study guide chapter 4

Question 1

Special Agent:

Answer 1

(pg 51) An agent authorized to perform a single act on behalf of the principal.

Question 2

Principal:

Answer 2

(52, 56) Individual who employs the services of a broker to represent them in a
fiduciary agency relationship or single agent. Eg: If a licensee refers to the seller/Buyer as
a “Principal” it implies Fiduciary duties therefore it is a single agent. (pg52)

Question 3

Fiduciary Duties:

Answer 3

(pg 54-55) A relationship of trust and confidence (Both the agent and
Broker are bound to fiduciary duties when acting in as single agents The principal is the
employer.

Question 4

Transaction broker

Answer 4

broker is an agent that provides limited representation to buyer, seller or
both (pg 52)

Question 5

Presenting Offers:

Answer 5

Broker and agents are required to present ALL offers regardless of what the licensee may think unless following specific instructions as per listing contract. (pg 55)

Question 6

Single agent:

Answer 6

Can only represent buyer or seller but not both in the same transaction.
Dual representation is a violation of Florida Statute 475.(pg 55)

Question 7

Single Agency Relationship

Answer 7

In a Single Agency Relationship, the employer (who hires the broker) becomes the principal, who employs and authorizes the broker to perform services on his/her behalf.

Question 8

Is the principal responsible for the statements of the agents acting on their behalf?

Answer 8

Yes, the principal may be responsible for the statements of the agents acting on their behalf.