Authorized Relationships, duties and disclosures

Question 1

When people delegate authority to another to act on their behalf

Answer 1

What is Law of Agency

Question 2

A person who delegates authority to another. EX. seller; buyer

Answer 2

Principal

Question 2

What are the 3 types of Law

Answer 2

1. common law (case law)
2. statuary law (F.s 475, F.s 455)
3. administrative law (FREC rules)

Question 3

A relationship that is opposite of arms length. ( Fiduciary relationship)

Answer 3

What is a agency relationship.

Question 4

Who is authorized to represent and act for a principal

Answer 4

1. general agent
2. Special agent

Question 5

What are three types of brokerage relationships options?

Answer 5

1. NON brokerage relationships
2. single agent
3. Transaction broker

Question 6

How is the type of relationship determined?

Answer 6

The employing broker determines

Question 7

-Seller or buyer can choose to OPT out of representation.
- Broker facilitates sale /purchase and may not negotiate on behalf of customer.

Answer 7

Non- Brokerage relationship

Question 8

1. Account for all funds
2. Deal honestly and fairly
3. Disclose all known facts that affect the value of residential property that are not readily observable to the buyer.

Answer 8

ADD the 3 DUTIES in a non- brokerage relationship

Question 9

A fiduciary to either the buyer or seller but not both in the same transaction

Answer 9

What is a single agent

Question 10

The client whom the single agent has a fiduciary relationship between broker as agent

Answer 10

who and what is the Principal?

Question 11

This kind of agency is prohibited in florida because a brokerage cannot create or allow a fiduciary relationship with both the buyer and seller, even if it a different agent .

Answer 11

Dual agency is prohibited

Question 12

Sale associates the owe the same fiduciary obligation to the principal as the broker does as well.

Answer 12

What are subagents ?

Question 13

A account for all facts
D deal honestly
D disclose all known facts that materially affect the value of the property that are not observable

C confidentiality
O obedience
L loyalty
D disclosure (full0

Answer 13

Duties to a single agent

Question 14

Under Florida law this relationship is always presumed unless any other relationship such as “single agent” “ non- brokerage”. For this relationship a disclosure is not required.

Answer 14

Transaction broker relationship is presumed under Florida law.

Question 15

Provides limited rep to buyer, seller or both (the customer is not responsible).
Does not represent either buyer or seller as a fiduciary or as a single agent.

Answer 15

What is a Transaction Broker relationship?