Chapter 8: Agency Relationships, Duties and Disclosures Flashcards
Agent
A person authorized by a principal to act on the principal’s behalf
Consent to Transition
A written requirement when a licensee is moving from a single agent relationship to a transaction broker
Customer
A person who is or may be a seller or buyer of real property and may or may not be represented by a licensee
Designated Sales Associate
A single agent for different parties in the same nonresidential transaction. The buyer and seller must have assets of $1 million or more and sign disclosures stating their assets meet the required threshold
Dual Agent
Representing both principals in a transaction
Fiduciary
A person in a position of utmost trust and confidence with respect to another person
General Agent
An agreement whereby the agent represents and may bind the principal on transactions falling within a specific range of activities
Limited Representation
A broker that offers to buyers and/or sellers representation as a transaction broker without offering full fiduciary duties
Non-representation
Real estate brokers working with buyers and/or sellers but not representing them as single agents or transaction brokers. If a buyer or seller chooses not to be represented, a licensee can still work with them
Principal
A party employing the services of an agent
Residential Sale
A residential property up to four units, a vacant parcel zoned for residential up to four units, or agricultural property of 10 acres or less
Single Agent
A broker who represents either the buyer or the seller in a transaction but not both. The broker is the fiduciary of the party that is being represented
Special Agent
The relationship between a principal and broker wherein the broker is acting for the principal in one specific transaction or activity only
Transaction Broker
A broker that provides limited representation to either the seller or the buyer or both in a real estate transaction (no fiduciary requirements).
In order for agents working for the same broker to operate as designated sales associates, which of the following must apply:
A The transaction must be non-residential
B The buyer and seller must have assets of one
million dollars or more
C Both A and B
D Neither A or B
C Both A and B
Broker Rita accepts a single agent listing from Seller Bill who instructs Rita not to show his house to any prospective buyers before 9:00 a.m. One day, Rita has a potential buyer, but he wants to see the house at 8:00 a.m. because he is leaving town that morning. How should Rita handle this situation?
Rita should inform the buyer that she can’t show the house until 9:00 a.m.
Agency relationships can be terminated in all of the following ways except:
A Agent resignation B Bankruptcy of the agent C Mutual agreement D Death of principal or agent
B Bankruptcy of the agent
Seller Pam says “I want to sell my house.” Broker Roy says “I want to do that.” Does this constitute a fiduciary relationship?
No, since the specifics of single agency were not agreed to or discussed
When should the Single Agent Notice be provided to a prospective seller or buyer?
Prior to showing property or entering into a contract, whichever happens first
Which type of agency relationship has been repealed in Florida?
Dual agent
Which type of agency is a fiduciary relationship?
Single agent
Which type of agency relationship has the duty of loyalty?
Single agent
Which type of disclosure form must be signed?
Consent to Transition to Transaction Broker
A property manager is an example of what type of agent?
General agent
