Unit 4

Question 1

Principal

Answer 1

Person who delegates authority to another

Question 2

Agent

Answer 2

Authorized to act for and represent the principle.

Question 3

Fiduciary

Answer 3

Acts in position of trust and confidence for another. Owes complete allegiance to the principle.

Question 4

At arms length

Answer 4

Acting on your on behalf without trusting others fairiness and not being influenced by others

Question 5

Caveat Emptor

Answer 5

Let buyer beware

Question 6

General Agent

Answer 6

Sales associate and brokers associates are general agents of principal performing general real estate activities for the broker.

Question 7

Special agent

Answer 7

Authorized by principle to handle a specific business transaction or perform a specific act.

Question 8

Who determines approximate brokerage relationship?

Answer 8

The broker

Question 9

Single agent duties

Answer 9

Account for all funds

Deal honestly and fairly

Disclose all known facts that affect value in residential property

Use skill , care, and diligence

Present all offers and counteroffers

Confidentiality

Obedience

Loyalty

Disclosure

Question 10

What brokerage relationship is presumed if not already Iim written

Answer 10

Transfer action broker

Question 11

Disclosure requirements for designated sales associate

Answer 11

Buyer and seller must Sign a disclosure notice stating they have $1 million threshold and designate sales associate form of representation.

Question 12

Reason for brokerage relationship

Answer 12

Fulliment of relationship

Mutual agreement to terminate

Expiration of the terms of agreement

Broker renounces the relationship by giving notice

Principal or customer cancels relationship by giving notice

Death of seller

Death of buyer

Destruction of property or condemnation by eminent domain.

Bankruptcy of principle or the customer.

Question 13

Transaction broker duties

Answer 13

Account for all funds

Deal honestly and fairly

Disclose all known facts

Use skill, care, and diligence in the transaction.

Present all offers and counteroffers .

Excercise limited confidentiality unless waived in writing

Perform any additional duties that are mutually agreed to

Question 14

Transactions that don’t require brokerage relationship disclosure

Answer 14

Nonresidental transactions

Renal or lease

Business opportunities

Auction

Appraisal

Question 15

How long do real estate records and dead files have to be retained

Answer 15

5 yrs

Question 16

How long to real estate records and dead files have to be kept

Answer 16

5 years