Q5 - Agency

Question 1

Is a payment of a commission required for an agency relationship to exist. The fiduciary relationship is basic to any agency agreement ?

Answer 1

The payment of a commission is not required for an agency relationship to exist.

Question 2

Describe A universal Agent?

Answer 2

A universal agent is authorized to handle all of the affairs of the principal.

Question 3

Describe A general Agent?

Answer 3

A general agent is authorized to handle all of the affairs of the principal concerning a certain matter or property.

Question 4

Describe A special Agent?

Answer 4

A special agent has narrow authority to act on behalf of the principal.

Question 5

The Department do not requires that brokers have written operating policies and procedures for their office. True or False?

Answer 5

False

Question 6

The Michigan Law Book addresses Disclosure of agency relationships. Describe Ministerial acts ? and Specific assistance ?

Answer 6

Ministerial acts are routine acts that can be performed without creating an agency relationship.
Specific assistance is any communication beyond casual conversation that leads to the discovery of confidential information.

Question 7

In a single agency who is represented?

Answer 7

In a single agency, the agent represents either the buyer or the seller, but never both, in a single transaction.

Question 8

When does a sub agency occur?

Answer 8

A sub agency occurs when both brokers in a single cooperative transaction represent the seller.

Question 9

When is a dual agency created?

Answer 9

A dual agency is created when one agent represents both parties in a single transaction, both seller and buyer. Michigan law allows this with informed, written consent.

Question 10

In a designated agency arrangement, a broker designates a salesperson or associate broker to act as the single agent for a client to the exclusion of all other licensees in the firm. True or False?

Answer 10

True

Question 11

Describe a transaction coordinator ?

Answer 11

A transaction coordinator is a licensee who works with customers but is not acting as the agent for either the buyer or the seller.

Question 12

Give some examples of how agency can be terminated?

Answer 12

Expiration of the listing contract.
Completing the sale of the listing and paying commission.
Revocation of a broker’s license.

Question 13

An agent’s duties include what acts?

Answer 13

Confidentiality
Loyalty
Obedience
Reasonable skill, care and diligence
Disclosure of information
Accounting

Question 14

What are some of the duties Principals owe certain to their agents.

Answer 14

The principal must not hinder an agent’s efforts to provide service.
The seller agrees to pay a commission to the broker as part of the listing agreement.

Question 15

To create an agency relationship, the disclosure form should be accompanied by a listing agreement or a buyer representation agreement. What are some of the requirements?

Answer 15

An agency disclosure itself does not obligate a buyer or seller to pay compensation to a broker.
A licensee who fails to provide an agency disclosure is in violation of the license law and is subject to its penalties.
When acquiring a property, a licensee must disclose that he holds a real estate license, clearly and in writing.

Question 16

A licensee who acquires an interest in property and who is due a commission, must?

Answer 16

Disclose, in writing, to the seller or owner that the licensee will be compensated for the sale.
Obtain the written permission from the seller or owner to receive the specified consideration.
Provide written proof of compliance upon the Department’s request.