FLORIDA BROKER TEST CH 10 (#8)

What are the duties in a no brokerage relationship? (3) (ADD)

1. Account for all funds 2. Disclose all know facts that affect value of residential property 3. Deal honestly and fairly

What are the duties in a single agent relationship? (9) (ADD/COLD)

1. Account for all funds 2. Disclose all know facts that affect value of residential property 3. Deal honestly and fairly 4. Use skill, care, and diligence 5. Present all offers and counteroffers *6. Confidentiality *7. Obedience *8. Loyalty *9. Disclosure (full) * = duties exclusive to a single agent relationship (COLD)

What are the duties in a transaction broker relationship? (7)

1. Account for all funds 2. Disclose all know facts that affect value of residential property 3. Deal honestly and fairly 4. Use skill, care, and diligence 5. Present all offers and counteroffers *6. Exercise limited confidentiality 7. Perform additional duties that are mutually agreed to

A brokerage relationship between principal (or a customer) and a broker may be terminated for any of these reasons: (9)

1. Fulfillment of the brokerage relationship's purpose (ex. finding a willing, ready, and able buyer). 2. Mutual agreement to terminate the brokerage relationship. 3. Expiration of the terms of the agreement. (If no term is specified, the courts have ruled that a brokerage relationship may be terminated after a "reasonable" amount of time.) 4. Broker renounces the single agent relationship by giving notice to the principal or the broker renounces the transaction broker relationship by giving notice to the customer. 5. Principal revokes a single agent relationship or the customer revokes a transaction broker relationship, by giving notice. (In this case, the principal or the customer may be liable for damages, such as advertising expenses, incurred by revoking the brokerage relationship before the termination date of the listing contract or exclusive buyer contract). 6. Death of a seller's broker or the seller before the broker finds a ready, willing, and able buyer. 7. Death of the buyer's broker or the buyer before the broker finds a suitable property for the buyer. 8. Destruction of the property or condemnation by eminent domain. 9. Bankruptcy of the principal or the customer.

What documents should be kept if a file fails to close? (4) What type of file should they be kept in?

1. brokerage relationship disclosure 2. purchase and sale contract 3. escrow documentation 4. any other documents associated with the property Store them in a "dead" (failed to close) file.

Brokers must retain brokerage relationship disclosure documents for _______ years for all residential transactions that result in a written contract to purchase and sell real property and all nonresidential transactions that utilize designated sales associates.

5 years

A brokerage relationship is terminated under which circumstance? A. The broker-agent gives notice renouncing the brokerage relationship. B. The purchase and sale contract is signed. C. At the will of either party without notice. D. When an offer is accepted.

A The broker-agent gives notice renouncing the brokerage relationship. A brokerage relationship between a principal (or a customer) and a broker maybe terminated if the broker renounces the single gent relationship by giving notice to the principal, or if the broker renounces the transaction broker relationship by giving notice to the customer.

A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is A. a dual agent. B. a transaction broker. C. bound to fiduciary duties to both the buyer and the seller. D. a single agent of both the buyer and the seller.

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

A broker's obligations to consumers with whom the brokerage firm has no brokerage relationship include the duty of A. full disclosure. B. accounting for all funds. C. loyalty. D. limited confidentiality.

B accounting for all funds. A real estate broker working in a no broker relationship capacity has the following duties: 1) deal honestly and fairly, 2) disclose all known facts that materially affect the value of residential real property that are not readily observable to the buyer; and 3) account for all funds entrusted to the licensee.

A real estate licensee must disclose to a prospective buyer that A. a former occupant of the property committed suicide in the home. B. the seller was diagnosed with HIV. C. the family room addition does not comply with local building codes. D. families of other ethnic groups live in the immediate area.

C the family room addition does not comply with local building codes. licensees have a duty to disclose to buyers all known facts that materially affect the value of residential property. Federal fair housing law and the Florida statutes specifically mandate that the fact that an occupant of real property is infected with HIV is not a material fact in a real estate transaction.

Sales associates must give all prospective buyers who view an open house the no brokerage relationship disclosure. True or false

False Certain interactions between a licensee and a buyer do not create a no brokerage relationship, including a bona fide "open house" or model home showing provided the interaction does not involve eliciting confidential information; the execution of a contractural offer or an agreement for representation; or negotiations concerning price, terms, or conditions of potential sale.

A residential sale is defined as the sale of agricultural property of 20 or fewer acres. True of false

False Section 475.278(5)(a) defines residential sales as the sale of improved residential property intended for use as four or fewer units or the sale of agricultural property of 10 or fewer acres.

The broker, in a nonresidential transaction involving designated sales associates, represents the buyer and seller in a fiduciary capacity. True or false

False The broker serves as a neutral party helping to facilitate the process without giving guidance or representation to the parties in the transaction.

The disclosure requirements in Section 475.278(5)(a) FS, apply to all residential property. True or false

False The brokerage relationship disclosure requirements do not apply to the rental or leasing of real property, unless an option to purchase all or a portion of the property improved with four or fewer residential units is given.

The single agent relationship notice must be given to the customer before showing property. True or false

False The single agent notice must be given to the principal before, or at the time of, entering into a listing agreement or an agreement for representation.

Can an agent work as a designated sales associate in a residential transaction?

No, that would be an illegal dual agency.

In a transaction broker relationship, is the buyer or seller (customer) responsible for the acts of a licensee?

No.

Is a written transaction broker disclosure notice required to be given to a buyer or seller?

No.

Designated sales associates work in what type of agency relationship?

Single agent.

A transaction broker or nonrepresentational relationship does not have a fiduciary relationship with a customer. True or false

True

The duties and obligations in each type of brokerage relationship apply to all real estate transactions. True or false

True

If a broker in a single agent relationship violates the duties of a single agent, the principal may notify the broker in writing that the principal is terminating the brokerage relationship. True or false

True A principal is justified in revoking a single agent relationship with the broker if teebroker-agent breaches any of the fiduciary duties.

The no brokerage relationship notice must be given to the customer before showing the property. True or false

True A written no brokerage relationship disclosure must be given to the customer before the showing of property.

In a transaction broker relationship, the customer is not responsible for the acts of a licensee. True or false

True In a transaction broker relationship, the buyer or the seller (customer) is not responsible for the acts of the licensee.

If the disclosure document is incorporated into a listing or buyer broker agreement, a signature line must be inserted immediately following the disclosure information. True or false

True It is not sufficient to only have a signature line at the bottom of the listing or buyer broker agreement.

The destruction of the property will terminate the brokerage relationship. True or false

True One of the reasons that will terminate a brokerage relationship is the destruction of the property or condemnation by eminent domain.

One of the duties owed to buyers and sellers in a no brokerage relationship is the duty to disclose all known facts that materially affect the value of residential property that are not readily observable to the buyer. True or false

True The duty to disclose all known facts that materially affect the value of residential property that are not readily observable to the buyer is a duty required to buyer and sellers in all three types of brokerage relationships.

One of the duties owed to buyers and sellers in a single agent relationship is the duty to disclose all known facts that materially affect the value of residential property that are not readily observable to the buyer. True or false

True The duty to disclose all known facts that materially affect the value of residential property that are not readily observable to the buyer is a duty required to buyer and sellers in all three types of brokerage relationships.

Designated sales associates have the duty of full disclosure with the buyer and the seller. True or false

True Designated sales associates act as single agents for the buyer and the seller in the same nonresidential transaction. One of the nine duties of a single agent is the duty of full disclosure.

Can the Commission discipline a licensee for failure to abide by any provision in 475.278 FS, including duties owed to customers and principals, disclosure requirements, and record keeping requirements set forth in law?

Yes.

If a transaction fails to close, is a broker still required to keep the files for 5 years? Can they be kept in a digitized format?

Yes. Yes.

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.

single agent

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

customer

a member of the public who is or may be a buyer or a seller of real property and may not be represented by a real estate licensee in an authorized brokerage relationship.

fiduciary

a person in a position of trust and confidence with respect to another person.

agent

a representative; one who is authorized to act on behalf of another; a person entrusted with another's business.

A person who accepts the authority of another is the _______________.

agent.

A ________ ______________ is a broker who represents both the buyer and the seller as a fiduciary.

dual agent

Licensees may not operate as __________ _____________.

dual agents

A ___________________ acts in a position of trust or confidence with the principal.

fiduciary

The agency relationship creates a __________________ relationship with the principal.

fiduciary

The ______ _________________ relationship disclosure must be made before the sowing of a property.

no brokerage

In a _______________________ real estate transaction where the buyer and seller each have assets of $_____________________ or more, the broker (at the request of the buyer and the seller) may designate two sales associates to act as single agents for the buyer and the seller in the same transaction.

nonresidential $1 million

A real estate broker may change from a single agent relationship to a transaction broker relationship only with the express written permission of the _______________. The ______________ must sign or initial the Consent to Transition to Transaction Broker Disclosure before the change can occur.

principal principal

A person who delegates authority to another is the _____________________.

principal.

limited representation

representation duties of a transaction broker limited in the areas of loyalty and disclosure.

A ______________________ _________ is defined as 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.

residential sale

The _______________ ____________ disclosure must be made before, or at the time of, entering into a listing agreement or an agreement for representation, or before the showing of a property, whichever occurs first.

single agency

principal

the party employing the services of a real estate broker as a single agent.

residential sale

the sale of improved residential property of four units or fewer, the sale of unimproved residential property intended for use as four units or fewer, or the sale of agricultural property of 10 acres or less.

A _____________________ _____________ provides limited representation to a buyer, a seller, or both, but does not represent either in a fiduciary capacity or as a single agent.

transaction broker

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

transaction broker

no brokerage relationship (nonrepresentation)

when a seller (or the buyer) chooses not to be represented by a real estate broker.

Which action will terminate a single agent relationship with the principal who has listed a home for sale with the brokerage? A. Death of a customer interested in the listing. B. Buyer's offer not accepted by the seller. C. Decision of sales associate who acquired the listing for the brokerage to leave the company. D. Destruction of the listed property by a large sinkhole.

D Destruction of the listed property by a large sinkhole. Destruction of the listed property will terminate a brokerage relationship.

A buyer or seller is considered a _________________________ in a transaction broker relationship.

customer

In all real estate transactions, there are three options concerning the role the real estate brokerage firm will assume: (3)

1. no brokerage relationship 2. single agent of either the buyer or seller 3. transaction broker for the buyer and/or seller

Written disclosures are not required in a residential real estate transaction when: (5)

1. nonresidential transactions 2. the rental or leasing of real property; unless an option to purchase or a portion of the property improved with four or fewer residential units is given 3. auctions 4. appraisals 5. dispositions of any interest in business enterprises or business opportunities, except for property with four or fewer residential units

Brokers must retain all written brokerage relationship disclosure documents for ______ years for all residential transactions that result in a written contract to purchase and sell real property and all nonresidential transactions that use designated sales associates.

5 years

Which statement BEST describes the duty of loyalty in a single agent relationship? A. The broker must act in the best interest of the principal. B. The broker must disclose all latent defects to the prospective buyers. C. The broker is held to a standard of care that requires knowledge concerning the land and physical characteristics of the property. D. The broker must be able to account for all funds received on behalf of the principal.

A The broker must act in the best interest of the principal. The overriding rule is that a broker may not adopt an attitude that is adverse to the interests of the principal or act for himself or herself or some other person whose interests are contrary to those of the principal. Loyalty (faithfulness) requires the broker to always place the principal's interests above those of other persons with whom the broker deals.

Designated sales associates are BEST described as A. single agents for the buyer and the seller in non residential transactions where the buyer and the seller meet certain asset thresholds. B. the sales associates designated to represent the buyer and the seller in a transaction broker relationship. C. undisclosed dual agents. D. the sales associates in charge of the required brokerage disclosure forms for the brokerage office.

A single agents for the buyer and the seller in non residential transactions where the buyer and the seller meet certain asset thresholds. The designated sales associates (in nonresidential transactions) have the duties of a single agent and must give the buyer and the seller a special disclosure notice. The buyer and seller must sign the disclosure notice stating that their assets meet the threshold and requesting that the broker use the designated sales associate from a representative.

The brokerage relationship disclosure requirements in Ch 475 apply to the A. sale of a 20-unit complex. B. sale of a condominium unit. C. residential lease agreement in a duplex. D. sale of a bookstore business and real property.

B sale of a condo unit A residential sale is defined as the sale of improved residential property intended for use as 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 ten or fewer acres. Furthermore, the disclosure requirements do not apply to: nonresidential transactions; the rental or leasing of real property, unless an option to purchase all or a portion of the property improved with four or fewer residential units is given; auctions; appraisals; and dispositions of any interest in business enterprises or business opportunities, except for property with four or fewer residential units.

Broker Murl is an agent of the seller. The seller has disclosed to Murl that the ceramic tile is loose in the dining room because the cement did not adhere to the tile. The loose tile is not readily visible because it is covered with an area rug to protect the seller's toddler. Murl has satisfied his legal obligation if he tells the buyer A. that the floor appears to be in good condition B. that ceramic tiles in the dining room are loose. C. that the buyer can order an inspection at his own expense if he is concerned about the floor. D. nothing unless he is asked specifically about the tile floor's condition.

B that ceramic tiles in the dining room are loose. Licensees must disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.

Which disclosure notice must be given before a single agent can change to a transaction broker? A. No brokerage relationship B. Single agent C. Consent to transition to transaction broker D. Transaction broker

C Consent to transition to transaction broker To gain the principal's written consent to change in relationship, the buyer or seller (or both) must either sign or initial the consent to transition notice set forth in Ch 475. Note that this disclosure notice requires the buyer's or seller's signature (or initials) before the licensee may change from one brokerage relationship to another.

A licensee of ABC Realty must give the no brokerage relationship notice to A. a buyer who has a single agent relationship with XYZ Realty. B. every prospective buyer and prospective seller in all cases. C. a for-sale-by-owner (FSBO) seller before showing the FSBO home to a buyer customer of ABC Realty. D. every prospective buyer who walks through an open house listed by ABC Realty.

C a FSBO seller before showing the FSBO home to a buyer customer of ABC Realty. The licensee's brokerage firm represents the buyer. The licensee does not represent the FSBO seller. Therefore, the licensee must give the seller the no brokerage relationship notice.

Steven is so cautious that he refuses to sign all disclosure documents. Your office policy is to include a note in his file indicating the time, place, and circumstances under which you made the disclosure that Steven refused to sign. You may NOT work with Steven under which circumstance? A. List Steven's home as a single agent. B. Provide limited representation to Steven in locating a new home. C. Provide real estate services to Steven in a no brokerage relationship. D. Change from a single agent to a transaction broker to show Steven's home to an in-house buyer.

D Change from a single agent to a transaction broker to show Steven's home to an in-house buyer. Because the firm represents Steven as a single agent, the sales associate must get the written consent from Steven to transition (change) to a transaction broker before showing the in-house buyer the listing.

A transaction broker has all the duties listed EXCEPT A. limited confidentiality. B. to use skill, care, and diligence. C. to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. D. obedience.

D obedience. Obedience is a duty of a single agent.

A seller lists her home for $216,900. The seller tells the sales associate that she needs to get at least $212,000 for the home. Following Sunday's open house, the sales associate receives two offers on the home. The first offer for $216,900 is contingent on the sellers taking back a $20,000 second mortgage. The second offer is for $212,000, with the buyer to secure her own financing. The sales associate should A. seek his broker's advice regarding which offer to present. B. present the full-price offer to the seller. C. present the second offer to the seller. D. present both offers, explaining the details of each to the seller.

D present both offers, explaining the details of each to the seller. The sales associate must present all oral and written offers and counteroffers in a timely manner.

If a principal gives the broker instructions that will result in loss or harm to the principal, the broker A. is justified in not carrying out such instructions. B. should carry out such instructions without question. C. should carry out only that portion of the instructions that will not cause loss or harm to the principal. D. should inform the principal of possible harm inherent in the instructions, and then either do as instructed or withdraw from the relationship.

D should inform the principal of possible harm inherent in the instructions, and then either do as instructed or withdraw from the relationship. According to the duty of obedience, if a broker feels that carrying out the principal's legal directions will harm the principal, then the broker must promptly inform the principal of all known facts, along with teebroker's opinion. However, if the principal will not change the instructions, the broker must either carry them out or withdraw from the relationship.

One of the duties of a transaction broker is complete confidentiality. True or false

False Transaction brokers must exercise limited confidentiality with customers.

A single agent has a fiduciary relationship with a customer. True or false

False. A single agent has a fiduciary relationship with a principal/client.

designated sales associate

a sales associate appointed by the broker to represent the interests of one party in a transaction when another sales associate in the firm represents the other party. The buyer and the seller must have assets of $1 million and sign disclosures stating that their assets meet the required threshold.

dual agency

an agent representing both buyer and seller in a transaction (not legal in Florida).

In a transaction with designated sales associates the __________________ serves as an advisor, or neutral party, to each designated sales associate - not to the buyer or seller, helping facilitate the process without giving guidance or representation to the parties in the transaction.

broker

In a designated sales associate relationship, the buyer and the seller must sign a _____________________ ____________ _________________ _________________ disclosure notice stating that their assets meet the $1 million threshold.

designated sales associate

Under Florida law, it is presumed that all licensees are operating as ___________________ _____________ unless another brokerage relationship is chosen.

transaction broker

Under Florida law, it is presumed that licensee are operating as ______________________ ______________ unless another brokerage relationship is established.

transaction broker

A _________________ _________________ is required for residential sale transactions when a single agent relationship or a no brokerage relationship is chosen.

written disclosure