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
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?
Consent to Transition to Transaction Broker
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
All of them. Improved or unimproved property up to four units and agricultural property up to 10 acres.
