Unit 4 - 7 State - Relationships, Duties, and Disclosures

Question 1

Unit 4
Residential sale transactions

Answer 1

*improved residential 4 or fewer units
*unimproved residential zoned for 4 or fewer units
*ag property of 10 or fewer acres

Question 2

Unit 4
General agents

Answer 2

authorized by the principal to act on their part. Continued support
Ex: sales assoc general agent to broker
Ex: property manager general agent to principal

Question 3

Unit 4
What are the 3 possible brokerage relationships options?

Answer 3

1. nonrepresentation (no brokerage relationship)
2. Single agency (fidicuary)
3. Transaction broker (assumed in all - limited representation)

Question 4

Unit 4
What are the 3 duties required in all brokerage relationships?

Answer 4

A = account for all funds 
D = deal honestly and fairly 
D = disclose all known facts that affect value of residential property

Question 5

Unit 4
Duties of Single Agent

Answer 5

ADD+
*use skill, care, and diligience
*present all offers and counteroffers
C = confidentiality
O = obedience
L = loyalty
D = FULL disclosure

Question 6

Unit 4
Single agent

Answer 6

broker has a fiduciary relationship with either the buyer or the seller

Question 7

Unit 4
9 reasons to terminate brokerage relationship

Answer 7

1. Fulfillment of purpose
2. Mutual agreement
3. Expiration
4. Broker renounces relationship
5. Principal revokes single agent relationship or customer revokes transaction broker relationship (principal liable for damages)
6. Death of seller’s broker or seller
7. Death of buyer’s broker or buyer
8. Destruction of property
9. Bankruptcy of principal or customer

Question 8

Unit 4
Dual agency

Answer 8

illegal in Florida
two different sales associates in same brokerage
*can transition to transaction brokerage

Question 9

Unit 4
Designated sales associate

Answer 9

NONresidential transaction at request of buyer and seller and have $1 million+ in assets
Assign associates from one brokerage company to represent each the buyer and the seller