Ch.4 Authorized Relationships

Question 1

What are the 4 types of Agency:

Answer 1

1. Universal Agent
2. General Agent
3. Sub-Agency
4. Special Agent

Question 2

the principal empowers the
agent to perform any and all actions that may be legally delegated to an agency
representative. The instrument of authorization is the power of attorney.

Answer 2

Universal agency.

Question 3

the principal delegates to the agent
ongoing tasks and duties within a particular business or enterprise. Such
delegation may include the authority to enter into contracts.

Answer 3

General agency.

Question 4

the principal
delegates authority to conduct a specific activity, after which the agency
relationship terminates. In most cases, the special agent may not bind the
principal to a contract.

Answer 4

Special, or limited, agency.

Question 5

The agent represents one party in a transaction. The client may be either seller or

buyer.

Answer 5

Single Agency

Question 6

a broker or licensed salesperson works as the agent of a broker
who is the agent of a client. Subagents might include a cooperating licensed
broker, that broker’s licensed salespeople, and the listing broker’s licensed
salespeople, all of whom agree to work for the listing broker on behalf of the
client.

Answer 6

Subagency

Question 7

A recent solution
allows a broker to represent no one in a transaction. That is, the broker acts as a
transaction broker, or facilitator, and is not an agent of either the buyer or
seller. In this relationship, the facilitator does not advocate the interests of either
party.

Answer 7

No Agency

Question 8

represent in business and personal matters; can contract for principal

Answer 8

universal

Question 9

represent in business matters; agent can contract for principal

Answer 9

general

Question 10

represent in single business transaction; normally agent cannot contract
for principal; the brokerage relationship is usually special agency

Answer 10

special

Question 11

Agency Law Parties

Answer 11

listing broker and client; broker’s subagents; customers and prospects

Question 12

Agency Law Fiduciary Duties

Answer 12

loyalty; obedience; disclosure; care; diligence; accounting

Question 13

listings are special or limited agency, not general agency
agreements; broker may not contract for client unless specifically authorized;
clients liable only for broker’s acts within scope of authority

Answer 13

Agency Law Scope of Authority

Question 14

listings are unilateral contracts; listing must be valid to be enforceable; legal
form: oral listings are valid and enforceable except, in many states, exclusive
right-to-sell listings which must be written to be enforceable

listings are not assignable since they are personal service contracts

Answer 14

Contract Law

Question 15

Laws governing agency laws are called what?

Answer 15

Law of Agency

Question 16

Disclosure paperwork must be kept by a broker for

Answer 16

3 years

Question 17

A sales associate is working with a buyer in a fiduciary capacity. With regard to disclosure, which form must be given by the broker to the buyer to clarify the role of the buyer and the licensee?

Answer 17

The Single Agent notice