Practices

Question 1

Agent

Answer 1

A person authorized by the client to represent him/her in dealings with third parties

Question 2

Client

Answer 2

A client may be a real estate seller, buyer, landlord.

Question 3

Principal

Answer 3

A principal is a client who may be a real estate seller, buyer, landlord.

Question 4

Third Parties

Answer 4

A third party/customer who may be a buyer or tenant.

Question 5

Customer

Answer 5

A customer is also referred to a third party who may be a buyer or a tenant.

Question 6

Every new licensee should first:

Answer 6

Create:
A business plan.
A budget (cash flow

Question 7

What are the Licensee’s duties to all parties?

Answer 7

Reasonable care and skill
Honesty and good faith
Presenting all written communication
Disclosure of material facts
Accounting
Providing a pamphlet on agency law
Disclosing any existing agency relationship

Question 8

What act refers to Licensees duties to all parties?

Answer 8

The Real Estate Brokerage Relationships Act

Question 9

What is the Real Estate Brokerage Relationships Act?

Answer 9

A Washington State Law that Governs when and how real estate relationships are created and terminated, the duties owed by real estate licenses to the parties to a real estate transaction, and when real estate disclosures are to be made. Changed the relationship from fiduciary today statutory list.

Question 10

Reasonable Care and Skill

Answer 10

A licensee is required to use the same degree of care and skill that would be expected of a reasonably competent real estate licensee. If a licensee harms a party because of carelessness or incompetence, he may be held liable for the harm caused by his incompetence.

Question 11

Honesty and Good Faith

Answer 11

A licensee must act toward every party with honesty and good faith. Making inaccurate statements or misrepresentation to prospective buyers or sellers breaches this duty. This could cause a offer to be rescinded and/or sue the licensee and her brokerage firm for damages.

Question 12

Presenting Written Communications

Answer 12

All types of written communications, including all written offers, to or from either party must be presented to the other party in a timely manner. This duty to present all offers continues even afterthought properly is subject to an existing contract or the buyer is already a party to an existing contract.

Question 13

Disclosure of Material Facts

Answer 13

A licensee must disclose s material fact to a party if: the licensee knows about it, and it is not apparent or readily ascertainable by the party.

Question 14

What is a Material Fact?

Answer 14

WA St. Real Estate Law says a material fact information that has a substantial negative impact on the value of the property, on the property’s ability to perform, or on the purpose on the transaction.

Question 15

In most cases, a material fact requiring disclosure would be a __________ ________ in the property?

Answer 15

Latent Defect

Question 16

What is Latent Defect?

Answer 16

A problem that a prospective buyer would not discover by an ordinary inspection. A defect that is not visible or apparent.

Question 17

Accounting

Answer 17

Real Estate licensees must be able to account for all funds (or other valuables) entrusted in their care. These are referred to as trust funds. Licensees are required to report the status of all trust funds to their clients on a regular basis. They must also avoid mixing trust funds with their own bus. Or personal funds.

Question 18

Trust Funds

Answer 18

Money or things of value received by an agent, not belonging to the agent but being held for the benefit of others.

Question 19

Commingling

Answer 19

Missing personal or business funds with the clients funds for any reason. This violates the license law.