Chapter 11 - Real Estate Agency

Question 1

Brokerage agreement

Answer 1

Written agreement than an agent will provide brokerage services to a consumer, and will be compensated for it.

Question 2

Ministerial acts

Answer 2

Informative or clerical services provided by a licensee to a consumer.

Question 3

The fiduciary/statutory responsibilities of an agent are (COLD AC):

Answer 3

Care
Obediance
Loyalty
Disclosure

Accounting
Confidentiality

Question 4

Latent defects

Answer 4

Issues that threaten structural soundness or personal safety (structural defects that wouldn’t necessarily be uncovered by a normal inspection)

Question 5

Megan’s law

Answer 5

sex offender disclosure (agents not required to disclose)

Question 6

The four types of agency relationships are?

Answer 6

• Universal agent (requires power of attorney)
• General agent (such as agent to sponsoring agent)
• Special agent (such as agent to a client)
• Designated agent (in dual agency situations)

Question 7

When must dual agency be consented upon, and by who?

Answer 7

Twice, by both the seller and buyer, at the beginning of the transaction and before the sale contract is signed.