CH 1 - Brokerage Relationships Flashcards
Agents may not provide ANY ________ without an agency relationship.
professional services
A legal instrument authorizing one to act as another’s attorney or agent.
Power of Attorney
An attorney or agent who may or may not be a lawyer who is given written authority to act on another’s behalf as specified by a power of attorney.
Attorney-in-fact
One who desires the services of an Agent, but opts not to establish an agency relationship.
a customer
An agent legally authorized to act on behalf of another party (client).
a proxy
The ___________ will always be the Agent in every real estate transaction.
broker-in-charge
A licensee may act as a disclosed dual agent only with __________________________________.
the prior informed and written consent of all parties.
Same BIC, different licensees…
Designated Agency
The public has a right to assume that licensed real estate agents ____________________ and that the information provided is _________.
know what they are talking about; accurate
One authorized to conduct business on behalf of a client with a very broad authority. ______ Agent
Universal Agent
One authorized to represent a client on behalf of another agent. _______ Agent
General Agent (licensee)
Typically the Broker-in-Charge for a principal. ________ Agent
Special Agent
What is an Undisclosed Principal?
When an agent represents a Principal without disclosing who the Principal is, or even that they are representing a Principal.
While representing an Undisclosed Principal, it’s as if the agent is ______________________.
acting for and by himself without a principal.
South Carolina requires that all agency agreements be _______________.
in writing
Written agency agreements are considered to be __________ in nature.
personal
_________ never expires.
confidentiality
Name the 6 obligations of an agent to a client.
O bedience L oyalty D isclosure (full) C onfidientiality A ccounting R easonable care & Diligence
Name the 4 obligations of an agent to a customer.
H onesty
F airness
C are
D isclosure
Name 3 instances where it is permissible for an agent to disclose confidential information.
- When the principal grants permission
- When it is required by law
- When disclosure is required to defend oneself against accusations of wrongful conduct before a legal standards hearing board
3 fiduciary duties that are limited, in dual agency
Obedience, Loyalty, Disclosure (OLD)
3 fiduciary duties that are NOT limited, in dual agency
Confidentiality, Accounting, Reasonable Care (CAR)
Procuring Cause
the agent who brought the buyer and ultimately caused the buyer to purchase the property, no break in chain of events.
Indemnity
earnest money; securing another party against loss or damage
Seller leaving a house during a showing to a buyer is an example of ____________
good conduct
True or False? An agent must disclose all property defects he/she knows about.
True
Agency relationships must be explained when?
during the first substantive contact
When explaining agency relationships to a customer, what should be provided?
the Agency Disclosure Brochure
Agency disclosure requirements do not apply if (3 scenarios):
- rental / lease of residential or commercial
- the licensee is soliciting business
- sale of property by auction
Seller/buyer can hire as many agents as they want and pays commission to agent who sells, or can do FSBO with no commission.
Open Listing
Seller/buyer may only hire one agent but retain the right to sell FSBO and not pay commission.
Exclusive Agency Listing
Seller/buyer pays commission regardless of how purchase/sale occurs.
Exclusive Right to Buy/Sell Listing
Agreement where seller sets a reserve price, and the agent gets the difference/surplus from sale. Not legal in SC.
Net Listing
Two fiduciary duties never expire after agency is terminated:
accounting and confidentiality
Same broker acting for both the buyer and seller in the same transaction.
dual agency
A broker has a ________ relationship with his client.
fiduciary
What is needed for a broker to legally collect commissions from both the buyer and seller?
Prior knowledge and written consent of both the buyer and seller
Someone who refuses buyer representation is a _______.
customer
How is a broker’s commission determined in a real estate transaction?
It must be stated in the listing agreement and is negotiated between broker/seller
Which two listing agreements allow owners to sell their own property without having to pay agent commission?
open listing and exclusive-agency listing
Which listing agreement requires the owner to pay agent commission regardless of who sells the property?
exclusive-right-to-sell listing
If the principal or broker dies, a listing agreement becomes:
terminated automatically due to death
If the salesperson / licensee dies, the listing agreement is:
still in effect because the agreement is between the BIC and Principal
True or False: Bankruptcy of the principal will terminate an agency relationship.
True
A licensee owes _______________ to a customer.
honesty and fair dealing
