New mexico brokerage relationship choices

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New Mexico Real Estate Brokerage Relationships

Lou Tulga CCIM CRBCopyright© 2011

All Rights Reserved

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Copyright(c) 2011 Lou Tulga CCIM CRB All Rights Reserved

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Disclaimer

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

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IV. Miscellanies

Using Lou’s “Wheel” to make direct, rational, and understandable consumer choices in providing real estate services

TASK ROLE RELATIONSHIP



Lou’s “Wheel”

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I. NM Brokerage Relationships Options

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Transaction Brokerage

Exclusive Agency

Dual Agency

II. NM Real Estate License Law


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



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



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



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



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

III. NM Real Estate Commission RULES


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



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



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



“Brokerage relationship means the legal or

contractual relationship between a person and a brokerage in a real estate transaction subject to the jurisdiction of the Commission



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



“Customer means a buyer, seller, landlord or tenant who uses real estate services without entering into an express written agreement with a brokerage subject to the jurisdiction of the Commission”



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

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“Dual Agency created by express written

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

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

Copyright(c) 2011 Lou Tulga




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



“Transaction Broker: the non-fiduciary relationship created by 61-29-2 A 14 NMSA 1978, wherein a broker or brokerage provides real estate services without entering into an agency relationship.

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

Copyright(c) 2011 Lou Tulga


IV. Miscellanies

Transaction Brokerage Professional Duties

New Mexico Real Estate License Law NM Real Estate Commission Broker

Duties Realtor® Code of Ethics Contractual Obligations with Clients

National Association of Realtors® Code of Ethics



IV. Miscellanies

Using Lou’s “Wheel” to make direct, rational, and understandable consumer choices in providing real estate services

TASK ROLE RELATIONSHIP



New mexico brokerage relationship choices

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