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Real Estate > Advanced Agency Law > Flashcards

Advanced Agency Law Flashcards

1
Q

What is Agency?

A

Agency is the fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal.

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2
Q

Limited Agency

A

Limited Agent. “A Limited Agent represents both seller and buyer in the same transaction and works to assist in negotiating a mutually acceptabletransaction. A Limited Agent has fiduciary duties to both seller and buyer. However, those duties are “limited” because the agent cannot provide to both parties undivided loyalty, full confidentiality and full disclosure of all information known to the agent. For this reason, a Limited Agent must remain neutral in the representation of a seller and buyer, and may not disclose to either party information likely to weaken the bargaining position of the other; such as, the highest price the buyer will pay or the lowest price the seller will accept”.

“A Limited Agent must, however, disclose to both parties material information known to the Limited Agent regarding a defect in the Property and/or the ability of each party to fulfill agreed upon obligations, and must disclose information given to the Limited Agent in confidence, by either party, if the failure to disclose would be a
material misrepresentation regarding the Property”.

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3
Q

Implied Agency

A

An implied agency: is an agency that has been formed based on the client and the agent.

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4
Q

Who is the Principle Broker?

A

In the state of Utah, the only person who has the authority to enter into an agency relationship with a member of the public is a broker. He or she can hire and supervise other agents.

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5
Q

Fiduciary

A

A relationship in which the agent is obligated to act in the best interests of the client above all else, including his or her own self-interest

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6
Q

Specific Agency

A

An agency relationship in which the agent is appointed to do a specific task.

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7
Q

General Agency

A

A general agent in real estate is an agent who can perform any and all acts that are associated with the ongoing business that the principal has appointed the general agent to act in.

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8
Q

Disclosure of Agency

A

An agency disclosure statement normally defines the various relationships of buyers and sellers in a real estate transaction.

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9
Q

Contingency

A

Contingency clause gives parties involved the ability to retract out of the contract under certain circumstances that must be negotiated
between the buyer and seller.

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10
Q

Subagents

A

The relationship which a real estate broker and his/her agents have with a buyer of a business, home, or property

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11
Q

Real Estate Franchise

A

Several Real Estate Franchises have several locations worldwide and share similarities amongst branding, operational and recruitment methods.

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12
Q

Multiple Listing Service

A

It is a service database use by real estate brokers which allows them to share about properties and listings.

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13
Q

Latent Defect

A

This is usually hidden defect in materials which may cause failure or something to malfunction.

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14
Q

Express Agency

A

this is an agreement which states the principal agrees to be represented by the agent and this must be in writing

  • This agreement outlines the responsibilities and obligations
  • This agreement outlines responsibilities of the principal, which includes compensation
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15
Q

Terminating Agency

A

Ex: When you have a listing agreement in place and both the broker and seller agree to cancel the listing agreement that will terminate the agency relationship. Or if a death occurs of one of the principles can terminate the agency as well.

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16
Q

Limited Service Agreement

A

This is an arrangement where a broker agrees to do a specific task of a transaction.

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17
Q

Open Listing

A
  • Open listings is an online real estate brokerage
  • This is focused predominately on representing buyers.
18
Q

Exclusive Agency Listing

A

An agreement under which the listing broker acts as the agent

19
Q

Exclusive Right to Sell

A

During this process, the seller cannot list the property with any other agent and must pay the agent’s commission even if he or she finds
buyer.

20
Q

Seller Agent Duties

A
  • They will help the client get the home ready for sale
  • They discuss the price
  • They negotiate the price
  • They prepare the marketing procedure for the house
21
Q

Flat Fee MLS

A
  • Flat Fee MLS refers to the practice in the real estate industry of a seller entering into agreement where the broker agrees to accept a flat fee rather than a percentage of the sale price
22
Q

Disclosure:

A

Disclosures are a imperative part of your real estate transactions

23
Q

Confidentiality

A

the agent must keep confidential any information given to hum or her by their client

24
Q

Accountability

A

It is important to hold your peers accountable and to set an example for everyone else
Have agents create a business plan with goals, and the steps they will take to reach those goals. Take time to review the goals plan, address personal and professional goals and demonstrate the system in place to track these goals

25
Q

Reasonable, Skill, Care and Diligence:

A

what is a Fiduciary? The basic essential duties that are owed to any real estate buyer such as honesty, agency disclosure, loyalty, reasonable care and diligence

26
Q

Expiration of Terms of a Contract:

A

Expiration is considered a form of termination

27
Q

Mutual Agreement:

A

It is a binding contract between two or more parties and can cover any contingency. This is based upon agreed terms and conditions.

28
Q

Revocation:

A

The official cancellation of a decree, decision, or promise.

29
Q

Undisclosed dual agency

A

Undisclosed dual agency takes place when a real estate licensee does not reveal that he or she is indebted (owes) a duty to more than one part in the same transaction.

30
Q

Designated sales Agents:

A

A designated agency is one that represents both buyers’ and sellers’ interests. One agent, working for the broker or agency, represents the seller and another stands in for the buyer

31
Q

A real estate agent CAN:
A: Put Their Clients’ Best Interests Above All Other Interests, Including The Agent’s Own Interests
B: Accept An Offer On Behalf Of Their Client
C: Speak On Behalf Of Their Client
D: Disclose Critical Facts Related To Their Clients’ Negotiating Position

A

A: Put Their Clients’ Best Interests Above All Other Interests, Including The Agent’s Own Interests

32
Q

In a real estate transaction, who is the client?
A: The Principal
B: The Fiduciary
C: The Agent
D: The Beneficiary

A

A: The Principal

33
Q

Undisclosed dual agency:
A: All Of The Below
B: Is A Serious Violation Of State Law
C: Can Result In Loss Of Commission Or Lawsuit
D: Can Result In License Suspension Or Revocation

A

A: All Of The Below

34
Q

What does an agent owe to the customers in a transaction?
A: All Of The Below
B: Loyalty
C: Confidentiality
D: Obedience

A

A: All Of The Below

35
Q

Hannah signs an Exclusive Right to Sell and dies three days later. Which of the following statements are TRUE?
A: The Contract Is Still Valid
B: The Contract Is Void
C: The Contract Is Voidable
D: The Contract Is Rescinded

A

B: The Contract Is Void

36
Q

Which form creates agency with a buyer?
A: Exclusive Buyer Broker Agency Agreement
B: Exclusive Right To Sell Agency Agreement
C: Limited Agency Consent Agreement
D: For Sale By Owner Commission Agreement

A

A: Exclusive Buyer Broker Agency Agreement

37
Q

Which form creates agency with a seller?
A: Exclusive Buyer Broker Agency Agreement
B: Exclusive Right To Sell Agency Agreement
C: Limited Agency Consent Agreement
D: For Sale By Owner Commission Agreement

A

B: Exclusive Right To Sell Agency Agreement

38
Q

Agent Ashley represents a Seller. She fails to educate the Seller as to the included items that need to remain with the property. Ashley is guilty of failing to exercise which of the following fiduciary duties:
A: Loyalty
B: Disclosure
C: Confidentiality
D: Reasonable Care And Diligence

A

D: Reasonable Care And Diligence

39
Q

Agent Alex represents a Buyer. Alex learns from the listing agent that the property’s roof may not pass the home inspection. Alex decides not to share this information with the Buyer, as she is afraid the buyer will choose not to purchase the property. Alex is guilty of breaching which of her fiduciary duties?
A: Loyalty
B: Disclosure
C: Confidentiality
D: Reasonable Care And Diligence

A

B: Disclosure

40
Q

Agent Alexis represents seller Sam. What duties does she owe to any potential buyers?
A: Agent Alexis Owes No Duties To Any Potential Buyers
B: Agent Alexis Owes All Fiduciary Duties To Any Potential Client
C: Agent Alexis Is A Dual Agency Situation
D: None Of The Above

A

B: Agent Alexis Owes All Fiduciary Duties To Any Potential Client

Real Estate (15 decks)

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