Chapter 4

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What are the four types of agencies?

1. Universal 2. General 3. Agency coupled with Interest 4. Special Agent

When was the Statute of Frauds passed?

1677

How many years do brokers have to keep docs after legal proceedings

2

How many years do brokers have to keep copies of required docs

5

When the real estate licensee is a partner in the ownership of the property and also represents the partners in an agency relationship, it is what kind of agency?

Agency Coupled with Interest

When the fulfillment of the purpose of the agency is completed, what happens?

Agency is terminated

When there is a breach or cancellation by one of the parties is given, what happens

Agency is terminated

In general, when a person authorizes another individual to act for him and asks that person to perform certain task, it is said that person hires a what?

Agent

Who is a person empowered by contract to represent the interest of someone?

Agent

When is it applicable for the the broker may honor the request of the parties and designate sales associates to act as single agents for different customers in the same transaction.

Any real estate transaction other than a residential sale where the buyer and seller have assets of $1M or more

Transaction where the seller is informed and knowledgeable about what he is selling and the buyer is informed about what he is buying

Arms Length Transaction

A single agent can become a transaction broker as the long as the agent gives the transition disclosure and principle consents when?

Before a change in the relationship

Who is required to keep and make available to the department such books and records as will enable the department to determine if such a broker is in compliance with Florida real estate Statutes.

Broker

Revocation of dual agency as an authorized form of representation is a part of what law?

Broker's Relationship Disclosure Act

Section 475.272 is designated as?

Brokers' Relationship Disclosure Act

In addition to the disclosure requirements for a designated sales associate, who must sing the disclosure stating that the broker use the designated sales associate form of representation

Buyer and seller

Who would you hire if to represent you when seeking, negotiating, contracting and obtaining financing for a home?

Buyer's Agent

Who must sign the consent to transition to transaction broker? and when?

By principal/client when implemented

Another term for Let the Buyer Beware

Caveat Emptor

What does the Brokers' Relationship Disclosure Act provide?

Certain provisions in order to clarify the relationship of brokers to buyers and sellers

When an agency relationship is created Principal is called a

Client

When the buyer has representation, the buyer is called the

Client

a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee

Customer

Even without representation, the broker owes certain duties to others.

Deal with all parties honestly and fairly; Disclose all known facts that materially affect the value of residential property which are not readily observable to the buyer (such as change in zoning); Account for all funds entrusted to the licensee (such as earnest money deposits etc.).

special case for non-residential transactions where two licensees under the direction of one broker act as single agents. One represents the buyer and one the seller. In this case both buyer and seller must verify assets of more than $1 million.

Designated Sales Associate

What means that both buyer and seller are aware of the agency relationship and both agree to be represented equally and with all the requirments of agency at the same time?

Disclosed Dual Agency

if any agency or no brokerage relationship appears to be forthcoming during a conversation -

Disclosures must be presented before negotiating the listing or sale of property

What does is mean when both buyer and seller are represented at the same time with the same commitment and dedication?

Dual Agency

Care that a reasonable person exercises to avoid harm to another or his property.

Due Care (dliligence)

Who has the power to inspect and audit in a lawful manner at all reasonable hours any broker or brokerage office?

Duly authorized agents and employees of department

Provide the single agent disclosure before or at the time of entering a listing agreement or an agreement for representation, at the time of or before showing a property, whichever occurs first,

Duty of single agent

What kind of relationship does the agent have with a client?

Fiduciary

What kind of relationship is created when an agent represents seller as principal?

Fiduciary

What kind of responsibility do general agents have to a broker they work under?

Fiduciary

What must be printed in uppcase and bold type on a transition from single agent to transactional broker?

First sentence of disclosure

Who handles multiple transactions of a principal/client.

General

Sales associates who work under a broker are what kind of agents for the broker?

General Agent

What kind of agent would handle property management?

General agent

What kind of Agency is created when a person hails a cab, gets a cab, tell driver where to go, and driver takes person there?

Implied Agency

What kind of agency is created when the acts or conduct of parties involved indicate they have a relationship?

Implied Agency

What kind of Agency is difficult to prove and to sustain and why?

Implied Agency because there are no clear written rules

What kind of agency is created by the "Act of the Parties"?

Implied agency

Caveat Emptor means

Let the buyer beware

means that a buyer or seller is not responsible for the acts of the licensee

Limited Representation

Is a Disclosed Dual Agency legal in Florida?

No

Is a Dual Agency allowed in Florida? Why or why not?

No because it is nearly impossible to do

When the Agent represents one side or the other in a transaction but not the party who is given the form

No brokerage relationship

means that the buyer or seller have no representation in the transaction but the broker will help them both complete the transaction. There is no loyalty involved in this transaction, nor any fiduciary responsibility for the side not represented.

No brokerage relationship obligations

What are the four types of agency relationship?

No brokerage, single agent broker, transaction broker, designated sales associate

What administrative fee could be imposed if licensee fails to provide or adhere to provisions of disclosure?

Not to exceed $1000 per couont

If brokers are involved in a Arms Length Transaction who represents buyer and seller?

One for seller, a different for buyer

When is a disclosure not needed?

Open house or meeting a customer during normal conversation

if the customer is led to believe that the associate is working in a fiduciary capacity.

Persons who identify themselves as agents and their customers as clients may create an "implied disclosure"

It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.

Presumption of transaction brokerage 475.278

What is the purpose of the Statue of Frauds

Prevent fraud among parties by requiring that all contracts be in writing and signed by all parties to be charged.

Buyer or seller who has hired the agent

Principal

What is another name for a "client"

Principal

If a person hires a person to represent their interest (agent), that person is known as what to the agent?

Principal or client

What must you have to create an agency relationship?

Principal/client, task to be done, agent

What does common law mean?

Procedures have been set by precedent of cases that have gone before

What kind of agency is created after the fact?

Ratification of Agency

What kind of agency is created when a licensee shows a property w/out a current listing agreement and then seller agrees to work with the person to sell property?

Ratification of Agency

What kind of agency is created when the principal accepts the conduct of a person who acted without prior authorization as the principal agent?

Ratification of Agency

What kind of Agency is difficult to prove and what problems could it have?

Ratification of Agency, Legal

Sale of agricultural property of 10 acres or fewer

Residential Sales

The sale improved residential property of four units or fewer?

Residential Sales

The sale of unimproved residential property intended for use of four units or fewer?

Residential Sales

Who does the Brokers' Relationship Disclosure apply to?

Residential Sales

The intent of the Broker's Relatioship Disclosure Act is

Revocation of dual agency as an authorized form of representation Disclosure of requirements for real estate licensees relating to authorized forms of broker representation are established Single agency is limited to either a buyer or a seller, but not both, in a real estate transaction, and Transaction brokers provide a limited form of non-fiduciary representation to a buyer, a seller or both in a real estate transaction

Who takes on the role as a sub agent when a broker assumes the role of Agent?

Sale Associates

What has been designated as the Broker's relationship Disclosure out?

Section 475.272

If the buyer is represented by an agent, who hast the right to know that relationship?

Seller

Who can a special agent represent?

Several sellers on one house each time but never seller and buyer for a transaction

In the Brokers' Relationship Disclosure Act, who is limited to either the buyer or seller, but not both in a real estate transaction?

Single agency

broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction.

Single agent

What must be explained to person it applies but are not required to be signed if they refuse?

Single agent notice and no brokerage relationship notice

Why must the relationship between all parties be clearly understand in any real estate transaction?

So that all parties can negotiate fairly

What is the most common type of real estate representation?

Special Agent

What kind of agent handles on transaction for one seller of one property?

Special Agent

When a contract is in writing and states specific terms to prevent misunderstanding, what is is complying with?

Statute of Frauds

What laws are the agency relationship governed by

Statutory Law, Common Law

One who assists in some or all of the duties as assigned by the Agent to do a job for a Principal

Subagent

When the time limit expires as stated in agreement (isting or buyers agreement), what happens to agency?

Terminates

What happens when death or incapacitation of either party occurs?

Termination of agency

What is the law that defines agency relationships?

The Law of Agency

What will determine how much work or how deep the agency relationship will be?

The task

a broker who provides limited representation to a buyer, a seller, or both, in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent.

Transaction broker

In a real estate transaction and according to the Brokers' Relationship Act, who provides a limited for of non fiduciary reprepresenation to a buyer, a seller or both?

Transaction brokers

What must be used to make a transition from single agent to transaction broker?

Transition format in writing either as separate and distinct disclosure or included as part of another document such as listing agreement or other agreement for representation

What means one the parties is unaware that a dual agency exists? How does it lead to unfair disclosure?

Undisclosed dual agency. It may lead to unfair disclosure of info that one party does not want the other party to know

If a person is hired or appointed by an estate to handle real estate affairs of a deceased individual, what is the term describing this person?

Universal Agent

Who handles all delegated business of the Principal?

Universal Agent

Who has the Power of Attorney and is called the Attorney in Fact?

Universal Agent

When would you hire a buyer's agent?

When you are seeking negotiating, contracting and obtaining financing for a home

What time of agency is created when a seller hires a broker to list, show, advertise, and sell a property and in exchange the seller will pay the broker a certain amount of money or percent of sale?

Written or expressed agency

What type of agency is created when written or oral contract is entered into where parties state the intent of their relationship in a contract?

Written or expressed agency

What are the three ways an agency relationship is created?

Written or expressed agency, Implied, Ratification of Agence

The limited confidentiallity will prevent disclosure that the seller will

accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, or the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or any other information requested by a party to remain confidential.

All parties in a residential transaction have the right to disclosure of material facts when in what types of transactions?

agency or no relationship

When one person is empowered by another to represent him in any transaction, it is called what

agency relationship

The Law of Agency defines what

agency relationships

what relationships are determined by the broker

all brokerage relationships

When can a single agent change to a transaction broker?

any time during the relationship between an agent and principal, provided the agent gives the transition disclosure and the principal consents to the transition before a change in the relationship.

To be in order, when must single agent make disclosure?

before or at time of entering into a listing agreement or an agreement for representation or before showing of property, whichever is first

Single agent notice is given

before, or at time of, entering into a listing agreement or before showing a property

Who must understand the relationship if a seller is represented by an agent?

buyer

Either buyer or seller is a what when he chooses a limited representation under transaction broker status

customer

Under Florida law, who are not responsible for the acts of a transaction broker, and licensees will not work for one party to the detriment of the other

customers

If a licensee fails to provide or adhere to the provisions of disclosure, the Commission may

deny an application for licensure, registration, permit or renewal place the licensee, registrant or permitee on probation, suspend a licensee, registration or permit, impose an administrative fine not to exceed $1,000 for each count, issue a reprimand, do any or all of the above.

The Commission will prosecute a licensee for

failure to give the agency disclosure form(s) before at the time of entering into a listing agreement or an agreement for representation, or before the showing of property, whichever occurs first, when dealing in residential property.

What kind of duties do single agents have

fiduciary

Persons who identify themselves as agents and their customers as clients may create an "implied disclosure" if

if the customer is led to believe that the associate is working in a fiduciary capacity.

What does is mean when something is governed by Statutory Law

laws are currently on record in the country

parties are giving up their rights to the undivided loyalty of the licensee.

limited representation

Under Florida law, is the buyer required to sign the disclosure? What should be done?

no. The broker should include a copy of the disclosure along w/note that buyer refused to sign and put it in buyer's file

Transaction brokers provide a limited form of what to a buyer, seller, or both in a real estate transaction?

non fiduciary representation

What will enable the department to determine if a broker is in compliance with Florida Real Estate Statutes?

one legible copy of all books, accounts, records, including disclosure documents for at least 5 years. 2 years after legal proceedings

The scope of the Brokers' Relationship Disclosure Act applies to

only residential sales

an agent who represents either the buyer or the seller in the transaction but not both,

single agent broker

Bankruptcy of either party or foreclosure of the property occurs results in a

termination of agency

an agent who provides limited representation to a buyer, a seller or both, in a real estate transaction but does not represent either in a fiduciary capacity,

transaction broker

When incorporated in other documents, the required notice must be of the same what

type or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of a Transaction agent, except that the first sentence of the disclosure must be printed in uppercase and bold type.

A transition broker must provide limited confidentiality unless

waived in writing by a party

In The Brokers Relationship Disclosure Act, the law states that Without consideration of the related facts and circumstances, the mere payment or promise to pay compensation to a licensee does not determine

whether an agency or transactional brokerage relationship exists between the licensee and a seller, landlord, buyer, or tenant.


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