General - Chapter 11 Lesson 1

Question 1

Brokerage Relationships in Real Estate Transactions Act…

Answer 1

fosters transparent and trustworthy relationships with clients

Question 2

BRRETA II serves 2 primary purposes…

Answer 2

protect consumers and provide a clear legal framework for licensees to operate within

Question 3

Consumers

Answer 3

ensures buyers and sellers are clear about who their licensee represents and the duties they are owed under that representation, establishes an expectation of honest dealings and full disclosure of any material facts

Question 4

Licensees

Answer 4

offers comprehensive guideline for every interaction and transaction that real estate licensees engage in, delineates the boundaries of licensees’ relationships with consumers, clear-cut directives about their duties and ensuring that their practices are legally and ethically sound

Question 5

agency

Answer 5

is forged through a blend of mutual agreement, written documentation, and a shared understanding of the duties that will be undertaken by the agent.

Question 6

explicit agency

Answer 6

requires a written agreement that clearly outlines the terms, conditions, and responsibilities of the client and agent

Question 7

implicit agency

Answer 7

can unintentionally occur through casual interactions and communication between a licensee and a constumer

Question 8

transaction brokerage relationship

Answer 8

can be perceived as a middle ground, in which the broker assists both parties without forming a fiduciary relationship with either, allows licensee to facilitate a transaction without advocating for either party

Question 9

designated agency

Answer 9

ensures that while one licensee is dedicated to representing the buyer, the other may represent the seller

Question 10

Seller’s agent

Answer 10

represents the seller, act in the seller’s best interests

Question 11

sellers agent must

Answer 11

provide utmost good faith, loyalty, and fidelity, protect seller’s confidential information unless mandatory disclosure is required, provide all offers to the seller promptly, advise the seller to obtain expert advice when necessary, account, and disclose material facts about the buyer to the seller

Question 12

seller’s agent must also provide to the buyer

Answer 12

disclosure of all know adverse material facts about the property

Question 13

buyer’s agent

Answer 13

represents a buyer, acts in the best interests of the buyer

Question 14

buyers agent must

Answer 14

provide good faith, loyalty, and fidelity to buyer, protect buyer’s confidential information unless mandatory disclosure is required, present all offers to the buyer promptly, advise the buyer to obtain expert advice when necessary, account, disclose material facts about property to buyer, disclose to seller adverse material facts about buyer

Question 15

transaction broker

Answer 15

acts as a neutral agent who protects the confidences of both parties, agreement can be written or verbal

Question 16

transaction broker required to

Answer 16

exercise reasonable skill and care, present all offers in a timely manner, advise the parties regarding the transaction, suggest that both parties obtain expert advice when deemed necessary, account, keep both parties fully informed, assist parties inclosing the transaction, disclose all adverse material facts to everyone

Question 17

(small/residential)they must not disclose w/o consent

Answer 17

that buyer is willing to pay more, seller is willing to accept less, motivating factors of any party buying or selling the property, seller/buyer will agree to financing terms other than those offered, any info about party to the transaction that might place the other party at an advantage unless the disclosure is required by law or failure to disclose would constitute fraudulent misrepresentation

Question 18

(big/commercial) broker may disclose

Answer 18

buyer willing to pay more, seller is willing to accept less, motivating factors for any party, seller/buyer will agree to financing terms other than those offered

Question 19

transaction brokers are NOT required to

Answer 19

conduct inspections, examine buyer’s financial conditions, or verify the accuracy or completeness of statements made by any party

Question 20

fraudulent misrepresentation

Answer 20

a false statement or deceitful conduct by a party during a transaction that is intended to induce another party to act upon it and that ultimately leads to a detriment or loss to the party who relies on the fraudulent information

Question 21

Complying with BRRETA II can…

Answer 21

help you ensure that mishaps are anomalies and not the norm