Agency Relationships

Question 1

What are the types of agency

Answer 1

• Non-representation
• Single Agency Relationship
• Transaction Broker.

Question 2

What does Residential Sales encompass?

Answer 2

• The sale of improved residential property of four units or less
• The sale of unimproved residential property intended for use of four units or less
• The sale of agricultural property of 10 acres or less.

Question 3

When must agency relationship be disclosed?

Answer 3

At first contact

Question 4

When does first contact happen?

Answer 4

First Contact happens at the beginning of the initial meeting or communication between, a licensee and a seller or buyer

Question 5

Who does a single agent represent?

Answer 5

Single agency representation solely represents the principle, who is either a buyer or seller, but not both.

Question 6

Who does a transaction broker represent?

Answer 6

A Transaction Broker simply puts the transaction together and provides limited representation and limited confidentiality to both parties.

Question 7

What are the duties as defined under Non-representation?

Answer 7

• Deal with the customer honestly and fairly.
• Disclose all known facts that materially affect the value of property which are not readily observable to the buyer.
• Account for all funds entrusted to the licensee.

Question 8

What must happen before an agent can change status from a single agent to a transaction broker?

Answer 8

All parties must be informed in writing on the correct transition form and give consent before there is a change in the relationship.

Question 9

How long must agency disclosure forms be kept?

Answer 9

5 years after the form was signed, or two years after the completion of any legal procedure associated with the clients.

Question 10

What must a valid listing agreement must include?

Answer 10

• A definite expiration date
• Proper identification of the property
• Price, terms and conditions
• Fee or commission to be paid
• Signature of the owner

Question 11

What are the four types of listing agreements?

Answer 11

• An Exclusive Agency Listing
• An Exclusive Right To Sell Listing
• An Open Listing
• A Net Listing

Question 12

What feature must all contracts for the sale of real estate include in order to be enforceable?

Answer 12

A ll contracts for the sale of real property must be in writing to be enforceable

Question 13

What contract gives a principle the right to purchase or lease a property at a future date?

Answer 13

An option contract

Question 14

What type of contract allows a buyer to purchase a piece of property over a time period instead of closing and giving money upfront, all at once?

Answer 14

An installment contract or contract for deed.

Question 15

Which contract is an employment contract between the broker and a buyer?

Answer 15

A Buyer’s Agency Agreement