Chapter 4 Flashcards
What is a fiduciary relationship?
A fiduciary relationship is a relationship that contains complete trust and confidence.
What are the three brokerage relationship options that a broker has with a member of the public?
Single agent, transaction broker, and the no brokerage relationship, (also called nonrepresentation)
Which brokerage relationship contains a fiduciary relationship?
The single agent relationship
Which offers are sales associates legally required to present?
All offers
When is a licensee required to disclose all known defects that affect the value of residential property that are not readily observable by the buyer?
Always
If a contract is an “as is” contract, does that remove the requirement of the licensee to disclose all known facts that materially affect the value of residential real property?
No
When is a licensee required to show the no brokerage relationship notice?
Before showing property
What kind of agency relationship does a broker and a sales associate have?
A general agency
If a broker lists a house with a single agency relationship and then finds a potential buyer, what are the two options he, (and the sales associates under him) have to legally show the prospective buyer the house?
Thefirst option is the broker, (and the sales associates under him) can show the potential buyer the No Brokerage Relationship Disclosure. The second option is the broker can have the seller, (the principal) sign the Consent to Transition toTransaction Broker Disclosure Notice.
Does a transaction broker have the duty of complete trust and confidence, (fiduciary) to his customers?
No
Does a single agent have the duty of complete trust and confidence, (fiduciary) to his principals/clients?
Yes
Can a transaction broker or single agent ever discuss with the other party, the motivations of their party?
No
Is dual agency permitted in Florida?
No
Which disclosure form must be signed by the principal when the broker is transitioning from a single agent to a transaction broker relationship?
The Consent to Transition to Transaction Broker Disclosure Form
What is the definition of a residential transaction?
Improved property of four or fewer residential units, or unimproved property zoned for four or fewer residential units, or agricultural property of 10 acres or less
