LESSON 4 - State

Designated Agency

A contractual relationship between a broker and a client under which one or more licensees affiliated with the broker are designated as agents of the client the agency relationship that shall be presumed to exist when a licensee engaged in any real estate transaction, except as otherwise provided in this Chapter, is working with a client, unless there is a written agreement providing for a different relationship.

Designated Agent

A licensee named by a broker as who is the agent of a client.

Customer

A person who is not being represented by a licensee but for whom the licensee is performing ministerial acts.

Agency

A relationship in which a real estate broker or licensee represents a client by the client's consent, whether express or implied, in an immovable property transaction.

Agency disclosure is required regarding a lease: A. With a term of one year in which a sale is contemplated. B. With a term of two years. C. With a term of exactly three years. D. With a term exceeding two years with no sale contemplated.

A. With a term of one year in which a sale is contemplated. Note: If sale is not contemplated, the term would have to exceed 3 years.

Promoting the best interests of a person is a duty performed by a licensee representing the A. client B. customer C. broker D. designated agent

A. client

If a licensee is working with both landlord and tenant as to a two year lease in Louisiana and the licensee is the landlord: A. dual agency does not exist. B. dual agency does exist. C. it is illegal. D. a lease brokerage agreement must be signed to be legal.

A. dual agency does not exist.

A dual agent in Louisiana must: A. explain closing costs and procedures. B. meet with both clients at the same time. C. have an agreement signed to be an undisclosed dual agent. D. hide all latent material defects that may affect the seller's negotiating position.

A. explain closing costs and procedures.

Ministerial acts

Acts that a licensee may perform for people that are informative in nature. Exp: Showing a person through a property being sole by an owner on his or her behalf.

Dual Agency

An agency relationship in which a licensee is working with both buyer and seller or both landlord and tenant in the same transaction. Such a relationship shall not constitute dual agency if the licensee is the seller of property that he owns or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent. A dual agency relationship shall not be construed to exist in a circumstance in which the licensee is working with both landlord and tenant as to a lease which does not exceed a term of three years and the licensee is the landlord.

Broker Agreement

An agreement for brokerage services to be provided to a person in return for compensation or the right to receive compensation from another.

Broker

Any person licensed by the Louisiana Real Estate Commission as a real estate broker.

Information obtained by a licensee from a client during the term of a brokerage agreement that could materially harm the position of the client is: A. Not confidential unless by written request. B. Confidential unless the disclosure is required by law, permitted by the client, or becomes public from another source. C. Always confidential information. D. Permitted to be disclosed to other agents in the office to promote sales.

B. Confidential unless the disclosure is required by law, permitted by the client, or becomes public from another source.

An agreement for brokerage services to be provided to a person in return for compensation is a: A. commission invoice agreement B. brokerage agreement C. buyer agency disclosure agreement D. seller agency disclosure agreement

B. brokerage agreement

Responding to an inquiry about the property's price at an open house: A. Requires and agency disclosure form to be presented. B. Requires a written property condition disclosure form to be presented. C. Is a ministerial act. D. Requires a lead-based paint disclosure form to be presented.

C. Is a ministerial act.

If one client does not consent to dual agency in a Louisiana transaction: A. The licensee must withdraw from the transaction. B. The licensee may refer the client to another for a referral fee with disclosure to the one client. C. The licensee must give a written disclosure to both clients to receive a referral fee for the one withdrawing. D. The licensee cannot represent the client in other transactions.

C. The licensee must give a written disclosure to both clients to receive a referral fee for the one withdrawing.

Subagency can be created by: A. membership in a multiple listing service. B. working with another agent in the office serving customers. C. a written agreement only. D. learning confidential information.

C. a written agreement only.

A relationship in which a real estate broker or licensee represents a client by the client's consent in an immovable property transaction is referred to as: A. dual agency B. a commission C. agency D. a written brokerage agreement

C. agency

The dual agency disclosure form will be signed giving consent: A. at the time the brokerage agreement is entered into B. at any time before the licensee acts as a dual agent C. both a and b. D. neither a nor b.

C. both a and b.

Information obtained by a licensee from a client during the term of a brokerage agreement that could materially harm the position of the client is: A. not confidential unless by written request B. always confidential information C. confidential unless disclosure is require by law, permitted by the client, or becomes public from another source. D. permitted to be disclosed to other agents in the office to promote sales.

C. confidential unless disclosure is require by law, permitted by the client, or becomes public from another source.

In dual agency in Louisiana: A. the law imputes minimum knowledge the licensee should know about the client. B. the law imputes minimum knowledge the client should know about the licensee. C. each client and licensee only know the information they were actually given. D. the licensee must disclose all information he is actually given.

C. each client and licensee only know the information they were actually given.

Receiving a higher fee with a higher selling price: A. Breaches a licensee's duty to his buyer client. B. Is illegal. C. Usually makes you less money. D. Does not breach an obligation to the buyer client.

D. Does not breach an obligation to the buyer client.

Licensees are obligated to which duties to all customers? A. Accountability B. Disclosure C. Obedience D. Honesty and Fairness.

D. Honesty and Fairness

Subagency can be created by: A. Membership in a multiple listing service. B. Working with another agent in the office serving customers. C. Learning confidential information. D. a written agreement only.

D. a written agreement only.

Responding to an inquiry about the property's price at an open house: A. requires an agency disclosure form to be presented. B. requires a lead-based paint disclosure form being presented. C. requires a written property condition disclosure form being presented. D. is a ministerial act.

D. is a ministerial act.

A client shall be liable for the acts of omissions of a licensee in providing brokerage services for or on behalf of the client. T or F?

False

A licensee representing a client is not required to perform the terms of the brokerage agreement between a broker and the client because the agreement is between the broker and the client. T or F?

False

Client

One who engages the professional advice and services of a licensee as his agent.

Substantive Contact

That point in any conversation where confidential information is solicited or received. This includes any specific financial qualifications of the consumer or the motives or objectives in which the consumer may divulge any confidential, personal, or financial information, which, if disclosed to the other party to the transaction, could harm the party's bargaining position. This includes any electronic contact, electronic mail, or any other form of electronic transmission.

Commission

The Louisiana Real Estate Commission

Subagency can only be created by a written agreement. A licensee is not considered to be a subagent of a client or another broker solely by reason of membership or other affiliation by the broker in a multiple listing service or other similar information source. T or F?

True

The dual agency disclosure form will be signed giving consent to the agent to act as a dual agent at the time the brokerage agreement is entered into, and at any time before the licensee acts as a dual agent. T or F?

True