Unit 4: Authorized Relationship, Duties and Disclosure

Question 1

A person who delegates authority to another

Answer 1

the principal

Question 2

Fiduciary

Answer 2

A person in a position of trust and confidence with respect to another person.

Question 3

fiduciary relationship

Answer 3

An alliance of trust and confidence that creates a moral and legal obligation when extended by one person and accepted by another.

Question 4

In the real estate transactions, there are 3 options concerning the role the real estate brokerage firm will assume

Answer 4

• non representation (Or no broker relationship)
• single agent of either the buyer or seller
• transaction broker for the buyer and/or the seller.

Question 5

dual agent

Answer 5

broker who represents both the buyer and the seller as a fiduciary

Question 6

True False

Licensees may operate as a dual agent

Answer 6

FALSE

Licensees may NOT operate as a dual agent

Question 7

License law mandates that a real estate broker working in a no brokerage relationship capacity has three duties:

Answer 7

1. deal honest and fairly
2. disclose all known facts
3. account for all funds entrusted to the licensee

Question 8

(FS 475 mandates RE broker working as single has the duties required in a no breakage relashionship …) Four duties apply exclusively to a broker working as a single agent

Answer 8

Confidentiality
Obedience
Loyalty
Disclosure

Question 9

What is required for residential transactions when a single agent relationship or nonrepresentational is chosen

Answer 9

written disclosure

Question 10

residential sale transaction

Answer 10

4-4-10
defines a sale of improved residential property of 4 or fewer unit, sale of unimproved residential property intended for use as four or fewer units,or the sale of agricultural property of 10 acre or fewer acre.

Question 11

List reasons that a brokerage relationship may be terminated

Answer 11

• Fulfillment of the brokerage relationship purpose
• Mutual Agreement to terminate
• Destruction of the sellers property
• Death of the seller’s broker or the seller before the brokers funds a ready, willing, and able buyer
• Bankruptcy of the principal or the customer

Question 12

Designated sales associates have the duties of a _____ _____.

Answer 12

Single agent

Question 13

Mention types of transactions that does not require brokerage relationship disclosure

Answer 13

• non- residential transactions
• rent or lease agreement (except when there is an option to purchase residential property)
• business opportunities (except for property with four or fewer residential units)
• Auctions
• Appraisals

Question 14

For how long does the broker must retain brokerage relationship disclosure?

Answer 14

five years for all residential transactions that result in a written offer/ and all nonresidential transactions that uses designates sales associate.