Buyer Representation Agreement

Question 1

What is Common law fiduciary agent

Answer 1

“OLD CAR”: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.

Question 2

Statutory agent

Answer 2

The duties are similar to a common law agent but backed by statute, so they vary by state.

Question 3

Dual agent

Answer 3

Also called limited agency, this form of agency allows an agent to represent both buyer and seller in a single transaction (in states where it’s legal).

Question 4

Designated agent or split agent

Answer 4

This is an option allowed in some states where a single brokerage (but different licensees from that brokerage) represent both buyer and seller in a single transaction, with each representative loyal to the interests of only one party.

Question 5

Non-agent

Answer 5

The licensee represents neither party and merely helps with paperwork, or other ministerial duties.

Question 6

open agency

Answer 6

allow a buyer to work with several buyer representatives, and also reserve the right to self-represent.

Question 7

Exclusive Agency

Answer 7

Buyers who opt for exclusive agency are represented by a single brokerage, but reserve the right to self-represent.

Question 8

exclusive right to represent

Answer 8

The buyer hires only one company for representation, and waives the right to self-represent during the term of the agreement. The buyer’s representative named on the agreement is assured of a commission no matter who completes the transaction, provided the buyer identifies a property within the term of the agreement.

Question 9

All Georgia buyer representation agreements must be in writing and

Answer 9

-Have a definite termination date
-Clearly state compensation details, including any retainer fee and commission information
-State the services the licensee is going to provide to the client
-State the limits to the licensee’s authority
-Include any other terms of the buyer representation relationship that the client and licensee have agreed upon

Question 10

Buyer as Customer

Answer 10

-Identifying property and property information
-Preparing and conveying an offer to a seller using a pre-printed form
-Locating an inspector
-Providing a list of real estate attorneys to the buyer

Question 11

In Georgia, buyer representation agreements ______.

Answer 11

Aren’t limited to any a state-specified form

Question 12

Which of the following duties does the agent owe the buyer under the terms of a buyer representation agreement?

Answer 12

Locating and showing properties

Question 13

¸A legal description can best be described as which of the following?

Answer 13

A description of the land that specifies the boundaries and location of a specific piece of real property

Question 14

Using preprinted purchase agreement forms is the standard, but ______.

Answer 14

You should know what to fill in the blanks

Question 15

What is the purpose of the closing disclosure

Answer 15

To detail all costs Jermaine will owe at closing

Question 15

Real estate sales contracts typically specify ________.

Answer 15

The remedies if either party defaults

Question 16

Traditionally, lenders’ qualifying mortgage rules use a range of percentages to qualify for both the housing debt-to-income ratio and the total debt-to-income ratio. What are those ratio ranges?

Answer 16

25% to 28% for housing; 33% to 36% for total debt

Question 17

Who must provide the buyer and seller with a copy of the closing disclosure?

Answer 17

The buyer’s lender