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Real Estate > Agency Forms > Flashcards

Agency Forms Flashcards

1
Q

educate the client

A

With regards to forms, be sure your client knows what they’re signing. Go through the form with them, don’t rush them through it. They are entering a legally
binding agreement!

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2
Q

Buyer-Broker Agency Agreement & Agency Disclosure

A

The form used for creating agency with a buyer.

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3
Q

term of agreement

A

The length of time during which the agreement is in effect. Be sure that this term on the form includes when closing will occur.

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4
Q

addendum to the agreement

A

If closing takes longer than anticipated or you otherwise run out of time in the original agreement, you can add an addendum extending the time.

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5
Q

exclusive buyer’s agent

A

During the agreement, the buyer is agreeing that you are the only agent who is representing him or her during the term; he or she agrees not to make an agreement with another brokerage and affirms that he or she has not already done so.

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6
Q

brokerage fee

A

The fee charged to the client by the broker. This can be a specific amount or a percentage of the acquisition price of the property.

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7
Q

buyer agent commission

A

The money paid to the company by the listing brokerage.

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8
Q

default

A

An event in which a party to a contract fails to fulfill the terms of the agreement, such as if a buyer is unable to pay for a property.

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9
Q

protection period

A

The number of months after the expiration of the agreement in which a client must pay the broker fee to the broker under the prior agreement, unless they are represented by a new broker at that time. The purpose of this is to prevent clients from using agency and then circumnavigating it to avoid paying the agent.

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10
Q

buyer representations

A

Under the agreement you make with a buyer, the buyer owes you certain guarantees. He or she must not have entered into an agency with another broker for this time period and must let other real estate professionals know that you are representing him or her. Buyers must also agree to provide you, as the agent, with the information that you need to complete the transaction.

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11
Q

referral to professionals

A

As the agent, you are not providing your client with financial advice, mortgage quotes, inspection information, or home measurements. Be the source of the source - in other words, thoroughly vet competent professionals who will serve your client well in those capacities and refer your clients to them. Never step beyond the bounds of licensure by giving legal, tax, or inspection advice.

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12
Q

fiduciary duties of limited agents

A

Limited agents cannot provide to both parties undivided loyalty, confidentiality, and disclosure. This is spelled out in the agreement to make sure that all parties are fully aware of what they are giving up by agreeing to a limited agency.

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13
Q

Duty of Neutrality

A

The duty in which a limited agent may not disclose to either party information likely to weaken the bargaining position of the other. This can include the highest price a buyer will offer or the lowest price a seller will accept. However, the limited agent will be required to disclose information given to the agent from the other party if failure to disclose such information would be a material misrepresentation regarding the property or regarding
the ability of the parties to fulfill their obligations.

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14
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

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15
Q

In Section 1 of The Exclusive Buyer Broker Agency Agreement, the “Date” that the agent writes in the line is the:
A: Date On Which The Agreement Is Entered Into
B: Date On Which The Agreement Becomes Effective
C: Date On Which The Agreement Terminates
D: Date On Which The Protection Period Ends

A

C: Date On Which The Agreement Terminates

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16
Q

A ______ fee is charged to execute a transaction.
A: Agreement Transaction
B: Agreement Becomes Effective
C: Brokerage
D: Divison

A

C: Brokerage

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17
Q

Section 2 of the Buyer Broker Agreement & Agency Disclosure deals with:
A: The Amount Of Commission Owed By The Seller
B: The Brokerage Fee Owed By The Buyer To Their Agent
C: The Broker To Broker Commission Agreement
D: Escrow Instructions

A

B: The Brokerage Fee Owed By The Buyer To Their Agent

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18
Q

Section 3 of The Exclusive Buyer Broker Agency Agreement is centered around:
A: Brokerage Fee
B: Agency Relationships
C: Protection Period
D: Term Of Agreement

A

C: Protection Period

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19
Q

due-on-sale clause

A

States that the seller’s lender or mortgagee may call the entire unpaid balance of the loan immediately due if the seller participates in certain types of transactions that trigger it.

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20
Q

The purpose of Section 5 of The Exclusive Buyer Broker Agency Agreement is:
A: To Spell Out The Duties Owed By The Buyer’s Agent
B: To Spell Out The Duties Owed By The Client
C: To Spell Out The Duties Owed By The Seller
D: To Spell Out The Duties Owed By The Listing Agent

A

A: To Spell Out The Duties Owed By The Buyer’s Agent

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21
Q

The purpose of the Buyer Broker Agency Agreement is:
A: To Spell Out The Duties Owed By The Buyer’s Agent
B: To Spell Out The Duties Owed By The Listing Agent
C: To Disclose That The Buyer Is Unrepresented
D: To Disclose That The Seller Is Unrepresented

A

A: To Spell Out The Duties Owed By The Buyer’s Agent

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22
Q

An event in which a party to a contract fails to fulfill the terms of the agreement such as if a buyer is unable to pay for a property, is often referred to as:
A: Default
B: Lack Of Funds
C: Terms Of Listing
D: Agency

A

A: Default

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23
Q

If the seller’s lender or mortgagee may call the entire unpaid balance of the loan immediately due if the seller participates in certain types of transactions such as:
A: Due On Sale Clause
B: Due On Deed Clause
C: Due On Agreement Clause
D: Deed

A

A: Due On Sale Clause

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24
Q

A ________ is a fee charged by a broker to execute transactions
A: Brokerage Fee
B: Agent Fee
C: Transaction Fee
D: None Of The Above

A

A: Brokerage Fee

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25
Q

An event in which a party to a contract fails to fulfill the terms of an agreement, such as if a buyer is unable to pay for a property:
A: Default
B: Delayed Payments
C: Delayed Fees
D: None Of The Above

A

A: Default

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26
Q

Exclusive Right to Sell Listing & Agency Disclosure

A

The form used for creating agency with a seller.

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27
Q

term of listing

A

The time period in which an agreement is in effect.
During this time, the agreement can typically only be ended by mutual consent or completion of the transaction. You and the client have entered into a mutual agreement of loyalty that cannot be easily broken. Be careful of the dates you put on the agreement.

28
Q

blank spaces

A

Do not leave blank spaces on any real estate agreement form. If you don’t put anything in the space, you have no agreement about that portion of the form.

29
Q

agreement to the brokerage fee

A

If your seller changes his or her mind about selling the property or otherwise cannot sell the property, you and your brokerage still get the brokerage fee. This protects you from not getting paid after all of your hard work.

30
Q

seller warranties

A

The seller must list all owners of record in order to proceed with a sale; you need to be sure that the owners of record are accurately listed. It is also the seller’s responsibility to disclose any material information about the property that may affect the sale.

31
Q

owner of record

A

The person recorded on public real estate records as the owner of the property.

32
Q

marketable title

A

A title that has no encumbrances, such as mortgages, or otherwise has these waived by the buyer so that the property can be sold. A marketable title does not assume that there are no defects at all but that they would be reasonably acceptable to an educated buyer.

33
Q

documents of conveyance

A

Documents that must be signed and executed in order to reconvey the property to the new buyer.

34
Q

Seller’s Property Condition Disclosure

A

The seller fills out this form to convey the seller’s knowledge of the condition of the property to the broker.

35
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

36
Q

What is an owner of record?
A: The Person Recorded On Public Real Estate Records As The Owner Of The Property
B: The Person Who Has Handed Over The Deed
C: The Person Who Has Their Name On The Deed
D: The Person Recorded On Public Real Estate Records As The Co-Owner Of The Property

A

A: The Person Recorded On Public Real Estate Records As The Owner Of The Property

37
Q

What kind of Professional advice can an agent give to their clients
A: Agents Are Meant To Provide Real Estate Advice ONLY And Not Licensed To Provide Legal, Tax, Or Inspection Advice
B: Agents Can Only Provides Certain Types Of Advice
C: Agents Must Refer Them To Their Friends
D: Agents Can Provide Some Advice On The Home

A

A: Agents Are Meant To Provide Real Estate Advice ONLY And Not Licensed To Provide Legal, Tax, Or Inspection Advice

38
Q

Marketable Title is
A: A Title That Has No Encumbrances Such As Mortgages Or Otherwise Has These Waived By The Buyer So That They Property Can Be Sold
B: A Title That Has Encumbrances So The Property Can Not Be Sold
C: What The Agent Uses For Marketing Purposes
D: This Allows The Agent To Market And Only Sell The Property To A Certain County

A

A: A Title That Has No Encumbrances Such As Mortgages Or Otherwise Has These Waived By The Buyer So That They Property Can Be Sold

39
Q

A seller’s ______ is document to give a home seller an accurate estimate of their net proceeds.
A: Net Sheet
B: Final Documents
C: Estimation Form
D: All Of The Above

A

A: Net Sheet

40
Q

designated agency

A

Allows for the principal or branch broker to appoint another agent to a given client if an agent is unable to provide services to the client.

41
Q

professional advice

A

Agents are meant to provide real estate advice and not licensed to provide tax, legal, or inspection advice. Every year, many agents are sued for overstepping their bounds in this regard. This is why it is important to know professionals in those fields who can help you champion your client to the greatest extent possible.

42
Q

Multiple Listing Service

A

Brokers can submit their listings to the multiple listing service to quickly and easily share information about the properties with agents who may be representing buyers and looking for property of a particular type. It is extremely important to use data gathered by professionals, such as measurements completed by a home inspector

43
Q

personal property

A

Personal property of the seller that is not to be sold with the property. Such items should be removed before any pictures are taken; this will prevent lawsuits regarding what is being sold and items being stolen. It can also prevent tipping off buyers about a distressing reason for a sale.

44
Q

Foreign Investment in Real Property Tax Act

A

The sale of a U.S. property by a foreign person is subject to foreign tax withholding.

45
Q

foreign person

A

For FIRPTA purposes, a foreign person may include non-resident aliens, foreign corporations, or foreign thus not subject to income tax withholding, they must prove this to the buyer. If they are foreign, the buyer may have to withhold 10% of the purchase price and remit that to the IRS. If you are unsure of how to disclose this to sellers or buyers, be sure to discuss this with your broker.

46
Q

Limited Agency Consent Agreement

A

If both the buyer’s agent and the seller’s agent work for the same broker, even if there are two agents, this is still considered a limited agency and still requires the appropriate form. Buyers and sellers are not required to accept a limited agency situation and retain the right to separate representation.

47
Q

The Fiduciary Duties consists of:
A: Obedience, Loyalty, Reasonable Care, Disclosure, Accounting, Confidentiality
B: Loyalty, Accounting For Funds, Reasonable Care & Diligence
C: Loyalty, Confidentiality, Disclosure
D: Confidentiality, Disclosure, Accounting For Funds

A

A: Obedience, Loyalty, Reasonable Care, Disclosure, Accounting, Confidentiality

48
Q

The purpose of the Limited Agency Consent Agreement is:
A: To Spell Out The Duties Owed By The Buyer’s Agent
B: To Spell Out The Duties Owed By The Listing Agent
C: To Disclose That The Buyer Is Unrepresented
D: To Disclose That The Buyer And The Seller Are Being Represented By The Same Broker

A

D: To Disclose That The Buyer And The Seller Are Being Represented By The Same Broker

49
Q

Which is one of the conditions for a limited agency agreement?
A: Agreement In Which One Party Grants Another Party The Authority To Perform Particular Legal Acts On Their Behalf
B: When One Party Grants Access To Another Party To Enter The Property
C: When One Party Grants Another Party Access Just To Perform One Task ONLY
D: Not Having Any Communication With All Parties Involved

A

A: Agreement In Which One Party Grants Another Party The Authority To Perform Particular Legal Acts On Their Behalf

50
Q

What is a personal property?
A: Personal Property Is Something You Can Pick Up And Move Around
B: Personal Property Only Belongs To The Members In The Household
C: The Ability To Transfer Ownership
D: Only If The Seller Participates In The Agreement

A

A: Personal Property Is Something You Can Pick Up And Move Around

51
Q

For Sale by Owner Commission Agreement

A

The form used to disclose that a seller is unrepresented by an agent when an agent is representing a buyer.

52
Q

The purpose of the For Sale By Owner Commission Agreement & Agency Disclosure is:
A: To Spell Out The Duties Owed By The Buyer’s Agent
B: To Spell Out The Duties Owed By The Listing Agent
C: To Disclose That The Buyer Is Unrepresented
D: To Disclose That The Seller Is Unrepresented

A

D: To Disclose That The Seller Is Unrepresented

53
Q

Selling agent has a ________ with the seller for a commission.
A: Verbal Agreement
B: An Email And Verbal Agreement
C: Contract
D: Written Proof

A

C: Contract

54
Q

What is a sale by owner commission agreement?
A: The Form Used To Disclose That A Seller Is Unrepresented By An Agent When An Agent Is Representing A Buyer
B: The Form To Establish Guidelines
C: The Form To Resolve All Disclosing Statements
D: Commission Structures

A

A: The Form Used To Disclose That A Seller Is Unrepresented By An Agent When An Agent Is Representing A Buyer

55
Q

The three forms that are absolutely necessary when entering into Limited Agency are:
A: Buyer Broker Agency Agreement, Exclusive Right To Sell, Unrepresented Buyer Disclosure
B: Buyer Broker Agency Agreement, Exclusive Right To Sell, For Sale By Owner Commission Agreement
C: Buyer Broker Agency Agreement, Exclusive Right To Sell, Limited Agency Consent Agreement
D: Exclusive Right To Sell, Unrepresented Buyer Disclosure, For Sale By Owner Commission Agreement

A

C: Buyer Broker Agency Agreement, Exclusive Right To Sell, Limited Agency Consent Agreement

56
Q

The appropriate time for making disclosure to a buyer is:
A: Before An Agent Takes The Buyer Out To Look At The First Property
B: Before An Agent Does Any Substantive Work For The Buyer
C: Before The Agent Provides Any Significant Disclosure To The Buyer
D: As Soon As Reasonably Possible

A

D: As Soon As Reasonably Possible

57
Q

The memory trigger for remembering when the very latest time is for us to get the Buyer Broker Agency Agreement signed is:
A: ABCs
B: BBAA
C: ERS
D: LACD

A

A: ABCs

58
Q

The purpose of Section 5 of The Exclusive Right to Sell Listing Agreement and Agency Disclosure is:
A: To Spell Out The Duties Owed By The Buyer’s Agent
B: To Spell Out The Duties Owed By The Client
C: To Spell Out The Duties Owed By The Seller
D: To Spell Out The Duties Owed By The Listing Agent

A

D: To Spell Out The Duties Owed By The Listing Agent

59
Q

In Section 1 of The Exclusive Right to Sell Listing Agreement and Agency Disclosure, the “Date” that the agent writes in the line is the:
A: Date On Which The Agreement Is Entered Into
B: Date On Which The Agreement Becomes Effective
C: Date On Which The Agreement Terminates
D: Date On Which The Protection Period Ends

A

C: Date On Which The Agreement Terminates

60
Q

Section 3 of The For Sale By Owner Commission Agreement & Agency Disclosure deals with:
A: Brokerage Fee
B: Agency Relationships
C: Protection Period
D: Term Of Agreement

A

C: Protection Period

61
Q

Section 2 of the Exclusive Right to Sell Listing Agreement & Agency Disclosure deals with:
A: The Amount Of Commission Owed By The Seller
B: The Brokerage Fee Owed By The Buyer To Their Agent
C: The Broker To Broker Commission Agreement
D: Escrow Instructions

A

A: The Amount Of Commission Owed By The Seller

62
Q

The Disclosure that provides the authorization for the Brokerage to advertise the property in the MLS can be found in the:
A: For Sale By Owner Commission Agreement & Agency Disclosure
B: The Buyer Broker Agreement & Agency Disclosure
C: The Exclusive Right To Sell Listing Agreement And Agency Disclosure
D: The Limited Agency Consent Agreement

A

C: The Exclusive Right To Sell Listing Agreement And Agency Disclosure

63
Q

Fred wants to sell his own home as a For Sale By Owner. Alexis Agent represents a Buyer who has made an offer to purchase Fred’s home. Before presenting the offer to Fred, Alexis needs to make certain that Fred signs:
A: For Sale By Owner Commission Agreement & Agency Disclosure
B: The Buyer Broker Agreement & Agency Disclosure
C: The Exclusive Right To Sell Listing Agreement And Agency Disclosure
D: The Limited Agency Consent Agreement

A

A: For Sale By Owner Commission Agreement & Agency Disclosure

64
Q

Robert is going to be representing both the Buyer and the Seller in a residential real estate transaction. Before he ever touches a Real Estate Purchase Contract for either client, Robert needs to make certain that both of his clients sign the:
A: Buyer Broker Agency Agreement, Exclusive Right To Sell, Unrepresented Buyer Disclosure
B: Buyer Broker Agency Agreement, Exclusive Right To Sell, For Sale By Owner Commission Agreement
C: Buyer Broker Agency Agreement, Exclusive Right To Sell, Limited Agency Consent Agreement
D: Exclusive Right To Sell, Unrepresented Buyer Disclosure, For Sale By Owner Commission Agreement

A

C: Buyer Broker Agency Agreement, Exclusive Right To Sell, Limited Agency Consent Agreement

65
Q

The purpose of the “For Sale By Owner Commission Agreement & Agency Disclosure is”:
A: To Spell Out The Duties Owed By The Buyer’s Agent
B: To Spell Out The Duties Owed By The Listing Agent
C: To Disclose That The Buyer Is Unrepresented
D: To Disclose That The Seller Is Unrepresented

A

D: To Disclose That The Seller Is Unrepresented

Real Estate (52 decks)

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