Chapter 8: Agency Relationships, Duties and Disclosures

Question 1

Agent

Answer 1

A person authorized by a principal to act on the principal’s behalf

Question 2

Consent to Transition

Answer 2

A written requirement when a licensee is moving from a single agent relationship to a transaction broker

Question 3

Customer

Answer 3

A person who is or may be a seller or buyer of real property and may or may not be represented by a licensee

Question 4

Designated Sales Associate

Answer 4

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

Question 5

Dual Agent

Answer 5

Representing both principals in a transaction

Question 6

Fiduciary

Answer 6

A person in a position of utmost trust and confidence with respect to another person

Question 7

General Agent

Answer 7

An agreement whereby the agent represents and may bind the principal on transactions falling within a specific range of activities

Question 8

Limited Representation

Answer 8

A broker that offers to buyers and/or sellers representation as a transaction broker without offering full fiduciary duties

Question 9

Non-representation

Answer 9

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

Question 10

Principal

Answer 10

A party employing the services of an agent

Question 11

Residential Sale

Answer 11

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

Question 12

Single Agent

Answer 12

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

Question 13

Special Agent

Answer 13

The relationship between a principal and broker wherein the broker is acting for the principal in one specific transaction or activity only

Question 14

Transaction Broker

Answer 14

A broker that provides limited representation to either the seller or the buyer or both in a real estate transaction (no fiduciary requirements).

Question 15

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

Answer 15

C Both A and B

Question 16

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?

Answer 16

Rita should inform the buyer that she can’t show the house until 9:00 a.m.

Question 17

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

Answer 17

B Bankruptcy of the agent

Question 18

Seller Pam says “I want to sell my house.” Broker Roy says “I want to do that.” Does this constitute a fiduciary relationship?

Answer 18

No, since the specifics of single agency were not agreed to or discussed

Question 19

When should the Single Agent Notice be provided to a prospective seller or buyer?

Answer 19

Prior to showing property or entering into a contract, whichever happens first

Question 20

Which type of agency relationship has been repealed in Florida?

Answer 20

Dual agent

Question 21

Which type of agency is a fiduciary relationship?

Answer 21

Single agent

Question 22

Which type of agency relationship has the duty of loyalty?

Answer 22

Single agent

Question 23

Which type of disclosure form must be signed?

Answer 23

Consent to Transition to Transaction Broker

Question 24

A property manager is an example of what type of agent?

Answer 24

General agent

Question 25

Seller Carl has agreed to let Broker Stephen transition to transaction broker. What document must Carl receive and sign in order for the transaction to be complete?

Answer 25

Consent to Transition to Transaction Broker

Question 26

Which of the following would be considered a residential sale?
I. Single Family Home
II. 5 acre farm
III. Vacant land zoned residential
IV. Duplex

Answer 26

All of them. Improved or unimproved property up to four units and agricultural property up to 10 acres.