Duties and Responsibilities of Real Estate Broker

DUTIES AND
RESPONSIBILITIES OF REAL
ESTATE BROKER

RE/MAX Mumbai Gujarat Maharashtra
For You and Your Customers!!
Basic Customer Needs
 Customers ask for what they
want.
 What they need is a whole
lot more.

For You and Your Customers!!
 So listen carefully with
your eyes, ears and mind
open, understand their
requirements and act
accordingly.
 Provide accurate
information, put up
options and give
alternatives.
 Be fair and friendly to all
your customers.

Train Yourself
To gain more success, have
more power within you,
• Always be on time – Every
time
• Plan your day / week in
advance.

Train Yourself
• Engage your self in the
high pay off jobs.
• An efficient follow up
system is the key to being
successful.

Six steps for Handling Difficult Customers
 Be patient, let your customers say what they
want to and learn not to take what they are
saying personally.
 Don‟t get trapped in your negative filter about
the customer Instead Focus on asking yourself
the question, „What does this person need and
how can I provide it?
 Express empathy for the customer‟s situation
by using empathetic Phrases and apologizing.

Six steps for Handling Difficult Customers
 Work actively to solve their
problem. Gather the
information you need.
 Double check all the facts
with the mirroring
technique.
 Come to a mutual
agreement on the solution
with your customer.

Do Your Homework
 Be on time, every time.
 Plan your work and follow up.
 Be patient with your customer.
 Show Empathy.
 Try to the solve their problem.

Do Your Homework
 Listen carefully.
 Provide accurate information
and give options to them.
 Be fair and friendly to all
your customers.
 Come to a mutual agreement
in a win – win situation.

GUIDELINES FOR MEMBERS
1. In the conduct of your business, you
have often to seek co-operation of other
Estate Agents. In such an eventuality,
please deal only with any one of the
members of the Association
2. Before commencing work on a
transaction with another agent or
agents, settle the matter of the division
of commission first.

3. Report complaints to the Disputes Settlement Sub-Committee of
the Association for disciplinary action.
4. If you are approached by a Member for business, however small,
be courteous to him and extend to him your full co-operation.
5. If you are given information by another Member, you must not
divulge the same to another, unless you are in a position to
protect his interest or you have his permission to do so.

(6) If you are introduced to a client by
another agent and that client is known to
you, accept him as his client for that
particular transaction (of which you had no
knowledge) with good grace.
(7) If you learn that your client has taken
inspection of certain premises and now
wants you to handle the transaction, please
do not do it without the consent of the first
agent.
(8) Do not misrepresent facts and do not do
anything to harm another members
interest.
(9) Deal only with Properties having clear
titles.

10. Help and Co-operate with the Builders.
11. Have Transparency in your Deals.
12. Discourage unhealthy competition.
13. Be a link between the Builder and the Buyer.
14. Follow Ethical values.

SCHEDULE OF RATES OF COMMISSION
• SALE-PURCHASE – 2 %
• GOODWILL – 5 %
• LEASE/LEAVE & LICENCE – 2 Months Rent
• PAYING GUEST – 1 Month Rent
• FRANCHISING – 2 Month Rent
• TIME SHARING – 10 % or as agreed upon

Make a Contract
1. Our company is Full Time Broking Company or
Real Estate Agents Company. We are stock of
property Information for buying / selling / Leasing
etc. and it is our stock in trade and we are render
our service to That client who engage us for
rendering service of REAL ESTATE
CONSULTANCY or Estate Agent on Fixed
remuneration / Commission.
2. We are registered with The Estate Agents of
India, Profession Tax No. Allotted , Income Tax
PAN allotted Shop & establishment License
Profession Tax Registration No Allotted , Service
Tax Reg. Code allotted, we are also registered
with many institutions and trusts. Our Bankers are
( Add Name of Bank ).

3. We will charge late payment charges
on delayed of payments of or
Brokerage, Commission, Fees,
Expenses, etc., as applicable {@ 2%
P.M.}
4. Other terms and conditions will be
as per the Customer Agreement or
form signed by the client or the
authorized signatory , as the case may
be.
5. Service Tax applicable as per the
rules and regulation.
Make a Contract

6. All the Rates & Charges are
followed as per or terms and condition
and as per the “SCHEDULE OF
RATES OF COMMISSION” which is
strictly enforced by the “THE ESTATE
AGENT ASSOCIATION OF INDIA”.
7. Commission/ Brokerage/ Agency
Fee/ Service Charges/ Terminal
Charges under any name paid to us for
service rendered shall not be
refundable under any circumstances.
8. Subject to Bombay jurisdiction.
Make a Contract

9. T.D.S. applicable
10. Our registered address is : ( Brokers
Address )
11. We recommend you not to approach
or negotiate for any things with our
client Directly without knowing or
informing us and if you do so then that
is on your Risk and liability only.
12. Your co-operation is only make us
success and it help us to compete your
deal within stipulated time.
Make a Contract

Don’t Misguide the Buyer
1. When a deal has been agreed some
agents still show people around the
property hoping for a better offer.
2. Value a property at a low price – and
then sell it to a friend or colleague.
3. Use scare tactics such as pretending to
receive offers to get people to make a
people to make a higher offer.

4. Neglect to pass on all offers to vendor
in hope of achieving a higher one later
on.
5. Refuse to reduce commission if the
price is reduced.
6. Overvalue houses to secure business
from sellers.
7. Supply customers with fake documents
to help them secure a mortgage.

8. Make up a very low offer. This shocks the seller
into accepting a genuine offer which is far lower
than the original valuation.
9. Fake evidence that other properties in the area
have sold for an overly high price.
10.Erect for sale / sold signs at homes the agent had
nothing to do with to give a false impression.

Tips to Avoid Fraud in Property Dealings
• Research and analyse the market.
• Approach a reputed real estate agent.
• Personally inspect the property.
• Get an independent property
valuation.
• Check the title deeds and other
documents

Tips to Avoid Fraud in Property Dealings
• Check your comfort level
with the estate agent.
• Be careful about known
people who try to push the
deal.
• Hire a competent legal
consultant.

Responsibilities of a Real Estate Broker
• A real estate broker is an independent
professional, who helps people to sell
or buy their property, whether
residential, commercial or even a self
storage building . In doing this, the
broker is supposed to be responsible
for various types of duties to his
clients.
• The real estate broker will also
arrange a meeting between the seller
and the buyer. These meetings are
very useful to discuss the terms and
conditions of the transaction.

• The broker will be responsible for
the title search part of the selling
process. This process will review
the past records related to the
property, to find out that whether
any discrepancy exists or not.
• With the help of a broker, a buyer
can search for suitable financing
assistance from an eligible financial
organization. This will also help to
close a sale procedure, quickly and
efficiently.

• Sometimes the brokers have additional expertise in legal aid and
insurance aspect for the property. In that case, a buyer or seller
does not have to search for a legal advisor to settle the legal
issues on the transaction. Similarly, if the real estate broker can
help in arranging insurance for the newly bought property, then
the buyer can reduce half of this tension.
• If there is any bargain related to the transaction of the property,
the broker must follow the instruction of the seller and he will
always try to get a reasonable price for the seller.

• The broker has to maintain an updated list
of available properties, so that he can cater
to many buyers and sellers simultaneously.
His job is to gather many buyers for a
single property and to show multiple
properties to a single buyer. Thus, he is
helping both the parties, to sell and to
buy, within a minimum time.
• Before showing a property to a buyer, a
broker first should sit with him to know
about his requirements and financial status.
Also, for selling of properties, a real estate
broker should know first, that what type of
expectations does the seller have from his
property? Once, he knows this
information, he will be able to match his
listing with the requirements.

• Most of the brokers have expertise on
residential properties, whereas few of them
have expertise on commercial properties.
Whatever be his area of work, a broker
should know each and every specific detail
of property dealings at his location.
• A broker should maintain a computer at his
business place. This is to keep updated
information on the property listing at a
daily basis. Also, using the computer, a real
estate broker can show pictures of the
properties to the buyers.

• In dealing with the properties, the
brokers must meet the regulations of
standard environmental criteria
settled by the state body, like the
property should not deal with any
toxic paint or improper ventilation
system.
• A broker also has certain obligations
to his clients. As he is going to deal
with the funds of his clients, there
should be a trust factor working at the
mind of his clients. Also, the broker
should be eligible to perform
accordingly to meet the faith of his
clients.

Duties Of The Real Estate Broker
Loyalty
• One of the most fundamental duties an
agent owes to the principal. The duty
obligates a real estate broker to act at all
times, solely in the best interests of the
principal, excluding all other interests,
including that of the broker.
• An example of breach of loyalty is when
a broker purchases a property listed with
his/her firm, and immediately resells it at
a profit. Such conduct is usually
considered appropriate and lawful by
persons who act at arms length, but a
fiduciary would be considered to have
stolen an opportunity for profit that
rightfully belongs to the principal.

Sellers Agent Exclusive
Buyer's Agent
Must do
everything
possible to
gain an
advantage for
the Seller.
Must do
everything
possible to
gain an
advantage for
the Buyer.
Loyalty

Obedience
An agent is obligated to promptly
and efficiently obey all lawful
instructions of his/her principal
that conform to the purpose of the
agency relationship. However, the
duty does not include an
obligation to obey unlawful
instructions, such as instructions to
not market a property to minorities
or to misrepresent the condition of
a property.

Sellers Agent Exclusive
Buyer's Agent
Must obey all
lawful
instruction of
the Seller, is not
obligated to
obey
instructions
from the Buyer.
Must obey all
lawful
instruction of
the Buyer, is not
obligated to
obey
instructions
from the Seller.
Obedience

Disclosure
• An agent must disclose to the principal all
known relevant and material information that
pertains to the scope of the agency. The duty
includes any facts affecting the value or
desirability of the property, as well as any
other relevant information pertaining to the
transaction, such as the other party's
bargaining position, the identity of all potential
purchasers, information concerning the ability
or willingness of the buyer to offer a higher
price, any intent to subdivide or resell the
property for a profit.
Duties of The Real Estate Broker
• An agent's duty of disclosure to his/her principal must not be confused with
a real estate broker's duty to disclose any know material facts about the
property value to non-principals. The duty to disclose known material facts is
based on a real estate broker's duty to treat all persons honestly. The duty of
honesty does not depend on the existence of an agency relationship.

Disclosure
Sellers Agent Exclusive Buyer's
Agent
Must reveal any known
material defects in the
property.
Must NOT reveal
information about traffic
problems, poor school
system, declining property
values, etc. since these items
might make the property less
desirable to Buyers.
Must tell Buyer everything
they can find out about the
Seller including the
motivation for selling and
any reasons the Seller may
have for wanting a quick sale.
Must tell Buyer everything
they can find out about the
property, including traffic
problems, poor school
system, high crime rates, etc.

Confidentiality
• An agent is obligated to safeguard his/her
principal's lawful confidences and secrets.
Therefore, a real estate broker must keep
confidential any information that may weaken a
principal's bargaining position. The duty of
confidentiality precludes a broker who represents a
seller from disclosing to a buyer that the seller can,
or must, sell a property below the listed price.
Conversely, a broker who represents a buyer is
prohibited from disclosing to a seller that the buyer
can, or will, pay more than what has been offered
for a property.
• The duty of confidentiality does not include an
obligation by a broker who represents a seller to
withhold know material facts about the condition
of the seller's property from the buyer, or to
misrepresent the property's condition. To do so
constitutes misrepresentation and impose liability
on both the broker and the seller.

Agent
Must tell the Seller
everything they can find
out about the Buyer,
including all financial
details they can obtain.
Must conceal anything
about the Seller that
would help the Buyer
gain an advantage, such
as impending
foreclosure, need to
move in a hurry, need to
sell to settle divorce, etc.
Must keep all
information about the
Buyer confidential,
including the Buyer's
ability or willingness to
pay more for the
property than they are
offering as well as the
Buyers motivation for
buying.
Confidentiality

Reasonable Care and Diligence
• An agent is obligated to use reasonable
care and diligence when pursuing the
principal's affairs. The standard of care
expected of a buyer's or seller's real
estate broker is that of a competent real
estate professional. By reason of his/her
license, a broker is considered to have
skill and expertise in real estate matters
superior to that of the average person.

Reasonable Care and Diligence
Agent
Must prepare
themselves through
education and study
to competently
represent the Seller in
all matters.
Must prepare
themselves through
education and study
to competently
represent the Buyer in
all matters.

Thank You

Duties and Responsibilities of Real Estate Broker

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