Section 11: Agency Relationships in Florida

Question 1

Duties owed to customers (non-fiduciaries)

Answer 1

• Disclosure of material facts
• Honesty
• Integrity
• Accounting for trust funds

Question 2

April and Wayne are the buyer and seller of a condo, respectively. April is represented by Steve.
Wayne is represented by Wanda. Name the principal(s) in this transaction.

Answer 2

April and Wayne

Question 3

An unrepresented WHAT who’s a party to a transaction is known as a principal.

Answer 3

Customer

Question 4

Someone with an agency representation wiht a real estate salesperson or broker is the definition of a

Answer 4

Client

Question 5

Betsy is buying a home from Joe. Joe’s listing agent is Keri, and Betsy has no representation. Which
of these statements is true about this transaction?

Answer 5

Joe is Keri’s client, and Betsy is Keri’s customer.

Question 6

Who is a person that’s been placed in a position of loyalty and trust in a real estate transaction?

Answer 6

Fiduciary

Question 7

Single Agent duties

Answer 7

Acronyms “DADUP” and “COLD”

Deal honestly and fairly
Account for all funds
Disclose material facts
Use skill, care and diligence
Present all offers and counters

Confidentiality
Obedience
Loyalty
Disclosure (full)

Question 8

Transaction Broker duties

Answer 8

Acronyms “DAD” and “PUMA”

Deal honestly and fairly
Account for all funds
Disclose all known material facts

Present all offers and counters
Use skill, care and dilligence
Maintain limited confidenciality
Any additional duties agreed on

Question 9

No Broker duties

Answer 9

Acronym “DAD”

Deal honestly and fairly
Account for all funds
Disclose all known material facts

Question 10

Designated Sales Associate

Answer 10

• buyer and seller have more than $1M in assets
• Sale is non-residential

Brokerage may designate two sales associates to act as single agents for each party in the transaction

Question 11

You’ve entered into a nonrepresentation relationship with a buyer who wants to see one of your listings. What duties do you owe to that customer?

Answer 11

Acronym “DAD”

Deal honestly and fairly, account for all funds, and disclose material facts.

Question 12

Which authorized brokerage relationships includes fiduciary duties?

Answer 12

Single agency

Question 14

Which duties are among those owed by a designated sales associate?

Answer 14

Confidenciality, obedience, loyalty, full disclosure

Question 15

Which benefit of full representaiton applies to single agent only?

Answer 15

Loyalty

Question 16

Designated Sales Associate’s representation

Answer 16

Acts as a single agent

Question 17

The sale of vacant land is considered a residential transaction in which of the following cases?

Answer 17

It is zoned for one to four residential units

Question 18

Which type of brokerage relationship is prohibited for transactions involving residential sales?

Answer 18

Dual agency

Question 19

When must a single agent brokerage relationship be disclosed?

Answer 19

Before showing property as a fiduciary