Chapter 2
Fiduciary
A person in a position of trust and confidence, as between principal and broker; broker as a fiduciary owes certain loyalty which cannot be breached under the rules of agency.
This refers to the relationship between a principal and the principal's agent, which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a third party...?
Agency
If Agent Brandy wishes to represent Seller Jair even though he made that statement, what should Agent Brandy do in order to protect herself?
Agent Brandy must explain to Seller Jair that she cannot discriminate against anyone and if she does represent him, she has to show the property to everyone and that is the only way she will represent him
Confidentiality
An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property.The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold known material facts about the condition of the seller's property from the buyer, or to misrepresent the property's condition. To do so constitutes misrepresentation and may impose liability on both the broker and/or the seller.
Universal Agent
An agent that can serve the principal in any capacity.
General Agent
An agent with full authority over one property of the principal, such as a property manager.
Special Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing contract.
Loyalty
An agent's duty to place the client's interest above those of all others, including the agent's own self-interest.
Material Fact
Any fact that would influence the decision of a reasonably prudent person.
In order to establish an agency relationship, which of the following must agree to the terms of the agency...?
Both the principal and agent
According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property...?
Confidentiality
According to this fiduciary duty, an agent must keep confidential any information that may weaken the principal's bargaining position...?
Confidentiality
According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions...?
F (False)
By signing a listing agreement with a principal, an agent can serve as a universal agent to the principal...?
F (False)
If Agent Brandy were to take Seller Jair's listing and agree to discriminate against any minority group, what law would Agent Brandy be breaking?
FHA
A person in a position of trust and confidence, as between a principal and broker is known as a...?
Fiduciary
If an agent learns of something that is beneficial to their principal, the agent must reveal the information to the principal as per this fiduciary duty...?
Full disclosure
What fiduciary duty does a seller's broker owe to a customer...?
Full disclosure
Agency can be classified in which of the following ways...?
General agency Special agency Universal agency
A property manager is an example of a...?
General agent
Which of the following is signed between an agent and their sponsoring broker...?
Independent contractor agreement
According to the fiduciary duty of obedience, the agent must obey which of the following instructions from the principal...?
Lawful instructions
Which of the following contracts establishes an agency relationship between the seller and broker...?
Listing agreement
Which of the following contracts can establish an agency relationship...?
Listing agreement Buyer representation agreement Property management agreement
This is an agent's duty to place their client's interest above those of all others, including the agent's own self-interest...?
Loyalty
A listing contract is signed between a principal and a...?
Real estate broker
An agent owes which of the following fiduciary duties to their principal...?
Reasonable care and diligence
What document would Agent Brandy need to have Seller Jair sign in order to create a relationship so that Agent Brandy could sell the subject property?
Residential Listing Agreement
A buyer representation agreement between a buyer and broker creates what type of agency...?
Special agency
Abby signs a buyer representation agreement with a buyer. What type of agency was created by the agreement...?
Special agency
A real estate agent is an example of a...?
Special agent
Abby is a real estate broker who represents a seller in a transaction. Abby is serving as what type of agent...?
Special agent
An agent with limited authority to act on behalf of the principal is known as a...?
Special agent
Fiduciary Duty
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.
Reasonable Skill and Care
The degree of care and skill ordinarily used by others competently engaged in the same business.
Obedience
The fiduciary relationship that obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract.
The authority of an agent is provided by which of the following...?
The principal
Agency
The relationship between principal and the principal's agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.
Disclosure
The release of relevant information about a property that may influence the final sale, especially if it represents defects of problems.
An agent that can serve the principal in any capacity is known as a...?
Universal agent