Unit 8

Question 1

What is required by law to be written in an office manual?

Answer 1

A description of the relationship the firm offers

Question 2

True or False? CO only allows single agency?

Answer 2

True

Question 3

Define single agency.

Answer 3

A limited agent with statutory duties.

Question 4

What are the statutory duties of a single/limited agent?

Answer 4

1. Carry out terms of the written agreement
2. Good faith, loyalty, and fidelity
3. Must not disclose the following without consent: stigmatized property. price, terms, motivation.

Question 5

Is a stigmatized property a material fact?

Answer 5

No

Question 6

Who does a transaction broker manage a transaction for?

Answer 6

Neither. Just there manage the transaction, for the transaction

Question 7

Can a transaction broker recommend opinion or counsel?

Answer 7

No

Question 8

Is a transaction broker an advocate or an agent?

Answer 8

No

Question 9

What is the default relationship when no relationship is in writing?

Answer 9

Transaction broker

Question 10

True or false? A written listing contract is not required, but the broker must provide a written disclosure for a transaction broker relationship.

Answer 10

True

Question 11

Does the transaction broker have to keep info confidential for the benefit of both parties?

Answer 11

Yes

Question 12

What is a customer?

Answer 12

A party to a transaction who has not engaged or employed a broker (for sale by owner). Who is not represented

Question 13

What forms makes a customer, a costumer?

Answer 13

A written Brokerage Disclosure to Buyer/Seller

Question 14

What language is included in a Brokerage Disclosure to Buyer/Seller?

Answer 14

You, as a broker, will tell whoever you rep what the customer says

Question 15

For a person to become a customer, what officially needs to happen?

Answer 15

The person must sign it. However, law only requires the broker to give the disclosure at the first physical contact.

Question 16

Does the brokerage have a legal relationship with a customer?

Answer 16

No

Question 17

Does a broker have legal duties to the customer? If so, what are they?

Answer 17

• Disclosure of material facts
• Honest and fair dealing and care
• Accounting for property or things of value
• May do anything for the customer that does not violate their agency relationship

Question 18

Are dual agency and subagency permitted under CO law?

Answer 18

Yes

Question 19

How is a associate broker designated?

Answer 19

Designated by the employing broker to represent the client (must be in writing)

Question 20

Is the brokerage relationship with the designated broker associate, with the employing broker, or both?

Answer 20

Only the designated broker associate

Question 21

Can the designated broker share confidential information about the principal with the employing broker as part of supervision?

Answer 21

Yes

Question 22

Can an employing broker replace a designated broker or add new designated brokers in a transaction?

Answer 22

Yes

Question 23

Does an employing broker become part of a contract?

Answer 23

No. They only advise

Question 24

Who owns the contract? The brokerage firm or the designated broker?

Answer 24

Brokerage firm

Question 25

Who performs the services and has the brokerage relationship? The brokerage firm or the designated broker?

Answer 25

The designated broker

Question 26

What is vicarious liability?

Answer 26

Shared responability

Question 27

Who has vicarious liability for the acts of the employed broker?

Answer 27

The employing broker and the brokerage firm

Question 28

What is Rule E-35?

Answer 28

A broker designated as a listing or buyer's broker for a consumer must disclose that relationship to any other party to the transaction

Question 29

True or False? One person brokerage firms are excluded from designated brokerage because there is no one to designate.

Answer 29

True

Question 30

What is the order in which Rule E-35 (disclose relationship to buyer/seller) must be done? Hint: There are 3

Answer 30

1. Before eliciting or when accepting confidential information (price, terms, motivation). 2. Must happen in writing at firm physical contact 3. On the phone

Question 31

True or False? The broker must make sure that the customer knows who they represent. Any information can be passed along to who you rep. Give the customer a disclosure form.

Answer 31

True

Question 32

True or False? Disclosure must be in writing with the approved form and given to a member of the public?

Answer 32

True

Question 33

True or False? The disclosure form must be signed in order for the broker to be in compliance.

Answer 33

False (just given)

Question 34

FYI - On test: Look for answer "before stating confidential information". If not there, look for "in writing", if not there, look for "on the phone"

Answer 34

...,.,.,.,.,.,.

Question 35

To disclose a relationship to a FSBO, what do you need to give them?

Answer 35

A relationship disclosure form

Question 36

What does a brokerage disclosure to buyer do?

Answer 36

-Defines relationships and gives the buyer written notice of the broker's representation of a seller

Question 37

What does a brokerage disclosure for do when given to a buyer? (who is not your client)

Answer 37

Used to create a customer status and to meet the transaction-broker disclosure requirement

Question 38

Would this agreement hold up in court or state a job description? If not, what does it do?

Answer 38

No; It keeps brokers in compliance with the law

Question 39

If the buyer doesn't sign the disclosure form, what should the broker do?

Answer 39

The broker should sign, give buyer a copy, and keeps one in the broker's file (this makes the broker in compliance with Rule E-35)

Question 40

Is the Definitions of Working Relationships form a mandatory form?

Answer 40

No. Unless a member of the public asks about a brokerage relationship that the brokerage firm does not offer. Used to help educate the public