Unit 4

Question 1

A General Agent

Answer 1

A general agent is authorized by the principle to perform acts associated with the continued operations of a particular job or a certain business of the principle.

Question 2

SINGLE AGENT RELATIONSHIP

Answer 2

A single agent is a broker who represents as a Fiduciary, either the buyer or the seller, but not both, in the same transaction.

Question 3

A Residential Sale Transactions are defined as:

Answer 3

1.) improved residential property of 4 or fewer units;
2.) unimproved residential properly zoned for 4 or fewer units; and,
3.) agricultural property of 10 or fewer acres.

Question 4

TERMINATING A BROKERAGE RELATIONSHIP

Answer 4

1) Fulfillment of the brokerage relationship’s purpose ( for example, finding a ready willing and able buyer).
2) Mutual agreement to terminate the brokerage relationship.
3) Expiration of the terms of the agreement. ( If no term is specified , the courts have ruled that a brokerage relationship may be terminated after a “reasonable” time.)
4) Broker renounces the single agent relationship by giving notice to the principal, or the broker renounces the transaction broker relationship by giving notice to the customer.
5) Principle revokes a single agent relationship, or the customer revokes a transaction broker relationship by giving notice. ( In this case , the principal or the customer may be liable for damages such as advertising expenses and incurred by revoking the brokerage relationship before the termination date of the listing contract or exclusive buyer contract).
6) Death of the seller or the seller’s broker before the broker finds a willing and able buyer.
7) Death of the buyer’s broker or the buyer before the broker finds a suitable property for the buyer.
8) Destruction of the property or condemnation by eminent domain.
9) Bankruptcy of the principal or the customer.