QUESTION 1: Ministerial Functions An agent gets a call on one of her listings. Should any disclosures be given at that time? Next

Answer No. The Real Estate Agency Disclosure brochure must be presented at first face-to-face contact, unless only ministerial services are provided. There is no obligation to disclose over the phone while performing ministerial functions. (Section 3892) NextPrevious

QUESTION 2: Record Retention How long do I have to maintain my Designated and Dual Agency records? NextPrevious

Answer Five years, whether or not a contract is created. The provisions are simple: Disclose the agency brochure at first face-to-face contact and maintain the receipt for five years. If any party will not sign the receipt for the brochure, be sure to document it and keep documentation for five years. (Section 1449) NextPrevious

Case Study 1 Agency and Payment of Fee Agent Chuck represents seller Marilyn in a transaction with customer Sara. Sara is so impressed by Chuck she gives him a $500 bonus after they all leave the closing table. Chuck wants to do the right thing. What is the correct conduct? Should Marilyn be informed about the bonus? Is the agency relationship tainted if Chuck and his broker decide to split the money? NextPrevious

Analysis Additional compensation from a transaction is permitted if all parties are notified in writing. All parties must be informed. Compensation must be directed through the broker so the first thing Chuck should do is deliver the bonus to his employing broker. However, how Chuck and his broker distribute the money will depend on office procedures. (Sections 3896 and 3301) NextPrevious