Authorized Relationships, Duties & Disclosures

Question 1

Principal

Answer 1

A person who delegates authority to another agent. A person entrusted in another’s business is authorized to represent and act for the principal.

Question 2

Fiduciary

Answer 2

Acts on in a position of trust or confidence for another. Owes complete allegiance to principal.

Question 3

Transaction Broker

Answer 3

Broker who provides limited representation does not represent either party.

Question 4

Single Agent

Answer 4

broker who represents, as a fiduciary, either the buyer or seller, but not both, in the same transaction.

Question 5

3 Duties of Licensee in No Broker Relationship

Answer 5

Deal honestly and fairly, Disclose all known facts that materially affect the value of residential property that aren’t readily observable to the buyer, Account for all funds.

Question 6

Consent to transition to transactional broker notice

Answer 6

Gain principal written consent to change relationship, buyer/seller must sign.

Question 7

Misrepresentation

Answer 7

The misstatement of fact or the omission or concealment of factual matter.

Question 8

Difference between single agent and transaction broker?

Answer 8

Transaction broker is limited representation, No obedience and loyalty.