new mexico real estate brokerage relationships

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New Mexico Real Estate New Mexico Real Estate Brokerage Relationships Brokerage Relationships

Lou Tulga CCIM CRBLou Tulga CCIM CRBCopyright© 2007Copyright© 2007

All Rights ReservedAll Rights Reserved

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DisclaimerDisclaimer

This presentation is provided by Lou Tulga This presentation is provided by Lou Tulga CCIM CRB solely for educational purposes CCIM CRB solely for educational purposes and does not constitute legal or other and does not constitute legal or other advice. Viewing or downloading of these advice. Viewing or downloading of these materials is for personal use only and does materials is for personal use only and does not create assignment of ownership of not create assignment of ownership of document design or content.document design or content.

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I. NM Brokerage Relationships I. NM Brokerage Relationships OptionsOptions

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CCIM All Rights ReservedCCIM All Rights Reserved

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Transaction BrokerageTransaction Brokerage

Exclusive AgencyExclusive Agency

Dual AgencyDual Agency

II. NM Real Estate License Law II. NM Real Estate License Law

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“ “For all regulated real estate transactions For all regulated real estate transactions first executed on or after January 1, 2000, no first executed on or after January 1, 2000, no agency relationship between a buyer, seller, agency relationship between a buyer, seller, landlord or tenant and a brokerage shall landlord or tenant and a brokerage shall exist unless the buyer, seller, landlord or exist unless the buyer, seller, landlord or tenant and the brokerage agree, in writing, tenant and the brokerage agree, in writing, to the agency relationship. No type of to the agency relationship. No type of agency relationship may be assumed by a agency relationship may be assumed by a buyer, seller, landlord, tenant or licensee, or buyer, seller, landlord, tenant or licensee, or created orally or by implication”created orally or by implication”

II. NM Real Estate License Law II. NM Real Estate License Law


“ “A brokerage may provide real estate A brokerage may provide real estate services to a services to a clientclient pursuant to an express pursuant to an express written agreement that does not create written agreement that does not create an agency relationship and no agency an agency relationship and no agency duties will be imposed on the brokerage”duties will be imposed on the brokerage”

II. NM Real Estate License LawII. NM Real Estate License Law


“ “ A brokerage may provide real estate A brokerage may provide real estate services to a services to a customercustomer without entering without entering into an express written agreement and into an express written agreement and without creating an agency relationship without creating an agency relationship and no agency duties will be imposed on and no agency duties will be imposed on the brokerage”the brokerage”



“ “The Commission shall promulgate rules The Commission shall promulgate rules governing the rights of governing the rights of clients clients or or customerscustomers and the rights and and the rights and responsibilities and the duties of a responsibilities and the duties of a brokerage in those brokerage brokerage in those brokerage relationships that are subject to the relationships that are subject to the jurisdiction of the Commission”jurisdiction of the Commission”



“ “Agency relationship Agency relationship means the fiduciary means the fiduciary relationship created solely by an express relationship created solely by an express written agency agreement between a written agency agreement between a person and brokerage, authorizing the person and brokerage, authorizing the brokerage to act as an agent for the brokerage to act as an agent for the person according to the scope of person according to the scope of authority granted in the express written authority granted in the express written agreement for real estate services…”agreement for real estate services…”

III. NM Real Estate Commission III. NM Real Estate Commission RULESRULES


“ “AgencyAgency: the fiduciary relationship : the fiduciary relationship created solely by the express written created solely by the express written agency agreement between a person and agency agreement between a person and a brokerage, authorizing the brokerage to a brokerage, authorizing the brokerage to act as agent for the person according to act as agent for the person according to the scope of authority granted in that the scope of authority granted in that express written agreement for real estate express written agreement for real estate services subject to the jurisdiction of the services subject to the jurisdiction of the Commission”Commission”



“ “AgentAgent means the brokerage authorized, means the brokerage authorized, solely by means of an express written solely by means of an express written agency agreement, to act as a fiduciary agency agreement, to act as a fiduciary for a person and to provide real estate for a person and to provide real estate services that are subject to the services that are subject to the jurisdiction of the Commission; in the case jurisdiction of the Commission; in the case of an associate broker,of an associate broker, agent agent means the means the person who has been authorized to act by person who has been authorized to act by that associate broker’s qualifying broker”that associate broker’s qualifying broker”



“ “BrokerageBrokerage means a licensed qualifying means a licensed qualifying broker and the licensed real estate broker and the licensed real estate business represented by the qualifying business represented by the qualifying broker and its affiliated licensees”broker and its affiliated licensees”



“ “Brokerage relationship Brokerage relationship means the legal or means the legal or contractual relationship between a person contractual relationship between a person and a brokerage in a real estate and a brokerage in a real estate transaction subject to the jurisdiction of transaction subject to the jurisdiction of the Commissionthe Commission



“ “Client Client means a buyer, seller, landlord or means a buyer, seller, landlord or tenant who has entered into an express tenant who has entered into an express written agreement with a brokerage for written agreement with a brokerage for real estate services subject to the real estate services subject to the jurisdiction of the Commission”jurisdiction of the Commission”



“ “Customer Customer means a buyer, seller, landlord or means a buyer, seller, landlord or

tenant who uses real estate services withouttenant who uses real estate services without

entering into an express written agreement entering into an express written agreement

with a brokerage subject to the jurisdiction ofwith a brokerage subject to the jurisdiction of

the Commission”the Commission”



“ “Designated Broker: Designated Broker: a qualifying broker or a qualifying broker or associate broker who is designated in associate broker who is designated in writing by a qualifying broker to serve as writing by a qualifying broker to serve as exclusive agent or exclusive transaction exclusive agent or exclusive transaction broker for a seller, landlord, buyer or broker for a seller, landlord, buyer or tenant in a real estate transaction”tenant in a real estate transaction”

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“ “Dual Agency Dual Agency created by express written created by express written

agreement that modifies existing exclusive agreement that modifies existing exclusive agency agreements to provide that the agency agreements to provide that the brokerage agrees to act as a facilitator in a brokerage agrees to act as a facilitator in a real estate transaction rather than as an real estate transaction rather than as an exclusive agent for either party to the exclusive agent for either party to the transaction.” transaction.”

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“ “Facilitator: Facilitator: The role of a broker in either The role of a broker in either a dual agency or transaction broker a dual agency or transaction broker relationship whereby the existing relationship whereby the existing exclusive relationships with a seller client exclusive relationships with a seller client and a buyer client are modified so that the and a buyer client are modified so that the broker impartially facilitates the broker impartially facilitates the transaction”transaction”



“ “PrincipalPrincipal: any person who authorizes or : any person who authorizes or employs another to do certain acts on employs another to do certain acts on behalf of that person”behalf of that person”



““Transaction Broker Transaction Broker means a qualifying means a qualifying broker, associate broker or brokerage that broker, associate broker or brokerage that provides real estates services without provides real estates services without entering into an agency relationship”entering into an agency relationship”

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“ “Transaction Brokerage: Transaction Brokerage: A brokerage A brokerage relationship providing real estate related relationship providing real estate related services without agency, either to services without agency, either to clients by means of an express written clients by means of an express written agreement which does not provide for agreement which does not provide for agency or to a customer with no written agency or to a customer with no written agreement”agreement”

IV. Miscellanies IV. Miscellanies

Transaction Brokerage Professional DutiesTransaction Brokerage Professional Duties

New Mexico Real Estate License LawNew Mexico Real Estate License Law NM Real Estate Commission NM Real Estate Commission Broker DutiesBroker Duties Realtor® Realtor® Code of Ethics Code of Ethics Contractual Obligations with ClientsContractual Obligations with Clients

National Association of Realtors® Code of EthicsNational Association of Realtors® Code of Ethics

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IV. Miscellanies IV. Miscellanies

Using Lou’s “Wheel” to make rational Using Lou’s “Wheel” to make rational choices in providing real estate choices in providing real estate servicesservices

TASKTASK

ROLEROLE

RELATIONSHIPRELATIONSHIP

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ROLEExclusive Representative

Facilitator

RELATIONSHIPTransaction Brokerage

Agency

Property ManagementNew Builder Exclusive RepAbsentee Client/Customer

Seller/Buyer BrokerageBuilding/Tenant Rep

TASKMaking Rational

Choices

new mexico real estate brokerage relationships

Economy & Finance

express written agreement

commission 05 28 09 copyright

brokerage 05 28 09 copyright

qualifying broker

associate broker

exclusive agent

authority granted

agency relationship