse materal fact, then dosclosure would be required. Now as a general rule... in all 50 states the reason why a seller is moving can't be disclosed without the permission of the seller. However, a mandatory adverse material fact would be required to be disclosed.... Thank you for the question.... :o)

[@nekiaalexis12]

This was such a good video thanks

[@TheRealEstateClassroom]

Thank you

[@stephaniaburks5690]

Fiduciary Duties: we learned it as COLD-AC in 2022. Care Obedience Loyalty Disclosure - Accounting Confidenality

[@TheRealEstateClassroom]

They are not wrong. Some of the fiduciary duties can have multiple names... the important thing is... whatever system works so you can remember them is what is important

[@corneliuswalter9677]

Wow I'm learning

[@TheRealEstateClassroom]

That's what we like to hear 😁

[@DraGnFly007]

Hi Paul, in my Dearborn textbooks it doesn't say transaction brokering (aka Nonagency, facilitator, transaction coordinator. Contact broker" is illegal. I can see why I have failed the exam 2x as I have come acrossed situations that are not even addressed in my textbooks or in many real estate videos. Your channel is the only one to address this. It's legal in 30 states. I googled that it is being switched for dual agency. Can you expound on this a bit more?✌

[@TheRealEstateClassroom]

The video outline the basic process and relationship of these types of transaction. All the a.k.a. you mentioned above are fairly new terms... within the past couple years. Every state has theri own term that they use. In 2019 and 2020 9 additional states made these forms of transactions legal. When I cut this video there were only 19 states in which it was legal. I have discussed this in detail with PSI which administers the exam in most states. I have been told that this topic is NOT on the national side of the exam but reserved for the state side. So you would need to know what your specific state law is regarding transaction brokering (or whatever your state calls it) and what specific duties the licensee would owe, if any, to the parties.

[@DraGnFly007]

@@TheRealEstateClassroom I never thanked you for this reply.

[@jackieg5016]

Hi Mr. Vojchehoske, Thank you for sharing your knowledge! I was wondering, if you could help me figure this question out. The buyer has accepted an offer and the all the appliances will stay with the house. Seller and buyer go back and forth making changes to the contract. At the end the buyer's agent forgets to request the appliances stay at the house. The buyer purchases the house and the appliances aren't there. Who would be responsible? And Can the buyer sued the agent?

[@TheRealEstateClassroom]

If you instructed your agent to include the appliance in the contract and they fail to do it, yes they are responsible. Keep in mind however, one of the defenses they will use is.... you signed the offer therefore you knew or should have known that the appliances were not included and in the legal realm there is some juice there. However, from an agency point of view there isn not. So, if this happened to you, you have two courses of action. Sue the agent and broker in small claims court and file a complaint with your state's real estate commission (or board)...

[@DraGnFly007]

In my Dearborn text Confidentiality is not one of the fiduciary duties. These are the ones in the book: Care, Obedience, Accountability, Loyalty, and Disclosure. Would Confidentiality fall under Loyalty? Thank you!

[@stephaniaburks5690]

Fiduciary Duties: we learned as COLD-AC in 2022. Care Obedience Loyalty Disclosure Accounting Hopes this helps

[@hoosierwonderer]

Hi there, thank you for this info. Quick question, on the national exam, there is a question...during an open house, a customer walks in and starts requesting information, at what point is an implied agency created? Thanks!

[@TheRealEstateClassroom]

Implied agency is created when a third party is led to believe that someone is their agent

[@hoosierwonderer]

@@TheRealEstateClassroom thank you!!!

[@christopherpeter617]

I had a question on my national saying: what did the broker violate when he showed the seller houses that wasn’t in the seller interest. What fiduciary?

[@TheRealEstateClassroom]

Hi Christopher... this question REALLY depends on exactly how the question was worded and what options you had for answers. Many times the test question will want you to select the BEST answer (not necessarily the absolute right answer) based on the choices given. BUT, based on the question you gave me the best answer would be LOYALTY. Because your example question said "that wasn't in the best interest of the seller (client), assuming the seller was the agents client and not a customer. LOYALTY: The agent owes undivided loyalty to the client and puts the client’s interests above her own. Again, without having the exact word-for-word question the answer could change to CARE. Every word matters with these types of questions. Thank you Christopher!

[@lindamills9248]

gr8 video

[@TheRealEstateClassroom]

Thanks! Totally appreciate you taking the time to leave a comment! :o)

[@Inuit68]

Thanks Paul. Is it correct to say that a principal is a client that entered into a contract?

[@cbiggful]

On the test, I was asked if the Real estate commission asks the agent for the sales paperwork on your client should you give it to them? one of the answers stated to ask the client to get permission, and two were to give the information, three was that this was illegal, and I cannot remember the fourth. What is the correct answer?

[@gillianperkins4946]

I never understood how dual agency is good for either buyer or seller. It seems the agent will better represent one over the other

[@TheRealEstateClassroom]

Well it illegal in many states...

[@zohoormaani3129]

Thank you

[@missywatson3127]

Does this classroom have a lesson on law of agency?

[@RC-bw7zz]

Hello, I been told by instructor that confidentiality is for at least “One year” but you mention “For ever” Does this change by states?

[@TheRealEstateClassroom]

A few states have shortened the time frame so it sounds like the state you're in has done that!

[@Berriesnherbsbeauty]

Hi..can i ask if the relationship is considered an agent/client relationship..or agent/fiduciary relationship?

[@TheRealEstateClassroom]

Agent/client... remember... the agent is the fidcuiary... A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients' interests ahead of their own...

[@hhlogisticsinc4163]

Can you do termination of agency video

[@TheRealEstateClassroom]

I will put it in the tickler of video topics :o) Thanks for the suggestion

[@Ashefamilyhomesandhuddles]

Quick question: if a client wants to make oral changes to earnest money deposits what are we obligated to do ?

[@TheRealEstateClassroom]

Nothing... all chnages to a contract must be in writing and agrred to by all parties to the contract before it's binding... Now, if your client wishes to proceed and they ask you to put the paperwork together, then you're boligated to prepare the paperwork, get it signed by your client, and deliver it to the other party or their agent

[@1111pamo]

I'm studying for my exam, I'm in NE. By class information doesn't have "skill" it has "reasonable care". Do I need to know skill, since I'm in NE?

[@TheRealEstateClassroom]

Skill and reasonable care are the same.... You don't know how the exam question will be formatted :o)

[@JosephineBoatwright-sp8zw]

✊🏿FBA✊🏿Everyone not in the business of selling off their parents or kinfolk history. Just to get a few bucks it's to put 💲in the broker lawyers pockets. And the way things going today some wish they didn't sell their parents out.. BUT IT'S A ✊🏿BLACK THING ✊🏿..

[@viller473]

People forget to think and rush things

[@pebbss1362]

I had a question on my exam that said if a broker showed listing to the client that was going to bring the the highest commission then what fiduciary duty did the broker violate?

[@pebbss1362]

The answer choice were disclosure, loyalty , confidentiality and I can’t remember the other. Could you give me the answer?

[@MariaTrivino157]

it sounds to me like loyalty, because loyalty is to act in the clients best interest not ours. :)

[@LovelyMDeAnna]

Loyalty I believe because they are putting their interest before the clients

[@jackieg5016]

Hello, What would happen if the agent has an open house( seller's agent) he knows that the house is haunted. At the open house one of the customers asks why are the owners selling the house? What would the agent answer be?

[@TheRealEstateClassroom]

Two separate issues. In all fifty states an agent representing the seller can't disclose the reason a seller is moving without consent from the seller. However, if a specific state disclosure law stipulates that a home that known to be haunted is considered an adverse material fact requiring disclosure, then the disclosure would need to be made to prospectice buyers with or without the sellers consent. There have been a few cases where a seller had paranormal investigators investigate their home and determined that the home was haunted. The seller didn't make the disclosure and got sued after closing.... Great question! Best of luck! :o)

[@jackieg5016]

Thank you for answering my question! I love your videos.

[@sasodee8992]

Please iam struggle to pass this test can u help me

[@TheRealEstateClassroom]

Saso... well all I can advise is to keep studying and don't give up. Right now, I don't offer any kind of tutoring. :o(

[@msyoyoa1]

Obedience: Your Realtor should ultimately represent your interest and respect your decisions irrespective of their personal preferences. For example, when multiple offers - A and B are presented to you as the Seller, and you chose to go with offer B rather than A; a realtor is professionally obliged to advise you but still respect your choice. Loyalty: A Realtor’s loyalty and best interests are mainly to his/her clients and to no one else; this loyalty is even above personal gains including but not limited to agent's commission, particularly in competing-offer situations. Disclosure: Ethically speaking, a Realtor is bound to disclose any and all material facts; including information in their possession that might be of any benefit to you as their clients before, during, and after the transaction process. For instance, your agent must disclose any information that may place you in the driver's seat or aid you in negotiating a better deal. Confidentiality: Simply put, a Realtor is not expected to disclose any information learned about you, your business, financial or personal affairs, or motivations to others, including but not limited to the other parties in the transaction. This duty is for life and it survives the closing of the transaction unless a court of law instructs a disclosure of this duty. Accountability: A good Realtor should be able to account for all documents and funds in the transaction. Accurate reporting of all funds relating to the transaction and their ultimate disposition is a fiduciary duty. Reasonable care/diligence: Realtors are expected to advise intelligently on prices, inspections, negotiations, repairs, and many other aspects of a transaction. Remember, your realtor is not a jack of all trade, therefore, in case you ask your Realtor some questions regarding things out of his/her expertise, he/she will advise you on how and where to obtain the information you inquire. In summary, you call the shot. However, in order for you to get the best out of your Realtor, it is important for you to listen to their professional advice and consider all facts before making home buying or selling decisions. Both of you should have mutual respect for each other's time and GOALS

[@TheRealEstateClassroom]

Wow... what a well thought out and objective comment. Thank you, Yolanda!

[@catehoopaugh2786]

Love your videos, but listen with noise canceling headphones, that maker cap click is annoying and repetitive.

[@TheRealEstateClassroom]

I'm hoping to have less noise in future videos....

[@catehoopaugh2786]

You have some of the best videos out on this subject. Thank you!

[@TheRealEstateClassroom]

@Catie Hoopaugh You're welcome, Catie... and thank you! 😀

[@jjm1230]

OLD CAR

[@jaredconnor]

not even saying "fiduciary" correctly..... yikes.

[@TheRealEstateClassroom]

yeah...................................................