UNIT 5
What two things does the law say about brokers giving false information to parties to a real estate transaction?
- Brokers shouldn't knowingly give false information - brokers are not responsible for false information they didn't know was false
Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario?
A dual agent
What legal agreement is required when a licensee guarantees the sale of a property?
A purchase agreement written at the same time as the listing agreement
jennifer is selling her property and hired Larry as her agent. Jane brings her client, Andrew, a prospective buyer, to see Jennifer's property. What is Larry's role in this scenario?
A seller's agent
Which of the following statements regarding buyer and seller agency is true?
A seller's agent represents the seller, while the buyer's agent represents the buyers.
__________________ is possible as a broker of business transactions, which is a credential certifying an individual as a business broker.
Accrediatation
Marge is a licensee in a dual agency transaction with seller Steven and buyer Alda. In which of the following situations can Marge share what she knows with all parties without compromising her duty of loyalty?
Alda tells marge that she's hired an inspector to perform a property inspection
Which one of the following provides the best example of single agency?
An agent from one firm acts as the agent for the buyer.
Alison, an agent with XYZ Agency, is assisting Ryan, the listing agent from RST Brokerage, with marketing a property on 7th Street.
Broker's Agent
Hanna represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client?
Buyer Agency
Presents all offers to and from the buyer.
Buyer's Broker
Cam is a broker. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What relationship does Cam have to the buyer and the seller?
Cam is a dual agent to both the buyer and seller
Which of the following written statements is required in a dual agency disclosure in Georgia?
Confidential information won't be provided to the opposite party
In a real estate transaction, which two parties are owed the same duties?
Customers and other parties
If you're the buyer's agent, what must you do before showing a seller's property?
Disclose your status as a buyer's agent to the listing agent.
The duty of ______ requires a licensee to reveal all material facts that are pertinent to the transaction to all third parties.
Disclosure
Alison has listed just the property her buyer clients, the Lopezes, want. It's the Pinskis' home, which Alison put on the market last week.
Dual agent
In a single agency relationship, a firm represents ______.
Either the buyer or the seller
Katy's home that was listed for sale was destroyed by fire. Under which of these methods will her listing agreement terminate?
Force of law
Augusta Licensee Francois Seller Client, Mavis, tells him that she does not want to sell to anyone who is hispanic. Which of the following describes Francois's Responsibilities
Francois should take time to educate Mavis about fair housing laws.
Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement?
Ginnie and Becca can mutually agree to terminate the agreement
As part of Georgia's tax code, a broker can be assessed a(n) ______ on any commission earned in a city or county even if the broker's office is in another city or county.
Gross RECEPTS TAX
Deb, a licensee, is unhappy with the marketing materials a local company produced. While having coffee with Irving, a licensee with another firm, she tells him about her troubles and recommends he not do business with this company. Irving agrees and even volunteers to spread the word among his colleagues. What's this an example of?
Group Boycotting
Which of the following is NOT true about single agency?
In single agency, one agent represent both the buyer and seller in the same transaction.
Which action can a finder perform?
Introduce the buyer and the seller
What can be said about dual agency consent?
It must be written.
Which of these situations is an example of designated (appointed) agency?
Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction.
Which of the following is an example of sub-agency?
Kayla is a licensee with ABC Realty. and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owns fiduciary duties to the seller
Performs ministerial acts as needed by tenants.
Landlord broker
If business brokerage involves the transfer of real property or of leases, a ___________.
License is REQUIRED
The Georgia Association of REALTORS® has created sample agreements to cover most agency situations and relationships. What's true about the forms?
Licensees can use GAR forms or other attorney-written
A house inspection didn't mention the roof leak that your seller client told you about. What do you do?
Make sure the roof leak is disclosed to all parties
Which of these is an example of a sub-agency relationship?
Morris, who's licensed indecently, finds a buyer customer for greg's listing with marvel homes and is obligated to act in the best interest of marvel homes' client
You work for XYZ Realty under the supervision of broker Luke. Your buddy in the next county gave you a referral fee. The check came to your office in your name. You deposit it. Is this okay?
No, because all compensation must come through your broker
Zeke represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high?
No, his duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property.
What must a licensee do when he wants to purchase a home listed by the brokerage where he's affiliated?
Notify his broker in writing and disclose his intentions to the seller
What acronym can be used to remember an agent's fiduciary duties?
Old Car
A county may not charge brokers a fixed tax unless they maintain a ______ in the county.
Physical Office
Which of these statements best describes the concept of procuring cause?
Procuring cause means the licensee's action produce a ready, willing and able buyer
Which of the following duties is owed to both clients and customers?
Prompt presentation of all written offers and counter-offers
As the owner of an apartment complex near the college, Bill needs someone to act in his interests. He hired Carter as his agent.
Property Manager
What's one plausible way to manage risk?
Purchase errors and omissions insurance
The Civil Right Act of 1866 was the first step in reducing recrimination based on
Race and Color
In Georgia, a real estate license may not be needed in the exchange of business entities or interests as long as ______ is/are not part of the transaction.
Real Property Interest
Which fiduciary duty requires agents to provide their clients with quality, knowledgeable, and prudent service, and live up to the trust that is placed in them?
Reasonable skill and care
It's the policy of Kathleen's brokerage to only practice single agency. Which of the following best describes this?
Representing either the buyer or the seller in a transaction, but never both at the same time.
The broker or intermediary of a business brokerage often represents the ____________.
SELLER
Orla represents the seller, and Pardeep, an agent from a different firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client?
Seller Agency
Presents all offers to and from the seller.
Seller's broker
The Housing for Older Persons Act of 1995 provided exceptions for housing designed just for
Seniors
If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients?
Single License dual agency
Kristy needs an agent to act on her behalf to negotiate a lease on an apartment while she finishes grad school. Andre fits the bill.
Tenant's agent
Seeks a rental property with acceptable terms and price.
Tenant's broker
Two large local brokerage firms agreed to lower their commission rates to the same amount—approximately 1% less than any other firm in town. After extensive marketing of their new lower rate, these two firms began to see a big increase in the number of listings they received, costing their competitors substantial amounts of money. What about this situation makes it a per se antitrust violation?
The agreement between the two firms
Jenson signed a seller agency agreement with Susan. Right before closing, a hurricane destroyed the property. What happened to Jenson and Susan's agreement?
The agreement terminates by force of law
What happens if a person without a real estate license is acting as a finder and performs duties beyond just introducing the buyer and seller, such as negotiation or advising?
The individual could face penalties for acting as a real estate licensee without having a real estate license
Which of the following is a true statement about federal antitrust penalties?
The maximum fine may be increased to twice the gain or loss involved.
A legal fiduciary relationship can occur in Georgia if ________.
The parties agrees to it in writing
Phyllis is a broker cooperating with a listing broker on a transaction for the seller. Who does Phyllis represent in this transaction?
The seller
Why is a fiduciary relationship between Georgia brokers and their clients not required?
The state attempts to protect brokers from an unreasonable legal standard.
Why did Georgia decide to limit a real estate licensee's fiduciary duties?
The state wants to protect licensees from being held to an unreasonable standard.
Chip represents Ginger, the buyer. Raphael represents Tom, the seller. If Chip and Raphael are from the same brokerage, what is their agency relationship with their clients?
They're designated agents; their broker is a dual agent.
Aaron doesn't represent either party in the transaction. He's just there to facilitate.
Transactional Broker
In a real estate transaction in which you represent the seller, your duty to other parties is to ______.
Treat them honestly and fairly
gillian is a real estate licensee who attends a party at the home of a mortgage broker, Tim, with whom she has worked in the past. At the party, Tim offers Gillian tickets to a concert, saying that he can't use them. She accepts gladly, and laughs when Tim says as he hands the tickets over, "And all I ask in return is that you send a customer or two my way!" Is Gillian guilty of a violation?
Yes, Gillian is guilty because she has accepted what is essentially a referral fee from a mortgage broker
Broker engagement agreements must include all parties' signatures. Anyone who signs the agreement must receive a photocopy. What else is required?
a definitive end to the brokerage engagement agreement
Deliberate misrepresentation of facts to a lender is considered ______.
a fraudulent act
What type of tax can a Georgia county charge real estate licensees who don't have an office in that county for doing business there?
a gross receipts tax
What happens if a real estate licensee acting as a finder performs duties beyond just introducing the buyer and seller?
an agency relationship is created. The licensee can face disciplinary action if an agency is formed without proper agency disclosures .
In what way or ways do consumers compensate brokers for their services?
as a flat fee, fee for service and/or percentage
All offers made in real estate transactions must be presented ______.
as soon as possible
What duty can a seller still expect from a licensee after the brokerage relationship terminates?
confidentiality
In 1988, the Fair Housing Amendments Act extended the protection to cover
familial status and disability
What types of statements made by a licensee, whether to a client or to a lender, are considered fraud?
intentionally false or misleading statements
In some states, if the real estate owned by a business is incidental to the sale of the business, a ___________.
license is not required
The Fair Housing Act of 1968 prohibited discrimination based on
race, color,national origin, and Religion
The Housing and Community Development Act added
sex to the list of protected classes
Why might a cooperating broker representing the seller be mistaken for a buyer's agent?
the buyer may believe that the broker is representing the buyer interest
Bradley is acting as a finder for Emma. What's Bradley's role?
to introduce the buyer and seller, but not provide representation
What happens when your client asks you to do something that's against the law?
you must break your duty of obedience
