Requirements Governing the Activities of Licensees (10 items, 13%)

Question 1

A broker may only offer those ___________ that the broker’s office _______ permits.

But, if a consumer asks about a ________ _________, such as buyer agency, seller agency, or transaction-broker, the broker must provide Commission-approved __________ even if the broker does not offer that _____________.

Answer 1

relationships; policy

legal relationship; definition; relationship.

Question 2

Prior to representation, the licensee is required to obtain a signed __________ ______________ disclosure from the principal(s).

The disclosure must be made at the time that specific ____________ is given to the buyer, seller, landlord or tenant.

Answer 2

agency relationship

assistance

Question 3

*___________ assistance occurs when the licensee asks for or accepts ____________ information* concerning the __________’s real estate needs, motivations, or financial qualifications.

Answer 3

Specific

confidential

principal

Question 4

Failure to discuss brokerage relationships before the principal enters into a transaction is a ____________ , but does not affect the _________ of a contract or of the __________ title.

Answer 4

violation

validity; transferred

Question 5

A Single Agent is a __________ agent who must perform in the terms of:

• the written __________
• exercise reasonable _______ and _______
• promote the interests of the principal with utmost good ______, _______ and ________.

Answer 5

• limited*
• agreement
• skill and care
• faith, loyalty, and fidelity

Question 6

The duties of a Single Agent are to the ________ who hires the agent, not to a ______ __________.

*The Seller’s agent owes no __________ to the Buyer except to disclose adverse __________ ______ , likewise, the Buyer’s agent owes no duty or obligation to the _______.*

Answer 6

principal; third party.

loyalty; material facts; Seller.

Question 7

*A transaction broker is not an __________ for either party* to a transaction, though he may perform any _________ ______________made with the party to the transaction.

Answer 7

an advocate;

written agreement

Question 8

Colorado Contracts to Buy & Sell allow that notice to the _________ is considered notice to the ________ working with that _________.

Answer 8

broker; party; broker.

Question 9

When agreed to, brokers and principals may change their _________ arrangement.

An example would be if a _______-_______ became a buyer’s broker by signing a _________ Agency agreement or a Change of ________ form.

Answer 9

brokerage;

transaction-broker

Buyer

Status

Question 10

Company policy must provide for _____________ to conflicts of interest,

such as when the ______ brokerage firm finds a buyer for a listing.

Answer 10

solutions; same

Question 11

When changing the type of ________ _________ (such as to a transaction broker), the broker must inform the _________ in writing before showing a ___________ or conducting ____________.

Answer 11

broker agency; principal; property; business.