Chapter 4 Flashcards by Issaic Voshel

When a person delegates authority to someone to act on their behalf, an ________ relationship has been created

Agency

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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.

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Florida statute 475 empowers _____ to govern real estate practice in Florida

FREC (Florida Real Estate Commission)

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The person who delegates power to another is the ______

Principal

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The person who accepts the authority from the principal is called the _____

Agent

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Give an example of a principal and agent relationship

Broker and associate

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A fiduciary relationship is one of trust and _____

Confidence

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Sales and brokers associates are _____ of the broker

Agents

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A fiduciary owes complete ______ to the principal

Allegiance(loyalty)

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Dealing “at arms length” means

They conduct negotiations on their own behalf without trusting the others fairness or integrity.

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Caveat emptor is a Latin term for

“Let the buyer beware

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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

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Laws created by the Florida legislature are called ________ ________

Statutory law

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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

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The three brokerage relationships in Florida are what?

Non representation
Single agent
Transactional broker

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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

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A licensee in a single agent relationship are bound to what4 additional duty’s

Confidentiality
Obedience
Loyalty
Disclosure(full)

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A broker that is a _______ _______in a fiduciary relationship represents either the buyer or seller but not both in the same transaction.

Single agent

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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

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Common law is sometimes referred to as

Unwritten law

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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

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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.

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A fiduciary relationship between a broker and buyer or seller only exist when a _______ ______ relationship is chosen

Single agent

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True or false? Dual agency is legal in Florida as long as both parties are aware.

False.

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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

Chapter 4 Flashcards

(64 cards)