***Ch 8. Agency relationships, duties, and disclosures ***

Question 1

A person authorized by a principal to act on the principal’s behalf

Answer 1

Agent

Question 2

A written requirement when a licensee is moving from a single agent relationship to a transaction broker

Answer 2

Consent to Transition

Question 3

A person who is or may be a seller or buyer of real property and may or may not be represented by a licensee

Answer 3

Customer

*customer = transaction broker

Question 4

A single agent for different parties in the same nonresidential transaction. The buyer and seller must have assets of $1 million or more and sign disclosures stating their assets meet the required threshold

ex. commercial transaction

Answer 4

Designated Sales Associate

*disclosure form must be provided to the prospective prior to entering an agency relationship, or before being shown property, which ever comes first

Question 5

A person in a position of utmost trust and confidence with respect to another person

Answer 5

Fiduciary

Question 6

capacity that allowed the broker to represent both the seller and the buyer, at the same time, with full fiduciary capacities.
*no longer valid

Answer 6

Dual Agent

Question 7

an agent that is authorized to perform duties and tasks related to a specific business or employment. In real estate, a PROPERTY MANAGER that handles leases, maintenance, and tenant relations for a Principal.

Answer 7

General Agent

Question 8

A broker that offers to buyers and/or sellers representation as a transaction broker without offering full fiduciary duties

Answer 8

Limited Representation

Question 9

Real estate brokers working with buyers and/or sellers but not representing them as single agents or transaction brokers. If a buyer or seller chooses not to be represented, a licensee can still work with them

Answer 9

Non-representation

Question 10

A party employing the services of an agent

the person you represent

Answer 10

Principal

*principal = single agent

Question 11

A residential property up to four units, a vacant parcel zoned for residential up to four units, or agricultural property of 10 acres or less

Answer 11

Residential Sale

*disclosure requirement apply only to residential sales

Question 12

a broker who represents, as a fiduciary, either the buyer or the seller, but not both in the same transaction. In this relationship, the Principal is the party that has entered into a fiduciary relationship with a broker as agent, typically through a written listing contract

Answer 12

Single Agent

Question 13

an agent that is authorized to perform only a specific duty or task. In real estate, a broker employed by a seller to locate a buyer

Answer 13

Special Agent

Question 14

The relationship of a sales associate working under a broker’s supervision with the broker acting as a principal and the sales associate as an agent

Answer 14

Sub-agency

Question 15

A broker that provides limited representation to either the seller or the buyer or both in a real estate transaction (no fiduciary requirements).

Answer 15

Transaction Broker

• when a listing is generic it is a transaction broker

Question 16

buyers and sellers have the right to representation, they can simply choose to represent themselves. A real estate broker, however, must provide a written what to all persons known to be unrepresented?

Answer 16

No Brokerage Relationship Notice

*ex FSBO

Question 17

must be presented to a prospective Principal before, or at the time of, entering into a listing agreement, or an agreement for representation, or before the showing of property, which ever occurs first. Although the customer is asked to sign the disclosure form, their signature is not mandatory.

Answer 17

Single Agent Notice Disclosure Form

Question 18

What type of disclosure form must be signed, and is used to switch from single agent to transaction broker?

Answer 18

Consent to Transition form

*transaction broker notice disclosure is included this form

Question 19

given prior to signing the consent to transition document, must be in writing and submitted to the Principal either as a separate and distinct document or included as part of another document, such as a listing agreement or other agreement for representation

Answer 19

Transaction Broker disclosure notice

Question 20

What are the differences between single agency and transaction broker?

Answer 20

Full disclosure
Loyalty
Obedience
Confidentiality
FLOC

Question 21

Failure to provide proper and timely disclosures could result in disciplinary actions against the licensee that could result in

Answer 21

suspension
revocation
fine