Unit 4 Flashcards

1
Q

Real Estate Agency

A

special relationship between broker and parties involved in transaction, governed by statutory law Art 15 of Real Estate Act of 2000

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2
Q

Agents and Clients

A

Agents - hired

Clients - those who hire

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3
Q

General Agency

A

relationship between broker and sponsoring broker

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4
Q

Agent

A

Individual authorized to represent interest of another person; principal hires the agent

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5
Q

Agency

A

Relationship in which consumer has given consent (implied or express) to licensee to represent them in real estate transaction

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6
Q

Brokerage Agreement

A

Agreement to provide brokerage services and receive compensation for those services

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7
Q

Client

A

person or entity licensee represents

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8
Q

Compensation

A

Payment for executing services

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9
Q

Consumer

A

a person for whom an agent provides services

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10
Q

Confidential info

A

info that can’t be shared without client authorization; must be shared by law or revealed by another person

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11
Q

Customer

A

person for whom services provided but not represented in agency relationship - NO advice or counsel given

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12
Q

E & O Insurance

A

Errors and omissions insurance purchased by sponsoring broker

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13
Q

IL Residential Real Property Disclosure

A

Required for seller to complete in 1-4 unit buildings

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14
Q

Accounting

A

Licensees must provide copies of signed sales contracts and documents within 24 hours; funds must be accounted for and specifically handled

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15
Q

Confidentialtity

A

Key element in fiduciary duties; can’t disclosure anything that would harm principal’s bargaining power

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16
Q

Puffing

A

exaggerating of property’s benefits –legal

Opinion vs Fact - can’t misrepresent material defects or omit facts - this can lead to liability for the licensee

17
Q

Latent Defects

A

Structural defect usually not uncovered in ordinary inspection; seller and broker has duty to disclose if they have direct knowledge; may be liable for not disclosing

18
Q

Buyer Action re: substantial defects/Latent defects

A

Statute of limitations is 1 year

19
Q

Stigmitized Properties

A

property society has branded as undesirable because of events that happened there; always consult an attorney with these issues; *courts have ruled you don’t have to disclose HIV or AIDS from previous owner/tenant

20
Q

Article 15 Disclosure Claims - claims for stigmatized properties

A

2 year statute of limitations

21
Q

Megan’s Law

A

law requiring sex offender info available to public by law enforcement. Seller agent not required to disclose neighboring offenders; not to be disclosed by agent - just refer to police or online database

22
Q

Express Agency

A

principal and agent enter into contract; written or oral

23
Q

Implied Agency

A

agency created by implied agreement; agency exists because of actions of the parties (show property, haven’t signed anything but actions show agency)

24
Q

Compensation

A

Source of compensation does not determine agency; in Illinois buyer agent gets paid by seller agency

25
Q

Gratuitous agency

A

agency with no fee involved

26
Q

**Termination of Agency

A
  • death/incapacity of either property
  • destruction of property
  • expiration
  • mutual agreement
  • breach
  • operation of law
  • completion
27
Q

Termination of Brokerage Agreement

A

Brokerage agreement must have definite termination date. NO auto extension clauses in Illinois

28
Q

Agency coupled with interest

A

agent has an interest in subject of agency. CANNOT be revoked by principal or terminated on principal’s death

29
Q

Universal agent

A

need power of attorney; empowered to do anything on behalf of principal

30
Q

general agent

A

represents principal in broad range of matters related to specific transaction or ex. Property Manager; **broker and managing broker acting as general agent for sponsoring broker

31
Q

Special agent

A

one specific act or business transaction. Licensee usually special agent to client. Hired to represent them in one specific act

32
Q

Designated Agent

A

person authorized by sponsoring broker to act as agent of principal; brokerage may assign an agent to a principal.

33
Q

Dual Agent

A

Represents both buyer and seller in transaction; legal in Illinois law as long as both informed and consent. Can’t act as dual agent when their property is involved;

34
Q

**Fiduciary Duties of Agents (6) COLDAC

A
  • Care
  • Obedience - act in good faith and obey instructions unless the instructions are illegal
  • Loyalty - they cannot act in own best interests; principal is first priority
  • Disclosure - principal must receive all information, offers, counteroffers, information about the property
  • Accounting - funds must be accounted for and follow specific protocols related to those funds; signed contract to all parties within 24 hours; funds deposited in specific escrow account (no comingling) within next business day
  • Confidentiality- agent must recognize and cannot disclosure to other parties
35
Q

Ministerial Acts

A

admin acts; performed for consumer and do not rise to the level of representation; don’t have to be licensed to provide this information; set up appointment, set up open house; referring a client to another office. Do not need to be licensed to perform these acts