Chapter 4
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.