Chapter 4: Authorized Relationships. Duties And Disclosures

Question 1

Administrative Law

True or False

Statutes can authorize the creation and operation of administrative agencies to administer and enforce certain laws.

Answer 1

True

Question 2

Administrative Law

Which Florida statute created the Department of Business and Professional Regulation (DBPR)

Answer 2

F. S. 455

Question 3

Administrative Law

Which Florida statue created the Florida Real Estate Commission?

Answer 3

F. S. 475

Question 4

True or False

The DBPR and FREC are examples of administrative agencies empowered by statutes.

Answer 4

True

Question 5

Agency Law

Special Agent

True or False

A special agent is authorized under agency law by the employer to perform a single act.

Answer 5

True

Question 6

A sales associate is a general agent of the broker and automatically becomes a ____________ of all the broker’s principals.

Answer 6

Subagent

Question 7

As an agent of the broker, a sales associate has the ________ ________ to the broker’s principals as does the broker.

Answer 7

same duties

Question 8

Define principal

Answer 8

the person with whom the real estate licensee has entered into a single agent relationship

Question 9

Define transaction broker

Answer 9

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

Question 10

When are disclosure exemptions required? When selling residential or commercial properties?

Answer 10

Residential

Question 11

What qualifies as a residential property?

Answer 11

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

Question 12

What duty does a broker have regarding offers including oral offers made without a binder deposit?

Answer 12

duty to transmit all offers to his employer (principal)

Question 13

If a broker does not present an offer to his employer what may result?

Answer 13

it could be considered concealment or a breach of trust and subject the broker to disciplinary action

Question 14

How is an agency relationship created?

Answer 14

when a broker accepts employment under a single agency agreement.

Question 15

If a broker enters into a single agency agreement who can he rep?

Answer 15

in a single agency relationship the broker can only represent the buyer or seller but not both.

Question 16

Is it legal for a broker, under a single agency agreement, to rep both as a dual agent

Answer 16

no. attempt to rep both creates an illegal dual agency

Question 17

In a single agency relationship, the __________ becomes the ___________, who authorizes the broker as agent to perform certain services on his/her behalf

Answer 17

employer , principal

Question 18

When a broker is employed to find a purchaser, he/he is entitled to compensation when?

Answer 18

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

Question 19

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?

Answer 19

Section 8 of the federal Real Estate Settlement Procedures Act (RESPA)

Question 20

True or False

Real Estate Settlement Procedures Act (RESPA) allows brokers to pay referral fees between real estate agents and brokers w/out disclosure.

Answer 20

True

Question 21

Authorized Real Estate Broker Relationships

What are the three basic duties required of a licensee in any type of brokerage relationship to include nonrepresentation?

Answer 21

Deal honestly and fairly

Disclose all known facts that materially affect the value of of the property

Account for all monies

Question 22

Authorized Real Estate Broker Relationships

What are the duties required of a licensee in a transaction brokerage or single agency brokerage?

Answer 22

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

Question 23

Authorized Real Estate Broker Relationships

What two duties are not required of a licensee if a nonrepresentation relationship exists?

Answer 23

Use skill, care, and diligence

Present ALL offers/counteroffers in timely manner

Question 24

Presenting Offers

Failure of a licensee to present an offer he/she is required to present could be considered what?

Answer 24

Concealment of breach of trust

Question 25

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?

Answer 25

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

Question 26

Single Agent

What additional fiduciary duties are owed by a broker to the principal in a single agency relationship?

Answer 26

Confidentiality

Obedience

Loyalty

Full diclosure