The Real Estate Business

Under which type of contract is a broker entitled to compensation only when the transaction is closed?

Effect a sale.

What is a transaction broker?

A broker who provides limited representation to a buyer, a seller, or both in a real estate transaction.

What is a single agent?

A broker who represents, as a fiduciary, either a buyer or a seller in a real estate transaction but never both.

If no agency relationship has been established in writing, a broker is presumed to operate as what type of agent?

A transaction broker.

All of the following statements about the principal-agent relationship are accurate, EXCEPT:

A written agreement or contract is required to create a principal-agent relationship.

Under what type of law does the DBPR or the FREC levy fines?

Administrative laws.

What should an agent do if the principal gives instructions that are illegal?

Advise the principal that he or she is unwilling to proceed and withdraw from the transaction if the principal persists.

What is a universal agent?

An agent who is authorized to act for and represent a principal in all matters.

Which of the following statements accurately describes an arm's length relationship?

Each party in a transaction acts in his or her own best interest with no fiduciary duty to the other party.

Under which type of contract is a broker entitled to compensation when a buyer has made an offer in accordance with the terms of the listing agreement?

Find a purchaser.

According to the Brokerage relationship Disclosure Act, how long must a licensee keep copies of disclosure documents for written residential sales contracts?

Five years from the date of execution, whether the transaction closes or fails to close.

A sales associate who is employed by a broker has which type of agency relationship with the broker?

General agent.

When is it necessary for a broker to transition from a single agent to a transaction broker?

If the broker is representing one party who is a seller and another party who is a buyer and the buyer becomes interested in the seller's property.

All of the following statements about the consent to Transition to Transaction Broker Notice are accurate, EXCEPT:

It allows a single agent with fiduciary duties to represent both the buyer and the seller in a real estate transaction.

What type of brokerage relationship would most likely be appropriate for a seller who needs limited services in a for-sale-by-owner sale?

No brokerage relationship (nonrepresentation).

All of the following statements about single agency relationships are accurate, EXCEPT:

Only a broker has fiduciary duties to his or her principal.

A broker received an offer on a listing that is under the listing price and includes a binder deposit. Before notifying the seller, a verbal offer was presented for the same listing at the asking price, but without a binder deposit. What should the broker do?

Present both offers to the seller.

A civil court imposes what type of penalty to punish a party whose action causes a lawsuit?

Punitive damages.

For residential real estate transactions, which types of authorized business relationships must be specified in written disclosures?

Single agent and no brokerage (nonrepresentation).

Which form of brokerage relationship owes fiduciary duties to the principal?

Single agent.

A broker who lists a home for sale has which type of agency relationship with the owner of the home?

Special agent.

F.S. 455 and F.S. 475 are what type of laws?

Statutory laws.

If the amount of the broker's compensation is not specified in the employment contract, what happens?

The broker can charge a customary commission rate based on the type of property and fee the broker would normally charge.

All of the following statements about a single agency relationship are accurate, EXCEPT:

The broker can represent both parties in a transaction if the Single Agent Notice specifies that relationship.

What is the confidentiality duty of a broker who transitions from a single agent to a transaction broker?

The broker must never disclose confidential information that he or she has learned about the principal.

When multiple brokers are competing for a sale, which broker would most likely be the procuring cause of sale?

The broker who first produced a purchaser who was ready, willing, and able to buy the property.

Who is the principal in a single agency relationship?

The employer with whom a broker enters into a single agency relationship.

How are commission rates established?

Through negotiation between the broker and the buyer or seller.

When is a broker entitled to receive compensation?

When the broker has performed the serivces that he or she was employed to perform.

A civil court imposes what type of fine as a result of a measurable loss?

`Compensatory damages.