Brokerage Relationships (11 items, 15%)

Question 1

A listing agreement must be in writing to form an ______ relationship.

Answer 1

agency

Question 2

A transaction-broker listing could be ______, but it is unwise.

Answer 2

oral

Question 3

The listing contract must identify:

• the _______
• State the sale’s ______ and _________.
• Contain the ________ of all involved _____.
• Have an ________ _____.

Answer 3

• the property
• terms and conditions
• signatures; parties
• expiration date

Question 4

In an ______ listing, the seller can have several _________ marketing the property and only pay a commission to…

Answer 4

open
brokers
the broker who finds the buyer.

Question 5

RULE E-13
Sometimes called a “____-______” rule.

Makes it illegal to attempt to ________ parties involved in an agency agreement by soliciting _________ or _______ of another broker.

Answer 5

“sign-crossing”

alienate
listings or buyers

Question 6

Even after a listing agreement or a buyer agreement expires or terminates because of a _________ sale, the broker still owes the principal…
all related duties of __________ and _________.

Answer 6

successful

accounting and confidentiality.

Question 7

If no _____ is stated in a buyer agency agreement, the agreement expires __ _____ after the date of engagement.

Answer 7

date

1 year

Question 8

The holdover period, if not stated in the contract, is ___ days.

Answer 8

60

Question 9

*ADVERSE MATERIAL FACTS*
For a buyer/tenant, this would include: 
-\_\_\_\_\_\_\_\_ in title
- \_\_\_\_\_\_\_\_ condition
-\_\_\_\_\_\_\_\_\_\_ hazards.

For a seller/landlord, this would include, but not be limited to:
-knowledge of negative ________ _______ of the buyer.

Answer 9

• defects
• physical
• environmental

financial conditions

Question 10

BLIND AD
An illegal ad that does not identify the _________ ____, leading readers to believe that the advertised property is for sale by a ________ ________.

Answer 10

brokerage firm

private party.

Question 11

COMMINGLING
Mixing _______ belonging to others with _______ or _______ funds.

Illegal commingling includes:
-Failing to maintain such money in identified _______ ________.

Answer 11

money
personal or business

escrow accounts.

Question 12

Funds from property management must be put into escrow within __ days.

Answer 12

5

Question 13

A broker managing any type of property must use whose escrow account?

Answer 13

Employing broker

Question 14

GENERAL AGENCY
Created when an agent is given broad ranging ______ to represent a principal in a particular business or activity.

The general agent may bind the principal to any contract within the scope of the ________ agreement.

A _________ manager is usually a general agent.

Answer 14

power

agreement.

property

Question 15

INTERPLEADER ACTION
When a _____ action is filed to determine the disposition of earnest money, a broker may seek a _____ __________, called an interpleader action, to _______ the funds with the court.

Answer 15

civil

court authorization,

funds

Question 16

MATERIAL DEFECTS
________ facts relating to a property of such significance they would affect a person’s ________ to enter into the contract.

Failure to disclose ________ about a specific property could result in a charge of ____________ against the seller and the broker.

Answer 16

Negative
decision

defects
misrepresentation

Question 17

NEGATIVE CONSENT
When there is a ________ in the contract, such as failure to deliver the seller’s ______ ________ by the specified contract date, the receiving party (buyer), if they take no action, waives the right to __________ the agreement if notice isn’t given by the _________.

Answer 17

default
property disclosure
terminate; deadline.

Question 18

STIGMATIZED PROPERTY
Disclosing information that might ______ the _____ of the property but is not an _________ ________ fact.
An example of a stigmatizing statement would be, “The previous owner died of ________.”

Answer 18

hinder the sale
adverse material

AIDS.

Question 19

VICARIOUS LIABILITY
A principal’s ______ for the acts of an ______ when the agent is acting within the scope of the agent’s employment.
Vicarious liability has been _________ in Colorado, unless the principal directed or ratified actions of the agent that were ________ or __________.

Answer 19

liability
agent

eliminated
fraudulent or dishonest.