Highlights chapter 4

Question 1

Types of laws and their purposes:

Answer 1

Common law: common law is un written law
Statutory law : is based on written statutes that have been enacted by an appropriate unit of government. Statutory law is enforced by criminal courts.
Administrative law : statues can authorize the creation and operation of administrative agencies to administer and enforce certain laws. The department of business and professional regulation(the department) created by F.s.455, and the Florida real estate commission( the commission) created by F.S475 are examples of administrative agencies empowered by statues

Question 2

Agency law and relationships: General agent

Answer 2

General agent has a principles authority under agency law to act for them on a continual basis, but with authority limited to a specific trade or business

Question 3

Universal agent

Answer 3

A universal agent is authorized under agency law to act for, and represent the principle, and all matters without limitation. This agent is generally authorized by a power of attorney.

Question 4

Subagent

Answer 4

A subagent is a party who has been granted authority to act on behalf of another agent. And their agency law, subagent, has the same duties to the principal as the agent who was empowered by the principal. A sales associate is a general agent of the broker, and automatically becomes a subagent of all the brokers principles. As an agent of the broker, it sells associate, has the same duties to the brokers principles, as does the broker.

Question 5

Transaction broker

Answer 5

A transaction broker is a broker who provides limited representation to a buyer, a seller, or both, and a real estate transaction, but does not represent either in a fiduciary capacity, or as a single agent

Question 6

Nonrepresentation/no brokerage relationship

Answer 6

A customer may choose not to be represented, in which case the broker must provide the customer with a separate written, no broker relationship notice(usually a for sale by owner) the duties of a licensee who has no brokerage relationship with a buyer or seller must be fully described and disclosed in writing before the licensee shows the property

Question 7

Common duties of Brookridge relationships

Answer 7

Non-representation/transaction broker/single agent all have these common duties:
- Deal honestly unfairly
- Account for all funds
- Disclose all known facts that affect the value of residential property 

Question 8

Designated sales associate

Answer 8

If both the seller and the buyer have assets of $1 million or more, and both request single agent representation, the broker may at the request of the parties, designate sales associates to act as single agents for the different customers in the same transaction