CH 4 RELATIONSHIPS, DUTIES, AND DISCLOSURE

transaction broker

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.

consent to transition

A written agreement to gain the principal's permission to a change in brokerage relationship

While a buyer is a brokers principal. Legally, the sales associate who work for the broker are.....

Also bound by the brokers agency obligations

Single Agent Duties

Honesty, Disclose all known facts, Account for all funds, Loyalty, Confidentiality, Obedience, Full disclosure, skill, presenting all offers

A home for sale has a leaky roof, but there's no visible water damage inside. The sellers broker is aware of this leak. If a potential buyer does not inquire about the roof, what is the broker legally required to do?

Inform about the roofs leakage

In Florida, if a real estate broker is the single agent of the seller and a potential buyer approaches the broker seeking representation for the same property, what is the brokers initial responsibility?

Inform the potential buyer in writing that they are currently representing the seller

A homeowner has listed her property for $85,000. However, during a conversation with the agent, she indicates she might accept $79,000 if necessary. The agent

Is not permitted to disclose the $79,000 figure

Statutory Law

Law passed by the U.S. Congress or state legislatures

Principal Real Estate Broker

May act for both parties with knowledge and written consent of both

On July 1, Abrams lists his home on a 90-day exclusive contract with Broker Baker. On July 30, Abrams's Chapter 7 bankruptcy claim is approved. On August 6, the broker found a ready, willing, and able purchaser for Abrams's home. Can the broker claim a commission from Abrams?

No, the contract was terminated due to bankruptcy before a buyer was procured

A broker lists, a property that she knows would be a perfect fit for her cousin. The property is being sold due to the death of the owner. The succession is willing to except a much lower offer than the properties listed price about making an offer, the broker should tell her cousin....

Nothing, and present to the succession any offer that her cousin wishes to make, this is because the brokers fiduciary responsibility is to his client, which includes confidentiality

single agent

Per Section 475.01, F.S., a broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction.

dual agency

Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states

A broker listed a land for $90,000. Jim verbally offered $88,000. Another buyer who knew about Jim's offer made an offer of $93,000. The broker drew up a written contract for $93,000 but did not inform the owner about the offer for $88,000. Which is correct?

The broker should have presented both offers to the owner because the broker must present all the offers and counter offers to the clients

Residential sale

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.

When a broker employs a real estate sales associate, the licensee has

The same obligations than his broker for their clients

caveat emptor

buyer beware

Brokerage Relationship Disclosure Act

establishes brokerage representation disclosure requirements.

When must the No Brokerage Relationship notice be presented?

in writing before the showing of property

special agent

is an agent that is given the authority to perform specific tasks. authorized to perform this specific activity or transaction on behalf of the principal. A real estate broker who has a single-agent relationship with a seller or buyer is a _______ _________ for that party.

General Agent

one who does customary and routine tasks related to an ongoing job. Sales associates and broker associates are __________ __________ of their broker.

A transaction broker is best described as the concept of

one who provides limited representation in a brokerage transaction between buyer and seller.

fiduciary relationship

relationships real estate professionals have with their clients.

disclosure agreements apply only to

residential transactions

The F. S. Chapters 475 and 455 and F. A. C. Chapter 61J2 comprise

statutory laws of real estate

Subagency

the fiduciary relationship between the subagent and the principal