Chapter 4: Authorized Relationships, Duties, and Disclosures Flashcards
_____ law is unwritten law, created by decisions of courts.
Common
_____ law is written law that have been enacted by legislative bodies.
Statutory
_____ law are rules and regulations created by administrative agencies.
Administrative
true/false: Administrative agencies can place you in jail.
false
An agent authorized by the principal to perform a single act.
special agent
An agent authorized by the principal to act on their behalf on a continuing basis, but with limited authority.
general agent
An agent authorized by the principal to act of their behalf in all matters.
universal agent
If a broker is the principal’s agent, the sales associate working for them is the _____.
subagent
A sales associate is a _____ agent of the broker.
general
Provides limited representation to the customer(s). No fiduciary obligation.
transaction broker
The default relationship you enter into with customers in Florida is a _____ _____ relationship.
transaction brokerage
A transaction brokerage relationship requires _____ disclosures.
verbal
______ is a party with which a broker has entered a single agent relationship.
Principal
_____ _____ relationships require a fiduciary commitment to the principal.
Single agent
In a _____ _____ _____, the broker has only 3 duties to the customer.
no brokerage relationship
true/false: During an open house, a sales associate must disclose the type of relationship to potential buyers.
false
Single agency and no brokerage relationships require _____ disclosures.
written
true/false: Leasing with no option to buy is an exempt from disclosure of the type of relationship.
true
Confidentiality, obedience, loyalty, and full disclosure are examples of duties in which relationship?
single agent
Any attempt to represent both parties to a transaction creates a(n) _____ _____ ______.
illegal dual agency
true/false: If an agent breaches fiduciary duty to a principal, the principal can bring civil action against the agent.
true
true/false: You may use “and its Associates” on a single agent notice form in lieu of listing all of the sales associates.
true
If a principal refuses to agree to a transition to transaction broker, the broker must _____.
continue to act as a single agent
When must the disclosure of a no brokerage relationship take place?
before the showing of property
true/false: A consent to transition to transaction broker can be signed or initialed ahead of time, in case the relationship need to be transitioned later.
true
Which two relationship types require presenting all offers and counteroffers?
single agent and transaction broker
A form titled “Single Agent Notice” nust be completed _____, or _____, entering into a listing agreement. (when?)
before, or at the time of
Dealing honestly and fairly, disclosing all known facts that affect property value, and accounting for all funds are the only duties in a _____ relationship.
no brokerage
A no brokerage relationship form _____ required to be signed or initialed.
is not
Written disclosures _____ apply to nonresidential sales.
do not
A broker _____ accept or reject an offer on behalf of their employer without a power of attorney.
can not
The _____ Act makes it illegal to discuss or establish uniform price or fee for services in any industry.
Sherman-Clayton Antitrust Act
A broker cannot collect a commission from both parties to a transaction without _____ and _____ of both parties.
knowledge and consent
A closing is also know as a _____.
settlement
A broker may be employed by an owner to either _____ or _____ of the property.
find an owner or effect a sale
If a broker is employed to find a purchaser of a property, the broker must be paid upon finding a _____, _____, and _____ purchaser.
ready, willing, and able
If a broker is employed to effect a sale, the broker gets paid upon _____.
closing
A sales associate may file suit against _______ for nonpayment of compensation.
their broker
A broker _____ file lien against a residential property for nonpayment of commission.
cannot
When a broker receives more than agreed upon in commission for a sale, it is called an _____ or _____.
overage
unjust commission
The federal act RESPA prohibits brokers from receiving a kickback unless they are performing a service, have the appropriate license, and _____.
advise all parties
A foreign (out of state) broker may refer a customer to a Florida broker or agent, and accompany them to Florida, but may not ______ if a referral fee is to be paid.
participate in the transaction in any manner
The Brokerage Relationship Disclosure Act requires licensees to keep copies of all disclosure documents related to residential sales for _____ years.
5
The opposite of fiduciary is _____, or adversaries.
arm’s length
The _____ notice is the only notice relationship notice that must be signed.
consent to transition to transaction broker
If one broker fails to pay another due commission, they can be charged with _____, which is a form of fraud.
failure to account
