Post 45 RE Licensing Class

A licensee- who acts as a single agent must give a single-agent disclosure notice before showing a duplex to a prospective buyer?

TRUE-Because a duplex has four or fewer units, it is considered residential property. A licensee in a residential sales transaction must give a brokerage relationship notice to potential buyers before the showing of property.

Principal:

(1) The person who enters into a fiduciary relationship with a single agent licensee. (2) The amount of money remaining due on a mortgage loan.

The 3 types of *required residential brokerage notices* are:

1) No brokerage relationship notice 2) Single agent notice 3) Consent to transition to transaction broker notice

The "________________" is responsible for the acts of his ________________ agent.

1) principal 2) single agent

A transaction broker owes loyalty- to her buyer?

FALSE- Loyalty is a duty of a single agent. A transaction broker provides limited representation- to a buyer, a seller, or both- in a real estate transaction, but does NOT represent either in a fiduciary capacity.

A Single Agent represents ______________ the buyer, or the seller, but NOT _______________ in a transaction.

1) either 2) both

Fiduciary Relationship:

A relationship of trust and confidence between an agent and a principal

Licensees may act as- designated sales associates in a residential transaction?

FALSE- Designated sales associate status may be used only in a nonresidential transaction.

Nonresidential buyers and sellers must have personal assets of $100,000 before a broker may appoint designated sales associates in a transaction?

FALSE- In order for a broker to appoint designated sales associates in a nonresidential transaction, buyers and sellers must have personal assets of at least $1 million.

If a single agent sells a residential condominium, the agent must give the buyer a single agent notice?

TRUE- A residential sale is defined as follows: property with four units or fewer, unimproved residential property intended for use of four units or fewer, or agricultural property of 10 acres or fewer.

The single agent notice may be a separate and distinct disclosure document, or part of another document, but most often made part of a __________________,or a buyer brokerage agreement.

listing agreement

A transaction broker owes these 7 duties to the customer:

#1 Dealing honestly and fairly #2 Accounting for all funds. #3 Using skill, care, and diligence in the transaction. #4 Disclosing all known facts that materially affect the value of residential real property, and are not readily observable to the buyer. #5 Presenting all offers, and counteroffers in a timely manner; unless a party has previously directed the licensee otherwise, IN WRITING. #6 *LIMITED* confidentiality, unless waived IN WRITING by a party. #7 Any additional duties that are entered into- by this- or a seperate agreement

A Single agent owes these 9 duties- to the principal:

#1 Dealing honestly and fairly #2 Loyalty #3 Confidentiality #4 Obedience #5 Full Disclosure #6 Accounting for all funds #7 Skill, care and diligence in the transaction #8 Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee-in writing. #9 Disclosing all known facts that materially affect the value of residential real property, and are not readily observable.

A Real Estate Licensee may work with potential buyers and sellers as:

1) A transaction broker 2) a single agent 3) with no brokerage relationship

A transaction broker provides ______________ representation to a buyer, a seller, OR ____________ in a real estate transaction, but does NOT represent either party in a ___________________ capacity.

1) Limited 2) BOTH 3) Fiduciary

A residential sale is defined as:

1) Property with 4 units, or fewer 2) Unimproved residential property; intended for use of 4 units or fewer 3) Agricultural property of 10 acres, or fewer

Because only _____________ agency-creates a __________________ relationship, ONLY single agents may call their customers "____________________."

1) Single 2) Fiduciary 3) Principals

The transaction broker may not reveal to either party:

1) That the seller might accept a price less than the asking, or list price. 2) That the buyer might pay a price greater that the price submitted in a written offer. 3) The motivation of any party- for selling or buying property. 4) That a seller or a buyer will agree to financing terms other than those offered. 5) Any other information requested by a party to remain confidential.

While working as ______________ brokers; Instead of being an advocate for the buyer, or the seller- the licensee is working for the _______________.

1) Transaction brokers 2) contract

The principal relies on the single agent to give skilled and knowledgeable _______________, and help _________________ the best terms in dealings with the customer.

1) advice 2) negotiate

Generally, a licensee in a residential sales transaction MUST give a __________________, to potential buyers/sellers BEFORE- OR- at the time of entering into a __________________-OR-BEFORE the _________________, whichever occurs first.

1) brokerage relationship notice 2) listing agreement 3) showing of property

Brokers must keep copies for at least _____ years- of the disclosure notices for ALL residential transactions that result in a written sales contract.

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Single Agent:

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

Single Agent Notice:

A disclosure form- informing the principal of the duties of his single agent.

Customer:

A person who works with a sales associate or a broker. While the person could be a principal, the usual definition is that the broker is either a transaction broker or has no brokerage relationship with the person.

Buyer Brokerage Agreement:

An agreement between a buyer and a broker for the broker to provide services to a buyer for compensation. The broker may be acting as a single agent, a transaction broker, or a nonrepresentative.

Dual Agency:

An illegal arrangement whereby the broker tries to represent both the buyer and the seller in the same transaction

A licensee who acts as a transaction broker must give a transaction broker notice before showing a house to a prospective buyer?

FALSE- A licensee need not give a brokerage relationship notice when the licensee is acting as a transaction broker.

Licensees working with no brokerage relationship to the customer owe the customer the duty of confidentiality?

FALSE- Licensees working with no brokerage relationship owe only three duties to the customer: dealing honestly and fairly, disclosing all known facts that materially affect the value of the residential real property that are not readily observable to the buyer, and accounting for all funds entrusted to the licensee.

A transaction broker may tell a buyer if he knows that the seller will take less than the asking price?

FALSE- The transaction broker may not reveal that the seller might accept a price less than the asking or list price.

A single agent for ONE party in a transaction MAY decide to work with the other party; with NO brokerage relationship?

TRUE- A single agent for one party in a transaction may decide to work -with the other party as a nonrepresentative.

A principal is responsible for the acts of his single agent?

TRUE- Because only single agency creates a fiduciary relationship, only single agents may call their customers principals. The principal is responsible for the acts of his single agent.

Under FL law, licensees are presumed to be working as ___________________-UNLESS they have entered into another brokerage relationship with a customer.

Transaction brokers

The ____________________ must be given- before, or at the time of, entering into a listing agreement, or an agreement for representation-or- before the showing of the property; whichever occurs first.

single agent notice