Chapter 11 Real Estate
Seller told Broker "Please help me sell my house." Broker said "Yes, I will do that." Is this a fiduciary relationship?
NO, as this is a transaction broker relationship (This is a parol (oral) listing. It is presumed to be a transaction broker relationship with no fiduciary obligations)
A transaction broker DOES NOT owe:
complete confidentiality. (A transaction broker owes limited confidentiality.)
Sales Associate has put together a small investment group to purchase a plot of land. When they later sell the land, Sales Associate wants to earn a commission no matter who sells the property. This type of listing is:
exclusive-right-of-sale (Exclusive-right-of sale (exclusive-right-to-sell) allows the listing broker to be paid regardless of who finds the buyer.)
One who is authorized to act on the principal's behalf
Agent
The agent who holds the power of attorney
Attorney at law
Owner signed an open listing with Broker. Broker showed the property to a potential buyer, but left for a 2-week vacation. While Broker was away, Owner sold the property to Buyer. Which of the following is a CORRECT statement:
Broker may be able to collect a commission because Broker brought Buyer and Seller together (An open listing is a unilateral contract. Broker's right to a commission only exists if Broker proves that through bringing Buyer and Seller together Broker was the procuring cause of the sale.)
the illegal act of creating a fiduciary relationship with both the buyer and seller
Dual Agency
a bilateral listing agreement in which the broker is paid regardless of who sells the property
Exclusive right of sale
Seller has agreed to list with only one broker and has retained the right to find the buyer without paying commission. Seller has signed which type of listing?
Exclusive-agency (An exclusive-agency listing authorizes one broker as the sole representative of the owner, but allows the owner to sell it without paying the listing broker.)
Which of the following is required in single agency relationships but NOT required in transaction broker relationships?
Full disclosure (Full disclosure is ONLY a requirement in a fiduciary single agency relationship.)
a relationship of trust and confidence between a principal and agent
Fiduciary
One who delegates authority to another to act on one's behalf
Principal
The authorized brokerage relationship in which the broker has a fiduciary relationship with either the buyer or seller
Single Agency
Seller signed an exclusive-right-of-sale listing with Broker. While Seller was travelling out of town, Broker procured a Buyer and signed the contract for sale and purchase on behalf of Seller. Which of the following is TRUE?
This was illegal because Broker did not hold the power of attorney. (This would only be legal if Broker had been granted power of attorney, making Broker the Seller's attorney-in-fact.)
The authorized brokerage relashionships that is presume to exist in the absence of an agreement to the contrary
Transaction Brokerage
A relationship created when the principal delegates to an agent the right to act on the principal's behalf in business transactions and to exercise some degree of discretion while so acting
agency
The authorized brokerage relationship disclosure requirements of Florida Statutes Chapter 475 DO NOT apply to:
an auction agreement. (The disclosure requirement does not apply to auctions. It applies to sales of improved residential property of four units or fewer, the sale of unimproved residential property intended for use of four units or fewer, or the sale of agricultural property of 10 acres or fewer.)
A listing agreement violates the Statute of Frauds if:
it is parol with a term greater than 12 months. (Parol (oral) listings of more than 12 months must be in writing according to the Statute of Frauds.)
Seller's property is listed for $175,000. Seller tells the listing sales associate that Seller will accept an offer of $165,000. The sales associate must:
keep Seller's comment confidential. (The sales associate must maintain Seller's confidentiality related to price, terms, or motivations.)
Buyer has entered into a transaction broker relationship with Broker. The duties owed by Broker include:
limited confidentiality, accounting, skill, care and diligence (Transaction brokers have the statutory obligations plus skill, care and diligence, accounting, and limited confidentiality.)
a unilateral listing agreement in which the broker is entitled to compensation only if the broker finds a buyer
open listing
Broker discovers a hidden problem with the condition of the listed property. After being notified of the problem, Seller orders Broker to keep silent. Broker should:
terminate the listing. (Following Seller's instructions is a violation of the law. Broker must cancel the listing.)