Section 4 Authorized Relationships, Duties And Disclosures

Question 1

True or false, when the licensee is not bound to agency disclosure, the licensee is automatically released from the agency duties

Answer 1

False

Question 2

True or false, a fiduciary is someone who acts in a special position of trust and confidence.

Answer 2

True

Question 3

True or false, if a brokerage firm is a transaction broker for the seller then the broker can be a transaction broker for buyer or in a no brokerage relationship with buyer

Answer 3

True

Question 4

True or false, a broker acts as that of a special agent when working to sell a property for a seller or assist a buyer in purchasing a property

Answer 4

True

Question 5

True or false, a buyer or seller must sign a no brokerage relationship disclosure before the relationship can be formed

Answer 5

False
Only the consent to transition from a single agent to a transaction agent must be signed. The no brokerage relationship must be presented in writing (not signed).

Question 6

True or false, because Florida legislator believes that it is impossible to fulfill fiduciary duties to Two parties of the same transaction; dual agency is not allowed.

Answer 6

True

Question 7

True or false, Florida law requires that the transaction broker disclosure be made before working with a client and that the disclosure be signed by the buyer or seller.

Answer 7

False
Under Florida law, it is presumed licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established. Therefore, a transaction broker disclosure is not required. A transaction to transaction agent notice would be required to be signed if moving back from single agent to a transaction broker.

Question 8

True or false, a residential sale is defined as being an improved residential property of four units or fewer, or the sale of unimproved residential property intended for use of four units or fewer, or the sale of agricultural property of 10 acres or fewer.

Answer 8

True

Question 9

True or false, an agency relationship continues even upon the occurrence of death of one of the parties.

Answer 9

False
An agency relationship will automatically terminate upon the occurrence of death or insanity of one of the parties, or bankruptcy of either the principal or agent.

Question 10

The type of agency relationship entered into is determined by the client.

Answer 10

False

Question 11

Which agency relationship has the broadest and most comprehensive form of agency duties
1. Universal agent
2. General agent
3. Special agent
4. Subagent

Answer 11

1. Universal agent

Question 12

Seller Skip is in a hurry to sell his home. So he wants his agent Allan to let buyers know that he will consider all offers. Allan has a transaction agency with seller Skip. What should Allan do to adhere to the duty of limited confidentiality?
1. Allan should not share this type of confidential information no matter what
2. Allan should have Skip give permission in writing to disclose to the buyers that Skip will consider all offers
3. Having been told by Skip that it is OK to disclose the information, Allan is free to share it with all buyers
4. Allan can only share it with agents working in the same brokerage as Allan agent.

Answer 12

2. Allan should have Skip give permission in writing to disclose to buyers that Skip will consider all offers.

Question 13

Buddy bear broker had a sale that failed to close. How long does buddy bear broker have to keep the applicable agency disclosure documents?
1. Three years
2. Four years
3. Five years
4. Seven years

Answer 13

3. Five years

Question 14

Agent Lou with top-notch realty had listed a 100 unit apartment complex for sale. Agent Sam also with top-notch realty had a buyer interested in buying the property. In order to work as designated sales associates, what events had to take place?
1. Have the buyer sign required disclosures describing the designated sales agency relationship and stating that the buyer had assets of $1 million or more.
2. Have the seller sign required disclosures describing the designated sales agency relationship and stating that the buyer had assets of $1 million or more.
3. Have both the buyer and seller sign required disclosures describing the designated sales agency relationship and stating that the buyer had assets of $1 million or more.
4. They are not allowed to work in the capacity as the designated sales associates only. applies to residential real estate.

Answer 14

3. Have both the buyer and seller sign required disclosures describing the designated sales agency relationship and stating that the buyer had assets of $1 million or more.

Question 15

Which duties apply to both single agency and transaction brokerage relationships but not fo the no brokerage relationship:
1. Use skill, care, and diligence in the transaction and present all offers and counter offers in a timely manner.
2. Exercise limited confidentiality and perform additional duties as mutually agreed.
3. Account for all funds in deal honestly agreed
4. Loyalty and obedience.

Answer 15

1. Use skill, care, and diligence in the transaction and present all offers and counter offers in a timely manner.

Question 16

In what type of agency relationship is the client responsible for the acts of the broker?
1. No brokerage
2. Special
3. Single
5. Transaction

Answer 16

3. Single

Question 17

When the broker is acting as general agent by conducting property management duties, what type of relationships do the licensee employed by the broker have with the principal?
1. Special agent
2. General agent
3. Universal agent
4. Subagent

Answer 17

4. Subagent

Question 18

Broker Crisscross was in a single agency relationship with a buyer. Crisscross made an offer on behalf of the buyer to a for sale by owner with the condition that the seller pay broker Crisscross a 3% commission
What written disclosure should Crisscross have made to the for sale by owner?
1. Transition to transaction agent disclosure
2. No brokerage relationship disclosure
3. Single agency disclosure
4. Dual agency disclosure.

Answer 18

2. No brokerage relationship disclosure

Question 19

Sales associate Jay held an open house for one of his sellers for which he represented as a single agent. A potential buyer reported that the home was too small for his needs but spent about an hour at the property asking many questions about other homes for sale. Which of the following statements is true regarding the situation?
1. Jay was required to make a no brokerage disclosure before letting the buyer enter the open house
2. Jay was required to make a no brokerage disclosure before responding to general questions about the property.
3. Jay was required to make a no brokerage disclosure before communicating about real estate services available.
4. Jay was under no obligation to make a disclosure unless he agreed to show him other property and didn’t intend to represent the buyer as a transaction broker.

Answer 19

4. Jay was under no obligation to make a disclosure unless he agreed to show him other property and didn’t intend to represent the buyer as a transaction broker.

Question 20

Sales associate Jo took a listing on behalf of broker Barbara knowing that the seller was covering up a major crack in the foundation by piling up landscaping bricks. Barbara was never told about the crack. The property sold to a buyer who failed to have the property inspected. After discovering the crack, the buyer sued both Jo and Barbara. What would be the likely charge?
1. Both could be charged with misrepresentation and fraud even though only Jo knew about the crack
2. Only Jo could be found guilty of misrepresentation and fraud because Barbara knew nothing about the Crack.
3. Only Barbara could be found guilty of misrepresentation and fraud because the agency relationship is between broker and principal not the sales associate.
4. The buyer could not sue because the buyer had an opportunity to inspect the property.

Answer 20

1. Both could be charged with misrepresentation and fraud even though only Jo knew about the crack