The notes below are intended only to supplement a complete and diligent review of the related chapter in your course text. Studying these notes alone is not expected to be adequate test preparation.
CONSUMER INFORMATION STATEMENT
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The Consumer Information Statement (CIS) defines the four
business relationships that a firm may engage in.
CIS must be provided in:
-
residential 1-4 family sale transactions
-
residential single family lot sales
-
residential lease transactions
-
residential listing transactions
Commercial sale and lease transactions are exempt
CIS must be provided to buyers prior to:
CIS must be provided to sellers prior to:
-
any discussion about motivation to sell
-
any discussion about desired selling price
-
the commencement of a listing agreement presentation
On unlisted properties (FSBO, For Sale By Owner) CIS must be presented no later than the
first showing of the property
Brokerage firms may, or may not, indicate on the CIS the capacity in
which they intend to work
Brokerage firms must:
-
declare in brokerage agreements (representing buyer or seller) the
type of relationship they intend to have with the other party
-
declare in all offers, contracts or leases what capacity they are
acting in in that transaction
-
include in all agreements a statement acknowledging receipt of the
CIS
Licensees must tell other licensees what type of business
relationship they have with any party they are working with
When listing agency receives an inquiry from any licensee, they must
verbally ascertain the capacity the inquiry licensee is acting in
