ADRE Model Broker Policy Manual-Customer Care

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Customer Care (Duties to Clients and Non-Clients)

Representing Clients

A.A.C. R4-28-802 and R4-28-1101 provide guidance on duties a licensee has to his/her clients. Unlicensed assistants may be used to perform only limited –non-licensed – services (See Substantive Policy Statement 2005.04).

R4-28-802. Conveyance Documents

A. Upon execution of any transaction document a salesperson or broker shall, as soon as practical, deliver a legible copy of the signed document and final agreement to each party signing the document.

B. During the term of a listing agreement, a salesperson or broker shall promptly submit to the salesperson’s or broker’s client all offers to purchase or lease the listed property. Upon receiving permission from the seller or lessor, the salesperson or broker acting on behalf of the seller or lessor may disclose to all offerors or their agents the existence and terms of all additional offers on the listed property. The salesperson or broker shall submit to the client all offers made prior to closing and is not released from this duty by the client’s acceptance of an offer unless the client instructs the salesperson or broker in writing to cease submitting offers or unless otherwise provided in the listing agreement, lease, or purchase contract. The salesperson or broker may voluntarily submit offers to the seller or lessor regardless of any limitations contained in the listing agreement and may submit offers after the listing agreement is terminated.

Quick Quiz

Fill in the Blank:
Upon execution of any document a salesperson or broker shall, as soon as practical, deliver a legible copy of the signed document and agreement to each party signing the .

C. Transaction statements. In addition to the requirements of A.R.S. §§ 32-2151.01 and 32-2174, the broker shall retain true copies of all receipts and disbursements, or copies of the executed and delivered escrow closing statements that evidence all receipts and disbursements in the transaction.

This section should cover:

What the Sales Associate’s responsibilities are when acting as a buyer’s agent, such as, to be present during all showings, inspections, document signings, etc.

  • What the Sales Associate’s responsibilities are in regard to keeping clients informed.
  • Which responsibilities are required in new home searches and transactions.

Client Contact and Appointments

This section should cover:

  • Company’s expectations of Sales Associates with regard to professional courtesies.
  • How difficult relationships should be handled and whether and under what conditions clients may be reassigned by the Broker to another Sales Associate.
  • How Sales Associates should handle the inability to keep an appointment, with either the seller or buyer or both.
Quick Quiz

Fill in the Blank:

Company’s expectations of Sales with regard to professional courtesies.

Fiduciary Duties to the Client

This section should include:

  • The Broker’s and Sales Associates’ responsibilities when acting as agent for a client. They owe duties of confidentiality, accountability, reasonable skill and care, loyalty, obedience (lawful), accounting, and disclosure.

Obligation to the Non-Client (Duty to Deal Fairly)

This section should include:

The Broker’s/Sales Associate’s obligation to disclose in writing to all other parties, prior to entering into a binding agreement, including, but not limited to:

  • Any information that materially and adversely affects the consideration to be paid by any party to the transaction.
  • That the seller/lessor is, or may be, unable to perform.
  • That the buyer/lessee is, or may be, unable to perform.
  • Any material defect existing in the property being transferred.
  • The possible existence of a lien or encumbrance on the property being transferred.
  • That the Broker/Sales Associate is the principal or has a financial or beneficial interest in the property.
  • That the Broker/Sales Associate is related to one of the principals.
  • That the Broker/Sales Associate has a conflict of interest.
Quick Quiz

Fill in the Blank:
The Broker’s and Sales Associates’ when acting as agent for a client. They duties of confidentiality, accountability, reasonable skill and care, loyalty, obedience (lawful), accounting, and .

Pursuant to A.A.C. R4-28-1101:

  • A Sales Associate owes a fiduciary duty to the client and shall protect and promote the client’s interests and deal fairly with all parties to the transaction.
  • A Sales Associate participating in a real estate transaction shall disclose in writing to all other parties any information the licensee possesses that materially or adversely affects the consideration to be paid by any party to the transaction, including:
  1. Any information that the seller or lessor is or may be unable to perform;
  2. Any information that the buyer or lessee is, or may be, unable to perform;
  3. Any material defect existing in the property being transferred;
  4. The existence of a lien or encumbrance on the property being transferred.
  • A Sales Associate shall expeditiously perform all acts required by the holding of a license. A Sales Associate shall not delay performance, either intentionally or through neglect.
  • A Sales Associate shall not allow a controversy with another licensee to jeopardize, delay, or interfere with the initiation, processing, or finalizing of a transaction on behalf of a client. This prohibition does not obligate a Sales Associate to agree to alter the terms of any employment or compensation agreement or to relinquish the right to maintain an action to resolve a controversy.
  • A Sales Associate shall not act directly or indirectly in a transaction without informing the other parties in the transaction, in writing and before the parties enter any binding agreement, of a present or prospective interest or conflict in the transaction, including that the:
  1. Sales Associate has a license and is acting as a principal;
  2. Purchaser or seller is a member of the salesperson’s, broker’s, or designated broker’s immediate family;
  3. Purchaser or seller is the salesperson’s or broker’s employing broker, or owns or is employed by the salesperson’s or broker’s employing broker; or
  4. Salesperson or broker, or a member of the salesperson’s or broker’s immediate family, has a financial interest in the transaction other than the salesperson’s or broker’s receipt of compensation for the real estate services.
Quick Quiz

Fill in the Blank:
A Sales Associate shall allow a controversy with another licensee to jeopardize, delay, or with the initiation, processing, or finalizing of a transaction on behalf of a client..

  • A Sales Associate shall not accept compensation from or represent more than one party to a transaction without the prior written consent of all parties.
  • A Sales Associate shall not accept any compensation, including rebate or other consideration, directly or indirectly, for any goods or services provided to a person if the goods or services are related to or result from a real estate transaction, without that person’s prior written acknowledgement of the compensation.
  • The services that a Sales Associate provides to a client or a customer shall conform to the standards of practice and competence recognized in the professional community for the specific real estate discipline in which the salesperson or broker engages.
  • A Sales Associate shall not undertake to provide professional services concerning a type of property or service that is outside the Sales Associate’s field of competence without engaging the assistance of a person who is competent to provide those services, unless the Sales Associate’s lack of expertise is first disclosed to the client in writing and the client subsequently employs the salesperson or broker.
  • A Sales Associate shall exercise reasonable care in ensuring that the salesperson or broker obtains information material to a client’s interests and relevant to the contemplated transaction and accurately communicates the information to the client. A salesperson or broker is not required to have expertise in subject areas other than those required to obtain the salesperson’s or broker’s license.
  • A Sales Associate shall take reasonable steps to assist a client in confirming the accuracy of information relevant to the transaction.
  • A Sales Associate shall not:
  1. Permit or facilitate occupancy in a person’s real property by a third party without prior written authorization from the person;
  2. Deliver possession prior to closing unless expressly instructed to do so by the owner of the property or property interest being transferred.
  • A Sales Associate shall recommend to a client that the client seek appropriate counsel from insurance, legal, tax, and accounting professionals regarding the risks of pre-possession or post-possession of a property.
Quick Quiz

Fill in the Blank:

A Sales Associate shall take steps to assist a client in confirming the accuracy of information relevant to the .

Recapp

Pursuant to A.A.C. R4-28-802:

  • Upon execution of any transaction document a salesperson or broker shall, as soon as practical, deliver a legible copy of the signed document and final agreement to each party signing the document.
  • During the term of a listing agreement, a salesperson or broker shall promptly submit to the salesperson’s or broker’s client all offers to purchase or lease the listed property.
  • Upon receiving permission from the seller or lessor, the salesperson or broker acting on behalf of the seller or lessor may disclose to all offerors or their agents the existence and terms of all additional offers on the listed property.
  • The salesperson or broker shall submit to the client all offers made prior to closing and is not released from this duty by the client’s acceptance of an offer unless the client instructs the salesperson or broker in writing to cease submitting offers or unless otherwise provided in the listing agreement, lease, or purchase contract. The salesperson or broker may voluntarily submit offers to the seller or lessor regardless of any limitations contained in the listing agreement and may submit offers after the listing agreement is terminated.
Quick Quiz

Fill in the Blank:
Upon receiving from the seller or lessor, the salesperson or broker acting on behalf of the seller or lessor may disclose to all offerors or their agents the existence and terms of all additional offers on the listed .

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