Agency - Need To Know

Question 1

Define:

Fiduciary

Answer 1

The word which describes the responsibility of an agent toward the principal, involving trust, loyalty, confidence, care and diligence.

Question 2

When working for an owner, the broker takes on the role of a ______

Answer 2

Fiduciary

Question 3

What are real estate licensees required to do when selling their own property?

Answer 3

Disclose to the buyers and sellers that they have a real estate license.

Question 4

If a real estate sales agent owns and wants to sell a parcel of land, but neither lists nor advertised it, what must the sales agent do?

Answer 4

Disclose owner/agent

Question 5

The sellers agent tells the buyer to offer less than the listed price. What relationship has the agent created?

Answer 5

Agency by implication or undisclosed dual agency.

Question 6

Define:

Limited agent

Answer 6

A.K.A. Dual Agent;

When the agent is representing both principals in a transaction with their informed consent.

Question 7

What must the agent disclose to the principal?

Answer 7

All material information about the customer and the transaction.

Question 8

What must the agent disclose to the customer?

Answer 8

All material information about the property and the client’s ability to perform in the transaction.

Question 9

What duties does an agent owe a client?

A.K.A. Fiduciary Duties

Answer 9

1. Loyalty
2. Obedience
3. Confidentiality
4. Full disclosure
5. Accounting and safe holding of the property
6. Reasonable care and diligence

Question 10

What duties does an agent owe a customer?

Answer 10

To treat them honestly, ethically and competently

Question 11

A limited agent becomes neutral in what regard?

Answer 11

1. Loyalty
2. Confidentiality
3. Full disclosure