Authorized and Relationships. Duties, and Disclosure

Question 1

At arm’s length

Answer 1

people conduct business on their own behaf

Question 2

Three brokerage relationships

Answer 2

-no brokerage relationship
-single agent
-transaction broker

Question 3

no brokerage relationship duties (nonrepresentation)

Answer 3

-account for all funds
-deal honestly and fairly
-disclose all known facts that materially affect the value of residential real property and are not readily available to the buyer

Question 4

Single agent relationship

Answer 4

-a broker who represents as a fiduciary either the buyer or seller, but not both
-fiduciary relationship exists only in a single agent relationship

Question 5

Dual agency

Answer 5

-when a brokerage firm represents as a fiduciary both the buyer and seller in
-illegal to operate as a dual gent

Question 6

Single agent duties

Answer 6

-account for all funds
-deal honestly and fairly
-disclosure all known facts
-us skill, care, and diligence
-present all offers in a timely manner
-confidentiality
-obedience
-loyalty
-full disclosure

Question 7

Transaction broker relationship

Answer 7

-account for all funds
-deal honestly and fairly
-disclose all known facts
-use skill, care, and diligence
-present all offers and counteroffers
-exercise limited confidentiality
-provide any additional duties

Question 8

Transition from single agent to transaction broker

Answer 8

-accomplished with the Consent to Transition to Transaction Broker Notice
-buyer’s and sellers signature (initials) required before the licensee may change from one broker’s relationship to another
-if the principal refuses to sign or initial consent the broker must continue as a single agent

Question 9

Residential sale transactions are defined as the sale of

Answer 9

-improved residential property of four or fewer units
-unimproved residential property intended for use as four or fewer units
-agricultural property of 10 or fewer units

Question 10

Types of transactions that don’t need brokerage relationship disclosures

Answer 10

-nonresidential transactions
-rent or lease agreements, unless there is an option to purchase property improved with four or fewer units
-business opportunities, unless improved with four or fewer residential units
-auctions
-appraisals

Question 11

nonresidential transactions

Answer 11

-designated sales associates
-buyer and seller must have assets of at least 1 million
-broker designates on associate to be a single agent for the buyer and one for the seller
-broker facilitates and advises designated sales associates