Real Estate Course Chapter 4 Flashcards Preview

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Flashcards in Real Estate Course Chapter 4 Deck (31):
1

A real estate licensee who enters into a transaction broker relationship must give the customer a transaction broker disclosure notice.

False

2

A single agent is defined as a broker who represents, as a fiduciary, the buyer or seller but NOT both in the same transaction.

True

3

An agency relationship between a principal and broker may be terminated by the principal for any reason.

The statement is FALSE. A principal is not free to revoke an agency relationship in all circumstances.

4

A transaction broker is a broker who provides representation to a buyer, a seller, or both in a real estate transaction, and who represents either the buyer or seller in a fiduciary capacity or as a single agent

The statement is FALSE. A transaction broker is a broker who provides limited representation to a buyer, a seller, or both, but who DOES NOT represent either in a fiduciary capacity or as a single agent

5

Dual agency exists when a real estate broker represents both parties in a transaction in a fiduciary capacity.

The statement is TRUE. Dual agency can lead to a conflict of interest. Such being the case, dual agency was revoked in the state of Florida in 1997

6

Confidential information learned during the course of the single agency cannot be divulged by the broker until the transaction has concluded and the agent-principal relationship has ended.

FALSE. It can never be divulged.

7

A person who gives or delegates authority to another is referred to as the agent, while the person who accepts the authority is referred to as the principal.

The statement is FALSE. It's the opposite.

8

When a real estate broker accepts employment as a single agent of the buyer or the seller, the broker enters into a fiduciary relationship.

True

9

In commercial real estate transactions that meet specific criteria, a real estate brokerage may use one sales associate to work as a single agent of the buyer and another sales associate to act as a single agent of the seller. Which criteria must be met?

THE BROKER MUST SERVE AS A NEUTRAL PARTY AND NOT GIVE GUIDANCE OR REPRESENTATION TO THE BUYER AND THE SELLER.

10

Which brokerage relationship duty applies only to a transaction broker relationship?
A) Exercise limited confidentiality
B) Account for all funds
C) Full disclosure

A) EXERCISE LIMITED CONFIDENTIALITY

11

In general business dealings, which type of agent is authorized by the principal to perform acts related to a certain business or to employment of a particular nature?

General Agent

12

Is a broker required to retain the brokerage relationship disclosure documents, and if so, for how long, if a written nonresidential transaction that utilized designated sales associates fails to close?

Yes, they must keep records for five years

13

Which information must be disclosed to a prospective buyer regarding a particular property?

A)Property located in a flood zone requires flood insurance coverage.
B)Neighborhood residents comprise several ethnic groups
C)Seller's wife diagnosed with AIDS
D)Student-teacher class ratios for public K-12

A) PROPERTY IS LOCATED IN A FLOOD ZONE AREA THAT REQUIRES FLOOD INSURANCE COVERAGE.

14

One Sunday an agent receives two offers on a home. What action should the sales associate take?

Present both

15

Which action does NOT terminate a single agent brokerage relationship with the seller?

A)Withdrawal of an offer to purchase
B)Bankruptcy of the principal
C)Death of a seller's broker
D)Fulfillment of the brokerage relationship's purpose

A) WITHDRAWAL OF AN OFFER TO PURCHASE.

16

Which disclosure notice must be signed by the buyer and the seller in certain nonresidential transactions?

A)No brokerage relationship
B)Request to use designated sales associate representation
C)Consent to transition
D)Single agent

B)Request to use designated sales associate representation

17



The brokerage relationship disclosure requirements in Chapter 475 apply to which transaction?
A)Lease of a single-family home
B)Sale of a coffee shop in a residential neighborhood
C)Sale of three vacant lots zoned for single-family use
D)Sale of a 150-unit condominium complex

c) SALE OF THREE VACANT LOTS ZONED FOR SINGLE-FAMILY USE.

BECAUSE IT FALLS UNDER THE DEFINITION OF "RESIDENTIAL"

18

Which brokerage disclosure notice must be signed or initialed by the buyer or seller before implementation?

A)Transition to transaction broker
B)Single agent
C)No brokerage relationship
D)All of the brokerage disclosure notices must be signed or initialed before implementation.

A)Transition to transaction broker

19

In a Transaction Broker arrangement is the customer responsible for the acts of the licensee?

NO

20



Which brokerage relationship duty applies to all three types of brokerage relationships?

A)Confidentiality
B)Using skill, care, and diligence
C)Loyalty
D)Accounting for all funds

D) Accounting for all funds

21

In Florida, which type of brokerage relationship is presumed?

Transaction broker

22

A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is

Transaction broker

23

Explain the differences between Universal, General and Special Agents

Universal = authorized to perform all acts for a fidicuary (i.e. attorney handling trust agreement for disabled child)
General = authorized to perform acts associated with the continued operations of a particular job or a certain business.
Special = authorized to handle only a specific business transaction or perform a specific act.

24

Name the 3 and only 3 duties of a NO BROKERAGE relationship

1) Deal honesly and fairly
2) Disclose all known facts affect value of residential property
3) Account for all funds

25

Name the 7 duties of a TRANSACTION BROKER relationship

1) Deal honesly and fairly
2) Disclose all known facts affect value of residential property
3) Account for all funds
4) Use skill, care and diligence
5) Present all offers and counteroffers
6) Exercise limited confidentiality
7) Perform additional duties that are mutually agreed to

26

In a SINGLE AGENT arrangement you take away 2 duties from the transaction broker list they are

Exercise limited confidentiality

Perform additional duties that are mutually agreed to

27

In a SINGLE AGENT arrangement you add 4 duties that are not on the transaction broker list. They are:

COLD
Confidentiality, Obedience, Loyalty, Disclosure (Full)

28

Who is the principal?

It is the customer in a Single Agent arrangement.

29

Must the NO BROKERAGE notice be disclosed in writing BEFORE showing the property?

Yes, However, the customer does not need to sign. If they refuse to sign or initial, the agent can put the form in the customer's file with a note advising they refused to sign.

30

In Florida, is there a Transaction Broker disclosure?

No.

31

Can a broker transition from Single agent to Transaction broker? If so, is a form required?

YES

YES. If the customer refuses to sign or initial the transition form, the licensee must stay as a Single Agent.