CHP 17 - Agency law

Question 1

Generally what is NOT a broker’s authority

Answer 1

signing for seller
initialing changes to offer
permitting early occupancy

Question 2

What obligations do licensee owe

Answer 2

1. honest and fair dealing
2. Reasonable Care and Skill
3. Proper Disclosure

Question 3

Active Fraud

Answer 3

intentional misrepresentation

Question 4

Passive Fraud

Answer 4

intentional nondisclosure of material face

Question 5

Implied Agency

Answer 5

formed when actions of parties indicate a mutually consented agency

Question 6

Constructive Notice

Answer 6

Legal presumption that info is available and obtained through due diligence

Question 7

Actual notice

Answer 7

Not only is info available but it’s been given and party is aware

Question 8

Agent duties to customers

Answer 8

1. Honesty and Fair
2. Reasonable care and skill
3. Proper disclosure

Question 9

3 Types of Agency

Answer 9

1. Express
2. Implied
3. Agency Ratification and Estoppel

Question 10

Person who hires an agent

Answer 10

Principal

Question 11

When can an agent provide advice to the customer

Answer 11

NEVER

Question 12

Universal Agent

Answer 12

POA

Question 13

Minimum Agency created when a home is listed

Answer 13

Special Agency

Question 14

General Agency

Answer 14

May include the authority to enter into contracts. Ongoing tasks and duties within a particular business

Question 15

Special/Limited

Answer 15

Authority to conduct specific activity

Question 16

Agent Duty to Client

Answer 16

Skill, care and diligence