Brokerage Relationships Flashcards
What is the law of agency.
When a person delegates authority to someone to act on that person’s behalf, an agency relationship has been created.
What is Common Law
Is law derived from customs rooted in the common law of England.
What is case law.
Law that his been derived from cases tried before a court of law. It is also referred to common law that has been appealed.
What is statutory law.
Statutes and rules enacted by legislative bodies.
What is the opposite of a fiduciary relationship in a transaction?
Dealing at arms length where people with adverse relationships are dealing with each other.
What is a universal agent?
A universal agent is authorized to perform ALL acts the principle can personally perform. (POA)
What is a general agent.
Salesman (Sales/Broker Associate) are the broker’s general agent
What is a special agent?
A broker is a special agent however can not bind or obligate the principle unless given a POA.
What are the 3 roles a licensee can have in a transaction?
1) transaction broker
2) single agent
3) no brokerage relationship
What type of agency is illegal in the state of FL.
Dual Agency is illegal in Florida. Meaning the broker represents a fiduciary for both buyer and seller.
What is considered a residential sale.
A sale of improved or unimproved residential property 4 units or less or zoned for the same purpose. Or, the sale of agricultural property 10 acres or fewer.
Hint look for less than 4 units on test it could be 3 or 2. So long as it is fewer than 4.
What is the only type of agency that can have fiduciary or clients?
Single Agent.
What is a transaction broker
A transaction broker provides limited representation to a buyer, seller, or both in a transaction but does not act as a fiduciary capacity in the transaction or as a single agent.
In a transaction broker relationship, the buyer or seller is not responsible for the acts of the licensee.
What are the duties of a transaction broker
Deal honestly and fairly
Account for all funds
Use skill, care, and diligence in the transactoin
Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.
Present all offers and counteroffers in a timely manner. (includes verbal offers unless waived in writing)
Exercise limited confidentiality, unless waived in writing by a party. (limits the discussion of price, motivation, or financing terms a buyer/seller will accept)
Perform any additional duties that are mutually agreed to with a party.
What is a single agent
An agent who works for the buyer or the seller but not both in a fiduciary capacity.
What are some of the duties of a single agent
Full Confidentiality - keep all secrets secret. (When agency is over fiduciary lives on.)
Obedience - obey all lawful instructions.
Full disclosure - you must disclose any fact, rumor, or report. Otherwise you could be charged with concealment.
What is “overage” or “secret profit”
When a broker in a single agency capacity buys a property from a principle and later sells it for more not disclosing all facts about the property.
What duty is required in all agency relationship types.
Dealing honestly and fairly.
When does an agent need to disclose what type of agency he is using
before the first showing, seeing the property, or signing of the contract. Which ever comes first.
What should you do if a buyer/seller does not want to sign an agency disclosure
Write the date, time and what was said.
How does an agent get around an in house sale in a single agent relationship.
transition to another broker relationship form. Only works if both buyer and seller sign it. If not will not work.
What is a designated sales associate.
In a nonresidential real estate transaction where buyer and seller each have $1 million or more a broker can designate a sales associate to each buyer and seller and still act as single agents. The broker then serves as an advisor to the designated sales associates not the buyer or seller.
How long does a broker need to keep records.
5 years even if the property failed to close. If there is litigation than the file needs to be kept for an additional 2 yrs.
Does the withdrawl of a purchase agreement terminate a brokerage agreement.
No.
