Brokerage Relationships (general)

Question 1

What are the three kinds of brokerage relationships?

Answer 1

1) no brokerage relationship (nonrepresentation)
2) single agent
3) transaction broker

Question 2

Who determines the appropriate type of brokerage relationship?

Answer 2

• The broker
• Sales associates should consult with their employing broker regarding what type of brokerage relationships they practice

Question 3

What is dual agency?

Answer 3

• When a brokerage firm represents as a fiduciary both the buyer and the seller in the same transaction (even if with different agents)

Question 4

Is dual agency legal in FL?

Answer 4

• No

Question 5

the sales associate is an ___ of the broker; the sales associates is a _____ of the principal

Answer 5

• agent of the broker; subagent of the principal

Question 6

Do sales associates and broker associates owe the same fiduciary obligations to the principal as their broker?

Answer 6

• yes

Question 7

What is the presumed relationship in dealings with buyers and sellers?

Answer 7

• Transaction broker relationship

Question 8

What are the three duties required in ALL brokerage relationships?

Answer 8

• “ADD”
• Account for all funds
• Deal honestly and fairly
• Disclose all known facts that affect value of residential property

Question 9

Are the limitations for brokerage relationship applicable even if the buyer and seller are working with different sales associates in the same brokerage firm?

Answer 9

Yes

Question 10

Do brokerage relationship duties apply to both residential and nonresidential transactions? Acording to what?

Answer 10

• Yes, both. According to the Brokerage Relationship Disclosure Act.

Question 11

What three categories are defined as residential sale transactions?

Answer 11

• Improved property of four or fewer residential units
• unimproved property zoned for four or fewer residential units
• agricultural property of 10 or fewer acres

Question 12

How long is a broker required to retain agreements that engage their services?

Answer 12

• five years

Question 13

Retention of documents applies to which to kinds of transactions?

Answer 13

• residential transactions that result in a written contract
• nonresidential transsactions that utilize designated sales associates

Question 14

What are the requirements for a designated sales associate? Describe the circumstances.

Answer 14

• Nonresidential transaction.
• Buyer and seller each have assets of at least $1 million
• Broker designates one sales associate to work with the buyer as a single agent and another to work with seller as a single agent.
• broker facilitates and advises the sales associates.
• buyer & seller must sign disclosure notice
• buyer and seller must request that the broker use the designated sales associate representation

Question 15

Eight ways to terminate a brokerage relationship?

Answer 15

1) The brokerage relationship purpose has been fulfilled
2) mutual agreement
3) expiration of terms of the agreement
4) broker renounces relationship by giving notice (resignation)
5) principal or customer revokes by giving notice
6) death of either party
7) destruction or condemnation of the property
8) bankruptcy of the principal or customer