Agency

A tenant thought that the tenant had suffered damages in a leasing arrangement and was contemplating constructive eviction. In this case, the tenant would

Move out of the property and file a law suit for damages

An owner listed a farm with a broker. Although the owner did not mention it, the broker knew the owner was in poor health. What should the broker tell potential buyers?

NOT tell them because it would reduce the seller's bargaining leverage

salesperson could be an agent for

Salesperson's own broker only

When is a commission normally considered to have been earned by a broker?

Upon the bringing in of a ready, willing and able buyer

An agent obtained a 4 month listing on a restaurant at 6% commission. 2 weeks later the restaurant burned down. What should agent do in this situation?

Agent should do nothing since the agency is now terminated - Substantial damage usually terminates the listing since it is generally assumed that the broker should not be required to attempt to fulfill the agency obligations of marketing a property for which there would be few (if any) potential buyers.

Property manager legally can

Ask questions of potential tenants to determine if they have the ability to pay the rent

Definition of a fiduciary duty

COALD - Care, Obedience, Accountability, Loyalty, Disclosure

Property manager is a

General agent

A buyer and seller entered into a contract for the sale of a house. The buyer applied for and was approved for a loan. At the last minute the seller backed out of the sale. Is the broker due a commission?

Yes, because the buyer was able to perform all of the requirements in the contract - As a general rule, if the broker has procured a ready, willing and able buyer and the seller defaults, the broker is due a commission.

Latent defect

Hidden defect

Index lease

Index lease is readjusted based on changes in some type of cost index

A buyer and seller entered into a contract for the purchase of a house. The seller purposely did not disclose the fact that the roof leaked. The buyer has recourse under what body of law?

Latency defects

An owner listed a property with Broker Dole on May 1. On July 1 the owner was declared legally insane. The broker brought a full price offer on July 3 to the seller which was accepted. How much commission is Broker Dole due?

No commission since the listing was terminated when the owner was declared legally insane - Insanity cancels a listing automatically

Non-disturbance clause

Non-disturbance clause is a statement by the lender that, if forced to foreclose, the lender will allow the tenants to stay in the property. Large tenants usually request this before spending money on a leased unit

Ostensible agency

Occurs when it "appears" that an agent had the principal's authority to act. So, when the principal acted as if the agent's actions were acceptable, an ostensible agency occurred, regardless of whether there was an actual agency agreement.

Before a listing agent shows property to a buyer, to protect the seller's interest, the agent should

Qualify the buyer financially before showing property to make sure the buyer can afford the property

An agent had a listing which would expire on July 5. On July 1 the agent showed the property to a buyer. The seller plotted with the buyer and sold it to him a few days after the listing expired. Who would the broker sue for the commission?

Seller - If the broker could prove collusion, the broker could sue the seller

Agency relationship normally established between a broker and a seller is a

Special agency