PSI Oklahoma Real Estate Practice Test

What is the suggested strategy in dealing with brokerage agreements signed into effect and extending past November 1, 2013?

1. Continue with the existing agreements

2. Have your clients enter into new agreements

3. Amend the current agreements

4. Consult with a real estate attorney

The correct answer is: Have your clients enter into new agreements

The suggested strategy for dealing with brokerage agreements that were signed and extend past November 1, 2013, involves having your clients enter into new agreements. This is grounded in the necessity to ensure compliance with changes in regulations that may have emerged since the original contracts were formed. Real estate laws and practices can evolve, leading to the introduction of new disclosure requirements or provisions that were not previously addressed. By entering into new agreements, you provide an opportunity to clarify terms, update the agreement to comply with current laws, and strengthen the legal framework for the relationship between the broker and client. This proactive approach helps minimize the risk of disputes and ensures that both parties are fully aware of their rights and obligations under the most current legal standards. On the other hand, continuing with existing agreements may leave outdated provisions in place, which could potentially lead to legal complications or fail to protect the interests of the parties involved fully. Amending current agreements without a comprehensive review may also miss crucial updates necessary for legal compliance. Consulting with a real estate attorney, while beneficial for guidance in navigating legal matters, does not directly address the need to create new agreements that reflect the current context and requirements. Thus, the best strategy is to establish new brokerage agreements.