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AZ Real Estate Principles > Unit 9 - Real Estate Agency > Flashcards

Unit 9 - Real Estate Agency Flashcards

1
Q

What is the term for one who employs another to act on her behalf? But not necessarily the one who pays..

A

Principal

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2
Q

What is the term for one who is employed to represent a principle?

A

Agent/Fiduciary

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3
Q

What is the term for a party to a transaction who is not a party to the particular agency contract?

A

A Third Party

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4
Q

What does a facilitator or transaction-broker do?

A

Provides services, not representation.
-Non agency relationship
-Licensee will not negotiate or provide fiduciary duties other than those required by law
-Not an option in all states

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5
Q

What specifies fiduciary duties to principles?

A

Common Law of Agency
“OLD CAR”
1. Obedience
2. Loyalty
3. Disclosure
4. Confidentiality
5. Accounting
6. Reasonable skill and care

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6
Q

What is the term OBEDIENCE in dealing with the Law of Agency?

A

An agent must obey the lawful directions of the principal.

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7
Q

What is the term LOYALTY in dealing with the Law of Agency?

A

An agent must place the interest of the the principal ABOVE ALL OTHERS.
Ex) Show them ALL properties that fit their needs, and act as an advocate for the principal.

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8
Q

What is the term DISCLOSURE in dealing with the Law of Agency?

A

To disclose to the principal and all properties all known material facts about the property. FULL disclosure to principal - all knowledge.

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9
Q

What is the term CONFIDENTIALITY in dealing with the Law of Agency?

A

Must keep price, terms and motivations (PTM) confidential forever! Only way to release that is with written permission from principal.

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10
Q

What is the term ACCOUNTING in dealing with the Law of Agency?

A

Account for any money or personal property entrusted to agent.

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11
Q

What is the term REASONABLE CARE AND SKILL in dealing with the Law of Agency?

A

You owe a reasonable skill and care to your client.

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12
Q

What are agent’s duties to third parties, customers, or consumers?

A

“DAH”
1. Disclosure - only material facts
2. Accounting
3. Honesty & fair dealing

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13
Q

For disclosure - when do you inform customers to not share confidential information with the agent?

A

At the first substantive contact

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14
Q

Do you still have to make a disclosure of material facts if the property is being sold as is?

A

Yes - always

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15
Q

What is the scope of an agent’s authority - created by written contract?

A
  1. Special agency
  2. General agency
  3. Universal agency
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16
Q

What is a Special Agency?

A

“Help me buy, help me sell, etc”
1. the agent is authorized to perform a particular act without the ability to bind the principal contractually.
2. Listing brokerage firm to seller
3. Buyer brokerage firm to buyer

17
Q

What is a General Agency?

A

The agent is authorized to perform a series of acts associated with the continued operation of a particular business.
The agent has a limited ability to bind the principal (listing agreements, buyer rep agreements, tenant rep agreements)
or Property manager to property owner (leases, etc)

18
Q

What is Universal Agency?

A

The agent is authorized to perform in place of the principal. The agent has unlimited ability to bind the principal (as in power of attorney).
Agent legally replaced the principal. Can accept/reject offers and sign for the principal.

19
Q

What is an express agency?

A

An agency relationship based on a formal agreement between the parties.

20
Q

What is it called to accommodate an in-house sale in which two sales associates of the same broker are involved?

A

Designated agency

21
Q

What federal legislation promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children or commits sexually violent crimes?

A

Megan’s Law - and affects a real estate’s professional duty of disclosure.

22
Q

What is a latent defect?

A

A defect that may be hidden (like behind a wall or ceiling) that seller may not even know about.

23
Q

What’s the number one reason why real estate agents are taken to court?

A

Failure to disclose material facts. Disclose ALL material facts that you can.

24
Q

The laws enacted by a legislature make up…?

A

Statutory Law

25
Q

A real estate professional’s duties to a customer do NOT include…?

A

Being primarily responsible to the customer

26
Q

How long is a real estate agent’s duty of confidentiality usually extend for?

A

The period of time specified in state law

27
Q
A

AZ Real Estate Principles (2 decks)

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