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Unit 4: Real Estate Agency > Distinguish the duties owed by an agent to her client from those owed to customers. > Flashcards

Distinguish the duties owed by an agent to her client from those owed to customers. Flashcards

1
Q

In real estate, the term ___ refers to a relationship that a broker, managing broker, or residential leasing agency (representing the sponsoring broker) may have with buyers, sellers, landlords, or tenants

A

Agency

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2
Q

A(n) ___ refers to those who hire are clients, or principals

A

agency

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3
Q

Those hired by agencies are called ___

A

agents

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4
Q

How does a real estate licensee become an agent?

A

Through a contractual agreement

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5
Q

What represents the sponsoring broker in all daily transactions?

A

General agency

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6
Q

General agency contracts most effectively establish the ___ relationship

A

agient-client

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7
Q

In Illinois, agency relationships are governed under ___ law

A

Statutory

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8
Q

Article ___ of the Real Estate License Act of 2000 may serve as basis for the private rights of action and defenses by sellers, buyers, landlords, tenants, and brokers

A

Fifteen

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9
Q

Law of agency defines rights and duties of ___ and ___

A

the principal and the agent

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10
Q

Which 3 types of laws interpret the relationship between real estate licensees and their clients?

A

Contract law, real estate licensing laws, and law of agency

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11
Q

In Illinois, what is the given precedence in defining legal real estate agency concepts?

A

Real Estate License Act of 2000

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12
Q

Illinois has replaced common-law duties with ___ duties

A

statutory

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13
Q

Licensee is presumed to have a(n) ___ relationship with the principal unless there is a statement in writing articulating a different relationship

A

agency

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14
Q

The ___ is the principal to whom the agent gives advice and counsel

A

client

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15
Q

Agent is entrusted with confidential information and has ___ responsibilities to the principal

A

fiduciary

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16
Q

The relationship between a real estate licensee and the parties involved in a transaction is not simple. In addition to the parties’ assumptions and expectations, the licensee is subject to a wide range of legal and ethical requirements designed to protect which 3 things?

A

The seller, the buyer, and the transaction

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17
Q

What term is used to describe the special relationship between a real estate licensee and the parties involved in a real estate transaction?

A

agency

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18
Q

In Illinois, agency relationships are governed under ___ law.

A

statutory

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19
Q

In Illinois, what defines the rights and duties of the principal and the agent?

A

Law of Agency

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20
Q

In Illinois, what are the 3 types of laws that interpret the relationship between real estate licensees and their clients are…

A

Law of agency

Contract law

Real Estate licensing laws

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21
Q

What is the given precedence in defining legal real estate agency concepts in Illinois?

A

Real Estate License Act of 2000

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22
Q

In Illinois, a real estate licensee is presumed to have a(n) ___ relationship with the principal unless there is a written statement in writing articulating a different relationship

A

Agency

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23
Q

In Illinois, according to the Real Estate License Act of 2000, in the real estate business, a firm’s ___ is the agent.

A

sponsoring broker

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24
Q

In Illinois, according to the Real Estate License Act of 2000, in the real estate business, a firm’s sponsoring broker is the ___ and shares this responsibility with the licensees who work for them.

A

agent

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25
Q

In Illinois, according to the Real Estate License Act of 2000, in the real estate business, a firm’s sponsoring broker is the agent and shares this responsibility with…

A

the licensees who work for them.

26
Q

In Illinois, all exclusive brokerage agreements must be in ___.

A

writing

27
Q

In Illinois, the Real Estate License Act of 2000 defines ___ as the principal who is being represented by a Real Estate licensee.

A

client

28
Q

What is the difference between a customer and a client?

A

A customer is NOT represented by the licensee

A client is represented by the licensee

29
Q

According to the Real Estate License Act of 2000, ___ includes commissions, referral fees, bonuses, prizes, merchandise, finder fees, performance of services, coupons or gift certificates, discounts, rebates, a chance to win a raffle or like game of chance, retainer fee, or salary.

A

Compensation

30
Q

In Illinois, the client is the ___ to whom the agent gives advice and counsel

A

principal

31
Q

In Illinois, the ___ is entitled to the factual information and honest dealings as a consumer, but never receives advice and counsel or confidential information about the principal.

A

customer

32
Q

In Illinois, the customer is entitled to the factual information and honest dealings as a consumer, but never receives advice and counsel or confidential information about the ___.

A

principal

33
Q

In Illinois, the customer is entitled to the factual information and honest dealings as a consumer, but never receives advice and counsel or confidential information about the principal. Therefore, the real estate licensee works for the ___

A

client

34
Q

In Illinois, the customer is entitled to the factual information and honest dealings as a consumer, but never receives advice and counsel or confidential information about the principal. Therefore, the real estate licensee cooperates with the ___.

A

customer

35
Q

Who’s primary duty is it to comply with the brokerage agreement and cooperate with the agent?

A

The principal

36
Q

The ___ must deal with the agent in good faith.

A

principal

37
Q

The ___ must not hinder the agent

A

principal

38
Q

The principal must compensate the agent according to the terms of the ___.

A

brokerage agreement

39
Q

In a Real Estate transaction, the person selling their home is represented by the ___’s agent.

A

seller’s

40
Q

In a real Estate transaction, the person who is buying a home is represented by the ___’s agent.

A

buyer’s

41
Q

What are the six fiduciary duties of the real estate licensee as summarized in fiduciary responsibilities?

A

Care

Obedience

Loyalty

Disclosure

Accounting

Confidentiality

42
Q

According to Article 15 of the Real Estate License Act of 2000, the agent must perform in terms of the ___ between a sponsoring broker and the client

A

Brokerage agreement

43
Q

According to Article 15 of the Real Estate License Act of 2000, the agent must promote the best interest of the client by seeking a transaction at the price and terms stated in either the ___ or at the price and terms otherwise acceptable to the ___.

A

Brokerage agreement; client

44
Q

According to Article 15 of the Real Estate License Act of 2000, the agent must perform in terms of the brokerage agreement between ___ and ___.

A

a sponsoring broker and the client

45
Q

According to Article 15 of the Real Estate License Act of 2000, the agent must promote the best interest of their client by obeying specific directions of the client as long as they aren’t contrary to applicable ___, ___, or ___

A

Statutes
Ordinances
Rules

46
Q

According to Article 15 of the Real Estate License Act of 2000, the agent must comply with applicable statues and regulations, including ___ and ___

A

Fair Housing

Civil Rights

47
Q

Statements of opinion are only permissible as long as they are offered as opinions and without any intention to ___.

A

deceive

48
Q

Generalized, vague exaggeration of a property’s benefits is called ___.

A

puffing

49
Q

Puffing is illegal in Illinois. True or false?

A

False

50
Q

Even though puffing is not illegal, licenses must ensure that none of their statements can be interpreted as ___.

A

fraudulent

51
Q

___ is the intentional misrepresentation of a material fact with the intent of causing harm or taking advantage of another person.

A

fraud

52
Q

Making false statements about a property would be considered as ___

A

fraud

53
Q

Intentionally concealing or failing to disclose important facts about a property would be considered as ___.

A

fraud

54
Q

Misrepresentation or omission may result in licensee liability, even if it was not intentional. True or false?

A

true

55
Q

___ occurs when the licensee should have known that a statement about a material fact was false.

A

Negligent Misrepresentation

56
Q

If a licensee makes a false statement to a consumer, who would be liable for any damages that resulted afterward?

A

The licensee

57
Q

While showing a potential buyer an average looking house, the broker described even the most plain features of the home as “beautiful.” Even though these statements were obviously the broker’s personal opinion, they were said to encourage a positive feeling about the property. What is this an example of?

A

Puffing

58
Q

A broker neglected to inform their buyer that the lot next door was recently sold to a waste disposal company for use as a toxic dump. This might be an example of what?

A

Fraudulent misrepresentation

59
Q

The Illinois Real Estate License Act states that a licensee shall NOT be liable to a client for providing false information if the false information was provided to licensee by a customer, unless the licensee knew or should have known that the information was false. True or false?

A

True

60
Q

The Illinois Real Estate License Act states that licensees shall treat all customers ___, and shall not negligently or knowingly give them ___

A

Honestly

False Information

Unit 4: Real Estate Agency (8 decks)

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