Chapter 4: Authorized Relationships. Duties And Disclosures Flashcards
Administrative Law
True or False
Statutes can authorize the creation and operation of administrative agencies to administer and enforce certain laws.
True
Administrative Law
Which Florida statute created the Department of Business and Professional Regulation (DBPR)
F. S. 455
Administrative Law
Which Florida statue created the Florida Real Estate Commission?
F. S. 475
True or False
The DBPR and FREC are examples of administrative agencies empowered by statutes.
True
Agency Law
Special Agent
True or False
A special agent is authorized under agency law by the employer to perform a single act.
True
A sales associate is a general agent of the broker and automatically becomes a ____________ of all the broker’s principals.
Subagent
As an agent of the broker, a sales associate has the ________ ________ to the broker’s principals as does the broker.
same duties
Define principal
the person with whom the real estate licensee has entered into a single agent relationship
Define transaction broker
a broker who provides LIMITED representation to a buyer, seller, or both but does not represent either in a fiduciary capacity or as a single agent
When are disclosure exemptions required? When selling residential or commercial properties?
Residential
What qualifies as a residential property?
improved residential property of 4 or fewer units
unimproved property to be used for 4 or fewer units
agricultural properties of ten acres or fewer
leases w/option to purchase all or portion of improved property of 4 or fewer residential units
dispositions of business interests involving property of 4 or fewer residential units
What duty does a broker have regarding offers including oral offers made without a binder deposit?
duty to transmit all offers to his employer (principal)
If a broker does not present an offer to his employer what may result?
it could be considered concealment or a breach of trust and subject the broker to disciplinary action
How is an agency relationship created?
when a broker accepts employment under a single agency agreement.
If a broker enters into a single agency agreement who can he rep?
in a single agency relationship the broker can only represent the buyer or seller but not both.
Is it legal for a broker, under a single agency agreement, to rep both as a dual agent
no. attempt to rep both creates an illegal dual agency
In a single agency relationship, the __________ becomes the ___________, who authorizes the broker as agent to perform certain services on his/her behalf
employer , principal
When a broker is employed to find a purchaser, he/he is entitled to compensation when?
when a ready, willing, and able buyer has met all of the seller’s requirements
accomplished when buyer makes an offer in accordance w/terms of listing agreement, whether a sale is consummated
What law prohibits a broker from giving or accepting a fee, kickback, or anything of value in exchange for the referral of real estate settlement (closing) services in connection w/ federally related mortgage loans?
Section 8 of the federal Real Estate Settlement Procedures Act (RESPA)
True or False
Real Estate Settlement Procedures Act (RESPA) allows brokers to pay referral fees between real estate agents and brokers w/out disclosure.
True
Authorized Real Estate Broker Relationships
What are the three basic duties required of a licensee in any type of brokerage relationship to include nonrepresentation?
Deal honestly and fairly
Disclose all known facts that materially affect the value of of the property
Account for all monies
Authorized Real Estate Broker Relationships
What are the duties required of a licensee in a transaction brokerage or single agency brokerage?
Deal honestly and fairly
Disclose all known facts that materially affect the value of of the property
Account for all monies
Use skill, care, and diligence
Present ALL offers/counteroffers in timely manner unless directed otherwise IN WRITING
Authorized Real Estate Broker Relationships
What two duties are not required of a licensee if a nonrepresentation relationship exists?
Use skill, care, and diligence
Present ALL offers/counteroffers in timely manner
Presenting Offers
Failure of a licensee to present an offer he/she is required to present could be considered what?
Concealment of breach of trust
Transaction Broker
Limited representation afforded to a transaction broker allows the licensee to facilitate the transaction by working with both the buyer and seller. What are the duties of a transaction broker when working with both buyer and seller?
Provide limited confidentiality unless waived in writing
Not to discuss price other than price quoted in the listing, motivation, terms, or other information deemed confidential which may harm the party’s bargaining position
Perform additional duties mutually agreed upon with a party
Single Agent
What additional fiduciary duties are owed by a broker to the principal in a single agency relationship?
Confidentiality
Obedience
Loyalty
Full diclosure
