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unit 4: real estate agency > various types of agency relationships common in the real estate profession > Flashcards

various types of agency relationships common in the real estate profession Flashcards

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1
Q

A ___ agent is a person empowered to do anything the principal could do personally

A

universal

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2
Q

In Illinois, a written ___ is required to create a universal agency

A

power of attorney

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3
Q

A ___ agent may represent the principal in a broad range of matters related to a particular business or activity

A

general

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4
Q

The ___ agent may bind the principal to any contract within the scope of the agency’s authority.

A

general

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5
Q

A property manager is typically considered a ___ agent to the property owner.

A

general

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6
Q

Who are the general agents to their sponsoring broker?

A

Brokers and managing brokers

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7
Q

Brokers and managing brokers are __ agents to their sponsoring broker.

A

General

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8
Q

A ___ agent is authorized to represent the principal in one specific act or business transaction only, under detailed instructions.

A

special

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9
Q

A real estate licensee is usually a ___ agent to a client.

A

special

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10
Q

A special agent representing a seller helps them find…

A

A buyer for the property

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11
Q

A special agent representing a buyer helps them find…

A

Property that fits the buyer’s criteria

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12
Q

As a special agency, a licensee may not bind the principal to a ___.

A

contract

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13
Q

A special ___ is another legal means of authorizing an agent to carry out only a specified act or acts.

A

Power of attorney

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14
Q

A ___ agent is a person authorized by the sponsoring broker to act as the agent of a specific principal.

A

designated

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15
Q

A ___ agent is the only licensee in the company who has a fiduciary responsibility toward their assigned principal.

A

designated

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16
Q

If one licensee in the company is a designated agent, who are the others are free to act as agents for?

A

The other party in a transaction

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17
Q

Mickey and Minne are both agents working for the same company. Both of them are representing two opposing clients for the same property. Mickey is the designated agent for the seller, while Minnie is acting as an agent for the buyer. Doing this allows two agents from the same company to represent opposite sides of the sale without entering ___ agency.

A

Dual

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18
Q

In Illinois, a sponsoring broker entering into a brokerage agreement must designate those licensees employed by or affiliated with the sponsoring broker to act as ___ agents of that client to the exclusion of all other licensees employed by or affiliated with the sponsoring broker.

A

legal

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19
Q

In Illinois, licensees must advise a consumer in writing before acting as their ___.

A

designated agent

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20
Q

In Illinois, a ___ agent may disclose confidential information of a client to the sponsoring broker or persons specified by the sponsoring broker for the benefit of the client in regard to a possible transaction.

A

designated

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21
Q

In Illinois, a designated agent may disclose confidential information of a client to the ___ for the benefit of the client in regard to a possible transaction.

A

sponsoring broker

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22
Q

In Illinois, a designated agent may disclose confidential information of a client to the persons specified by ___ for the benefit of the client in regard to a possible transaction.

A

the sponsoring broker

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23
Q

A(n) ___ agency is when an agent or firm represents only one party exclusively in a real estate transaction, and the agent and firm’s fiduciary and statutory duties are provided only to that one party.

A

single

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24
Q

A ___ agency licensee may represent buyers and sellers, however they cannot represent both in the same transaction.

A

single

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25
Q

An agency relationship is established by ___, ___, or ___.

A

Contract

Agreement

Implication

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26
Q

In Illinois, is it required by law for the listing sponsoring brokerage to share the listing commission with the buyer’s sponsoring brokerage?

A

no

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27
Q

A ___ agency is an arrangement where an owner may employ a sponsoring broker to market, lease, maintain, or manage the owner’s property.

A

Property Management Agency

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28
Q

Who is made the agent of the property owner thorugh a property management agreement?

A

Sponsoring broker

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29
Q

In a property management arrangement, who has fiduciary responsibility to the owner?

A

Sponsoring broker

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30
Q

In ___ agency, the agent represents two principals in the same transaction.

A

dual

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31
Q

___ agency requires equal loyalty to 2 separate principals at the same time

A

dual

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32
Q

Real estate licensing laws permit dual agency ONLY if…

A

Both parties involved in the transaction are informed and consent in writing

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33
Q

In Illinois, all parties involved in a transaction through a dual agency must give…

A

Consent and confirmation to the arrangement in writing

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34
Q

A real estate licensee is the agent for the owner of a large mansion. A prospective buyer comes into the licensee’s office and asks her to represent him in a search for a modest home. After several weeks of activity, including low offers unsuccessfully negotiated by the licensee, the prospective buyer spots the For Sale sign in front of the mansion. He tells the licensee that he wants to make an offer and asks for the licensee’s advice on a likely price range. This is putting the licensee in a difficult position of being a(n) ___ agent.

A

dual

35
Q

___ Agency is when one licensee represents the interests of both the buyer & seller.

A

dual

36
Q

___ Agency is when the licensee represents the interest of both the lessor and lesee in a transaction.

A

dual

37
Q

Can a licensee collect a referral fee for referring a consumer to another licensee after the consumer has refused dual agency?

A

yes

38
Q

A licensee must disclose to a ___ all sources of compensation related to the transaction received by the licensee from a third party.

A

client

39
Q

___ agency describes a business model where licensees in an office may represent both buyers and sellers.

A

designated

40
Q

What is it called when a sponsoring broker assigns one agent to represent the buyer and another agent to represent the seller?

A

designated agency

41
Q

___ agency is created when an agent is authorized to perform a particular act

A

special

42
Q

In a special agency, the agent is helping their client with BOTH selling and buying a new home. True or false?

A

False

43
Q

In a special agency, the agent is helping their client with selling their home, but NOT with buying a new home. True or false?

A

true

44
Q

___ agency is created when an agent is authorized to perform multiple acts on behalf of a client.

A

general

45
Q

A broker associate is generally hired to act as a ___ agent to the sponsoring broker,

A

general

46
Q

An agent’s authority to act as a universal agent comes from a legal form called a ___.

A

Power of Attorney

47
Q

A client is moving to Paris and provides their agent with a document authorizing them to act as a property manager for their property while they are abroad, as well as investing in profits into the stock market for them. What type of agency is this an example of?

A

Universal Agency

48
Q

___ grants an agent the power to perform on their behalf.

A

Power of attorney

49
Q

___ agency eliminates the apparent conflict of interest when the buyer and seller are both represented by the same brokerage company, because each party has their own specific licensee to represent their interest.

A

designated

50
Q

John and Mary both work for ABC Real Estate and they are both representing clients in a transaction for the same property. John is working with the seller while Mary is working with the buyer. How is this not a conflict of interest?

A

John and Mary are designated agents

51
Q

John and Mary both work for ABC Real Estate and they are both representing clients in a transaction for the same property. John is working with the seller while Mary is working with the buyer. Because John and Mary both work under the same sponsoring broker, are they authorized to share confidential information about their party in transaction without consent from their clients?

A

no

52
Q

Larry, Moe, and Joy are all on a Real Estate team. Larry is the listing agent and the designated agent for the seller. Is Larry allowed to share confidential information about his client with Moe and Joy? Why or why not?

A

No because Moe and Joy are not the designated agent

53
Q

Larry, Moe, and Joy are all on a Real Estate team that will be representing a seller. Can all three of them be designated to represent the same client?

A

Yes, as long as all designated agent’s names are written in the listing agreement

54
Q

Written consent from both parties must be given ___ acting as a dual agent.

A

Before

55
Q

If a licensee is acting as a dual agent for two opposite sides of a transaction, can they advise or counsel either client?

A

no

56
Q

If a licensee is acting as a dual agent for two opposite sides of a transaction, are they authorized to disclose any material facts to either client?

A

yes

57
Q

Is a dual agent authorized to advise either client to make a counter offer, or counsel them pricing?

A

No

58
Q

Is a dual agent authorized to provide each client with the CMA and a comparative market analysis for the property?

A

Yes

59
Q

After consenting to a dual agency in writing, next a ___ must also be in writing stating that both parties have agreed that the same licensee will represent both sides of the transaction.

A

Confirmation

60
Q

Real estate licensees are required to ___ the parties they represent.

A

Disclose

61
Q

Licensees in Illinois are considered to be representing the consumer they are working with as the consumer’s ___ agent, unless there is a written agreement between the sponsoring broker and the consumer providing that there is a different relationship.

A

designated

62
Q

In Illinois, how must a consumer be advised that a designated agency relationship exists?

A

In writing

63
Q

When must a consumer be advised in writing about a designated agency relationship?

A

Before the licensee begins to work as a designated agent to the client

64
Q

The ___ is required to disclose their compensation to the consumer.

A

sponsoring broker

65
Q

___ is when the dialogue between a licensee and consumer moves from casual conversation to the consumer’s motives, objectives, financial qualifications, and other confidential information that, if disclosed, could harm the consumer’s bargaining position.

A

substantive

66
Q

Illinois requires a ___ form to be provided to the consumer (seller or buyer) at first substantive contract and before the broker associate receives any confidential information.

A

Disclosure of No Agency form

67
Q

Licensees must ___ any interest, direct or indirect, that they have in the property that is the subject of a transaction

A

Disclose in writing

68
Q

If a real estate licensee has any ownership of the property that is being sold, what are they required to do if they are representing the sale of this property?

A

Disclose in writing

69
Q

If a real estate licensee is a member of the LLC that owns the property that is being sold, what is the licensee required to do if they are representing the sale of this property?

A

Disclose in writing

70
Q

Joe is an agent who is representing a seller for a property. His client happens to be his second cousin. Is Joe required to disclose in writing that his client is a family member?

A

yes

71
Q

If a real estate agent is representing a client who happens to be related to them, is this something that needs to be disclosed in writing?

A

yes

72
Q

There is a law in Illinois called the “Illinois statute of ___ and ___” that applies when someone dies but does not have a will.

A

Descent and Distribution

73
Q

Is a licensee required to disclose in writing that they are an Illinois Real Estate Licensee when they are representing themself in a transaction?

A

yes

74
Q

___ agent is empowered to do anything the client could do personally.

A

universal

75
Q

___ agent is authorized by the broker to act as the agent of a specific client.

A

designated

76
Q

___ agent is authorized to represent the client in one specific act.

A

special

77
Q

___ agent represents the client in a broad range of matters related to a particular activity

A

general

78
Q

___ agent represents two clients in the same transaction

A

dual

79
Q

In ___ agency relationships, the agent represents one party

A

single

80
Q

In Illinois, is it legal to offer subagency by a multiple listing service?

A

no

81
Q

___ agency firms work with both buyers and sellers, including buyers and sellers in the same transaction, and will consider dual agency in the event it develops or assign designated agents to each of the two parties.

A

Non-single-agency firms

82
Q

Illinois has adopted statutes that replace the common law of agency and amplifies it. True or false?

A

True

83
Q

An unintentional or inadvertent dual agency can result in the sales contract being rescinded and the commission being forfeited. True or false?

A

True

84
Q

An unintentional or inadvertent dual agency can result in a lawsuit. True or false?

A

True

unit 4: real estate agency (8 decks)

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