Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

IFREC State Exam Prep > Chapter 4 - Agency and Ethics > Flashcards

Chapter 4 - Agency and Ethics Flashcards

1
Q

Brokerage Relationship Disclosure Act

A

Effecitve October 1, 1997

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Disclosed Dual Agency

A

Expressly revoked, illegal in Florida

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Authorized Forms of Broker Representation

A
  • Single agent OR trnasction broker
  • License may change form of representation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Authorized Brokerage Relationships

A
  • Single agent relationship
  • Transaction broker relationship
  • No brokerage relationship
  • License may change form of representation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Disclosure Requireements

A
  • Apply only to residential sales
  • Sale of improved residential property of 4 units or fewer, unimproved property intended for use of 4 units of fewer, or agricultural property of 10 acres or fewer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Disclosure Limitations

A

Required disclosure does NOT apply to nonresidential transactions, rental or leasing unless there is an option to purchase a 1 to 4 unit residential property, auctions, appraisals, and business enterprises and business opportunity except proprety with 4 or fewer residential units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Presumption of Transaction Brokerage

A

All licensees presumed to be transaction brokers unless discloed otherwise.

No written disclosure required after July 1, 2008

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Transaction Broker Relationship

A

Provides a limited form of representation to a buyer, a seller, or both, but does NOT represent either in a fiduciary capacity or as a single agent (represents buyer and sellers as customers)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Customer

A

A member of the public who is or may be a buyer or seller of real property and may or may not be represented by a licensee in an authorized brokerage relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Limited Representation

A
  • Buyer and Seller NOT responsible for acts of licensee
  • Parties giving up rights to undivided loyalty of licensee
  • Allows licensee to facilitate tranaction by assisting both buyer and seller
  • Licensee will NOT work to represent one party to the detriment of the other party when acting as a transction broker to both praties
  • Licensee can be an advocate for buyer OR seller as a transaction broker as long as the licensee does not simultaneously represent both parties to the transaction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Limited Confidentiality

A
  • Cannot disclose that seller will take less than list price
  • that buyer will pay more than written offer
  • Motivation of either party or that seller is agreeable to financing terms other than those in listing or buyer is agreeable to financing terms other than those in written offer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Disclosure Requirements (transaction broker relationship)

A
  • Must be described and disclosed to the buyer and/or seller
  • May be a separete document or included as part of another document
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

When disclosure is given (Transaction Broker Relationship)

A

Before, or at time of listing, agreement or agreement for representation or before the showing of property, whichever occurs first

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Duties of Transaction Broker (7 listed Duties)

A
  1. Deal honesty and fairly
  2. Account for all funds, using skill, care and diligence
  3. Disclosing all known facts materially affecting value of residential real property
  4. Present all offers and counteroffers in a timely manner
  5. Limited confidentiality
  6. Any added duties agreed upon by parties
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Single Agent Relationship

A

Broker represents, as a fiduciary, either buyer or seller but not both in same transaction (represents buyers or sellers as principals)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Fiduciary

A

Relationship of trust and confidence given and received

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Common Law Duties Fiduciary

A
  1. Dealing honestly and fairly
  2. Loaylty
  3. Confidentiality
  4. Obedience
  5. Full disclosure
  6. Account for all funds
  7. Use skill, care and deligence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Disclosure Requirement (Single Agent)

A

Duties must be described and disclosed in writing to buyer or seller either as separate document or included as part of another document

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When disclosure is given (Single Agent Relationship)

A

Before, or at lime of, listing agreement or agreement for representation or before the showing of property, whichever occurs first

20
Q

Duties of Single agent

A
  1. Deal honestly and fairly
  2. Loyalty
  3. Confidentiality
  4. Obedience
  5. Full disclosure
  6. Accounting for all funds
  7. Use skill, care, and diligence
  8. Present all offers and counteroffers in a timely manner,
  9. Disclose all known facts that materially affect the value of residential real property
21
Q

Confidentiality

A
  • Obligated to safeguard principal’s confidentiality and secrets
  • Violation is breach of trust and may be graudulent
22
Q

Obedience

A
  • Obey all lawful instructions of principal
  • Do not obey any unlawful instruction
23
Q

Loyalty

A

Act solely in best interest of principal to exclusion of all others

24
Q

Full Disclosure

A
  • Disclose all material facts, i.e. any information which might reasonably influence decisions of principal
  • Failure to disclose material facts is concealment, breach of trust and may result in a charge of fraud
25
Q

Seller’s Representative

A

Listing agreement to act as representative for seller only

26
Q

Buyer’s Representative

A

Broker represents only act the buyer, regardless of who pays commission

27
Q

Subagent

A
  • Agent employed to act for another agent
  • Same duties and responsibilities to principal
  • sales associates relationship to a buyer or seller principal of broker
28
Q

Determination of Brokerage Relationship

A

Accomplished by written disclosure; NOT determined by who pays broker

29
Q

Designated Sales Associates

A
  • Applies to non-residential sales only
  • Buyer and seller have assets of $1 million or more
  • Broker designates sales associates to act as single agents for diderent customers in same transaction
  • Must be requested by buyer and seller and they must sign disclosure form
  • Allows dual agency
30
Q

No brokerage Relationship

A

Licensee must give a No Brokerage Relationship disclosure before showing the property if no relationship is to exist between broker and customer (should be sign but doesn’t have to be)

Usually is given to FSBO

31
Q

Notice of No Brokerage Relationship

A

Provide to any potential buyer or seller before showing the property if no relationship exist

32
Q

No Brokerage Relationship Duties

A
  1. Deal honestly and fairly
  2. Disclose all knwon facts materially affecting property
  3. Account for all funds
33
Q

Transition to transaction Broker

A

Permitted by law provided single agent gives transaction disclosure notice and principal gives consent in writting

34
Q

Types of agents

A
  • Universal agent
  • General Agent
  • Special Agent
35
Q

Universal Agent

A

Authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another

36
Q

General Agent

A

Employed to handle all affairs in a business or trade, or to handle all busines at a certain place

37
Q

Special Agent

A

Employed to handle a particular business affair or to do a special act

38
Q

Real Estate Broker (type of agent?)

A

Usually a special agent with limited power or authority

39
Q

Authority of Special Agent

A

Generally limited to finding prospets, showing the property, and negotiating on behalf of client

40
Q

Authority to Execute Instrument

A

Requires power of attorney instrument designating a person as attorney-in-fact

41
Q

Unauthorized Act of Agent

A

Does not bind the principal

42
Q

Right to Delegate Performance

A

No right to delegate performance of act which requrie exercise of discretion or judgment of broker

43
Q

Radon Gas

A

Give prescribed disclosure on at least one document prior to or at time of contract or execution of rental agreement

44
Q

Homeowner Association Disclosure

A
  • Provided by sellers to buyers
  • Describes Association, deed restriction, assessments and mandatory HOA duties
  • Given to buyer before signing contract
  • If not given buyer can void contract
45
Q

Lead Based Paint Disclosure

A
  • For homes build prior to 1978
  • Allows 10 day period for inspection (at buyer’s expense).
  • Violation = buyer can bring civil suit and receive treble (triple damages)
46
Q

Advise Regarding Title

A
  • Advise purchaser to consult attorney or obtain title insurance
  • Inform purchaser if have notice title is not merchantable or lien exists before any part of purchase price is paid
  • Failture to advise is concealing and failure to perform duty imposed by law
47
Q
A

IFREC State Exam Prep (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions