Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A Real Estate Agent Concepts > Section 15: Agent Relationships > Flashcards

Section 15: Agent Relationships Flashcards

1
Q

Agent Relationships:
What is Agency:
* The “__________” deals mainly with how one person can work on someone else’s behalf.
* There could be a formal contract between both parties, an assumed contract or nothing at all.

A

Law of Agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Agent Relationships:
What is Agency:
* Anyone who can be a Principal can also be an __________.

A

Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Agent Relationships:
What is Agency:
* To create an ‘__________’ ALL of the parties must be legally competent.

A

Agency Relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Agent Relationships:
Agency Relationships:
* There are always at a minimum __________ parties to create any type of agency and in many cases there can be three or more people/entities in an agency relationship.

A

2 Parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Agent Relationships:
Agency Relationships:
* __________:
Legal relationship where one party allows someone else the powers to act for them or on their behalf in some manner or capacity.

A

Agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q
  • __________:
    Refers to the responsibility one individual has for the acts of another. In the real estate business, this would be the case when a listing or buyer’s broker is an “agent” of the seller or buyer.
A

Vicarious Liability [Respondent Superior]

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

o Vicarious Liability [Respondent Superior]:
It also means that as an agent, we share or have the same __________ as our principals.

A

Intentions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

o Vicarious Liability [Respondent Superior]:
For real estate relationships the __________ is either the broker or the salesperson and the principal is either the buyer or seller that you represent, and the customer is the other party.

A

Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Agent Relationships:
Agency Relationships:
o Principal:
A person who uses or hires an agent to work on their behalf with a __________.

A

Third Party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Agent Relationships:
Agency Relationships:
o Principal:
 IMPORTANT: Principal and Client are the __________ person.

A

Same

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Agent Relationships:
Agency Relationships:
o __________:
Acts on behalf of the principal and should not have a conflict of interest in carrying out the wishes or the act on behalf of the Principal [Broker].

A

Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Agent Relationships:
Agency Relationships:
o Agent:
 The agent is empowered to do what the principal COULD __________ do in person.
 It is NOT legal to do something ILLEGAL on the behalf of someone else.

A

Lawfully

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Agent Relationships:
Agency Relationships:
o __________:
Third party who is part of the transaction but is not the actual Client or Principal.

A

Customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Agent Relationships:
Agency Relationships:
o Customer:
* An employing broker shall NOT assign a real estate employment agreement to another __________ without the express written consent of all parties to the agreement at the
time of the assignment.

A

Employing Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* Universal Agent [Power of Attorney]:
Agent acts on behalf of principal in all matters this is commonly used in cases of __________ where principal can’t make decisions.

A

Incapacitation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* Universal Agent [Power of Attorney]:
o IMPORTANT: Agent must have a ‘__________’ drafted and signed by Principal.
o Agent then becomes known as the ‘Attorney in Fact’ for the Principal.

A

Power of Attorney

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* Universal Agent [Power of Attorney]:
o IMPORTANT: Agent must have a ‘Power of Attorney’ drafted and signed by Principal.
o Agent then becomes known as the ‘__________’ for the Principal.

A

Attorney in Fact

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* Universal Agent [Power of Attorney]:
o Power of attorney could be powers given to someone else to do ONLY __________ thing, or a full range of powers, depending on what is agreed upon.

A

One

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* Universal Agent [Power of Attorney]:
o One need NOT be a licensed salesperson in real estate to be an ‘__________’ in order to sell, liquidate or dispose of real estate.

A

Attorney In Fact

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
 __________:
Agent acts on behalf of principal for predetermined actions.

A

General Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
 __________:
o This agent has the best interest of the principal for the business or actions which the agent has been put in charge of.

A

General Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
 General Agent:
o The general agent is best recognized as someone who takes care of a principal’s individual business interests - but not __________ of them.

A

All

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
 General Agent:
o A __________ is a general agent on behalf of the property owner.

A

Property Manager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* _________:
Agent in charge of only one action for principal.

A

Specific Agent [Special Agent]

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* Specific Agent [Special Agent]:
o IMPORTANT: Special agent is one authorized to act only in a _________ transaction.

A

Specific

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Agent Relationships:
Types of Agents:
* There are 3 types of agents and the duties that they may perform on behalf of the principal:
* Specific Agent [Special Agent]:
o IMPORTANT: Real estate agents are the SPECIFIC or SPECIAL agent for our clients as we are only acting on their behalf for one _________ transaction. ONLY for the conveyance of one real property.

A

Singular

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Agent Relationships:
Types of Agents:

By being the trustor and executor of my parents estate, I have been deemed to be their ____________ agent, where I am expected to do everything on their behalf.

A

Universal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Agent Relationships:
Creation of Agency:
* Real Estate agency relationships are very common and can be AGREED upon or ASSUMED:
* Can be established either by means of an AGREEMENT between the parties, an agent and a principal or by means of the ____________ of the two individuals.

A

Actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Agent Relationships:
Creation of Agency:
* Creation of an agency COULD be done accidentally, inadvertently, or unintentionally.
o Sometimes, neither the principal nor the agent may be aware of it’s ____________.

A

Existence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Agent Relationships:
Creation of Agency:
* The conduct of the principal could imply to a third party that a relationship exists.
* Some ____________ or ____________ by a principal is NECESSARY to create the relationship.

A

Action or Conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Agent Relationships:
Agency Types:
* ____________:
Relationship is created through an agreement in which the agent and the principal agree to enter into an agency relationship. That the agent will represent the principal.

A

Express Agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Agent Relationships:
Agency Types:
* Express Agency:
o The express agency could be an oral or a written agreement.
o IMPORTANT: Oral agreements are allowed in the State of Arizona but the ‘____________’ states that all “Contracts” need to be in writing to be enforceable.

A

Statute of Frauds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Agent Relationships:
Agency Types:
* Express Agency:
 Signing an employment contract to ____________ list a home for sale with
the owners and the broker agreeing to terms on paper.

A

Exclusively

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Agent Relationships:
Agency Types:
* Implied Agency:
Establishes an agency relationship through the ____________ of the Two Parties.

A

Actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Agent Relationships:
Agency Types:
* ____________:
o Although nothing formal has been said or written down, the agent and the principal act as if they have an agency relationship.

A

Implied Agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Agent Relationships:
Agency Types:
* Implied Agency:
o Creating an implied agency may not have been what the two parties ____________, but an agency relationship can be created anyway.

A

Intended

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Agent Relationships:
Agency Types:
* Implied Agency:
 May occur when the real estate agent casually provides the type of guidance and advice that’s reserved for clients, but that consumer ____________upon that advice.

A

Relies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Agent Relationships:
Agency Types:
* Implied Agency:
o May occur when the real estate agent casually provides the type of guidance and advice that’s reserved for clients. There are professional liabilities that come with giving ‘____________’.

A

Actionable Information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Agent Relationships:
Agency Types:
* Implied Agency:
o Imagine telling a person you just met about a house that you think is priced super low this is giving ‘actionable information’, and if they then go buy it only to discover it’s full of asbestos siding, roofing and
insulation – this buyer could come back and ____________ you for bad information.

A

Sue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Agent Relationships:
Agency Types:

Real World NOTE:

As a real estate broker, I use caution when having conversations with people about real estate, properties, opportunities, market conditions and so on. This is because I don’t want them to take my words as ‘actionable advice’ since I am not their ‘____________.’

Think for a minute about the problems that could arise if someone took my advice and made a bad investment in real estate - could I be held liable, that is the question I ask myself often.

A

Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Agent Relationships:
Agency Types:
Quiz:

Which of these are the three types of agents one can be?

Universal, Selective, General

Universal, General, Specific

Specific, National, Universal

Specific, General, United

A

Universal, General, Specific

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Agent Relationships:
Agency Types:
Case Study:

What is the difference between a principal and a customer?

A

A principal is a person who uses or hires an agent to work on their behalf with a third party, and a customer is a third party who is part of the transaction but is not the actual client/ principal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Agent Relationships:
Agency Types:
Case Study:

What type of agent is a Real Estate Agent?

A

Real estate agents are our clients’ specific or unique agents, as we only act on their behalf for one singular transaction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Agent Relationships:
Agency Types:
Case Study:

What is one form of agency that can accidentally occur?

A

Creating an implied agency may not have been what the two parties intended, but an agency relationship can be created accidentally.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Agent Relationships:
Agency Types:
Case Study:

What would someone be called who has complete power over everything I do?

A

Universal Agent. A power of attorney that would allow someone to do anything and or everything on behalf of someone else would be called a universal agent, as they have complete control of the attorney.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Agent Relationships:
Agency Types:
Quiz:

which of the following would best describe the laws of agency?

A process by which one identified a known issue.

A process where someone is deemed unworthy to proceed .

A process where a spouse is legally responsible for the properties.

A process by which someone is working on behalf of another.

A

A process by which someone is working on behalf of another.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Agent Relationships:
Agency Types:
Quiz:

A listing broker could be responsible for the acts of their agents. What term could identify this?

Shared responsibility

Vicarious liability

Agency duplicity

Principal action

A

Vicarious liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Agent Relationships:
Agency Types:
Quiz:

The customer is which party in a real estate transaction?

Third party

Buyers

Designated Broker

Agent on behalf of the broker

A

Third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Agent Relationships:
Agency Types:
Quiz:

A situation where an ailing parent would give up all their rights to make decisions for themselves, most likely would be identified as what type of relationship?

Special agency relationship

Superior agency relationship

Expressed agency relationship

Universal agency relationship

A

Universal agency relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Agent Relationships:
Agency Types:
Quiz:

The developer of a multifamily housing complex hires “Sandra Smythe Realty” to show, lease and rent the new units in the development. The agent that the Broker has sitting in the complex, showing the units would be what type of agent to the developer?

Domicile leasing agent

Ratified agent

Universal agent

Specific agent

A

Specific agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Agent Relationships:
Agency Types:
* ____________:
A type of agency formation that take place after the fact.

A

Ratified Agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Agent Relationships:
Agency Types:
* Ratified Agency:
o A seasoned real estate investor buys a property at auction knowing he has a buyer lined up for a property just like this one. He shows up to meet his clients at the house and has a contract for them to sign stating they will buy the home.
o The buyers have accepted the actions of the investor as a ratified agency after the fact of his presenting an ____________ to sell to them.

A

Offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Agent Relationships:
Salespeople, Broker and Clients:
* ____________:
Agent of the broker and also a Fiduciary and Sub-Agent to their client.

A

Salesperson

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Agent Relationships:
Salespeople, Broker and Clients:
* Salesperson:
* Salesperson is acting as a ‘____________’ to the client.

A

Sub-Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Agent Relationships:
Salespeople, Broker and Clients:
* Salesperson:
* Salesperson is acting on behalf of their ____________ who is in charge of contracts and listings.

A

Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Agent Relationships:
Salespeople, Broker and Clients:
o Sub-Agent:
Acting as an agent on behalf of someone else.
 Broker works for client, but salesperson works for the broker, which means in turn the salesperson works on behalf of the broker for the client and as such is a ‘____________’ to the client.

A

Sub-Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Agent Relationships:
Salespeople, Broker and Clients:
* If the client is harmed by the actions of the salesperson, the ____________ is still the RESPONSIBLE party.

A

Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Agent Relationships:
Salespeople, Broker and Clients:
* If the client is harmed by the actions of the salesperson, the BROKER is still the RESPONSIBLE party.
o NOTE: This is one of the reasons that brokers carry ____________ to protect the firm and its agents.

A

Error & Omission Insurance (E&O)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Agent Relationships:
Salespeople, Broker and Clients:
o E & O Insurance:
This is a type of insurance that brokers and brokerage firms carry to protect them against losses incurred from agent’s ____________ or ____________.

A

Actions or Inactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Agent Relationships:
Salespeople, Broker and Clients:
o ____________:
This is a type of insurance that brokers and brokerage firms carry to protect them against losses incurred from agent’s actions or inactions.

A

E & O Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Agent Relationships:
Salespeople, Broker and Clients:
o E & O Insurance:
 Most E&O Insurance policies do NOT cover losses that stem from ____________ agent practices which stem from acts of Fraud, Deceit, and/or Misrepresentation.

A

Dishonest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Agent Relationships:
Salespeople, Broker and Clients:
* The broker, the salesperson and any sub-agent to the client all share in the fiduciary duties:
o ____________:
False statements made without the desire to harm or deceive.

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Agent Relationships:
Salespeople, Broker and Clients:
* The broker, the salesperson and any sub-agent to the client all share in the fiduciary duties:
o ____________:
False statements that are made with the intention of harm or deceive.

A

Fraud

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Agent Relationships:
Salespeople, Broker and Clients:
o ____________:
A form of exaggeration which is legal although NOT suggested as it make an appearance of higher value.

A

Puffing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Agent Relationships:
Salespeople, Broker and Clients:
o Puffing:
 Agents commonly ‘puff’ a property image in hopes of selling it - which is totally ____________.

A

Legal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Agent Relationships:
Fiduciary Duty:
* An agency relationship means several things, but mainly, it means that the real estate professional has fiduciary obligations to the seller or buyer being represented:
* Including those of utmost care, integrity, honesty, and loyalty to that client:
* ____________:
Highest standard of care available.

A

Fiduciary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Agent Relationships:
Fiduciary Duty:
* ____________:
The person or entity to whom the fiduciary is responsible for in the transaction.

A

Beneficiary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Agent Relationships:
Fiduciary Duty:
*Beneficiary:
* With the code of ethics, Realtors® have a “Fiduciary” responsibility to ____________ parties.
* Must protect the interests of all with faith, care, custody and are NOT to betray trust.

A

All

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Agent Relationships:
Fiduciary Duty:
* Imputed Notice:
A Buyer or Seller is thought to have the same ____________ as the agent since the agent is working closely with the Principal. It’s expected that Agents share knowledge with their Principal and Vice Versa.

A

Knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

Agent Relationships:
Fiduciary Duty:
* ____________:
It’s expected that Agents share knowledge with their Principal and Vice Versa.

A

Imputed Notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

Agent Relationships:
Fiduciary Duty:
Quiz:

A brokers Errors and Omission insurance would most likely cover all these claims with the exception of:

An agent forgot to get a signature

A salesperson wrote the offer with the wrong APN number

The agent owned the property and didn’t disclose that

The agent represented a client and obtained their authority in writing after the implied agency had been formed

A

The agent owned the property and didn’t disclose that

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Any agent or broker who fails their client or customer by breaching their fiduciary duties can face penalties that range from Suspension to Revocation of their ____________ and even additional monetary fines.

A

License

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Breach:
Act of breaking or failing to observe a law, agreement, or ____________.

A

Code of Conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Breach:
o Example:
- Failing to honor the written instructions ____________ upon.

A

Agreed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Breach:
o Example:
- Failing to disclose the existence of known ____________.

A

Defects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Breach:
o Example:
- Not informing the ____________ of the true market value of a home, etc.

A

Sellers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Breach:
o Example:
- Trying to buy the property your clients want to buy in order to ____________ it to them for a higher profit.

A

Resell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Breach:
o Example:
- Representing ALL parties without ____________ being granted.

A

Informed Consent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

Agent Relationships:
Breach of Fiduciary Duty:
* ____________:
o This is one of the most COMMON remedies to the offended party in a contract. IF it is found out before the termination of contract.

A

Recission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Recission:
o This is one of the most COMMON remedies to the offended party in a contract. IF it is found out ____________ the termination of contract.

A

Before

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Recission:
The ____________ or ____________ of agreements previously made.

A

Revocation or Cancellation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Recission:
 The Principal can ask the Courts to rescind the contract and ____________ them to their status before entering the agreement.

A

Restore

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Recission:
 This could involve Return of the ____________ to the Seller and refund of the purchaser’s money if it is found to be the fault of the agents breach of fiduciary duty.

A

Property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

Agent Relationships:
Breach of Fiduciary Duty:
* Recission:
 This could involve return of the property to the seller and Refund of the Purchaser’s ____________ if it is found to be the fault of the agents breach of fiduciary duty.

A

Money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Agent Relationships:
Breach of Fiduciary Duty:
o Forfeiture of Agents’ Commission:
This is another remedy that can be made to a party:
 Commissions that are owed can be ____________.

A

Revoked

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

Agent Relationships:
Breach of Fiduciary Duty:
o Forfeiture of Agents’ Commission:
This is another remedy that can be made to a party:
 Commissions that were paid already can be ordered to be ____________.

A

Refunded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Agent Relationships:
Breach of Fiduciary Duty:
o____________:
These can be tacked on to an agent who is guilty of breaching fiduciary duty.

A

Monetary Fines and Penalties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

Agent Relationships:
Breach of Fiduciary Duty:
o Monetary Fines and Penalties:
 If an agent were found to have ____________ or ____________ a Seller about Value, the seller can sue for damages.

A

Mislead or Misinformed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

Agent Relationships:
Breach of Fiduciary Duty:
o Monetary Fines and Penalties:
 Agent’s failure to present offers in a ____________ can hurt the competitive nature of real estate and can be blamed on breach of fiduciary duty.

A

Timely Fashion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

Agent Relationships:
Breach of Fiduciary Duty:
o ____________:
This is a remedy that states can impose on agents.
 If the agent’s actions were construed to be premeditated or were repeated offenses, the states can remove the license from that agent.

A

Revocation of License

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

Agent Relationships:
Breach of Fiduciary Duty:
o ____________:
This is another remedy that the States issuing Authority has to remedy the behavior of agents.

A

Suspension of License

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

Agent Relationships:
Breach of Fiduciary Duty:
o ____________:
These are educational mandates that could be granted as a penalty to the agents.

A

Continuing Education

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Breach of Fiduciary Duty:
Case Study:

In a listing, you convinced the seller to list the house below market value and then had your brother make the offer to buy. Are you in breach of your agency relationship?

A. No. I don’t see the problem here, the seller should be aware to the real market value and my brother knows a good deal when he sees one!

B. Yes. We are to inform our sellers as to market value of course, but also, can’t represent a family member without disclosing that relationship.

A

B. Yes. We are to inform our sellers as to market value of course, but also, can’t represent a family member without disclosing that relationship.

94
Q

Agent Relationships:
Duties Explained:
* Real estate brokers are held by law to owe specific duties to their principal/client:
* ____________ of the broker also owe the same fiduciary duties to the broker’s principal/client.

A

Sub-Agents

95
Q

Agent Relationships:
Duties Explained:
* Real estate brokers are held by law to owe specific duties to their principal/client:
* Obligations could be set forth in a ____________, Buyer Representation Agreement, or other Contract of Employment.

A

Listing Agreement

96
Q

Agent Relationships:
Duties Explained:
* Real estate brokers are held by law to owe specific duties to their principal/client:
* Obligations could be set forth in a Listing Agreement, ____________, or other Contract of Employment.

A

Buyer Representation Agreement

97
Q

Agent Relationships:
Duties:
* The 7 Specific Fiduciary Duties include:
Remember: ‘O.F.C.L.A.R.C.’
1.
2.
3.
4.
5.
6.
7.

A
  1. Obedience
  2. Full Disclosure
  3. Covenant Not to Compete
  4. Loyalty
  5. Accounting
  6. Reasonable Care
  7. Confidentiality
98
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o ____________:
Obligates a real estate broker to act at all times solely in the best interests of his principal above all, including the broker’s own self-interest.

A

Loyalty

99
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o ____________:
It is not allowed to represent a client/principal in the event that you are both interested in purchasing the same property. You as an agent must remove yourself from the competition or stop representing the client.

A

Covenant NOT to Compete

100
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o ____________:
Obligated to obey all lawful instructions of the principal.
 However, it is Illegal to obey any unlawful instructions.

A

Obedience

101
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o ____________:
Obligates the broker keep his client’s confidential information safe.
 Extends beyond Listing Term Indefinitely. [This Never Expires]

A

Confidentiality

102
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o Confidentiality:
 Must keep confidential any information that might ____________ his principal’s bargaining position if it were revealed.
 Agent cannot misrepresent facts or fail to disclose material facts.

A

Weaken

103
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o Confidentiality:
 Must keep confidential any information that might weaken his principal’s bargaining position if it were revealed.
 Agent cannot ____________ facts or ____________material facts.

A

Misrepresent or Fail to Disclose

104
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o ____________:
Agent is obligated to use reasonable care in pursuing the principal’s affairs as such as the employing Broker.

A

Reasonable Care

105
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o Reasonable Care:
o The standard of care expected of a real estate broker representing a seller or buyer is that of a ____________ real estate professional.

A

Competent

106
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o Reasonable Care:
o Brokers are deemed to have skill and expertise in real estate matters ____________ to that of the average person.

A

Superior

107
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o ____________:
Agent is obligated to account for all money or property belonging to his principal that is entrusted to them.

A

Accounting

108
Q

Agent Relationships:
Duties Explained:
* The 7 specific fiduciary duties include:
o ____________:
Agent is obligated to disclose to his principal/client all relevant and material information that the agent knows and that pertains to the transaction as thy become aware of changed circumstances.

A

Full Disclosure

109
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o All ____________ need to be provided to the seller in a timely manner.

A

Offers

110
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o The seller ultimately is the only one who can choose which party to counter or to ____________ only one.

A

Accept

111
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o The ____________ of all potential purchasers placing offers.

A

Identity

112
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o Any facts affecting the ____________ of the property.

A

Value

113
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o Information concerning the ability or willingness of the buyer to ____________ or ____________.

A

Complete the Sale or Offer a Higher Price

114
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o The Broker’s Relationship to, or Interest in, a Prospective ____________.

A

Buyer

115
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o A buyer’s intention to ____________ or ____________ the property for a profit.

A

Subdivide or Resell

116
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:
o Full Disclosure:
* The duty of disclosure obligates a broker representing a seller to reveal to the SELLER:
o Any other information that might affect the seller’s ability to obtain the ____________ or ____________ in the sale of his property.

A

Highest Price or Best Terms

117
Q

Agent Relationships:
Seller’s Agent Disclosure Duties Explained:

True or False:

If I know my seller is willing to accept a lower price, I need to disclose that.

True

False

A

False

118
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
* The duty of disclosure obligates a broker representing a buyer is obligated to reveal to the BUYER:
o The willingness of the seller to accept a ____________ offer price than asking.

A

Lower

119
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
* The duty of disclosure obligates a broker representing a buyer is obligated to reveal to the BUYER:
o Facts relating to the ____________ of the sellers to dispose of the property.

A

Urgency

120
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
* The duty of disclosure obligates a broker representing a buyer is obligated to reveal to the BUYER:
o Broker’s relationship, or ____________ in, the seller of the property for sale.

A

Interest

121
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
* The duty of disclosure obligates a broker representing a buyer is obligated to reveal to the BUYER:
o Any ____________ affecting the value of the property.

A

Material Facts

122
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
* The duty of disclosure obligates a broker representing a buyer is obligated to reveal to the BUYER:
o The ____________ of time the property has been on the market and any other offers or counteroffers that have been made relating to the property.

A

Length

123
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
* The duty of disclosure obligates a broker representing a buyer is obligated to reveal to the BUYER:
o Any other information that would affect the buyer’s ability to obtain the property at the lowest price and on the most ____________ terms.

A

Favorable

124
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
* The duty of disclosure obligates a broker representing a buyer is obligated to reveal to the BUYER:
- Remembering that there is a difference between a ____________ and a client. Brokers and agents do not owe them the SAME fiduciary duties.

A

Customer

125
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:

What are the consequences for an agent misleading and misinforming a client?

Suspension of agents license

Mandated continuing education

Renewal of the agents license

Revocation of the agents license

A

Suspension of agents license

126
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Case Study:

In your own words, define Fiduciary Duty:

A

An agency relationship means several things, but mainly, it means that the real estate professional has fiduciary obligations to the seller or buyer being represented.

127
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Case Study:

While acting as a seller’s agent, the seller informs you that they know a pipe is leaking within one of the walls and hope the home will sell before it’s discovered. What specific fiduciary duty or duties must be considered here?

A

Reasonable Care is considered here which obligated to use reasonable care in pursuing the principal’s affairs. The standard of care expected of a real estate broker representing a seller or buyer is that of a competent real estate professional. Brokers are deemed to have skill and expertise in real estate matters superior to that of the average person.

128
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Case Study:

While representing a buyer, your principal requests to view a specific home listed for sale. You look at the address and realize it is your brother’s home. Can you show the house to your client? If so, what do you need to do before doing so?

A

Loyalty obligates a real estate broker to act at all times solely in the best interests of his principal above all, including the broker’s self-interest. They must inform the principal that it is their brother’s home.

129
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Case Study:

While representing a seller, a buyer’s agent calls you to ask if your client is getting desperate to sell their home. How would you proceed?

A

As a seller representative, I must keep confidential any information that might weaken my principal’s bargaining position if it were revealed.

130
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

Agent Samantha Jones and her client Mr. Big have an agreed upon agency relationship whereby Mr. Big elects to hire Agent Samantha to locate a new building for his business to lease. Mr. Big breaches their agreement by using another agent behind her back which forces agent Samantha Jones to sue him. Which agency relationship may have been breached?

Universal

Buyers Specific Agency Agreement

Dual Agency

Universal agency

A

Buyers Specific Agency Agreement

131
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

Which of the following could be the person or party that uses an agent?

Principal

Customer

General

Manager

A

Principal

132
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

One specific action must remain between all parties in an agency relationship, even after the agreement is over. All of the following are duties owed to the principal except which one?

Loyalty

Reasonable Care

Obedience

Covenant Not to Pursue

A

Covenant Not to Pursue

133
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

What duty is not owed to a customer?

Fiduciary

Honesty

Care

Disclosure

A

Fiduciary

134
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

Which is a subagent:

The attorney representing a trust

The attorney representing a seller who is out of state

The attorney who hires a property manager to manage the clients property

The attorney who also holds a real estate license and is representing their own client in a transaction

A

The attorney who hires a property manager to manage the clients property

135
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

The duty to disclose to a seller includes many known requirements. The broker representing the buyer in a transaction failed to identify this in the purchase agreement because they had an interest in the actual purchase with the intent to resell for a profit. This action is best described as what?

Rescind

Misrepresentation

Fiduciary Breach

Fraud

A

Fraud

136
Q

A salesperson tells a potential buyer that her client’s property has a new roof, knowing full well that is not true. What is this considered:

Misrepresentation

Fraud

Puffing

Breaching

A

Fraud

137
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

An agent had to pay damages to a previous client because the client found out that their agent went and purchased a property that they were in fact contemplating purchasing. This is an example of a breach of agency duties. Which duty was breached?

Competition

Covenant of Completion

Care, Custody and Control

Disclosure

A

Competition

138
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

The agent in a transaction failed to notify all parties that she was married to one of the principals. What is a possible recourse to this inaction:

Loss of licensure

Investigation by the Arizona Association of Realtors

Civil penalty of $500

Either party could void the contract

A

Loss of licensure

139
Q

Agent Relationships:
Buyer’s Agent Disclosure Duties Explained:
Quiz:

An agent who represented the broker, Cam Newton of Dab’s Realty was trying to impress how great a listing is to a potential buyer. She went on to describe the sunsets as “being the best that you can expect to ever see.” The agent was using what in hopes of selling the property?

Puffing

Misrepresentation

Fraud

A

Puffing

140
Q

Agent Relationships:
Customer and Client vs. Buyer’s and Seller’s Agent Disclosure Duties Explained:
* That there is a difference in a customer and a client, brokers and agents do NOT owe them same ____________ duties.

A

Fiduciary

141
Q

Agent Relationships:
Agency Disclosures:
* Working as a buyer’s agent or a seller’s agent can sometimes be clearly outlined or it can be ____________ and convoluted.

A

Complex

142
Q

Agent Relationships:
Agency Disclosures:
* “____________” means a written agreement by which a real estate broker is entitled to compensation for services rendered.

A

Real Estate Agency Agreement

143
Q

Agent Relationships:
Agency Disclosures:
* Real Estate Agency Agreement:
There are MULTIPLE types of brokers and agreements for each and in some cases use different ____________.

A

Forms

144
Q

Agent Relationships:
Agency Disclosures:
* Real Estate Agency Agreement:
* Must be in WRITING, clearly identify commissions, signed by all parties, ____________ and ____________.

A

Start Date and End Date

145
Q

Agent Relationships:
Agency Disclosures:
* Real Estate Agency Agreement:
* Must be in WRITING, clearly identify commissions, signed by all parties, Start date and ____________ date.

A

End

146
Q

Agent Relationships:
Agency Disclosures:
* Real Estate Agency Agreement:
* Must be in WRITING, clearly identify ____________, signed by all parties, Start date and End date.

A

Commissions

147
Q

Agent Relationships:
Agency Disclosures:
* Real Estate Agency Agreement:
* Must be in WRITING, clearly identify commissions, ____________ by all parties, Start date and End date.

A

Signed

148
Q

Agent Relationships:
Agency Disclosures:
* ____________:
An agent who represents prospective purchaser’s/buyer’s rather than sellers.

A

Buyer’s Broker

149
Q

Agent Relationships:
Agency Disclosures:
* ____________:
o In some situations, a client will specifically create an agency relationship with an agent so they can assist with identifying generally very specific properties.

A

Buyer’s Broker

150
Q

Agent Relationships:
Agency Disclosures:
* Buyer’s Broker:
o Usually the agent is paid directly by the buyer to find an appropriate property.
o Specifics could be ____________, locational, or design types.

A

Financial

151
Q

Agent Relationships:
Agency Disclosures:
* Buyer’s Broker:
o Usually the agent is paid directly by the buyer to find an appropriate property.
o Specifics could be financial, ____________, or design types.

A

Locational

152
Q

Agent Relationships:
Agency Disclosures:
* Buyer’s Broker:
o Usually the agent is paid directly by the buyer to find an appropriate property.
o Specifics could be financial, locational, or ____________.

A

Design Style

153
Q

Agent Relationships:
Agency Disclosures:
* Buyer’s Broker:
o More COMMON is a buyer’s agent who is representing a client in the ____________ of property.

A

Purchase

154
Q

Agent Relationships:
Agency Disclosures:
* Buyer’s Broker:
o This is the ‘____________’ and it outlines the agency relationship.
o The forms used are the Agency Disclosure form.
o Form clearly states that the agent is working for the BUYER in the transaction.

A

Buyer’s Broker Agreement

155
Q

Agent Relationships:
Agency Disclosures:
* Buyer’s Broker:
o This is the Buyer’s Broker Agreement and it outlines the agency relationship.
o The forms used are the ‘____________’.
o Form clearly states that the agent is working for the BUYER in the transaction.

A

Agency Disclosure Form

156
Q

Agent Relationships:
Agency Disclosures:
* Seller’s Broker:
Agent who is representing the ____________ or ____________ of the property.

A

Seller or Owner

157
Q

Agent Relationships:
Agency Disclosures:
* Seller’s Broker:
* Sellers agents are working for the seller and are mainly interested in selling only this singular ____________ in this transaction.

A

Property

158
Q

Agent Relationships:
Agency Disclosures:
* Seller’s Broker:
o Sellers Broker is commonly known as the ____________.

A

Listing Agent

159
Q

Agent Relationships:
Agency Disclosures:
* Seller’s Broker:
o The forms used are the SAME the ____________.
o IMPORTANT: Form clearly states that the agent is working for the SELLER in the transaction.

A

Agency Disclosure Form

160
Q

Agent Relationships:
Agency Disclosures:
Real World Note:
Multiple Counter Offers in a “____________” is commonplace.

A

Seller’s Market

161
Q

Agent Relationships:
Agency Disclosures:
Real World Note:
If a seller chooses to counter multiple buyers, the counters should be on the appropriate form which acknowledges to everyone placing offers that there are multiple offers. In this case, it is documented that all parties are treated equally and have been notified. The seller can choose to work with one or more offers using this form the ____________ Form.

A

Multiple Offer / Counteroffer

162
Q

Agent Relationships:
Agency Disclosures:
Seller’s Broker:
o Multiple Counter Offers: Multiple counters should be dealt with on the Multiple Offer / Counteroffer Form which acknowledges to everyone there are more offers and that everyone needs to submit a new offer, or their highest and ____________.

A

Best Offer

163
Q

Agent Relationships:
Agency Disclosures:
Seller’s Broker:
o Multiple Counter Offers: Multiple counters should be dealt with on the ____________ which acknowledges to everyone there are more offers and that everyone needs to submit a new offer, or their highest and best offer.

A

Multiple Offer / Counteroffer Form

164
Q

Agent Relationships:
Multiple Offer/Counter Offer Form:
To be used solely and exclusively by members of the ____________.

A

Arizona Association Of Realtors®

165
Q

Agent Relationships:
Types of Dual Agency:
* Dual Agency:
One agent is representing ____________ parties in a transaction the Buyer and the Seller.

A

Both

166
Q

Agent Relationships:
Types of Dual Agency:
* Dual Agency:
* Due to the complexities of Dual Agency, some brokers will ____________ allow it as it is very difficult to be serving two parties fairly with equal fiduciary responsibilities.

A

Not

167
Q

Agent Relationships:
Types of Dual Agency:
* Dual Agency:
o Must have the consent – ____________ – of both parties before assuming this role.
o It is not technically legal in all 50 States. It is LEGAL in Arizona.

A

In Writing

168
Q

Agent Relationships:
Types of Dual Agency:
* ____________:
o Both principals/clients in the transaction must be aware that one person is representing both sides of the transaction, and the agent is trying to get the best for each party both the Buyer and the Seller.

A

Dual Agency

169
Q

Agent Relationships:
Types of Dual Agency:
* Dual Agency:
o Failure to ____________ Dual Agency in Writing could be grounds for loss of license, penalties, or even lawsuits.

A

Disclose

170
Q

Agent Relationships:
Types of Dual Agency:
* Dual Agency:
o Check with your broker and ____________ before operating as a Dual Agent.

A

Error and Omissions (E&O) Insurance

171
Q

Agent Relationships:
Types of Dual Agency:
* Limited Dual Agency:
Two ____________ agents from the same brokerage firm. One representing the Buyer. One representing the Seller.

A

Different

172
Q

Agent Relationships:
Types of Dual Agency:
* ____________:
o Agent 1 represents Buyer and Agent 2 represents Seller, Both Agents work for Same Broker, so it is not considered dual agency because they are two separate agents.

A

Limited Dual Agency

173
Q

Agent Relationships:
Types of Dual Agency:
* Limited Dual Agency:
o Each Agent owes the fiduciary duties to their ____________ client only:
- A licensee shall not procure, or attempt to procure, a real estate employment agreement from a party who is already subject to an existing exclusive.

A

Own

174
Q

Agent Relationships:
Types of Dual Agency:
* Limited Dual Agency:
o Each Agent owes the fiduciary duties to their own client only:
- Real estate employment agreement unless the licensee has received written acknowledgment from the party that the execution of ____________ real estate employment agreements could expose the party to liability for substantial additional commissions.

A

Additional

175
Q

Agent Relationships:
Dual Agency Form:
To be used solely and exclusively by members of the ____________.

A

Arizona Association Of Realtors®

176
Q

Agent Relationships:
Agency Performance:
Failure To Perform:
* Performance is what is most commonly discussed when there is a ____________ between clients and agents.

A

Disagreement

177
Q

Agent Relationships:
Agency Performance:
Failure To Perform:
o Involuntary termination of the relationship may create legal and financial liability for a party who ____________ or ____________.

A

Defaults or Cancels

178
Q

Agent Relationships:
Agency Performance:
Failure To Perform:
o Failure to perform by an agent during the course of a contract could lead the client or customer to sue for performance and force the agent to ____________.

A

Act

179
Q

Agent Relationships:
Agency Performance:
Failure To Perform:
 An agent who leaves town and fails to respond to offers on time could result in a seller suing the agent for ____________ incurred from the loss of a sale.

A

Damages

180
Q

Agent Relationships:
Agency Performance:
Failure To Perform:
 Same is true of a client who fails to ____________, the agent or other clients could sue the non-performing party to act.

A

Perform

181
Q

Agent Relationships:
Agency Performance:
Failure To Perform:
o A Seller who changes their mind and decides he doesn’t want to sell while Under Contract could be sued to either sell the property as per agreement, or at a minimum could be SUED for damages and forced to pay ____________ to the agents.

A

Commissions

182
Q

Agent Relationships:
Agency Performance:
Failure To Perform:
o A Seller who changes their mind and decides he does NOT want to Sell while ____________ could be sued to either sell the property as per agreement, or at a minimum could be SUED for damages and forced to pay Commissions to the agents.

A

Under Contract

183
Q

Agent Relationships:
Agency Performance:
Revoking A Listing:
* Revocation of a listing could also affect the client’s agent’s ____________.

A

Performance

184
Q

Agent Relationships:
Agency Performance:
____________:
* This may incur liability for commission or damages to the broker if it can be determined that the broker acted in a deceitful way.

A

Revoking A Listing

185
Q

Agent Relationships:
Ending the Agency:
* There are two ways to end an agency relationship:
____________ or ____________ Termination.

A

Voluntary or Involuntary

186
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o Changes in Law:
 Any change that comes as a ____________ result of a newly created or modified law could result in the agency relationship ending.

A

Direct

187
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o Changes in Law:
 An agent operating in multiple states under this contingency, if one state ends the ‘____________’ with the other state, the agent can NOT legally operate in that state anymore.

A

Reciprocity Agreement

188
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o ____________:
 Governments police powers enacted to demolish, destroy or otherwise take possession of property would clearly cancel an agency agreement with the client.

A

Eminent Domain

189
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o ____________:
 Clients, customer or even the broker declaring this financial plight in court could easily negate an agency relationship as it prevents the parties from performing.

A

Bankruptcy

190
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o Death:
 If one party dies, becomes ____________ or ______________ it would be impossible to force a continued relationship of agency.

A

Incompetent or Incapacitated

191
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o Death:
 If a salesperson or sub-agent of the broker dies, that has no impact on the agency relationship as the ____________ is the true overall “agent”.

A

Broker

192
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o Loss of Broker’s License:
 The loss of licensure by an act of law against the broker would ____________ the relationship with any and all clients.

A

End

193
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
* Involuntary Termination:
o ____________:
 This can happen to broker by an act of law or by failing to maintain their license in a timely fashion in regard to continuing education.

A

Loss of Broker’s License

194
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
*Voluntary Termination:
o Mutual Cancellation:
 If both parties ____________ to terminate their agency relationship, the fiduciary duty will end at that point.

A

Agree

195
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
*Voluntary Termination:
o ____________:
 If this occurs the duty of confidentiality never ends. The agent is not able to discuss things about the terms of their agency relationship or contracts.

A

Mutual Cancellation

196
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
*Voluntary Termination:
o Singular Cancellation by Agent:
 Agent has the right to end the agreements in cause of the ____________ not performing.
 Remember that they have to work towards same goals.

A

Client

197
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
*Voluntary Termination:
o Singular Cancellation by Agent:
 Client could end the agency if the terms agreed upon are not being followed or met by the ____________.
 Failure to work for the client is grounds for termination.

A

Agent

198
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
*Voluntary Termination:
o ___________:
 If either the agent or the client abandoned the other party, it
would be impossible for one party to be constrained to the duties owed.

A

Abandonment

199
Q

Agent Relationships:
Ending the Agency:
Voluntary VS. Involuntary:
*Voluntary Termination:
o ___________:
 This is the most common type of termination where the contract was fulfilled by all parties and the agent and client go their separate ways.

A

Completion of Terms

200
Q

Agent Relationships:
Ending the Agency:
Quiz:

Choose the ways to end an agency relationship:

Law

Spouse

Death

Opportunity

Completion

A

Law

Death

Completion

201
Q

Agent Relationships:
Agency:
Quiz:

Who is ultimately responsible for contracts and listings as an agent?

A

The salesperson is acting on behalf of their broker, who is in charge of contracts and listings.

202
Q

Agent Relationships:
Agency:
Quiz:

Why do many brokers prohibit Dual Agency listings?

A

Due to the complexities of Dual Agency, some brokers will not allow it, as it is challenging to serve two parties fairly with equal fiduciary responsibilities.

203
Q

Agent Relationships:
Agency:
Quiz:

If a Dual Agency listing is desired, what is the advantage of having a Limited Dual Agency listing?

A

Limited Dual Agency consist of two different agents from the same brokerage firm where Agent 1 represents Buyer and Agent 2 represents Seller, both agents work for same broker thus dual agency, but limited dual agency. It’s possible that especially in small markets, one brokerage may represent both buyer and seller, but could assign two different agents for each client.

204
Q

Agent Relationships:
Agency:
Quiz:

If a broker fails to disclose any form of Dual Agency, what repercussions could they face?

A

Failure to disclose Dual Agency (in writing) could be grounds for loss of license, penalties, or even lawsuits.

205
Q

Agent Relationships:
Agency:
Quiz:

With limited dual agency the broker works for:

Buyer and seller

Buyer or Seller

Buyer only

Seller only

A

Buyer and seller

206
Q

Agent Relationships:
Agency:
Quiz:

Which of the following examples would not be considered involuntary termination of agency relationship in a real estate contract?

Successful close of escrow on the property

Client’s bankruptcy

Client’s death

Loss of agents license

A

Successful close of escrow on the property

207
Q

Agent Relationships:
Agency:
Quiz:

What is not a legal requirement of dual agency?

Disclosure of dual agency

Consent in writing from both parties

Must be legal in the state

Checking E&O insurance

A

Checking E&O insurance

208
Q

Agent Relationships:
Agency:
Quiz:

Of the following, which one can end an agency relationship?

The customers demands

The agent leaves town

An act of law

Death of Sub-Agent

A

An act of law

209
Q

Agent Relationships:
Agency:
Quiz:

With limited dual agency, the designated broker owes fiduciary duty to:

Seller then buyer

Buyer then seller

One client

Both clients

A

One client

210
Q

Agent Relationships:
Agency:
Quiz:

An agent had to pay damages to a previous client because the client found out that their agent went and purchased a property that they were in fact contemplating purchasing. This is an example of a breach of agency duties. Which duty was breached?

Competition

Covenant of Completion

Care, Custody and Control

Disclosure

A

Competition

211
Q

Agent Relationships:
Agency:
Quiz:

Dual agency is found in which of the following:

A broker assigning an agent to represent the client

One agent working for both buyer and seller in different transactions

Two different agents who work for the same broker on a transaction would be dual agency

Two designated brokers from two firms working both sides of a transaction

A

Two different agents who work for the same broker on a transaction would be dual agency

212
Q

Agent Relationships:
Agency:
Quiz:

Which form clearly states that the agent is working for the BUYER in the transaction?

Agency disclosure

Listing agreement

Purchase agreement

SPDS

A

Agency disclosure

213
Q

Agent Relationships:
Loan Estimate, Closing Disclosure & Settlement Statement Forms
To be used solely and exclusively by members of the __________

A

Arizona Association Of Realtors®

214
Q

Agent Relationships:
Agency:
Quiz:

The client whose home you are selling is foreclosed on due to non-payment of taxes owed. Would this be a voluntary or involuntary termination of the agency?

A

It is involuntary termination of agency. Clients, customers, or even the broker declaring bankruptcy could quickly negate an agency relationship as it prevents the parties from performing.

215
Q

Agent Relationships:
Agency:
Quiz:

What would be a situation where a Singular Cancellation by an Agent would be warranted?

A

The agent has the right to end the agreements in the case of the client not performing. But remember that the client has to work towards the same goals.

216
Q

Agent Relationships:
Agency:
Quiz:

As an agent, you take a listing (through your broker) for a couple selling their home. You receive an offer for the house on Friday the 5th. Rather than informing the sellers that day, you go on vacation and don’t inform them of the request until Thursday the 11th. The offer has expired, and the potential buyers are no longer interested. Could the selling clients sue you?

A

Yes, Failure of an agent during the course of a contract could lead the client or customer to sue for performance.

217
Q

Agent Relationships:
Agency:
Quiz:

As an agent, you take a listing (through your broker) for a couple selling their home. You receive an offer for the house on Friday the 5th. Rather than informing the sellers that day, you go on vacation and don’t inform them of the request until Thursday the 11th. The offer has expired, and the potential buyers are no longer interested. Could they sue your broker?

A

If the salesperson’s actions harm the client, the broker is still the responsible party and can be sued.

218
Q

Volume and Area Math:
Questions ranging in nature from how many square feet, cubic feet, __________ Feet, yards, and acres will come
up throughout your career in real estate. The test questions will vary of course but these examples will give
you an idea of how to calculate them all.

A

Linear

219
Q

Volume and Area Math:
How many acres and square feet are there in an acre of land? In a section of Land?

A
  • 43,560 sqft = 1 acre
  • 43,560 sqft x 640 (acres in section) = 27,878,400
220
Q

Volume and Area Math:
DeveloperAZ bought 4 adjoining acres. The city planners will allow 3 total apartment buildings to be built on the lot with a stipulation that there must be 1/5 of the total land
reserved for green belts and 1/8 of the land must be park areas. How many square feet of land
must be reserved to meet this criteria?

A
  • 43,560 sqft/acre x 4 acres = 174,240 total sqft
    o 174,240 x 1/5 = 34,848
    o 174,240 x 1/8 = 21,780
    o 34,848 + 21,780 = 56,628 total square feet
     56,628 total square feet must be reserved
221
Q

Volume and Area Math:
Builders AZ wants to construct a new apartment building on their new lot. The cost to clear the land is .33/sqft and the land they are buying is 4 acres. What is the total cost to clear the land?

A
  • 4 acres x 43,560 (sqft in acre) = 174,240sqft
  • .33 x 174,240 = $57,500
    o It will cost $57,500 to clear the land
222
Q

Volume and Area Math:
Builders AZ now need to install drainage pits and need to excavate an area that is 30 feet wide by 40 long wide and 4 feet deep. The charge for this is $13 per cubic yard. What is the total charge?

A
  • 30’ x 40’ x 4’ = 4,800’
  • 4,800’ ÷ 27 (cubic feet in a cubic yard) = 177.77 cubic yard
  • 177.77 cubic yard x $13 = $2,311
    o The total charge is $2,311
223
Q

Volume and Area Math:
Running underground utilities for the apartment building is going to cost $24,000 total and includes the cost of trenching, water and electric. The cost for trenching is $4200, electric costs $12,600 and the water is $7,200. If the average cost is $12 per linear foot for this work, how many linear feet does the builder have?

A
  • $24,000 ÷ $12 = 2,000 linear feet
  • The costs per is just noise again designed to make you see the whole picture which in this case is quite easy.
    o The builder has 2,000 linear feet
224
Q

Volume and Area Math:
Builders AZ now need to fence the perimeter of the property. The frontage of the property is 300’ and the length is 580.8’. The cost per linear foot on the front is $19/LF and the sides cost $12/LF and the back of the property fence is $9/LF. What is the total cost of the fencing?

A
  • 300 Linear front feet x $19/LF = $5,700
  • 580.8 Linear feet x 2 sides = 1161.6 LF
  • 1161.6 Linear feet x $12/LF = $13,939
  • 300 Linear back feet x $9/LF = $2,700
    o $5,700 + $13,939 + $2,700 = $22,339
     The total fencing cost is $22,339
225
Q

Volume and Area Math:
Pouring the concrete foundation for the building calls for 110’ x 230’ x 8”. How many cubic feet of concrete will be needed?

A
  • 110’ x 230’ = 25,300
  • 8” = 2/3 of a foot or .667 feet
  • 25,300 x .667 = 16,875 cubic feet
    o 16,875 cubic feet of concrete will be needed
226
Q

To paint the walls for the building, the builder has determined the perimeter of each of the 3 buildings is 80’ x 40’ and there are 2 levels for each building for a height of 20’. The painter has quoted that each 5 gallon bucket of paint will cover 1000 sqft and the cost of paint and materials is $75 and labor will be .15/sqft. What will it cost to paint this project and how many sqft are there to paint in total?

A
  • 80’ x 40’ = 3200’ (perimeter)
  • 3200’ x 20’ (height) = 64,000 sqft
  • 64,000 sqft x 3 buildings = 192,000 sqft (part of answer)
  • 192,000 sqft ÷ 1000 sqft (5 gal paint) = 192 (5 gal paint needed)
  • 192 x $75 = $14,400 (paint and material)
  • 192,000 (total sqft) x .15/sqft (labor) = $28,800 (labor)
  • $14,400 (paint/materials) + $28,800 (labor) = $43,200 (2nd part of answer)
  • 192,000 sqft of wall space & $43,200 in paint/labor.
    o It will cost $43,200 to paint the 192,000 sqft
227
Q

Prorations REVIEW:
The insurance policy on a commercial building was paid in advance for a period of 3 years
and a cost of $900/year. The owner of the building sold the property and the new buyer plans on keeping the policy after the close. The current owner had the policy start on April 1st. There are 365 days in a year and close belongs to the buyer. If the property is conveyed on the
2nd of January the following year, how much is the seller going to get from the buyer?

A
  • Day of closing belongs to the buyer
  • Using a calendar year
  • Buyer will be debited and seller will be credited
  • Calculate the days that the seller used the property as it’s easier to go backwards:
    o January has used 1 day
    o December used 31 days
    o November used 30 days
    o October used 31 days
    o September used 30 days
    o August used 31 days
    o July used 31 days
    o June used 30 days
    o May used 31 days
    o April used 30 days
    o Total of 276 days were used by seller (89 days left in year 1, 365 year 2, 365 year 3)
    o Cost per day in insurance is $2.46 ($900 / 365 = $2.46)
     $900 (Year 3) + 900 (year 2) + ($2.46 x 89) = $1,800 + $218.94 = $2,018.94
    o The seller will have a credit of $2,018.94
228
Q

Prorations REVIEW:
A seller sold a house on May 8, 2019, that has a loan balance of $74,500 with a 4.5% rate. The May payment had not been made yet. What was the sellers debit at closing? (360 days in a
year COE is buyers)

A

**Remember that loans (mortgages) are always paid in arrears, so in this example, the seller
owes their lender for the month of APRIL (arrears and for 7 days in May)
* $74,500 × 4.5% = $3,352.50 = annual interest paid on the loan
* April used 30 days + 7 Days in May (interest that would go to the lender)
* $3,352.50 / 360 days = $9.31/daily interest
* 30 days + 7 days = 37 days interest owed to lender from seller
* 30 days interest x $9.31 = $279.30 interest credit to the lender for April
* 7 days interest x $9.31 = $65.17 interest credit to the lender for May
o $279.30 + $65.17 = $344.47 Seller Debit

229
Q

Prorations REVIEW:
On June 6 an escrow closed. The annual taxes were $775 and the water bill of $86 for the current year was paid in full on January 1. If these payments are prorated, what amount will be returned to the seller?
(360 Days, COE = buyer)

a. $373
b. $418
c. $490
d. $508

A
  • $775 + $86 = $861 Total Paid on January 1st
  • $861 / 360 days = $2.39/day
  • Buyer will use and enjoy property and so owes seller
  • June = 25 days, July/Aug/Sept/Oct/Nov/Dec =180 days = 205 days buyer owes for
  • 205 days x $2.39 = $490
    o Answer is C
230
Q

Prorations REVIEW:
A sale is closed on February 13. The buyer is assuming the seller’s mortgage, which has an outstanding balance of $28,000 as of the date of closing. The annual interest rate is 7¾ percent and is paid in arrears. What would be the interest proration appearing in the buyer’s closing statement if the last payment was made on February 1?
(360 Days, COE = buyer)

a. $180.90 debit
b. $72.36 debit
c. $72.36 credit
d. $253.19 credit

A
  • $28,000 x .0775 (7 ¾) = $2,170 yearly interest
  • $2,170 / 360 days = $6.03/daily interest
  • **February 1st, payment was paid, and was applied towards the January Month interest
  • Seller used 12 days in February so that is their responsibility but buyer is paying for 18 days
  • 12 days is what the seller has to pay back to the buyer (Credit to buyer = assuming loan)
  • 12 days x $6.03 = $72.36
    o Answer is C
231
Q

Prorations REVIEW:
A property has a rental income of $1,500/month. If the closing date is October 15, how much rent is owed to the buyer if the day of closing belongs to the buyer? Use the 30 day
method.

A
  • $1,500 / 30 days = $50 per day rent
  • Seller gets to keep 14 days
  • Buyer will receive (credit) 16 days from seller
    o $50 x 16 days = $800

A Real Estate Agent Concepts (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions