Trust Accounts, Agency, & Licensee Status Change

If the license has had a status other than active for __________ or more consecutive years, the licensee must comply with the reactivation requirements of OAR 863-014-0065

2

The principal real estate broker must review each document of agreement generated in a real estate transaction within _________________ banking days after it has been accepted, rejected, or withdrawn.

7

Agency by Estoppel*

Also known as Ostensible Agency, an agency relationship is created by the actions, behavior or statements of the Principal and/or the broker upon which a third party relies. Ostensible Agency may be found by a court where no agency relationship was intended by the Principal.

_________________ means a real property transaction in which the representation of a buyer and a seller or the representation of two or more buyers within the same real estate brokerage.

Disclosed limited agency

__________________ is when a broker is representing both the seller and the buyer in the same real estate transaction.

Dual agency

Seller Agency (Agent)*

Employed by the seller and is the listing broker

______________________ is created by either an oral or written agreement between the principal and the broker. It indicates their express intent for this representational status.

Express agency

Implied Agency*

If a real estate broker takes on responsibilities that are normally those of a broker, but hasn't signed an agency agreement, they may still be considered a broker. By the same token, if the customer asks the broker for advice or actions that are normally those in agency, then an implied agency could be created.

____________ is an agency relationship created by the actions of the parties.

Implied Agency

__________________ means a written proposal executed by a buyer for the sale or lease of real property.

Offer

Client*

Under Contract

In a transaction the buyer is usually the _______________ of the note. a. maker

maker

Real property also includes a ______________ if it is owned by the same person who owns the land upon which the structure is situated.

manufactured structure

Hong decides to be a dual agent. What steps must Hong take to do this?

a. get permission in writing from both the buyer and seller prior to doing this b. deal with the buyer and seller impartially c. he must not disclose personal information about the buyer or seller unless authorized to do so in writing by the parties.

Jane, the seller , requested her broker, Dave, to relate some confidential information to the buyers. What should Dave do?

a. get the request in writing b. present the confidential information to the buyers

The maker (the buyer) promises to pay the holder of the note (the seller) an amount which may include________________________.

a. interest payments b. installment payments

When a broker is working with a buyer or seller, but not representing them, this is referred to as ________________________.

a. non agency b. facilitator agency

A real estate licensee whose license is on inactive status may not engage in professional ______________________________.

a. property management b. lease options c. sales

John, a broker for XYZ Realty LLC, has a listing with Mr. and Mrs. Brown for their property on Lynnwood Place in Tigard, OR. Mr. and Mrs. Brown would be considered:

a. the principals b. the sellers

A broker owes a client and a customer the following duties:

a. to deal honestly and fairly b. to account for all monies handled c. to disclose any material facts

Mastering the laws relating to _________ can reduce misunderstandings and litigation, especially in the areas of commissions through procuring cause, conflicts of interest and representation.

agency

The relationship between the broker and their principal is referred to as:

agency

The maker of a promissory note is the __________.

buyer

When a real estate broker is employed to act in the best interests of the seller in a real estate transaction, this is referred to as ____________________.

buyer agency

All monies deposited in the trust account cannot be mixed with any operational expenses for the brokerage. This practice is called ____________________ and is illegal.

commingling

The practice of mixing trust account funds with that of the brokerage's regular checking account funds is called ____________.

commingling

When both parties agree to terminate the agency this is referred to as______________.

mutual agreement

A note is _____________________ cash.

not as solid as

The person who hires or appoints an agent to act on their behalf is called a:

principal

A _______________________ is a promise to pay an agreed amount of money by a certain date in the future.

promissory note

Within a brokerage, a situation may arise where one licensee that is affiliated with a brokerage is representing a seller and another licensee that is affiliated with the brokerage is representing the buyer (in the same transaction). This situation is legal in Oregon State and the principal broker of the firm becomes a dual agent. This scenario is known as______________.

designated agency

When making an offer to purchase a property, the buyer usually submits a good faith deposit called a/an _______________.

earnest money

Each brokerage will want to have a ____________. This account handles the income and operating expenses that belong to the brokerage.

general account

If the principal broker reviews such document in hard copy, the principal broker or principal broker who manages the branch office must ___________________.

initial and date the document in writing at the time of review

Express Agency*

is created by either an oral or a written agreement between the principal and the broker. It indicates their express intent for this representational status.

Buyer*

is defined as a potential transferee in a real estate transaction, and includes a person who: - Executes an offer to purchase real property from a seller through a broker - Enters into an exclusive representation contract or buyer's service agreement with a real estate broker or principal real estate broker, whether the sale of transfer of property results

Buyer (Buying) Broker*

is representing the seller

Seller (Selling) Broker*

is represting the buyer

Janet, a licensee with XYZ Realty, has a listing with the Smiths and is the seller's broker. Janet also has her own home listed for sale at the same time. Janet's home is very similar to the Smith's. In the course of performing an open house for the Smiths, Janet meets a potential buyer and suggests to the buyer that he should view her home and tells them that it is a better value and in a nicer neighborhood. Janet puts her own best interests before that of the Smiths because she wanted to sell her home first. This is an example of __________.

seller agency conflict

Most states have ________ laws on the procedures for handling trust accounts.

strict

A licensee is an agent for their principal broker, and the principal broker is an agent for the principal (buyer or seller). In this situation, the licensee is a/an_________________.

sub-agent

Licensees are ____________ for their principal broker.

sub-agents

If the property is destroyed, the agency _________________________.

terminates

Janet, the listing broker for the Browns, did not disclose that the roof leaked to the buyers because she thought it was confidential information. What was the correct thing for Janet to do?

the leak must be disclosed as it is a material defect

All monies held for others must be deposited into a:

trust account

A fiduciary relationship is basically defined as the duty to deal with a client in _________________.

trust and confidentiality

General Account*

where all moneys go after a close. This account is in control of the brokerage.

In a real estate transaction, when might you most likely see a promissory note?

with a purchase and sale agreement

Buyer Agency (Agent)*

working for the buyer

____________ means information communicated to a real estate licensee or the licensee's broker by the buyer or seller of 1-4 residential units for a real estate transaction, including, but not limited to price, terms, financial qualifications or motivation to buy or sell.

Confidential information

Customer*

No Under Contract

Offering Price*

Not to be confused with the Listing Price

What is not an example of a broker?

A closing agent

_________________ is a contract between the buyer and the seller of real property and a real estate broker or principal real estate broker where the broker has been authorized to act as an agent for the seller for compensation to offer the real property for sale and to find and obtain a buyer.

A listing agreement

_________________ means a principal broker who has authority and is responsible for a registered business name.

Authorized licensee

Trust Accounts*

General Rule of Thumb, if money doesn't go through escrow then moneys go this type of account. Also, if the earnest money, funds involving property management, and funds collected on behalf of others, are not deposited into an escrow account then they need to be deposited into a separate account called a

___________ means the amount, expressed in dollars, specified in the listing agreement, at which the seller is willing to sell the real property through the listing broker.

Listing price

_______________ means the person who has permitted or directed a broker to act on their behalf. In a real property transaction, this generally means the buyer or the seller.

Principal

The listing broker knows that the lowest amount that the seller would be willing to accept is $ 319,000 for their home. During an open house, a potential buyer visits and asks the listing broker "what is the lowest price that the seller will take for this home?" How should the listing broker respond?

Tell the potential buyer to make a solid good offer

Who must you notify when you open a Trust account?*

The Real Estate Agency

WORM*

Write Once Read Many. It describes a data storage device in which information, once written, cannot be modified. This write protection affords the assurance that the data cannot be tampered with once it is written to the device.

Agency by Estoppel is also known as _______________________.

a. Bankruptcy b. Death c. Incapacity

A broker is a person who:

a. Is employed by another person b. Has the authority to act for that person c. Has the authority to exercise some discretion while acting for another person

The change of license status, transfer, change of license category or the reactivation of a license is effective when the Agency ____________________.

a. actually receives all required forms b. actually receives all required fees

Earnest money can be in the form of ____________.

a. cash b. check c. a promissory note

A promissory note must always specify the _________.

amount

The type of agency should be disclosed to the principal ______________.

as soon as possible