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Real Estate > Chapter 2 Agency > Flashcards

Chapter 2 Agency Flashcards

1
Q

What is a principal?

A

A client

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2
Q

What is vicarious liability?

A

the responsibility one individual has for the acts of another

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3
Q

An agent can create vicarious liability through such actions such as….

A
  1. misrepresentation
  2. careless statements
  3. not disclosing certain details that could be material
  4. driving clients under the influence
  5. failure to follow federal or state laws
  6. being an agent in an area of no expertise
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4
Q

What must a broker do within 5 business days if the agent leaving does NOT wish to transfer their license to another brokerage?

A

broker must return the agents license to the real estate commission (NJREC)

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5
Q

When the grantor dies, does the POA become void?

A

Yes

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6
Q

What are some reasons for terminating agency?

A
  1. the purpose has been met
  2. mutual agreement
  3. court order
  4. death of principle or sometimes the broker
  5. broker had their license revoked
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7
Q

Ostensible Agency

A

when a principal does nothing to stop someone from acting as their agent which would make a 3rd party think an agency relationship exists

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8
Q

Agency by Estoppel

A

when a principal allows a person to act as their agent even though no agency relationship existed

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9
Q

Buyer commission rebates are determined by the…

A

broker

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10
Q

In Real Estate Parlance…

A

the CLIENT is the one you work FOR

the CUSTOMER is the one you work WITH

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11
Q

If an agent wants to go to a different brokerage, what must the terminating broker do?

A

must report the termination on his REC portal to the commission within 5 business days

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12
Q

What is a subagent?

A

an agent of an agent ; whom the principal authorizes to act on behalf of his designed agent

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13
Q

What is a transaction broker?

A

(has no agency relationship with customers)
-a facilitator helping the buyer or seller (customers) find what they are looking for and to help go through the transaction smoothly

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14
Q

What is dual agency

A

an agency represents both parties (buyer & seller) in the same transaction

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15
Q

What is a sellers agent

A

aka listing agent

-whom represents the seller

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16
Q

What is a buyers agent

A

whom represents the buyer

17
Q

When must you disclose who you represent?

A

during the 1st substantive business discussion

18
Q

What is general agency?

A

broad but not unlimited authority granted by the principal

19
Q

What is universal agency?

A

unlimited authority granted by the principal

20
Q

What is an agent?

A

a person who represents and has a fiduciary duty to a client

21
Q

What is the duty to a customer?

A

HARD

  1. honesty
  2. accountability
  3. reasonable car
  4. disclosure
22
Q

Does your transaction broker give you advice and represent the interest of one party over another?

A

NO

23
Q

What is a power of attorney?

A

the authority a principal gives to a person called an attorney-in-fact to conduct specific or unlimited duties on the principal’s behalf

24
Q

Does the attorney-in-fact have fiduciary duty to the principal?

A

Yes

25
Q

The customer is the one you work with…TRUE OR FALSE

A

True

26
Q

The client is the person you work for …. TRUE OR FALSE

A

TRUE

27
Q

When must you disclose your dual agency status?

A

before any discussion of a confidential nature takes place

28
Q

What document must be signed by the client at the first face-to-face meeting?

A

Consumer Information Statement (CIS)

29
Q

What happens if the client refuses to sign the CIS?

A

You must advise them that they will not be owed any fiduciary duty by the agent

30
Q

What is the consumer information statement?

A

its a document that describes the agents business relationship with the client

31
Q

Before someone can participate in RE transactions what must the broker & licensee do/center?

A

licensee business relationship agreement

32
Q

What makes a POA void?

A

has to be in writing and notarized

33
Q

POA is the actual authority
Attorney-in-fact is the actual person
True or False

A

True

34
Q

What is Express Agency

A

oral or written agreement that clearly states the duty of the agent assigned by the principle

35
Q

What is Special Agency?

A

principal grants narrow or specific authoruty

36
Q

Does the transaction broker owe fiduciary duty to customers?

A

No

37
Q

Must you provide a written notice that you would like to terminate the relationship with your broker?

A

Yes

38
Q

What is single agency?

A

represents only the buyer/seller/landlord or tenant in a relationship & neither the agent nor any other licensee within the agents brokerage can represent the other side of the transaction

39
Q

Whats your fiducairy duty to a client?

A 
OLDCAR
Obedience 
Loyalty
Disclourse 
Confidentiality 
Accountability 
Reasonable care

Real Estate (5 decks)

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