Chapter 4: Authorized Relationships, Duties, and Disclosures

Question 1

_____ law is unwritten law, created by decisions of courts.

Answer 1

Common

Question 2

_____ law is written law that have been enacted by legislative bodies.

Answer 2

Statutory

Question 3

_____ law are rules and regulations created by administrative agencies.

Answer 3

Administrative

Question 4

true/false: Administrative agencies can place you in jail.

Answer 4

false

Question 5

An agent authorized by the principal to perform a single act.

Answer 5

special agent

Question 6

An agent authorized by the principal to act on their behalf on a continuing basis, but with limited authority.

Answer 6

general agent

Question 7

An agent authorized by the principal to act of their behalf in all matters.

Answer 7

universal agent

Question 8

If a broker is the principal’s agent, the sales associate working for them is the _____.

Answer 8

subagent

Question 9

A sales associate is a _____ agent of the broker.

Answer 9

general

Question 10

Provides limited representation to the customer(s). No fiduciary obligation.

Answer 10

transaction broker

Question 11

The default relationship you enter into with customers in Florida is a _____ _____ relationship.

Answer 11

transaction brokerage

Question 12

A transaction brokerage relationship requires _____ disclosures.

Answer 12

verbal

Question 13

______ is a party with which a broker has entered a single agent relationship.

Answer 13

Principal

Question 14

_____ _____ relationships require a fiduciary commitment to the principal.

Answer 14

Single agent

Question 15

In a _____ _____ _____, the broker has only 3 duties to the customer.

Answer 15

no brokerage relationship

Question 16

true/false: During an open house, a sales associate must disclose the type of relationship to potential buyers.

Answer 16

false

Question 17

Single agency and no brokerage relationships require _____ disclosures.

Answer 17

written

Question 18

true/false: Leasing with no option to buy is an exempt from disclosure of the type of relationship.

Answer 18

true

Question 19

Confidentiality, obedience, loyalty, and full disclosure are examples of duties in which relationship?

Answer 19

single agent

Question 20

Any attempt to represent both parties to a transaction creates a(n) _____ _____ ______.

Answer 20

illegal dual agency

Question 21

true/false: If an agent breaches fiduciary duty to a principal, the principal can bring civil action against the agent.

Answer 21

true

Question 22

true/false: You may use “and its Associates” on a single agent notice form in lieu of listing all of the sales associates.

Answer 22

true

Question 23

If a principal refuses to agree to a transition to transaction broker, the broker must _____.

Answer 23

continue to act as a single agent

Question 24

When must the disclosure of a no brokerage relationship take place?

Answer 24

before the showing of property

Question 25

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.

Answer 25

true

Question 26

Which two relationship types require presenting all offers and counteroffers?

Answer 26

single agent and transaction broker

Question 27

A form titled “Single Agent Notice” nust be completed _____, or _____, entering into a listing agreement. (when?)

Answer 27

before, or at the time of

Question 28

Dealing honestly and fairly, disclosing all known facts that affect property value, and accounting for all funds are the only duties in a _____ relationship.

Answer 28

no brokerage

Question 29

A no brokerage relationship form _____ required to be signed or initialed.

Answer 29

is not

Question 30

Written disclosures _____ apply to nonresidential sales.

Answer 30

do not

Question 31

A broker _____ accept or reject an offer on behalf of their employer without a power of attorney.

Answer 31

can not

Question 32

The _____ Act makes it illegal to discuss or establish uniform price or fee for services in any industry.

Answer 32

Sherman-Clayton Antitrust Act

Question 33

A broker cannot collect a commission from both parties to a transaction without _____ and _____ of both parties.

Answer 33

knowledge and consent

Question 34

A closing is also know as a _____.

Answer 34

settlement

Question 35

A broker may be employed by an owner to either _____ or _____ of the property.

Answer 35

find an owner or effect a sale

Question 36

If a broker is employed to find a purchaser of a property, the broker must be paid upon finding a _____, _____, and _____ purchaser.

Answer 36

ready, willing, and able

Question 37

If a broker is employed to effect a sale, the broker gets paid upon _____.

Answer 37

closing

Question 38

A sales associate may file suit against _______ for nonpayment of compensation.

Answer 38

their broker

Question 39

A broker _____ file lien against a residential property for nonpayment of commission.

Answer 39

cannot

Question 40

When a broker receives more than agreed upon in commission for a sale, it is called an _____ or _____.

Answer 40

overage

unjust commission

Question 41

The federal act RESPA prohibits brokers from receiving a kickback unless they are performing a service, have the appropriate license, and _____.

Answer 41

advise all parties

Question 42

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.

Answer 42

participate in the transaction in any manner

Question 43

The Brokerage Relationship Disclosure Act requires licensees to keep copies of all disclosure documents related to residential sales for _____ years.

Answer 43

5

Question 44

The opposite of fiduciary is _____, or adversaries.

Answer 44

arm’s length

Question 45

The _____ notice is the only notice relationship notice that must be signed.

Answer 45

consent to transition to transaction broker

Question 46

If one broker fails to pay another due commission, they can be charged with _____, which is a form of fraud.

Answer 46

failure to account