Authorized Relationships in Florida - SEVEN

Which two of these transactions would be considered a residential sale that requires agency disclosure in Florida?

1. A vacant lot intended for a single residential property 2. A two-unit paired home

What 3 things are owed in all brokerage relationships?

1. Deal honestly and fairly 2. Account for all funds 3. Disclose all known material facts

What duties are owed in a no brokerage or nonrepresentation?

1. Deal honestly and fairly 2. Disclose all material facts 3. Account for all funds

What is included in the Brokerage Relationship Disclosure Act?

1. Does not authorize disclosed dual agency as a brokerage relationship in Florida. 2. Establishes disclosure requirements for real estate licensees for authorized brokerage relationships. 3. Authorizes single agents to represent either a buyer or a seller, but not both, in a real estate transaction. 4. Authorizes transaction brokers to provide a limited form of nonfiduciary representation to a buyer, a seller, or both in a real estate transaction.

According to the Florida's Brokerage Relationship Disclosure Act, which brokerage relationship requires you to provide a written disclosure before you begin working with the customer?

1. Dual Agent 2. Single Agent 3. Nonagent

What duties are owed by a transaction broker?

1. Limited confidentiality 2. Present all offers in a timely manner 3. Use skill, care, and diligence 4. Deal honestly and fairly 5. Disclose all material facts 6. Account for all funds

What duties are owed by a single agent?

1. Loyalty 2. Obedience 3. Full disclosure 4. Confidentiality 5. Present all offers in a timely manner 6. Use skill, care, and diligence 7. Deal honestly and fairly 8. Disclose material facts 9. Account for all funds

What are the duties owed by a designated sales associate?

1. Loyalty 2. Obedience 3. Full disclosure 4. Confidentiality 5. Present all offers in a timely manner 6. Use skill, care, and diligence 7. Deal honestly and fairly 8. Disclose material facts 9. Account for all funds SAME AS A SINGLE AGENT In addition though, the buyer and seller must sign disclosures stating that their assets are 1 million dollars or more and request that the broker use the designated sales associate form of representation - THERE IS A LONG UPPER CASE AND BOLD DISCLOSURE REQUIRED

Which of the following properties is considered to be nonresidential or commercial?

15 acres of vacant land zoned for agricultural use

In most cases, brokerage firms must retain records for 5 years after a transaction closes. A transaction that closed in February of 2016 resulted in a lawsuit that was resolved in February of 2020. How much longer must the transaction documents be retained?

2 years

Once you meet with the buyer and learn more about their needs, the buyer asks you to represent them. You explain the fiduciary duties you owe when you work with a client as a single agent. The buyer signs the disclosure. How long must you keep the signed disclosure?

5 years after the closer of the transaction even if the transaction fails to close

How long must brokerage records be retained for?

5 years after the transaction closes - if it fails to close than 5 years after the brokerage relationship began

Which of the following agency scenarios is illegal in Florida?

A broker representing a seller as a single agent agrees to work with a potential buyer as a single agent in the same residential real estate transaction. Both the buy and seller consent and sign the required disclosures.

What is a single agent?

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

Why might someone want to transition from a single agent representation to transaction broker representation in Florida?

A client may agree to transition to a more limited type of representation in order to keep working with the same brokerage

Florida's Brokerage Relationships Disclosure Act requirements apply to transactions involving which one of the following properties?

A duplex

What must be disclosed by the customer in order to establish the designated sales associate brokerage relationship?

Assets over one million dollars

When must disclosing single agency happen?

Before a licensee may act as a fiduciary at a showing, the single agent notice must be fully explained and disclosed in writing

Which of the following duties is NOT owed to a customer in a real estate transaction in Florida?

Confidentiality

Which of the follow is NOT a fiduciary duty owed only by a single agent in Florida?

Deal honestly and fairly

Informing parties of material facts related to a transaction describes the duty of ______.

Disclosure

In which of these situations is a Florida licensee excused from providing the agency disclosure? The licensee is representing a tenant in the rental of a condo unit?

Excused

In which of these situations is a Florida licensee excused from providing the agency disclosure? The licensee is representing the seller who is selling his floral shop?

Excused

Determine whether each of these statements about designated sales associates is true or false. The designated sales associate method of representation may only be used when the buyer and seller's each have assets of at least 100,000 dollars.

False

Which of the following statements are true about authorized brokerage relationships? Nonrepresentation is the presumed brokerage relationship in Florida?

False

What is a designated sales associate?

In non-residential transactions, when the buyer and seller each have assets of 1 million dollars or more, the parties may ask the broker to assign each party a designated sales associate from the same firm. These associates will act as single agents and must uphold the fiduciary duties for the buyer or seller they've been assigned to represent.

Who is a customer in a real estate relationship?

It can be a buyer or a seller that may or may not be represented by a real estate licensee - Customers are assisted - Agents work WITH customers

What is a fiduciary relationship? And who has one?

It is a relationship of trust and confidence and exists only between a single agent

What happens for brokerage records when there is legal action?

It must be retained for 2 years after the resolution of the legal action, even if that 2 years extends beyond the original 5 year requirement

What can a transaction broker provide?

Limited, nonfiduciary representation to the buyer, seller, or both, in a transaction. It is the presumed relationship unless another brokerage relationship is established by disclosure in writing.

When agents put their clients' interests ahead of their own, this describes the duty of ______.

Loyalty

When pitching the benefits of full representation to a potential client, you can list which of these duties as exclusive to a single agent relationship?

Loyalty

While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching?

Loyalty

You're speaking to a potential buyer client who thinks agents just drive up the price of the house in order to increase their commission. Which fiduciary duty should you mention when explaining why that wouldn't happen in an agency relationship?

Loyalty

In which of these situations is a Florida licensee excused from providing the agency disclosure? The licensee is representing a seller who is selling her condo unit?

Not excused

You are working with a seller as a single agent for a residential property in a suburban neighborhood. The property has been on the market for some time. Another licensee in your firm is a single agent for a buyer looking at residential properties in the suburbs. Can you help sell your client's property to the buyer represented by another licensee at the same brokerage?

Not if you and your colleague are representing the buyer and seller as single agents. If the buyer and seller, consent in writing with the proper disclosure, to transition from a single agent relationship to the nonfiduciary relationship of transaction broker, your colleague's buyer may present an offer to your seller

Which one of the following duties is owed by a single agent but not a transaction broker?

Obedience

In which of the following transactions is a single agent relationship disclosure required in Florida?

One bedroom/one bathroom second story condo

Which of the following activities would constitute a breach of the duty to use skill, care, and diligence?

Performing an appraisal to determine the value of a home

Business is hopping, and you're managing four sales at once! Which of your clients should have received a written agency notice?

Seller of a triplex

Which authorized brokerage relationship in Florida owes the most duties to a client

Single agency

If Alison has agreed in writing to represent the fiduciary interests of Bruce, who is ready to buy his first home, she has agreed to act as a _______.

Single agent

While explaining the benefits of representation to a potential buyer, the buyer asks if you can help get a good rate on a mortgage. How should you respond?

Sorry, that's outside the scope of my expertise

Why might a client prefer to work with a designated sales associate?

The client is working with a broker and would like to proceed with a transaction with another client of the broker.

What are the disclosure requirements?

The disclosure must be made before the showing of a property. The notice must be the same size type, or larger, as other provisions of the document and must be conspicuous. Uppercase and bold type is required for the first sentence.

What is required in order to transition from a single agent to a transaction broker in Florida?

The parties must receive written disclosure notice

What is the purpose of Florida's Brokerage Relationship Disclosure Act?

To eliminate any confusion customers in real estate transactions might have about who represents whom

What is the intent or purpose of Florida's Brokerage Relationship Disclosure Act?

To eliminate confusion and provide for a better understanding on the part of customers in real estate transactions

In Florida, what type of brokerage relationship is presumed in a residential transaction if there are no written disclosures indicating another type of brokerage relationship?

Transaction broker

What authorized brokerage relationship is presumed in Florida unless specified in writing otherwise?

Transaction broker

You are meeting with a customer who is interested in buying a house. If you are following the law according to Florida's Brokerage Relationship Disclosure Act, which brokerage relationship doesn't require you to provide a written disclosure before you begin working with the customer?

Transaction broker

What is the presumed brokerage relationship? And what does that mean?

Transaction broker - that means that unless there is a written agreement that establishes either a single agent relationship or nonrepresentation, the licensee is working as a transaction broker

Who offers a limited form of nonfiduciary representation to a buyer or seller or both?

Transaction brokers

Determine whether each of these statements about designated sales associates is true or false. A designated sales associate acts as a single agent?

True

Determine whether each of these statements about designated sales associates is true or false. Residential transactions can't use the designated sales associate method of representation.

True

Which of the following statements are true about authorized brokerage relationships? A transaction broker owes the duties owed to customers and the additional duties of presenting all offers; using skill, care, and diligence, limited confidentiality, and any other duties agreed upon in writing by the parties?

True

What is a client?

When a licensee establishes a single agent relationship with buyer or seller that party becomes a client or principal - Clients are represented - Agents work for clients

When must a buyer client give written consent for a licensee to transition to a transaction broker role?

When the buyer is in a single-agency relationship with the licensee

What are the disclosure requirements for a transaction broker?

Written disclosure is not required

What disclosure is required for transitioning from single agent to transaction broker in Florida?

Written notice of the change in brokerage relationship and what duties are owed as a transaction broker is required.

Can a single agent relationship be changed to a transaction broker relationship?

Yes with the written consent of the client to the change. To change the relationship the agent has to give transition disclosure and get the signature of the party consenting to the change to the transaction broker.