Unit 16

Question 1

Five common law fiduciary duties COALD

Answer 1

Care
Obedience 
Accounting- commingling money id illegal. Brokers must give copies of all documents to all parties affected by the, and keep records for at least 3 years 
Loyalty 
Disclosure

6th one confidentiality- outlasts the contract

Question 2

Express Agency

Answer 2

Listing agreement is a written contract. This authorizes a broker to find a buyer or tenant for the owner.
Buyer agency agreement is between the buyer and the broker it stipulates activities and responsibilities the buyer expects.

Question 3

Implied agency

Answer 3

Mutually agreed to an agency relationship unintentionally accidentally or inadvertently.

Question 4

Agency coupled with an interest

Answer 4

The agent is given an interest in the subject of the agency, such as the property being sold. Cannot be revoked by the principle or terminated by their death.

Question 5

Compensation

Answer 5

Compensation does not determine agency. Written agency agreement includes compensation details.

Question 6

Termination of agency

Answer 6

• completion performance or fulfillment
• death of broker or client not the agent
• destruction or condemnation
• expiration of terms
• mutual agreement
• breach by one party
• operation of law= bankruptcy of the principle

Question 7

Universal agent

Answer 7

a person empowered to of anything the principal could do personally. Authority to act on behalf of the principal is virtually unlimited.

Question 8

General Agent

Answer 8

Represents the principal in a broad range of matters related to a particular business or activity. Most real estate agents are general agents of their broker. They may bind the principal to any contract within the scope of the agents authority.

Question 9

Special Agent

Answer 9

Limited agent. Authorized to represent the principal in one specific act or business transaction only. A real estate broker is usually a special agent. The real estate broker cannot bind the principal to any contract

Question 10

Subagency

Answer 10

when a broker appoints other brokers as subagents to help perform client based functions on the principals behalf.

Question 11

Designated agency

Answer 11

Process that accommodates an in house sale in which two different affiliated licensees are involved. the broker is still considered a dual agent therefore disclosure is required.

Question 12

PA consumer notice

Answer 12

It is discussed t the initial interview or the first substantive meeting (before any confidential information is disclosed).
*must explain that info discussed is not confidential until this document is signed.
It must be kept on file for 6 months and 3 years after closing
Menu of services
is a disclosure summary that must be discussed prior to the purchase or sale of residential or commercial real estate or for the lease of residential or commercial real estate when the license is working on behalf of the tenant (different disclosure when working on behalf of the owner in leasing). No disclosure necessary when working with commercial properties and corporations.

Question 13

Provisions of PA consumer notice

Answer 13

• statement advising the party that a licensee is not representing the consumer unless an agency relationship os selected by signing a written agency agreement
• general duties a licensee owes all consumers
• description of the business relationships permitted in PA
• Contractual terms that must be included in all agreements
• a statement about real estate recovery fund.