Level 4

A no brokerage relationship is one of:

A no brokerage relationship is one of nonrepresentation. In the state of Florida, buyers and sellers can opt out of representation but still work with a licensee in this way.

the broker-party relationship the most limited form of agency

Special agency

Facts of a Feather: after-the-fact acceptance

Agency by Ratification

Two components of agency

Consent and control

puts their client's interests ahead of everyone else's have clients, not customers

Fiduciary

Fiduciary relationships are often those having:

Financial implications

With respect to residential transactions in the state of Florida, dual agency is:

Illegal under any circumstances.

Which of the following is an example of a general agency relationship?

Broker and sponsored licensee

In a Florida Real Estate transaction, who can accurately be referred to as an agent?

Brokers and their sponsored sales associate.

Which duties survive termination of an agency relationship?

Confidentiality and accounting are the two duties that survive termination of an agency relationship.

What is required for an agency relationship to form?

Consent of the agent and client/customer

Which of the following events would NOT invalidate a listing agreement?

Death of a sales associate

In which authorized brokerage relationship in Florida is the party represented referred to as a principal?

Single agent relationship

The ____ agent relationship is the one agency relationship wherein a broker works as a fiduciary with a party who would, therefore, be considered that broker's client or principal.

Single agent relationship

Who created the Broker Relationship Disclosure Act?

The FL legislature

If a Florida licensee violates their duties, the violation could result in license suspension or revocation, or a penalty (per occurrence) of up to what amount?

$5,000

Agency Termination by Act of the Parties: Renunciation

A broker in a single agent brokerage relationship may, at any time, decide to leave an agency relationship. (aka renunciation) Here is a sampling of a few reasons a broker might decide to renounce an agency agreement: -Client has an abusive attitude -Client bailing on showing appointments -Client wanting to skirt Fair Housing laws -Client not negotiating in good faith

Agency Termination by Act of the Parties: Revocation

A client (principal) in a single agent brokerage agreement may, at any time, fire their agent, usually by way of written notice. (aka revocation)

Breach Due to Actions of the Client

A client can breach an agreement by doing such things as being uncooperative (e.g., a seller refusing to make a home available for viewings) or failing to keep commitments (e.g., backing out on a signed offer).

What is a dual agent?

A real estate licensee may not operate as a disclosed or nondisclosed dual agent. As used in this section, the term "dual agent" means a broker who represents as a fiduciary both the prospective buyer and the prospective seller in a real estate transaction. NOT an authorized brokerage relationship.

In which of the following scenarios does a single agent still owe a duty of obedience to a client?

A single agent owes the duty of obedience to the client as long as what is being asked is legal and ethical, regardless of what the single agent might think about it.

Joanie walks into a brokerage in Cocoa Beach, expresses interest in buying a condo close to the ocean, and asks if anyone there would be available to drive her around to look at properties that very afternoon. The employing broker enlists one of his sponsored sales associates to do just that, and off they go, towards Florida's scenic highway A1A. Which of the following can you say about this scenario, given what you now know?

According to Florida statute, there is a presumption of a transaction brokerage relationship unless another form of authorized brokerage relationship is established.

Auctions, appraisals, and nonresidential transactions are three examples of:

Auctions, appraisals, and nonresidential transactions are three examples of exemptions to the disclosure requirements of the Brokerage Relationships Disclosure Act.

A Florida broker who participates in a real estate transaction under a no brokerage relationship or a single agent relationship is required to provide a written disclosure to the customer or client, whereas brokers who operate under a transaction broker relationship do not. Consider what you know about each form of authorized brokerage relationship and decide which of the following BEST explains the difference in the disclosure requirements.

Because it is already presumed, the transaction broker relationship does NOT have to be disclosed.

Which of the following events would NOT result in the termination of a listing agreement?

Death of the sales associate

What is the one form of brokerage relationship that the Brokerage Relationship Disclosure Act made a point of calling out as being unauthorized in residential transactions?

Dual agency

There is no compensation attached to gratuitous agency. What impact does that have on an agent's duties?

Even though there is no compensation attached to gratuitous agency, the agent is still held to all duties of an agency relationship. Agency creation does not require the agent to be paid.

Which of the following words describes an aspect of the relationship a single agent has with a party that is unique, as compared to a no brokerage or transaction broker relationship?

Exclusive

Agency Termination by Operation of Law: Expiration

Expiration of the agency agreement period — whether or not performance or fulfillment of purpose has occurred — will terminate the agreement by operation of law. If the parties wish, the agency relationship can continue but contracts will have to be updated or replaced accordingly. Be aware that if an agency relationship agreement end date is not contractually specified, the courts have historically ruled that it may be terminated after what they would deem a reasonable time.

Facts of a Feather: an explicit oral or written agreement for representation

Explicit Agency

the broker-sponsored licensee relationship a broad scope of authority within a limited area of concern

General agency

Anthony is Joe's agent, operating as the property manager of the luxury apartment building Joe owns. Anthony's responsibilities are ongoing and have binding power on Joe. What kind of agent is Anthony?

General agent

Sales Associate Andie's supervising broker is Geni. In their general agency relationship, who is the party being represented?

Geni

Facts of a Feather: agency absent compensation

Gratuitious Agency

Facts of a Feather: often involves representation of friends or family members

Gratuitious Agency

An agent can, of course, agree to work for no compensation. What is this called?

Gratuitious agency

Sheila entered into single agent brokerage relationship with Broker Josh, who agreed to help her find a smaller home now that she is an empty-nester. As they perused the local Multiple Listing Service, it became apparent that she would be interested in seeing a number of homes listed by sellers who are in transaction broker or single agent relationships with Josh's brokerage. Given what you now know, which of the following offers a possible option for Sheila?

If Sheila wants to continue working with Broker Josh while looking at properties listed by his brokerage, she has a couple of options. She could change her present single agent brokerage relationship via a Consent to Transition to Transaction Broker disclosure notice or she could terminate her brokerage relationship with Josh.

Broker Carl is working with both sides of a condo sale while Broker Enrique is working with both sides of a strip mall sale transaction. Please analyze this information and deduce which of the following BEST describes what form of authorized brokerage relationship, if any, might be available to Enrique that is not an option for Carl.

If both parties have assets in excess of one million dollars, Enrique has the option of appointing one designated sales associate to each party.

Breach Due to Actions of the Agent

If the agent is not actively pursuing the goals of the agency agreement, they have breached the agreement via what is known as abandonment, and the principal can likely terminate the agreement with cause. This is true whether the agent's acts are ones of commission or omission.

Why can a subagent in Florida operate as a single agent?

In Florida, a subagent is simply a sponsored licensee — sales associate or associate broker — of the broker. So if the broker has entered into a single agent relationship with a client, so has that broker's sponsored licensees.

Why are there no brokerage relationship disclosure requirements with a transaction broker relationship?

In Florida, the transaction broker relationship is presumed unless another agency relationship is disclosed and agreed to in writing. There is no need to disclose something that is already presumed.

Express oral agency

It is wise to get the agreement in writing: Address the duties of both parties Sufficiently protect both parties

As one of Broker Mary's sponsored sales associates, Julio has been given a broad range of authority to carry out a variety of tasks and responsibilities on Mary's behalf, all having to do with the business goals of Mary's brokerage. One of the tasks Julio takes on for Mary is to represent and assist Mary's client, Seller Amy, in the sale of her condo. Given these facts, how would you interpret Julio's use of agency?

Julio is acting as a general agent for Broker Mary and as a special agent for Seller Amy.

Which of the following statements is true about the Designated Sales Associates Disclosure Notice?

Just as is the case with Florida's brokerage relationship disclosure notices for residential transactions, the Designated Sales Associates Disclosure Notice used for nonresidential in-house transactions is NOT promulgated.

Which of the following is a duty owed in a transaction broker relationship but not in a no brokerage relationship?

Limited confidentiality

A special agent's scope of authority is narrow and usually:

Narrow and short term

Which of the following groups is least likely to enjoy a presumed implied agency relationship with you as a licensee? Why is that so?

New customers/clients because they did not have an on-going or previous relationship with you

a party rejecting an offer of representation

No agency

Anna is coming in from out of state to take a job in Jacksonville. She meets with a sales associate at a local brokerage and asks for help in finding a home to buy. Anna tells the sales associate that this is not her first home purchase, so she doesn't want a lot of hand holding or anyone negotiating on her behalf, rather, she's simply looking for a real estate professional who will treat her honestly and fairly, and will be willing to point out any known issues with the homes they look at — even if those properties are listed by the sales associate's own brokerage. Beyond that, she really doesn't want any guidance or advice. Analyze what you know about Anna's real estate needs and choose the form of authorized brokerage relationship available in Florida that BEST fits this situation.

No brokerage relationship

To whom is full or complete disclosure owed as a fiduciary duty?

Only clients

Peter, Paul, and Mary are brokers engaged in authorized brokerage relationships with clients in Orlando. Peter is operating as a single agent, Paul is operating as a transaction broker, and Mary is operating under a nonrepresentation relationship. Which of the following is true about their agency disclosure duties?

Per Florida statute, transaction brokers do NOT have to provide agency disclosures since transaction broker relationships are presumed. The other two possible relationships, single agent and nonrepresentation, require a written disclosure.

Facts of a Feather - Best cause of termination

Performance

Facts of a Feather - all contractual promises, duties, and obligations have been met

Performance

Facts of a Feather - considered the best cause of termination

Performance

Causes for agency termination that fall under the operation of law include:

Performance (fulfillment of purpose) Expiration Destruction or condemnation Death, incapacitation, or bankruptcy Loss of broker license

Single agent relationship description

Provides exclusive, fiduciary-level representation to one party in the transaction

Transaction broker relationship description

Provides limited representation to one or both parties in the transaction - JUST RIGHT porridge

Agency Termination by Operation of Law: Loss of Broker License

Regardless of the cause, the deactivation or revocation of a broker's license invalidates all active written agreements that are in place at the time.

Facts of a Feather - action taken by one party to end the relationship

Revocation

Broker Sam is overseeing the sale of a gulf-side oceanfront property containing 8 living units. Broker Sally has listed a home for Seller Maria in Jacksonville. Broker Naoki is working with a buyer on their purchase of a 12-acre ranch on the outskirts of Yeehaw Junction. Can you deduce which of these brokers is engaged in transactions covered by the Florida statute known as the Brokerage Relationship Disclosure Act?

Sally

Broker Juanita has a host of responsibilities in her authorized brokerage relationship with Seller José. Among her duties, Juanita owes José full confidentiality, obedience, and loyalty, putting José's interests ahead of everyone else's — including her own. What type of authorized brokerage relationship does Juanita have with José?

Single agent

Once a principal expresses a desire to end an agency relationship, the agent must:

The agent must immediately comply.

According to the Brokerage Relationship Disclosure Act, written disclosures for single agent relationships, transition to transaction broker relationships, and no brokerage relationships are required. In addition to disclosing the type of agency relationship that will be entered into, what information is being provided to potential buyers and sellers?

The list of duties that are carried with it.

Agency Termination by Operation of Law: Performance

They fufilled the agency relationship duties, both happy!

usually given via a power of attorney the broadest form of agency

Universal agency

Liam would like Hannah to represent him, not only in all of his business affairs but also in all of his personal affairs. To give her complete freedom to act in his name, including the authority to bind him to contracts, Liam signs a power of attorney. What kind of agent does Liam want Hannah to be for him?

Universal agent

Jim and Bob are licensees who have just acquired new clients on behalf of their sponsoring broker. Jim did so by verbally agreeing to represent Buyer Valerie while Bob signed a listing agreement with Seller Dara. Given these facts, which of the following is true?

While both Jim and Bob have entered express agency agreements, Bob has more protection in determining agency commission.

A single agent who is able to keep private any client information that could prove harmful to the client in negotiations is said to be demonstrating the fiduciary duty of:

confidentiality

one individual having no authority to act on behalf of another

no agency

Which of the following is NOT one of the three duties required in every form of authorized brokerage relationship in Florida?

skill, care, and diligence in the transaction

With respect to brokerage relationships, the greater the degree of representation:

the greater the obligation of duty

Per Florida statute, a residential transaction (sale) can entail:

-the sale of improved residential property of four units or fewer the sale of unimproved residential property intended for the use of four units or fewer -the sale of agricultural property of 10 acres or fewer

The four fiduciary duties of a single agent in Florida can be remembered using the acronym:

C- confidentiality O- obedience L- loyalty D- disclosure

What legal concept puts the responsibility on consumers, even those buying real estate, to inspect the products they buy?

Caveat Emptor "Let the buyer beware"

Caveat Emptor

Caveat emptor, or buyer beware, prevails as a matter of law in Florida. Caveat emptor is the concept that a buyer is responsible for verifying the quality and value of the goods prior to the purchase, including real estate.

A fiduciary is expected to put whose interests ahead of their own?

Client

What term refers to the mixing of trust funds held for a customer or client with those of the brokerage?

Commingling refers to the mixing of trust funds held for a customer or client with those of the brokerage. This is a major violation of agent duties, regardless of the form of agency relationship.

Per Florida statute, "a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship" is the definition of a(n):

Customer

Per Florida statute, two of the three authorized brokerage relationships have a disclosure notice requirement. One of those notices comes with a timing requirement that it "must be made before, or at the time of, entering into a listing agreement or an agreement for representation or before the showing of property, whichever occurs first." To which of the three authorized brokerage relationships does this specific disclosure notice pertain? What evidence allows you to deduce this?

The timing requirement language indicates that the disclosure notice is for the single agent relationship. We know this because it refers to listing agreements and agreements for representation and the no brokerage relationship is one of nonrepresentation.

Ostensible agency or agency by estoppel is created when WHO is misled about the agency relationship?

Third party

True or False - Implied agency is a form of accidental agency.

True

Which of the following can a licensee NOT do while operating under a no brokerage relationship agreement?

While operating under a no brokerage relationship agreement, a licensee cannot negotiate on behalf of either party.

What should a transaction broker guard against when a customer asks them to assume additional duties that they might not otherwise be expected to take on?

While the transaction broker is free to mutually agree with the customer to assume additional duties that they might not otherwise be expected to take on, they need to take care not to assume any duties that could be considered outside of the boundaries of limited representation.

When a single agent puts the principal's best interests ahead of their own, they are fulfilling the fiduciary duty of:

loyalty

The concept that clients are the decision-makers in the real estate transaction relates to which fiduciary duty of a single agent?

obedience

What does the use of designated sales associates provide in a nonresidential in-house transaction that is illegal in Florida for residential in-house transactions?

offer fiduciary representation to both sides of the transaction

the most limited form of agency

special agency

Facts of a Feather: a listing agreement, for example

Express Agency

A listing agreement and a buyer representation agreement are both examples of:

Express written agency

The No Brokerage Relationship Notice provides a list of the duties that the no brokerage relationship entails and the names of parties involved. What else does it provide?

Place for the parties to sign and date

What is meant by presumption of transaction brokerage?

Presumption of transaction brokerage speaks to the fact that Florida statute states that licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.

No brokerage relationship description

Provides no representation whatsoever to either party in the transaction

Special agency

Restricts an agent's scope of authority to one or more specific acts as directed by the party — usually towards a single, specific objective, end, or goal. -Most limited in scope -Non-binding

Where does the concept of presumption of transaction brokerage come from?

The concept of presumption of transaction brokerage comes from Florida statute.

The main components of the Brokerage Relationship Act are:

-The identification of the authorized brokerage relationships in Florida -The degree of representation afforded by each of the authorized brokerage relationships -The duties owed with each of the authorized brokerage relationships -The disclosure requirements of each of the authorized brokerage relationships -The applicability and limitations of the Brokerage Relationship Act

There are two primary umbrella classifications for the causes of agency termination.

1. Operation of law (aka force of law): circumstances or changes affecting the contract or the subject property that results in automatic agency termination Not "welcomed" by parties 2. Acts of the parties: any action from one or more of the parties that results in the termination of the agreement

Per the definition used in the Brokerage Relationship Disclosure Act, how many units may a property have and still be considered a residential property?

4 or fewer

What is an agency relationship?

A relationship wherein one party authorizes another to represent their interests and that second party accepts the responsibility given to them. -Two parties (agent and client/customer) -An agreement -A duty

Which of the following would not be disclosed under a single agent's fiduciary duty of confidentiality?

A seller-client's willingness to take a lower price than that appearing in the listing would be not be disclosed due to the fiduciary duty of confidentiality.

Facts of a Feather: starts off as an unauthorized action

Agency by Ratification

Which of the following statements BEST describes agency by ratification?

Agency by ratification is when an agent takes an action outside of what they were explicitly authorized to do but which is accepted after the fact by the client.

An implied agency relationship arises when a party assumes consent to the relationship based solely upon:

An implied agency relationship arises when a party assumes consent to the relationship based solely upon inferences formed by the actions, conduct, and words of either or both parties, rather than an explicit request and agreement to enter into an agency relationship.

Agency Termination by Act of the Parties: Mutual Agreement

Both parties may agree to end the agency relationship at any time. Mutual agreement or mutual rescission are the terms used when both parties make this decision, mutually agreeing to end the agency relationship. Best form of early term.

is represented by a fiduciary, not an agent also known as a principal

Client

Which of the following is not a building block or necessary component of agency creation?

Compensation

Facts of a Feather - government seizure of private property

Condemnation

Facts of a Feather - legal concept known as "eminent domain"

Condemnation

Agency Termination by Operation of Law: Death, Incapacitation, or Bankruptcy

Death of either party will terminate. If something happened to the broker, the brokers agreements are null and void. The sales associate must also find another sponsoring broker.

Agency Termination by Operation of Law: Destruction or Condemnation

Destruction - If the subject property the agency relationship is based on ceases to exist, the relationship itself is dissolved. (think earthquake, flood, tornado, etc.). Condemnation - The government compensates the owner for the loss of ownership and control of the property, which renders any existing private purchase contract void.

Agency Termination by Act of the Parties: Breach of Agreement

If either party fails to uphold their obligations or duties as outlined in the contract without cause, they are considered to have breached the agreement and are potentially liable for resulting damages. Two types listed below: -Breach Due to Actions of the Client -Breach Due to Actions of the Agent

Facts of a Feather - Mutual recession

Mutual agreement

Facts of a Feather - both parties wish early termination

Mutual agreement

While performance or fulfillment of purpose is the preferred manner in which agency agreements are terminated, what is the preferred manner for EARLY termination of an agency agreement?

Mutual agreement

Now, let's turn our attention to the causes of agency termination that are considered acts of the parties. They include such actions as:

Mutual agreement Revocation Renunciation Breach of agreement

Agency can be created:

Orally In writing By implication or action

Universal agency is usually granted via a(n):

POA

Bob's got five acres of undeveloped agricultural property located ten minutes outside of the city limits of the closest town. He approaches Sales Associate Jim about handling the listing. Will Jim handle this as a residential or nonresidential sale? Why? Pick from the following the BEST explanation.

Residential b/c it is ag property less than 10 acres

How do nonresidential transactions differ from residential transactions with respect to the three authorized brokerage relationships available in Florida real estate?

The duties attached to those authorized brokerage relationships apply to nonresidential transactions, the disclosure notice requirements do not!

What would be the rationale for someone taking the position that the Brokerage Relationship Disclosure Act indicates that are three authorized working relationships in Florida real estate and not just two?

The fact that it identifies the no brokerage relationship as a valid form of licensee-customer relationship

Which of the following is NOT one of the main components of the Brokerage Relationship Disclosure Act?

The main components of the Brokerage Relationship Act are: the identification of the authorized brokerage relationships in Florida, the degree of representation afforded by each of the authorized brokerage relationships, the duties owed with each of the authorized brokerage relationships, the disclosure requirements of each of the authorized brokerage relationships, and the applicability and limitations of the Act.

Which of the following correctly matches the brokerage relationship with its degree of representation?

The no brokerage relationship is one of nonrepresentation. The transaction broker relationship is one of limited representation. The single agent relationship is one of fiduciary-level representation.

Which of the following is true regarding Florida's statutory requirements for the Single Agent Notice?

The state of Florida will allow the broker to provide the Single Agent Notice as a stand-alone form or as part of another document such as a listing agreement, a buyer-broker agreement, or other agreement for representation.

What is the term used to describe when a broker has a financial or security interest in the subject property beyond that found in a typical transaction?

agency coupled with an interest

In order for a brokerage to offer the use of designated sales associates, both parties to a nonresidential in-house transaction must have assets of:

one million dollars or more.

When is a Consent to Transition to Transaction Broker disclosure typically used?

A Consent to Transition to Transaction Broker disclosure is typically used with a residential in-house transaction when one or both of the parties to the transaction are in a single agent relationship with the broker.

General agency

A general agent is typically someone authorized to represent the ongoing business interests of another. In this case, the general agent's authority is limited to the specific business concerns of the party. But, within those specific business concerns, the scope of authority is typically broad. -Binding -Ongoing -Broad

The legal principle behind agency by estoppel serves to prevent what?

Agency by estoppel is agency imposed by law when it is determined that ostensible agency existed. It is used to create legal accountability for the agent or the individual responsible for creating the impression of agency (ostensible agency). As a matter of law, agency by estoppel prevents the individual or agent to escape liability by attempting to claim (after the fact) that agency never existed.

have customers, not clients an individual with authority to act on behalf of another

Agent

Who are the parties in a no brokerage relationship?

Agent and customer

Which of the following BEST explains why a broker would require all sponsored sales associates to inform the broker whenever they were going to engage in gratuitous agency?

Because the lack of compensation does not reduce the level of duties and liabilities of the sales associate, the broker will ultimately be responsible for anything good or bad that comes out of a gratuitous agency relationship. Therefore, as with agency relationships involving compensation, the sponsoring broker will want to remain informed and aware of any gratuitous agency agreements created within the brokerage.

Based on Broker Monica's knowledge of the area, she can see that her new seller-client has severely underestimated the market value of his home. If Monica says nothing about this and simply lists the property at the price the seller has suggested, it'll get snapped up real fast, and Monica will earn a quick commission. What should Monica do and why?

Broker Monica should at least attempt to educate her seller-client as to why Monica thinks the market value of the house is higher. Priced appropriately, the seller will eventually get more for the house. At the same time, it will likely take longer and require more effort on Monica's part to sell it. But that's okay. Monica's fiduciary duty of loyalty requires her to put the client's interests first. If the client insists on pricing the house lower, then Monica's fiduciary duty of obedience takes over, and she should do as the client requests.

is NOT owed fiduciary duties may or may not be represented by a licensee

Customer

The two disclosure notices associated with the use of designated sales associates in nonresidential in-house transactions are:

Designated Sales Associates Notice and the Single Agent Notice.

Express agency

Express agency is created when a party explicitly appoints an agent to act on their behalf. Written or oral form

Kate has moved several times in her illustrious career. In the process, she's bought and sold several homes. Now that she's retiring, she wants to buy a condo in a quiet south Florida retirement community. She would like minimal assistance from a real estate licensee. Really, all she wants is a facilitator of the transaction. So, she decides to opt out of representation for what she hopes to be her last real estate purchase. Is Kate allowed to opt out in this way? Why or why not? Pick the best answer choice.

Florida allows buyers and sellers to opt out of representation if they so choose. They can do this by entering into a no brokerage relationship agreement with a licensee.

If a broker has entered into a single agent relationship with a buyer, and the brokers learns that the seller of the home the buyer is interested in has accepted a job out of town, is the broker obligated to share that with their buyer-client? If so, why? If not, why not?

If a broker in a single agent relationship with a buyer learns something about the seller that could possibly strengthen the buyer's leverage in the negotiation, the broker's duty of full disclosure should compel the broker to share this information with the buyer.

Facts of a Feather: formed by the actions, conduct, and words of either or both parties

Implied Agency

Facts of a Feather: not explicit but presumed

Implied Agency

What term refers to legitimate actions an agent takes in order to complete duties that the customer or client has already expressly authorized?

Implied authority

Which of the following is TRUE about listing agreements and buyer representation agreements that are used to create express written agency relationships in Florida?

Listing agreements and buyer representation agreements are not promulgated contracts in Florida. A licensee will usually use one provided through their sponsoring broker that was created by an attorney or comes from the local association of REALTORS® with whom the brokerage has a relationship.

In an in-house transaction, which form of authorized brokerage relationships gives a party the most freedom in terms of the brokerage relationship of the other party?

No brokerage relationship - If one party is in a no brokerage, the other party can be in any of the three.

From the customer or client's perspective, what kind of agent is their broker?

Special agent

Sales Associate Steve convinces Prospective Seller Tamara to sign a listing agreement. Tamara's contract is with:

Steve's sponsoring broker

Sales Associate Peyton is sponsored by Broker Archie. In that relationship, Peyton is a(n) to Archie's customers and clients:

Subagent

Via the work of a sponsored sales associate, Broker Dani enters into a single agent relationship with Seller Joe. Three months into the listing agreement, another of Dani's sponsored sales associates produces a buyer who indicates that she would like to see the property that Joe has for sale. Given these facts, which of the following would be an acceptable action for Broker Dani to take?

The Consent to Transition to Transaction Broker disclosure needs to be signed by the party of an in-house transaction if that party is in a single agent relationship and the other party is in either a single agent relationship or transaction broker relationship. This is true even if the parties are working with different licensees within the same brokerage. If both parties are in single agent relationships, both would need to sign a transition disclosure. The signing of this disclosure would need to happen PRIOR to the viewing of the property.

Mitch is a Florida licensee who has the duty to disclose all known facts that materially affect the value of residential real property which are not readily observable to the buyer. Given this information, what can you say with certainty about Mitch?

The duty to disclose all known facts that materially affect the value of residential real property which are not readily observable to the buyer is a duty that is owed by licensees operating under ANY of the authorized brokerage relationships in Florida. Therefore, we cannot say for sure under which of the three authorized brokerage relationships in particular Mitch is working.

In what respect can the transaction broker relationship be considered the middle-ground of the three authorized working relationships?

The three authorized working relationships available in Florida real estate provide buyers and sellers varying degrees of representation, with the transaction broker relationship positioned right in the middle of that spectrum. The no broker relationship is one of nonrepresentation; the transaction broker relationship provides limited representation; and the single agent relationship provide a high-level, fiduciary degree of representation.

All of the following describe duties owed to the customer in a no brokerage relationship EXCEPT:

The three duties owed to the customer in a no brokerage relationship are: deal honestly and fairly, disclose all known facts that materially affect the value of residential real property which are not readily observable to the buyer, and account for all funds entrusted to the licensee.

The single agent relationship takes on all three of the DAD duties from the no brokerage relationship, but it takes on only two of the four additional duties that are found in the transaction broker relationship. Why is that?

The two duties of the transaction broker that don't apply to the single agent relationship are those that are already encompassed in the greater duties of the single agent.

Which of the following provides the BEST and MOST COMPLETE description of the underlying principle behind the duty of skill, care, and diligence in the transaction?

The underlying principle of the fiduciary duty of skill, care, and diligence in the transaction is that a customer trusts the licensee to have expertise that they themselves lack, and the agent can be trusted to employ that expertise on the client's behalf.