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Real Estate > Introduction to California agency law > Flashcards

Introduction to California agency law Flashcards

1
Q

Agent

A

Why do you ask on behalf of another and business transaction.

Must have consent from client to become agent and fiduciary.

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2
Q

Client

A

A person who enlist the service of a real estate licensee to aid in the property of transaction

Example Nicole was selling her house and hired Crystal as her listing agent. Nicole is Crystal’s client.

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3
Q

Fiduciary

A

A person and whom another’s trust and confidence are placed.

A person who’s in a position of trust, and owes loyalty to another.

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4
Q

Principal (agency)

A

The person represented by an agent in a real estate transaction

Second use for principal
In a real estate purchase and sale contract, the parties are called principles a.k.a. buyers, or sellers whether or not they’re represented by an agent

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5
Q

Customer

A

A person related to the transaction, whom the agent does not represent

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6
Q

A seller of a home is a?

A

Customer

If the seller asked you to help him to negotiate against your buyer and you did so without your buyers permission, you’d be violating the trust of your client placed in you, this is against the terms of agency agreement.

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7
Q

What are the duties for a customer not your client?

A

Disclosure of material facts
Honesty
Integrity
Accounting for trust funds

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8
Q

Consumer

A

One who purchases services or products, such as real estate services. Real estate agents have very little contact with consumers,

don’t owe any duties to consumers.

What is consumers make contact with real estate licensees about anything real estate related, they become customers.

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9
Q

Non-agent

A

A licensee acting as a facilitator, but not a representative in transaction

Facilitator or transaction broker

A licensee who has a unique relationship with consumer acting like a middleman and transaction.

Does not represent the buyer or seller assist both parties with clerical or ministerial tasks

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10
Q

Sub agent

A

A licensee from a competing firm, who brings the buyer to the deal, but instead of representing the buyer, works under the listing agent as a representative of the seller.

A licensee engaged to act for another licensee and performing brokerage tasks for the principal

You may see a brokerage have a policy for bidding sub agency to protect the client from additional various liability with sub agency, the seller is liable for actions of both listing agent and sub agent. If you are the buyers agent, you can’t be a sub agent in the same transaction

You must make your status clear as the buyers agent, or the sellers agent before showing the sellers property.

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11
Q

Someone who has agency representation with the real estate sales person or broker
Customer
Client
Principal
Consumer

A

Client

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12
Q

Someone who uses or purchases a product or service
Customer
client
Principal
Consumer

A

Consumer
Uses a product or service

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13
Q

Someone who uses our purchases a product or service

A

Consumer

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14
Q

Someone who is working with a real estate sales person or broker, but is not represented by them
Principal
Consumer
Client
Customer

A

Customer

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15
Q

Party to a transaction, and the person for whom the agent ask
Principal
Consumer
Client
Customer

A

Principal

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16
Q

Someone who acts on behalf of someone else

A

Agent

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17
Q

Someone who is in a position of trust and loyalty

A

Fiduciary

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18
Q

Someone who is not an agent, and only introduces the buyer and seller

A

Finder

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19
Q

A licensee meets with a couple. She leaves her business card and said she’ll call back in two months. She leaves without a signed agency agreement and contact information for the couple.

Are these clients?

A

No
There’s no agency agreement in place there for the poeple are not clients

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20
Q

Is a client also a principal
Yes, or no

A

Yes

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21
Q

Is the client or the licensee the fiduciary?

A

The licensee real estate agent

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22
Q

When agency disclosure is required in California?

A

Listings
for sale or lease involving one to four unit, residential properties and non-residential commercial

Purchase transactions

Lease agreement
Having terms greater than one year for one to four unit, residential properties, and non-residential commercial properties

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23
Q

When is an agency disclosure not required

A

Transactions involving residential properties with five or more units

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24
Q

Sandra is listing her townhome for rent and has hired Joseph as her agent
Is a disclosure required

A

Required

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25
Q

Charles owns a duplex, and has hired David to act as his agent is a disclosure required

A

Required

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26
Q

Lauren is looking for a residential property to lease for two years while she finishes her degree. She hires Melanie as her agent as a disclosure required.

A

Required

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27
Q

Harriet owns a new apartment complex with 20 residential units. She hires Bonnie to help her lease all of the units. Is a disclosure required

A

Not required, has more than five units

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28
Q

What is an agency confirmation statement?

A

The disclosure form educates consumer about the roles of an agent may play. Confirmation statement serves as an indicator of both parties, understanding, and acceptance of the agency, relationship and transaction.

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29
Q

Ministerial acts

A

Services performed that are routine and do not involve judgment, advocacy, or negotiation

Example Kayla helped a fire, fill in some of the blanks in their contract offer for the sellers house, but did not advocate for or advise them in anyway

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30
Q

Clerical tasks, a.k.a. ministerial acts

A

Tasks for a customer, which are defined as factual base tasks that don’t require you to use your judgment as a licensee.

You need to disclose any material facts about the transaction to a customer, as well, with honesty and professional integrity

You will need to account for any money or property received from a customer

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31
Q

A real estate licensee works with customers, but doesn’t represent them
True or false

A

True

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32
Q

An Agent can only represent a client
True or false

A

True

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33
Q

You can perform additional duties for customers, like negotiating on their behalf, or helping them, decide how much to offer, as long as the other party is in the transaction isn’t your client

A

False
You can get in a lot of trouble

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34
Q

How do you tell a consumer the difference between customers and clients and the benefits of being a client?

A

If you’re my customer, I’ll work alongside you. If you’re my client, I’ll do that and more. I’ll represent you and negotiate on your behalf. I hope you come here fiduciary and work for you.

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35
Q

What is a general agent?

A

General means broad or widespread

Responsibility for all of the dealings over a specific piece of your clients property

Property manager, carrying out the terms of property management agreement

Collect rent, evict tenants, and entering into leases with tenants on behalf of your client, the property owner.

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36
Q

What is a special agent?

A

A licensee with limited authority to act on behalf of your client

Acts as intermediary (negotiator ) but doesn’t make decision or enter into contracts on clients behalf

You don’t make any decisions or enter in contracts on your clients we have .

Does not offer community of service.

The rule is to find a house, sell the house. You do not represent the client once the transaction is closed.

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37
Q

What is a limited licensee agent
Limited agent?

A

A licensee that acts in a very limited capacity.

Escrow officer who acts on behalf of both parties to a transaction, but not in a limited role. The escrow officer does not represent either party.

Real estate agents can be limited agents . Post a sellers listing on the MLS but not act in any advisory capacity to the seller.

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38
Q

What is a universal agent?
Licensee, universal agent

A

Someone with broad authority to act in all matters.

holds broad power of attorney

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39
Q

What is a finder?
Finder agent

A

Middleman introduces the buyer and seller. They can collect their feet and move along a finders. Neither parties agent and therefore does not represent either party.

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40
Q

Provides the responsibility to handle all dealings for specific piece of Client property
General agent
Special agent

A

General agent

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41
Q

Provides limited authority to act on a client behalf
General agent
Special agent

A

Special agent

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42
Q

Most real estate transactions involving a buyer and seller deal with this type of agency
General agent
Special agent

A

Special agent

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43
Q

Property managers generally serve in this role
General agent
Special agent

A

General agent

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44
Q

Acts as an intermediary, but doesn’t make decisions or enter into contracts on clients we have
General agent
Special agent

A

Special agent

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45
Q

Enters into a contract on behalf of a client
General agent
Special agent

A

General agent

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46
Q

A universal agent is a facilitator
True or false

A

False
The universal agent has brought authority

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47
Q

An escrow officer is a limited agent, true or false

A

True
Because they act in a limited capacity to the parties, escrow officers are limited agents

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48
Q

A finder is a limited agent
True or false

A

False
Finder is actually not an agent and does not represent either party in any manner

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49
Q

Escrow agent

A

Act in a limited capacity to the parties, limited agent.

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50
Q

Single agent

A

Special agent
One agent represents one client

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51
Q

Sellers agent

A

Special agent

Seller’s agent who is engaged by a seller to represent the sellers interest

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52
Q

Buyer’s agent

A

Special agent
Agent who is engaged by a buyer to represent the buyers interest

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53
Q

Dual agent

A

Special agent
Represent both the buyer and seller in the same transaction

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54
Q

Sub- Agent

A

Special agent
Works under another agent with the principal’s permission to perform some of the acts of agency.

Both principles and their agents are liable for the sub-agent

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55
Q

Broker’s agent

A

Special agent
An agent, possibly from another firm, who works under another agent

Similar to sub agent, does not have the principles permission

The principal is not liable for the brokers agent, but the principles agent is liable

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56
Q

Finder or middleman

A

Non-agent
Finder introduces the buyer and seller

This person does not represent either party and performs no other duties

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57
Q

Tenant’s agent

A

Special agent
A tenants agent assist the tenant in locating and securing an appropriate property to lease

Hire someone to become a tenant

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58
Q

Landlord’s agent

A

Special agent
Assist the landlord in finding a tenant

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59
Q

Property manager

A

General agent

Ask within the scope of the property management agreement on behalf of the landlord

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60
Q

Brokers agent

Real estate agent or not a real estate agent

A

Real estate agent

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61
Q

Buyers agent
Real estate agent or not a real estate agent

A

Real estate agent

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62
Q

Dual agent
Real estate agent or not a real estate agent?

A

Real estate agent

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63
Q

Double agent
Real estate agent or not a real estate agent

A

Not a real estate agent

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64
Q

Landlords agent
Real estate agent or not a real estate agent

A

Real estate agent

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65
Q

Sellers agent
Real estate agent or not a real estate agent

A

Real estate agent

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66
Q

Secret agent
Real estate agent or not a real estate agent

A

Not a real estate agent

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67
Q

Single agent
Real estate agent or not a real estate agent

A

Real estate agent

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68
Q

Sub-agent
Real estate agent, not a real estate agent

A

Real estate agent

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69
Q

Tenants agent
Real estate agent or not a real estate agent

A

Real estate agent

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70
Q

Property manager
Real estate agent, not a real estate agent

A

Real estate agent

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71
Q

Finder
Real estate agent or not a real estate agent

A

Not a real estate agent

72
Q

Broker’s agent

Special agent, or general agent

A

Special agent

73
Q

Buyer’s agent

Special agent, or general agent

A

Special agent

74
Q

Dual agent

Special agent, or general agent

A

Special agent

75
Q

Property manager

Special agent, or general agent

A

General agent

76
Q

Seller’s agent

Special agent, or general agent

A

Special agent

77
Q

Single agent

Special agent, or general agent

A

Special agent

78
Q

What is another term for seller’s agent?

A

Listing agent
Helps the client list to sell their house

79
Q

Allison, an agent with XYZ agency, is assisting, Ryan, the listing agent from our ST brokerage, with marketing property on seventh Street.
Finder
Property manager
Brokers agent
Tenants agent
Dual agent

A

Brokers agent

80
Q

Alison has just the property her buyer clients, the Lopez’s, are looking for. It’s sam’s home, which Alison put on the market last week.
Finder
Property manager
Brokers agent
Tenants agent
Dual agent

A

Dual agent

81
Q

Christie needs an agent to act on her behalf to negotiate a lease on an apartment while she finishes grad school. Andre fits the bill.
Finder
Property manager
Brokers agent
Tenants agent
Dual agent

A

Tenants agent

82
Q

As the owner of an apartment, complex near the college, will need someone to act in his interest. He hired Carter as an agent.
Finder
Property manager
Brokers agent
Tenants agent
Dual agent

A

Property manager

83
Q

Charles introduces, Bonnie, buyer, to Sandy, seller, then goes on his merry way
Finder
Property manager
Brokers agent
Tenants agent
Dual agent

A

Finder

84
Q

Agent

A

One who acts on behalf of another in business transaction

85
Q

Sub-Agent

A

Works under another agent with principle’s permission to perform some of the acts of agency. Agents are also some agents of their broker.

86
Q

Dual agent

A

Represents both the buyer and seller in the same transaction

87
Q

Finder

A

Introduces the buyer and seller
Does not represent either party

88
Q

Single agent

A

The agent represents only one party

89
Q

Seller’s agent

A

The agent also called a listing agent is engaged by a seller to represent the sellers interest

90
Q

Buyer’s agent

A

An agent who is engaged by a buyer to represent the buyers interest

91
Q

Broker’s agent

A

An agent who represents the broker from another firm.

This Agent does not represent the principal, only the broker.

92
Q

Landlord’s agent

A

An agent who assist a landlord, and finding a tenant

93
Q

Tenant’s agent

A

An agent who assists someone in finding a property to lease or rent

94
Q

Property manager

A

An agent who acts within the scope of property management agreement on behalf of landlord.

95
Q

James represents Marques, who is selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What is Ben’s relationship to James?

Client and fiduciary
Customer
Customer and client
Fiduciary

A

Customer

When is both a principal
As a party to the transaction and James is a customer

Ben is not James Client

96
Q

What is the term for someone who has agency representation with the licensee?Client
Consumer
Customer
Fiduciary

A

Client

97
Q

Gregory is looking for an apartment to rent for six months. He’s hired Franklin as an agent to help him with the search. Is Franklin required to provide Gregory with an agency disclosure form
No, agency disclosure is only required for commercial transactions
No, agency disclosure is only required for residential properties
No, agency disclosure is only required for lease agreements exceeding one year and length
Yes, agency disclosure is required for lease transactions

A

No, agency disclosure is only required for lease agreements exceeding one year in length

This is for six months

98
Q

You have a listing agreement with Sam. Because of this, what is Sam’s relationship to you?
Client
Confidante
Customer
Friend

A

Client

99
Q

You’re holding an open house for Brenda. Walt and Mary walk in and ask you for a flyer that gives details about the property. At this point, what is your relationship with Walter and Mary?
Clients
Confidantes
Customers
Friends

A

Customers

100
Q

Which of the following best indicates that Harold is Kelsey seller client?

At an open house, Harold, ask Kelsey about her commission rate and sells track record.
Harold and Kelsey talked at a local school event about real estate market and possibility of selling his home

Kelsey and Harold have a sign agency agreement

Kelsey called called Harold, and he mentioned that he had been thinking of selling his house

A

Kelsey and Harold have a signed agency agreement

101
Q

Anthony owns a new commercial strip mall with several units. He’s hired Julian as his agent to find tenants to rent each unit. Is Julian required to provide vied Anthony with an agency disclosure form?

It depends on how many units are for lease
No, agency disclosure is only required for residential transactions
No, agency disclosure is only required on sales of commercial properties
Yes, Julian is required to provide Anthony with an agency disclosure form

A

Yes, Julian is required to provide Anthony with an agency disclosure form

102
Q

In general, what is the term for a person who has been placed in a position of loyalty and trust?
Attorney in fact
Client
Fiduciary
Mortgage lender

A

Fiduciary

103
Q

A seller client asked to have at least two hours notice before a showing if possible
Obey
Question
Can’t obey

A

Obey

104
Q

A seller works from home and would like to remain in the house during showings
Obey
Question
Can’t obey

A

Question

105
Q

A seller asks that the home not be shown to any same-sex couples
Obey
Question
Cannot obey

A

Cannot obey

106
Q

A seller client would like protective buyers to remove their shoes in the house
Obey
Question
Cannot obey

A

Obey

107
Q

The seller doesn’t want a lockbox placed outside in the home
Obey
Question
Cannot obey

A

Question

108
Q

A seller going through a divorce is handling the sale of the former family home and says his soon to be ex partner, whose name is on the title, does it need to be involved in the process.
Obey
Question
Cannot away

A

Can’t obey

109
Q

A friend of Kim’s represents sellers of a two bedroom bungalow. That would be perfect for Kim’s buyer client. She shows the fire the property, but doesn’t tell them she knows the sellers agent.

Loyal
Disloyal

A

Loyal

110
Q

Kim represents the sellers of the property, and her brother represents interested buyers. Her brother brings an offer from his buyers the same day that the other buyers have submitted a slightly better offer. Kim encourages the sellers to except the lesser offer because those buyers seem like a better fit for the home.

Loyal
Disloyal

A

Disloyal

111
Q

Kim has a buyer looking for condos downtown but she shows him a condo in the same range slightly farther away from his desired area so he can see the difference what his money will buy

Loyal
Disloyal

A

Loyal
It’s OK to give your client options but don’t take it too far

112
Q

Kim shows her buyer two houses one has a commission of 2.5% and priced at a low end of the clients budget. The other is a higher end of her budget but pays 3% commission. The client loves them both and ask him which she should choose. Instead of answering, she tries to help her client come to a decision by comparing both qualities.

Loyalty
Disloyalty

A

Loyal
You should let your client make the decision unless you see something that is not good for them

113
Q

Loyalty

A

The duty of loyalty means you put your clients interest ahead of others, including your own

114
Q

The duty of disclosure

A

Means that you must disclose all material facts to all parties

115
Q

The duty of confidentialities

A

You do not divulge any thing the seller has asked you to keep confidential, even subtly.

116
Q

Your duty of accounting ends with the agency relationship
True or false

A

False

117
Q

If your buyer client gives you an earnest money check, you must deposit immediately
True or false

A

False

118
Q

Agents can perform appraisals to determine the value of a home.
Within the expertise
Outside the expertise

A

Outside the expertise

119
Q

Agent can perform a market analysis (CMA) to determine a price range for a property.
Within expertise
Outside expertise

A

Within expertise

120
Q

Agents can give advice on how to finance a home purchase
Within expertise
Outside expertise

A

Outside expertise

121
Q

Overall skill and care

A

The duty of reasonable skill and care means you should never give opinions outside your scope of expertise.

No home inspection
No finance information
Engineer for renovation

122
Q

Duties to non-client principles with loyalty
Client only
Customer
Both client and customer

A

Client only

123
Q

Duties to non-client principles honesty
Client only
Customer
With client and customer

A

Both client and customer

124
Q

Duties to non-client principles, reasonable skill, and care
Client only
Customer
Client and customer

A

Customer

125
Q

Duties to non-client principles, utmost skill, and care
Client only
Customer
Both client and customer

A

Client only

126
Q

Duties to non-client principles Disclosure of material facts
Client only
Customer
Both client and customer

A

Both client and customer

127
Q

Carrying out a client instruction describes the duty of
Accounting
Loyalty
Obedience
Reasonable skill, and care

A

Obedience

128
Q

Client wants you to have new buyers put foot booties on at the front door before entering. You do as client instructs no question asked. What fiduciary duty is this an example of?
The duty of accounting
The duty of loyalty
The duty of obedience
The duty of reasonable skill in care

A

The duty of obedience

129
Q

Henry is Monika’s listing agent. As Monika’s agent, Henry has a duty to account for an properly handle her funds.——-?
Financial investments
Paperwork
Personal savings
Property taxes

A

Paperwork

130
Q

Informing parties of material facts related to a transaction describes the duty of
Accounting
Disclosure
Loyalty
Reasonable skill, and care

A

Disclosure

131
Q

Express agency

A

An agency agreement entered into when both parties agreed to understand the arrangement via written or oral communication between the parties

Example
Although verbal exchange between the parties can create express agency is vital that a real estate agent get an express agency agreement in writing, if needed in court

132
Q

Express agency agreement

A

Agreement that your client agrees to responsibilities for you both you as the agent and for your client and understanding the expectations required for each party

133
Q

Implied agency

A

Agency that is created from the actions of parties, rather than an expressed agreement

It is best to avoid implied agency instead get the agency agreement in writing, so there’s no confusion about representation

134
Q

Guidelines, to reduce your risk of implied agency and undisclosed dual agency

A

Make sure your firm’s policies on agency and dual agency are clear, including the disclosure requirements.

Clearly understand, and communicate fiduciary duties as an agent.

Before acting in anyway, as an agent, secure an express agency agreement in writing

If you are engaging in dual agency, ensure you have all parties written consent

Provide all parties with the proper disclosures

135
Q

Ratification

A

Acceptance after the fact, sometimes in contrast to a prior agreement

Example
Even though the sellers were supposed to leave behind a washer and dryer, they took them when they moved out. The buyer ratified their decision by moving in and getting a set of his own without making a fuss about it.

136
Q

Ratification

A

Is an acceptance after the fact, sometimes in contrast to a prior agreement.

137
Q

Estoppel

A

A legal concept that says that a person may not disavow something that the person had previously affirmed, either by the action or words .

138
Q

Estoppel

A

Is a legal doctrine that says that a person is stopped from asserting rights or facts that aren’t consistent with a previous statement, position, or behavior.

139
Q

Acceptance after the fact, either through paperwork or actions of the parties
Ratification
Estoppel

A

Ratification

140
Q

Prevention of a legal claim that is contrary to the persons own actions
Ratification
Estoppel

A

Estoppel

141
Q

Agency coupled with interest

A

A situation in which the agent has a financial state in the transaction be on the anticipated commission.

Example
Josie’s listing agreement with the seller clients involved agency coupled with interest because he had loaned them $2000 to forestall their foreclosure and expect it to be paid back after the sale went through

142
Q

Agency coupled with interest

A

Means that the agency is irrevocable it doesn’t terminate on the death, or in confidence of the principle.

143
Q

Agency with interest termination
The agency relationship can only be terminated on the principles death
True or false

A

False

144
Q

Agency with interest termination
The agency relationship can be terminated when the principal becomes incompetent
True or false

A

False

145
Q

Agency with interest termination
There are no circumstances where the agency relationship can be terminated when it’s coupled with interest
True or false

A

False

The agency relationship cannot be unilaterally terminated, when coupled with interest, which is different from a relationship that isn’t coupled with interest .

146
Q

Termination of agency

A

Clients goals were met during agency agreement term
The specify term in the agency agreement expires

The relationship and through termination by force of law
A. The client or firms broker becomes incapacitated or dies.
B. The property is destroyed for any reason making the property unmarketable
C. The client or France broker files for bankruptcy.

Client revokes agreement prior to expiration date, lack of confidence in agency, or believe agency is untrustworthy. If the client revokes without specific reason, it is breach of contract.

The agent renounces the agreement prior to the agreement expiration date

147
Q

Although an agency relationship doesn’t live on forever, there are some fiduciary duties that continue be on the relationship. Which two of these duties live on after the agency relationship is over?
Loyalty
Confidentialities
Accounting

A

Confidentialities and accounting
The duty to account for all money and property ends once the money and property have been accounted for. The duty of confidentiality never ends.

148
Q

Which of the following statements best describes a listing that terminates by performance?

Yvonne performed all required, fiduciary duties and tasks in listing Voun’s house, even though it didn’t sell before the listing expired

Greg listed a property that failed to sell during the term of the listing agreement. Aside from that, he performed all tasks promise to the seller

Marti listed Todd’s condo. With Marty’s efforts they got almost to closing only to have the buyers financing fall through.

Roberto listed a property for Terrence. After two failed offers, the property made it to a successful closing.

A

Roberto listed a property for Terrence. After two felt offers, the property made it to a successful closing.

No matter how well it licensee performs his task, a listing agreement is terminated by completion, performance only if it is successful, closes.

149
Q

A real estate licensee and his client fulfilled a listing agreement, and the agency relationship is terminated. At what point did the agents fiduciary duty of confidentialities to this client terminate?
After 30 days
After one year
Immediately
Never

A

Never

150
Q

In which of the following listing agreements terminations is least likely to be a penalty for terminating that agreement

The agent abandons listing
The client, an agent, mutually agreed to terminate the listing
The client revoke the listing agreement to sell the property to family member
The seller withdraws the listing, deciding instead to stay in the property

A

The client and Agent usually agreed to terminate the listing

151
Q

Agency may be legally terminated in which of the following ways ?

The agent finds a better client
The agent changes financing
The client change his plans
The principal broker becomes incapacitated

A

The principal broker becomes incapacitated

152
Q

Single agency

A

When a licensees/brokerage firm ask in fiduciary capacity for either the buyer/tenant or the seller/ landlord in a real estate transaction, but not for both

Example
Because Norstar was acting as a single agent for the Johnsons in the sale of their home, every agent in the brokerage owed fiduciary responsibility to them

153
Q

Single agency

A

Brokerages that prohibit their licenses from representing opposing sides in transaction. Act on fiduciary capacity for either the buyer or the seller not both.

154
Q

What topics can a licensee advise their clients?

A

Real estate matters are the only items you should advise clients on.

Leave mortgage, legal, appraisal, among other, outside your scope to those experts

155
Q

Seller agency

A

A relationship where the licensee represents the seller in real estate transaction

Example Keith made sure to have Van sign a seller agency agreement when he hired him to his home

156
Q

Seller agent duties

A

Invest your time and energy and marketing and selling the property
Inform seller of responsibility to make all required property condition disclosure’s
Negotiate contract terms in accordance with sellers wishes
Ensure that the buyers earnest money is deposited by the contractor deadline
Communicate all offers and counter offers to the seller

Have an express agency agreement in place
This agreement accomplishes the requirement, and spells out the scope of your authority and agreement for compensation .

Let the seller know that buyer agents will be entering home. If they are concerned, you can offer to be present for all showings.

On agreement, you should agree, offers for cooperation commissions to other licenses outside the company a.k.a. the buyer broker

157
Q

What are your fiduciary obligations as a buyer agency?

A

Find the best price available or priceless acceptable to them
Show the properties that meet their criteria and fall within their budget
Ensure that they receive all require property condition disclosure from the seller
Informed them of due diligence, including a professional inspection, a property
Review transaction documents with them, clarifying anything that could be confusing, without stepping outside the scope with your license (refer them to Anne Attorney or interpreting any legal consequences or language)
Negotiate a contract terms that are fair and agreeable to them

158
Q

Cooperating agent

A

Is an agent from another firm, who assists another firms agent generally the listing agent in a real property sale.

Cooperating agent from another firm, who brings a buyer agent or a sub agent. Common practice for the listing firm to split. It’s commissions with the cooperating firm that brings the buyer to the table.

159
Q

A cooperating agent

A

Is an agent from another brokerage, who brings a potential buyer to the transaction

160
Q

Dual agency

A

Representing both sides in a real estate transaction.

A real estate brokerage firm, and all the brokers and agents for that firm, can act in a fiduciary capacity for both the buyer and the seller on the same transaction

Must provide fiduciary duties to each party

Cannot provide undivided loyalty, because both sides are represented, it’s impossible

161
Q

Dual agency

A

Representing both sides in real estate transaction

162
Q

What are two types of dual agency?

A

Single license dual agency
When one licensee represents both the buyer and the seller and transaction and the broker is also a dual agent

Dual licensed dual agency
Exist one to agents from the same brokerage represent the buyer and the seller and transaction, working for the same broker, and the broker is dual agent in the transaction

163
Q

Designated agency, a.k.a. appointed agency

A

A way to avoid dual agency, the broker in charge designates two of the brokerages agents, one to represent the buyer, and one to represent the seller
The brokerage is a duel broker

Allowed in some states
Allowed is specifically written rules. Your broker has established.
Allowed if both the buyer and the seller consent to acting as dual agent

164
Q

Sub- agency in California

A

When a licensee from a competing firm works under the listing agent.

In California if the seller agrees to sub agency, the seller and their agent are both liable for actions of the sub agent

Generally not practiced in California

165
Q

Sub-Agent

A

A licensee, who works for firm A, but who is engaged with firm B to perform agency functions on behalf of firm B’s client

166
Q

Mike and Christina are licensees with in the realty. Zachary is selling his home and has been enlisted Mike as his agent. Nathan is Christina‘s buyer client and is interested in seeing Zachary’s home.
Sub -agency
Non-sub -agency

A

Non-sub-agency
Mike and Christina are with the same firm and represent different parties as clients. This is an example of dual agency but not subagency.

167
Q

If a client gives their agent permission to enlist a sub agent, both the client and their agent are liable for the sub agents actions
True or false

A

True

168
Q

If a listing agent and list a sub agent, both the agent and their client are liable for the sub agents actions
True or false

A

False
in California if the sellers agent enlists another licensee to act as a sub agent without the sellers permission, then only the sellers agent is liable for the sake of agent’s actions

169
Q

Which fiduciary duties does a finder owe?
Finder doesn’t know any fiduciary duties
Confidentialities and loyalty
What is the duties of obedience, loyalty, disclosure, confidentialities, accountability, and reasonable skill and care

A

Find a dozen owe any fiduciary duties

170
Q

Which of the following is a buyers agents task or duty?
Advocating for the seller
Negotiating for the seller
Representing the buyers interests
Revealing transactional documents with the seller

A

Representing the buyers interests

171
Q

Bradley is acting as a finder for Emma. Which action can he perform?
Introduced Amber to the seller or buyer
Negotiate an offer for Emma
None of these actions
Present the offer on Emmas behalf

A

Introduce Emma to the seller or buyer

172
Q

Which of these situations is an example of designated(appointed) agency?

Jacob. A broker acts as a dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction.

Marvels brother at home works realty appoints her as the buyers agent in transaction. Tim’s broker at great homes real estate appoints him as the sellers broker in the transaction.

Meredith’s broker appoints her to represent both the buyer and the seller in a single transaction

Michelle is the firms managing broker. She’s the designated dual agent in all dual agency transactions.

A

Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction

173
Q

As a licensee, you’ll have several tasks you must perform for your buyer client. One of these tasks is——?

Coach the buyer on how to negotiate the terms of sales contract to be completely in the buyers favor.

Explain to the buyer why it’s a necessary to have a professional inspection done on a new home.

Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license

Show properties to to that buyer might qualify for if he would put down more earnest money

A

Review transactions documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license

174
Q

Which one of the following tasks must licensees perform for seller client?

Dictate the listing price of the property
Drive the sellers around to show them other properties that are for sale
Ensure that the buyers earnest money is deposited
Show the sellers how they can market their property

A

Ensure that the buyers earnest money is deposited

175
Q

Erik is acting in a single agency capacity in transaction. What does this mean?

Erik isn’t part of a Realty team within his brokerage firm
He’s representing and owes undivided loyalty to either the buyer or the seller
He’s working as a non-agent for either the buyer or seller
His sperm doesn’t allow dual agency

A

He’s representing an ozone divided loyalty to either the buyer or the seller

176
Q

What is an example of sub agency situation?

A

Kayla is a licensee with ABC Realty and list a property for seller Devon. Maurice is a sales person with XYZ Realty group, and has a Buyer customer who wants to see the property.

Only the agent representing a Buyer Customer, on behalf of another firms listing is an example of sub agency situation

Real Estate (39 decks)

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