Chapter 4 Flashcards
When a person delegates authority to someone to act on their behalf, an ________ relationship has been created
Agency
What are the three types of law society looks to for guidance regarding agency relationships
Common law- unwritten law, based on usage, acceptance, and customs.
Statutory law- written statutes enacted by the Florida legislature. Ch 475 and 455 pertain to license law.
Administrative law- law created by administrative agencies in the form of rules, regulations, orders, and decisions.
Florida statute 475 empowers _____ to govern real estate practice in Florida
FREC (Florida Real Estate Commission)
The person who delegates power to another is the ______
Principal
The person who accepts the authority from the principal is called the _____
Agent
Give an example of a principal and agent relationship
Broker and associate
A fiduciary relationship is one of trust and _____
Confidence
Sales and brokers associates are _____ of the broker
Agents
A fiduciary owes complete ______ to the principal
Allegiance(loyalty)
Dealing “at arms length” means
They conduct negotiations on their own behalf without trusting the others fairness or integrity.
Caveat emptor is a Latin term for
“Let the buyer beware
What are the 2 type of agents and what are their duties
General agent, special agent
General agent represents the principal on a broad range of matters related to a particular business
Special agents act on a specific business transaction or to perform a specific act
Laws created by the Florida legislature are called ________ ________
Statutory law
THe _______ ________ ______ ______ is intended to inform and educate the public regarding the types of authority (brokerage relationships) that a broker has as well as the duties a broker has in each relationship
Brokerage relationship disclosure act
The three brokerage relationships in Florida are what?
Non representation
Single agent
Transactional broker
What are the three duties all licensees are bound to regardless of the brokerage relationship
Account for all funds
Deal honestly and fairly
Disclose all known facts that affect value of residential property
A licensee in a single agent relationship are bound to what4 additional duty’s
Confidentiality
Obedience
Loyalty
Disclosure(full)
A broker that is a _______ _______in a fiduciary relationship represents either the buyer or seller but not both in the same transaction.
Single agent
What is the difference between a general and special agent
A general agent is authorized to perform multiple acts with the continued operation of a particular job or a certain business of the principal.
A special agent performs a specific act or a specific transaction
Common law is sometimes referred to as
Unwritten law
True or false? A broker in a non representation (no brokerage) relationship may only relay information to the parties and may not negotiate on their behalf.
True
True or false? A licensee is not expected to disclose all known material facts that affect the value of real property and are not readily observable to the buyer
False.
A fiduciary relationship between a broker and buyer or seller only exist when a _______ ______ relationship is chosen
Single agent
True or false? Dual agency is legal in Florida as long as both parties are aware.
False.
2 licensees separately dealing with the a buyer in seller of the same transaction are committing ______ ______ and this is illegal in Florida.
Dual agency
A sales associate and brokers associates are ___ _____ of the broker they work for
Sub agents
If the broker is the agent of the buyer or seller, what is the buyer or seller considered?
The principal
A transaction broker as well as no representation work with a _____ while single agents work with a principal/ client.
Customer
Licensees in a single agent relationship must use skill care and ______ as well as present all offers and counter offers
Diligence
What are the 9 duties a single agent owes the principal?
Account for all funds
Deal honest and fair
Disclose all known facts that effect the residential property
Use skill care and diligence
Present all offers and counteroffers
Confidentiality
Obedience
Loyalty
Disclosure(full)
_______ obligates an agent to act in good faith according to the principals instructions while the duty of ________ requires the broker to place the principals interest above other persons with whom the broker deals with.
Obedience, loyalty
_________ prevents agents from revealing to a third party any personal or private information without the buyer or sellers (principal) permission while ____ _______ keeps the principal fully informed at all times of all facts or information that might effect the transaction or property value
Confidentiality, full disclosure
True or false? An agent in a non representation or no brokerage relationship simply facilitates the transaction and does not represent or negotiate for either party
True
Hey
True or false? An agent in a no brokerage relationship represents one side or the other as a principal and negotiates on their behalf
False
To represent both the buyer and seller in a single agent relationship is _____ ______ and is considered conflict of interest
Dual agency
In Florida, it is presumed that all licensees are operating as _________ brokers unless one of the other broker relationships is established in writing
Transaction
Define a transaction broker
A broker who provides limited representation to a buyer, seller, or both in a real estate transaction and does n it represent either party in a fiduciary(loyal) manner
All licensees are providing _______ ________ to both parties in a transaction broker relationship.
Limited representation
What are the 4 additional duties required by a transaction broker?
Use skill care and diligence
Present all offers and counter offers
Exercise limited confidentiality
Perform additional duties that are mutually agreed on
What are the 6 additional duties in a single agent relationship
Use skill, care, and diligence
Present all offers and counter offers
Confidentiality
Obedience
Loyalty
Disclosure(full)
Which real estate relationship involves a fiduciary relationship?
Single agent
Transactional and non representation brokers work with ________ rather than a principal or client
Customer
The limited confidentiality prevents disclosure of what information on top of any information requested by the customer
That the seller will accept a price lower than the asking price
That the buyer will pay a price greater than the written offer
The motivation of parties to buy or sell
That a buyer or seller will agree to financing terms other than those previously disclosed in writing
To change from a single agent to a transaction broker, the buyer or seller(or both) must sign the _______ ___ _______ to transaction broker notice set forth by chapter 475
Consent to transition.
True or false? If the principal refuses to sign the consent to transition notice, the broker must continue to act as a single agent.
True
If the brokerage firm has a transaction broker relationship with the seller, the brokerage firm may NOT represent the buyer in what type of broker relationship
Single agent
A brokerage firm cannot represent the buyer as a single agent or work with the buyer as a transaction broker if the firm represents the seller as a ______ ______.
Single agent
True or false? Brokerage relationship limitations apply even if the buyer and seller are working with different sales associate in the same brokerage firm.
True
Written disclosures are required ONLY for residential transactions and only when acting as a non representation broker and a ______ ________ and not when you are a transaction broker
Single agent
Residential sale transactions are defined as what?
Improved/ unimproved property of 4 or fewer residential units
Agricultural property of 10 or fewer acres
True or false? A large apartment complex is not considered residential real estate under the brokerage relationship disclosure act (BRDA)
True
A 5 acre property zoned agricultural falls within the definition of a ________ _______ under the BRDA
Residential transaction
Brokerage relationship disclosure requirements do not apply to transactions involving ___________ _______ _____, ______ _________, and _____ ________ and are also not required for auctions and _______
Nonresidential real estate, business opportunities, lease agreements, appraisals
If the brokerage relationship disclosure is inserted into a listing agreement or buyer broker agreement, a signature line must be located where?
Immediately following the disclosure information
Under Florida law, it is presumed all brokers are acting as __________ brokers unless another brokerage relationship is selected
Transaction
True or false? Transaction broker relationships do not require a written disclosure.
True
The no brokerage relationship relationship disclosure must be given before _______ ___ _______
Showing of property
The disclosure requirements for non representation, single agent and transaction broker relationships only apply to ________ land, although they are still bound by ch. 475 regarding the duties
Residential
I’m a nonresidential real estate transaction where the buyer and seller each have $1,000,000 dollars or more, the broker at the request of the buyer and seller may designate two sales associates to act as single agents for the buyer and the seller in the same transaction. The 2 associates are called _______ ______ ________.
Designated sales associates
True or false? Using a designated sales associate in a residential transaction is acceptable as long as all parties involved are aware.
False
While using designated sales associate form of representation, the broker acts as an ______ for the associates and serves as a ______ party without giving guidelines or representation to either party.
Advisor, neutral
The disclosure requirements for designated sales associate are the buyer and seller must sign a disclosure notice stating their assents meet _________ dollars or more, and requesting the designated sales associates Representation.
Million
A brokerage relationship between a principal/ customer and a broker may be terminated for what fallowing reasons
Fulfillment of relationship(find ready willing and able buyer)
Mutual agreement to terminate
Expiration
Broker gives notice to renounce relationship
Principal revoked relationship, (may be liable for damages)
Death of seller, buyer or buyer/sellers broker
Destruction of property
Eminent domain
Bankruptcy of the principle/customer
