Chapter 4 - Learning Objectives & Key Terms

Question 1

Agent

Answer 1

One who acts for and with authority from another called the principal.

Question 2

Caveat Emptor

Answer 2

“Let the buyer beware”.

Question 3

Consent to Transition

Answer 3

The provision within Florida Law that allows real estate licensees acting as single agents to change from a single agent relationship to a transaction brokerage relationship.

Question 4

Customer

Answer 4

A buyer or seller of real property not be represented by a real estate licensee. Once the customer enters into an agency agreement they become a client.

Question 5

Designated Sales Associate

Answer 5

wo licensees acting as single agents representing the buyer and the seller in non-residential transactions under the direction of one broker; both buyer and seller must verify that they have assets of more than $1 million.

Question 6

Dual Agent

Answer 6

An agency relationship in which the agent acts for both of the principals in a transaction. This is prohibited in Florida

Question 7

Fiduciary

Answer 7

A person in a position of trust and confidence, as between principal and broker under the rules of agency.

Question 8

General Agent

Answer 8

An agent authorized to perform acts related to one property of the principal, such as a property manager.

Question 9

Limited Representation

Answer 9

Representation in a real estate transaction without fiduciary obligation.

Question 10

Non Representation

Answer 10

A legal brokerage relationship in which brokers do not represent either buyers or sellers in a transaction. All brokers under Florida law are presumed to be transaction brokers by default.

Question 11

Principal

Answer 11

The employer of an agent, such as a buyer or seller.

Question 12

Residential Sale

Answer 12

The sale of one to four units of improved residential property, or property that is currently unimproved but destined to be one to four residential units, or the sale of 10 acres or less of agricultural property.

Question 13

Single Agent

Answer 13

An agent who works only for the buyer or the seller.

Question 14

Special Agent

Answer 14

An agent with limited authority to act on behalf of the principal, such as created by a listing contract.

Question 15

Subagency

Answer 15

A licensee who assists the agent when they are acting for a Principal. When a broker is the agent, all sales associates supervised by that broker become sub-agents.

Question 16

Transaction Broker

Answer 16

Limited representation in a real estate transaction without representing either seller or buyer in a fiduciary capacity.

Question 17

Universal Agent

*A universal agent is the broadest form of agency

Answer 17

An agent who is authorized to perform all acts or duties his/her principal is empowered to perform.

Example: Power of Attorney

A power of attorney is a written instrument whereby a principal gives authority to an agent, The agent acting under such a grant is sometimes called an Attorney in Fact

Question 18

General Agent

*An agent with full authority over one property of the principal

Answer 18

A general agent is given the authority to perform several tasks on a continuous long-term basis

Example: A common example of a general agent is a real estate licensee acting as a property manager for a building owner

Question 19

Special Agent

Answer 19

Example : Real estate brokers/Sales Associates operate as a special agent

Unlike a universal or general agent , a special agent performs limited performs limited duties and whose relationship with the principal is not meant to be continuous

In the case of a real estate broker, special agency is created through the signing of a listing contract, and ends when the contract is fully performed