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Real Estate > Fiduciary Duty > Flashcards

Fiduciary Duty Flashcards

1
Q

What is a fiduciary duty?
A: A Legal Responsibility Of One Party To Act In The Best Interest Of Another
B: Honesty
C: Loyalty To The Customer
D: All Of The Above

A

D: All Of The Above

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2
Q

As an agent, you should always educate your client, negotiate effectively, and market the property effectively:
A: True
B: False
C: This Is The Responsibility Of A Broker
D: Its The Clients’ Responsibility

A

A: True

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3
Q

championing

A

As an agent, looking out for your client’s best interests to the greatest extent possible.

-Market Mastery
-MLS Mastery
-Contract Mastery
-Photography Skills
-Good Problem Solving skills
-Great systems in place to track and make smooth
transactions

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4
Q

Professional Responsibilities

A

Some of the responsibilities include: Rent, buy, or sell property for clients.
Perform duties, such as study property listings, interview prospective clients, accompany clients to property site, discuss conditions of sale, and organize real estate contracts.

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5
Q

client education

A

An agent’s professional responsibility. As an agent, you need to be able to educate your client on the market, finding quality professionals (mortgage lenders, inspectors), market conditions, interest rates, titles, title
insurance, and the entire process.

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6
Q

marketing property

A

An agent’s professional responsibility. Publicizing property for sale and finding the right property for the right buyer.

Social Sharing of the Property
Make Communication very effective
Create a virtual tour
Ask for testimonials from former clients
Generate leads by being involved in the community

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7
Q

pricing property properly

A

An agent’s professional responsibility. You must do a Comparative Market Analysis to make sure that the property for sale is priced properly for your client to sell or
purchase.

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8
Q

niche market

A

A specialized sector of the property market. As an agent, finding a particular niche of real estate that you know well can help you to better serve your clients by better understanding local factors involved

-Identify your interests and passions. This may be something you’ve already done.
-Identify problems you can solve.
-Research your competition.
-Determine the profitability of your niche.
-Test your idea.

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9
Q

negotiating

A

An agent’s professional responsibility. Ask lots of questions, be persistent, and do not give up. Being able to negotiate on behalf of your client is an essential part of your job.

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10
Q

seeing transactions through

A

An agent’s professional responsibility. Hundreds of different things can go wrong in the transaction, so it is important to anticipate any snags and ensure that they
do not prevent a sale from going through.

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11
Q

OLD CAR

A

An acronym describing the six fiduciary duties of an agent: Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable care & diligence.

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12
Q

Rick Realtor enters into an agency agreement with Bonnie Buyer. In this situation, Bonnie is the:
A: Principal
B: Agent
C: Fiduciary
D: Facilitator

A

A: Principal

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13
Q

In the state of Utah, all agency relationships are between the principal and:
A: The Broker
B: The Agent
C: The Fiduciary
D: The Intermediary

A

A: The Broker

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14
Q

Fiduciary Duty

A

A legal obligation of one party to act in the best interest of
another.
The obligated party is usually a fiduciary, that is, someone entrusted with the care of money/funds or property. This is often referred to as fiduciary obligation.

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15
Q

fiduciary

A

A special relationship of trust. You and your broker are expected to uphold six specific fiduciary duties to your client within the agency relationship.

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16
Q

fiduciary duty

A

Each of the six important duties an agent is legally obligated to fulfill for the client. Agency creates a fiduciary relationship of trust, and upholding these duties enables you to protect that trust and best serve your client.

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17
Q

obedience

A

The fiduciary duty of following all of the client’s lawful instructions. Do not make decisions for your client, and do not exceed your authority.

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18
Q

loyalty

A

The fiduciary duty that requires an agent to give the client undivided loyalty and put the clients’ needs and interests above all others, including their own.

19
Q

disclosure

A

The fiduciary duty of disclosing completely and fully all information concerning the transaction and property that might affect the client’s decisions.

20
Q

The Fiduciary duty that requires an agent to put their clients’ needs and interests above all others, including their own, is called:
A: Obedience
B: Loyalty
C: Confidentiality
D: Reasonable Care And Diligence

A

B: Loyalty

21
Q

A Fiduciary is:
A: Ethics
B: One In Whom Special Trust And Confidence Is Placed
C: Executory
D: Hypothecation

A

B: One In Whom Special Trust And Confidence Is Placed

22
Q

The Fiduciary Duty that requires an agent to follow all lawful instructions of the principal is called:
A: Obedience
B: Loyalty
C: Confidentiality
D: Reasonable Care And Diligence

A

A: Obedience

23
Q

The obligation of the agent to tell their client absolutely everything they know or learn about the property, the other agent, or the customer is the Fiduciary Duty of:
A: Obedience
B: Loyalty
C: Confidentiality
D: Disclosure

A

D: Disclosure

24
Q

accountability

A

The fiduciary duty that requires an agent to properly hold safe and account for all monies that come into an agent’s possession. Make sure that it is handled properly. Deposit all funds in a timely manner, and make certain that all checks are made out to the proper entity.

25
Q

confidentiality

A

The fiduciary duty that requires an agent to keep their clients’ information to themselves and not share critical information with anyone else. Do not use confidential information to the disadvantage of clients or advantage of others. Confidentiality lives forever - it is still in effect even after an agreement is complete.

Keeping all clients information confidential is essential in building trust with your clients. They have to feel that they can trust you as an agent and that you have their best
interest in mind.

26
Q

The Fiduciary Duty that requires an agent to properly hold safe and account for all monies that come into an agent’s possession is called:
A: Obedience
B: Confidentiality
C: Reasonable Care And Diligence
D: Accounting For Funds

A

D: Accounting For Funds

27
Q

The Fiduciary Duty that requires an agent to keep their clients’ information to themselves and not share critical information with anyone else is often referred to as:
A: Obedience
B: Loyalty
C: Confidentiality
D: Disclosure

A

C: Confidentiality

28
Q

reasonable care & diligence

A

The fiduciary duty that requires an agent to act competently and capably to serve their client well. Possess the capacity to handle the type of transaction that you are undertaking. Share information on issues affecting property value, possible negative influences, and home warranty information to allow your client to make the best possible decisions. Make certain that the buyer has copies of all seller disclosures. Recommend professional inspections and other professionals that you have actually vetted for yourself. Be the source of the source, not the source itself.

29
Q

comparative market analysis

A

An examination of the prices at which similar properties in the same area have recently been sold. This allows agents to help their clients to determine a reasonable price to list when selling a home or offer when buying a home.

A comparative market analysis is an examination of the prices at which similar properties in the same area recently sold. Real estate agents perform a comparative market analysis for their clients to help them determine a price to list when selling a home or a price to offer when buying a home

30
Q

limited agent

A

Also known as a dual agent, this is an agent who represents both a buyer and a seller in a transaction.

If state law allows for the same agent to represent both the buyer and the seller in a single transaction, the brokerage/agent is typically considered to be a Dual Agent. Special laws/rules often apply to dual agents,
especially in negotiating price

31
Q

full disclosure informed consent

A

The disclosure of an agent to his or her client
that the agent will be acting as a limited agent. It is the law that if you are going to be acting as a limited agent that you fully disclose that to your client in writing.

32
Q

The Fiduciary Duty that requires an agent to act competently and capably to serve their client is:
A: Obedience
B: Reasonable Care And Diligence
C: Loyalty
D: Disclosure

A

B: Reasonable Care And Diligence

33
Q

Another name for limited agency is:
A: Fiduciary Agency
B: Disclosure Agency
C: Dual Agency
D: Subagency

A

C: Dual Agency

34
Q

Agent Amanda represents a Seller. She fails to educate the Seller as to the Included Items that need to remain with the property. Amanda is guilty of failing to exercise which of the following fiduciary duties
A: Loyalty
B: Disclosure
C: Confidentiality
D: Reasonable Care And Diligence

A

D: Reasonable Care And Diligence

35
Q

Agent Alice represents a Buyer. Alice learns from the listing agent that the property’s roof may not pass the home inspection. Alice decides not to share this information with the Buyer, as she is afraid the Buyer will choose not to purchase the property. Alice is guilty of breaching which of her fiduciary duties?
A: Loyalty
B: Disclosure
C: Confidentiality
D: Reasonable Care And Diligence

A

B: Disclosure

36
Q

Section 5 of the Real Estate Purchase contract exists to:
A: Explain The Concept Of Agency To Buyer And Seller
B: Create Agency For Both Buyer And Seller With Their Respective Agents
C: Provide Written Disclosure For Limited Agency
D: Confirm Agency Relationships That Have Previously Been Established

A

D: Confirm Agency Relationships That Have Previously Been Established

37
Q

The specific fiduciary duties is listed in which agreement?
A: Real Estate Purchase Contract
B: Buyer Broker Agency Agreement And The Exclusive Right To Sell
C: Real Estate Purchase Contract And Limited Agency Consent Agreement
D: Our Specific Fiduciary Duties Are A Matter Of State Law And Are Not Spelled Out In Any Specific Form

A

B: Buyer Broker Agency Agreement And The Exclusive Right To Sell

38
Q

Agent Amanda violated her fiduciary duties she owed to her client when she:
A: Sold Her Client’s Property
B: Leased Her Client’s Property
C: Bought Her Client’s Property
D: Marketed Her Client’s Property

A

C: Bought Her Client’s Property

39
Q

Broker Betty made Agent Alexis the agent for the buyer. This is an example of:
A: A Limited Agent
B: A Dual Agent
C: The Designated Agent
D: A Facilitator

A

C: The Designated Agent

40
Q

Seller Sam hires agent Alexis to sell his home. And signs an Exclusive Right to Sell listing agreement. This allows Alexis:
A: General Power Of Attorney
B: Specific Power Of Attorney
C: To Do Anything Necessary To Act On The Seller’s Behalf And Procure A Buyer And Bring About A Successful Close Of Escrow
D: To List And Market The Property

A

D: To List And Market The Property

41
Q

Buyer Bill has instructed his agent, Realtor Robbie, to write up a low offer on a piece of property. Robbie refuses to do so. Robbie has violated his fiduciary duty of:
A: Obedience
B: Loyalty
C: Reasonable Care And Diligence
D: Confidentiality

A

A: Obedience

42
Q

Agent Alexis represents Seller Sam. What duties does Alexis owe to any potential buyers?
A: Alexis Owes No Duties To Any Potential Buyers
B: Alexis Owes All Fiduciary Duties To Any Potential Buyers
C: Alexis Owes All Duties To Any Potential Buyers, Unless She Is A Limited Agent
D: Alexis Owes The Duties Of Honesty And Fairness To Any Potential Buyers

A

D: Alexis Owes The Duties Of Honesty And Fairness To Any Potential Buyers

43
Q

Realtor Ron received an earnest money deposit for his buyer. He had the buyer write the earnest money out to him personally, and deposited the check into his personal checking account. Ron has violated his fiduciary duty of:
A: Obedience
B: Disclosure
C: Confidentiality
D: Accounting For Funds

A

D: Accounting For Funds

Real Estate (15 decks)

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