Chap 4 Flashcards
In Florida, which type of brokerage relationship is presumed?
A) General B) No brokerage C) Transaction broker D) Single agent
The answer is transaction broker. Under Florida law, it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established.
Which statement is unique to the transaction broker relationship?
A)
The licensee must disclose all known facts that materially affect the value of the real property.
B)
The buyer or the seller must give written consent to enter into the brokerage relationship.
C)
The agent is obligated to a duty of obedience.
D)
The customer is not responsible for the acts of the licensee.
Explanation
The answer is the customer is not responsible for the acts of the licensee. The duty of obedience is unique to the single agent relationship. In all three brokerage relationships, when dealing in residential real estate, the licensee must disclose all known facts that materially affect the value of the real property. The licensee is not required to give written notification of the brokerage relationship duties in a transaction broker relationship. The buyer or the seller is not required to sign the disclosure unless transitioning from one brokerage relationship to another.
Which brokerage relationship duty applies only to a single agent relationship?
A) Exercise limited confidentiality B) Deal honestly and fairly C) Account for all funds D) Full disclosure
D. Full disclosure
In commercial real estate transactions that meet specific criteria, a real estate brokerage may use one sales associate to work as a single agent of the buyer and another sales associate to act as a single agent of the seller. Which criteria must be met?
A)
The buyer and the seller must agree to sign the Transition to Two Single Agents Notice.
B)
The broker must serve as a neutral party and not give guidance or representation to the buyer and the seller.
C)
The buyer and the seller must agree to sign the Irrevocable Consent to Service Agreement.
D)
The buyer and the seller must each have assets of at least $2 million.
B)
The broker must serve as a neutral party and not give guidance or representation to the buyer and the seller.
Which brokerage relationship duty applies to all three types of brokerage relationships?
A) Accounting for all funds B) Loyalty C) Confidentiality D) Using skill, care, and diligence
A. accounting for all funds
Which brokerage relationship duty applies only to a transaction broker relationship?
A) Account for all funds B) Full disclosure C) Deal honestly and fairly D) Exercise limited confidentiality
D)
Exercise limited confidentiality
The brokerage relationship disclosure requirements in Chapter 475 apply to which transaction?
A) Sale of a 150-unit condominium complex B) Lease of a single-family home C) Sale of a coffee shop in a residential neighborhood D) Sale of three vacant lots zoned for single-family use
The answer is sale of three vacant lots zoned for single-family use. Brokerage relationship disclosure requirements apply to residential transactions. A residential sale is defined as the sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, and the sale of agricultural property of 10 or fewer acres.
On Sunday at an open house, a sales associate receives two offers on a home listed for $300,000. One offer is for $250,000 cash at closing. The second offer is for $295,000 contingent upon the buyer securing a mortgage for 90% of the sale price. What action should the sales associate take?
A)
Present the offer received first, and if declined, present the second offer.
B)
Present only the higher-priced offer because it will result in the highest commission.
C)
Present the higher-priced offer first, and if declined, present the second offer.
D)
Present both offers, explaining the details of each contract to the seller.
The answer is present both offers, explaining the details of each contract to the seller. Unless a party has previously directed the licensee otherwise in writing, the licensee must present all offers and counteroffers in a timely manner.
Which type of transaction requires that the parties to the transaction receive brokerage relationship disclosures?
A) Business opportunities that include five or more residential units B) Appraisals of residential real estate C) Agricultural property of 10 or fewer acres D) Auctions of residential real estate
C)
Agricultural property of 10 or fewer acres
Is a broker required to retain the brokerage relationship disclosure documents, and if so, for how long, if a written nonresidential transaction that used designated sales associates fails to close?
A)
The broker is required to retain disclosure documents only for contracts that go to title closing.
B)
The broker must retain the disclosure documents for five years even if a nonresidential transaction that used designated sales associates fails to close.
C)
The broker must retain the disclosure documents for two years even if a nonresidential transaction fails to close.
D)
The broker must retain the disclosure documents for 90 days to give ample opportunity for the parties to close the deal.
B)
The broker must retain the disclosure documents for five years even if a nonresidential transaction that used designated sales associates fails to close.
Which information must be disclosed to a prospective buyer regarding a particular property?
A)
The public K-12 schools assigned to the neighborhood’s district have a particular student-teacher class ratio.
B)
The property is located in a flood zone area that requires flood insurance coverage.
C)
Neighborhood residents comprise several ethnic groups.
D)
The seller’s wife was diagnosed with immune deficiency syndrome.
B)
The property is located in a flood zone area that requires flood insurance coverage.
