Ch. 4 Brokerage Relationships and Ethics Flashcards Preview

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Flashcards in Ch. 4 Brokerage Relationships and Ethics Deck (35)
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1

A representative; one who is authorized to act on behalf of another.

Agent

2

Conducting negotiations on one's own behalf without being subject to the other party's control or influence.

At arm's length

3

One with whom the broker or sales associate hopes to be successful in accomplishing the purpose of employment. Per Section 475.01, F.S., a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship.

Customer

4

 Two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction. The buyer and seller must have assets of $1 million or more and sign disclosures stating their assets meet the required threshold.

Designated sales associate

5

A broker who represents both the buyer and the seller of a transaction in a fiduciary capacity.

Dual agent

6

A person in a position of trust and confidence with respect to another person.

Fiduciary

7

The intent to misrepresent a material fact or to deceive to gain an unfair advantage or to harm another person.

Fraud

8

A representative authorized by the principal to perform only acts related to a business or to employment of a particular nature.

General agent

9

A false or misleading statement of a material fact; concealment of a material fact.

Misrepresentation

10

The party employing the services of a real estate broker; amount of money borrowed in a mortgage loan, excluding interest and other charges.

Principal

11

Comments or opinions not made as representations of fact and thus not grounds for misrepresentation.

Puffing

12

The sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, or the sale of agricultural property of ten or fewer acres.

Residential sale

13

Per Section 475.01, F.S., a broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction.

Single agent

14

One authorized by a principal to perform a particular act or transaction, without contemplation of continuity of service as with a general agent.

Special agent

15

A person authorized to assist and represent the agent and whose duties are delegated by the original agent.

Subagent

16

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

Transaction broker

17

A representative authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another.

Universal agent

18

1. Which disclosure notice must be given before a single agent can change to a transaction broker?
a. No brokerage relationship
b. Single agent
c. Consent to transition to transaction broker
d. Transaction broker

C

19

2. A man is so cautious that he refuses to sign all disclosure documents. Your office policy is to include a note in his file indicating the time, date, place, and circumstance under which you made the disclosure that the man refused to sign. You may NOT work with the man under which circumstance.
a. List the man's home as a single agent
b. Provide limited representation to the man in locating a new home
c. Provide real estate services to the man in a no brokerage relationship
d. Change from a single agent to a transactional broker to show the man's home to an in-house buyer-principal.

D

20

3. The brokerage relationship disclosure requirements in Chapter 475, F.S., apply to the
a. sale of a 20-unit apartment complex.
b. sale of condominium unit.
c. residential lease agreement in a duplex.
d. sale of a book store business and real property.

B

21

4. Which statement BEST describes the duty of loyalty in a single agent relationship?
a. The broker must act in the best interest of the principal.
b. The broker must disclose all latent defects to prospective buyers.
c. The broker is held to a standard of care that requires knowledge concerning the land and physical characteristics of the property.
d. The broker must be able to account for all funds received on behalf of the principal.

A

22

5. A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is
a. a dual agent.
b. a transaction broker.
c. bound to fiduciary duties to both the buyer and the seller.
d. a single agent of both the buyer and the seller.

B

23

6. A licensee of ABC Realty must give the no brokerage relationship notice to
a. a buyer who has a single agent relationship with XYZ Realty.
b. every prospective buyer and prospective seller in all cases.
c. a for-sale-by-owner (FSBO) seller before showing the FSBO home to a buyer customer of ABC Realty.
d. every prospective buyer who walks through an open house listed by ABC Realty.

C

24

7. A broker has listed a seller's property. The seller has disclosed to the broker that the ceramic tile is loose in the dining room because the cement did not adhere to the tile. The loose tile is not readily visible because it is covered with an area rug to protect the seller's toddler. The broker has satisfied his legal obligation if he tells the the buyer
a. that the floor plan appears to be in good condition.
b. that ceramic tiles in the dining room are loose.
c. that the buyer can order an inspection at his own expense if he is concerned about the floor.
d. nothing unless he is asked specifically about the title floor's condition.

B

25

8. A transaction broker has all of the duties listed below EXCEPT
a. limited confidentiality
b. to use skill, care, and diligence.
c. to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.
d. obedience.

D

26

9. A brokerage relationship is terminated under which circumstances?
a. The broker agent renounces the brokerage relationship.
b. The purchase and sale contract is signed.
c. At the will of either party without notice.
d. An offer is accepted.

A

27

10. A seller lists her home for $116,900. The seller tells the sales associate that she needs to get at least $112,000 for the home. Following Sunday's open house, the sales associate receives two offers on the home. The first offer for $116,900 is contingent on the seller's financing a portion of the down payment. The second offer is for $112,000, with the buyer to secure her own financing. The sales associate should
a. seek his broker's advise regarding which offer to present.
b.present the full price offer to the seller.
c. present the second offer to the seller.
d. present both offers, explaining the details of each to the seller.

D

28

11. In the common public relationship that exist in a typical real estate transaction, buyers and sellers are said to be dealing
a. in a fiduciary capacity
b. at arm's length with each other.
c. in an agency status with each other.
d. under the doctrine of ethical confidentiality.

B

29

12. If a principal gives the broker instructions that will result in loss or harm to the principal, the broker
a. is justified in not carrying out such instructions.
b. should carry out such instructions with out question.
c. should only carry out only that portion of the instructions that will not cause loss or harm to the principal.
d. should inform the principal of possible harm inherent in the instruction, and then either do as instructed or withdraw from the relationship.

D

30

13. A broker's obligations to consumers with whom the brokerage firm has no brokerage relationship include the duty of
a. full disclosure.
b. accounting for all funds.
c. loyalty.
d. limited confidentiality.

B