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Agency, Fair
Housing, Trust Funds, Ethics and Risk
Management
by First Tuesday
Agency and representation are synonymous in
real estate transactions. A Broker, by accepting employment from
a client, undertakes the task of aggressively using "due diligence"
to represent the client to meet the client's purpose for
retaining the Broker.
The Fair Housing
section of
this reading material focuses on the federal and state housing laws
which relate to the sale and rental of property, such as
prohibitions against redlining, discriminatory advertisement, refusing to show properties and
blockbusting.
Trust Funds covers all funds belonging
to others, which a Broker handles in the course of his
business. The reading material in the Trust Funds section
demonstrates that Trust Funds must never be treated casually.
State law and DRE regulations impose strict requirements on a
Broker's handling of funds which do not belong to
him.
Ethics - The public, through the
oversight of the Department of Real Estate (DRE) is assured real
estate licensees will be honest, truthful and of good reputation -
in a word, ethical. Black's Law Dictionary describes
ethical conduct as "Professionally right or befitting; conforming to
professional standards." Thus, ethics and professionalism are
presented here as synonymous.
Risk Management - The Risk
Management section of this reading material emphasizes how to recognize,
handle and effectively resolve the risk of liability inherent in
the practice of real estate-related activities. Guidelines for the
creation of an effective risk management program, which includes the
continuous supervision of sales agents by the employing broker, are
laid out in detail. As demonstrated in the reading material,
the correct use of forms to make disclosures and present analyses is
crucial in order to avoid the errors and omissions which place
liability on the broker and his agents.
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Table of Contents - Agency
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Introduction to Agency
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The
Industry's Failures Provoke Legislation
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The
Mandated Agency Confirmation Provisions
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Creation of Sub-Agency or Dual-Agency
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Supervision Delegated, Not Agency
Table of Contents - Fair
Housing
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The
Fair Housing Act
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Civil
Rights Acts of 1866 and 1870
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Americans with Disabilities Act
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California Civl Rights Laws
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Fair
Housing for Disabled Persons
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California Fair Employment and Housing
Act
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DRE
Regulation of Discrimination
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Equal
Credit Opportunity Act
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The
Housing Financial Discrimination Act of 1977
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Home
Mortgage Disclosure Act
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HUD
Advertising Guidelines for Sales and Rentals
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Aids
and Death Disclosure
Table of Contents - Trust
Funds
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Trust
Funds Overview
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Advance Fees as Trust Funds
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Advance Costs as Trust Funds
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Trust
Accounts
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Trust
Fund Accounting
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Penalties for Misuse of Trust
Funds
Table of Contents -
Ethics
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Conflicts of Interest in
Brokerage
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Document Disclosures and
Alterations
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Property-Related
Disclosures
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The Borrower and Loan
Broker
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The Private Lender and Loan
Broker
Table of Contents -
Risk Management
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Management of Exposure to
Liability
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An Agent's Impact on His
Broker
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Due Diligence Obligations of
the Listing Broker
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Disclosure of Known or
Suspected Advers Facts
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Information and Advice Due
the Buyer
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A Buyer's Reliance Without
Further Investigation
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Price Fixing and Kickbacks
for the Sake of Earnings
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The Equity Purchase Sales
Scheme
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Claims on the Broker and
Dispute Resolution |