Unit 4 Authorized Relationships, Duties, and Disclosure

Question 1

Define residential transaction as it applies to the disclosure of brokerage relationships.

Answer 1

A residential sale is defined as the sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, or the sale of agricultural property of 10 or fewer acres.

Question 2

Recognize the required disclosures of material facts and others that may not be disclosed.

Answer 2

Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. Licensees have a duty to disclose to buyers all known facts that materially affect the value of residential property.

Question 3

Define the duties of each of the brokerage relationships

Answer 3

ADD Required in all brokerage relationships
1.) Account for all funds*
2.) Disclose all known facts that affect value of residential property.
3.) Deal honestly and fairly
Use skill, care, and diligence
Present all offers and counter offers
Exercise limited confidentiality
Perform additional duties that are mutually agreed to
COLD four duties in single agent relationship
4.) Confidentiality*
5.) Obedience*
6.) Loyalty*
7.) Disclosure (full)*