Section 3: Authorized Relationships and Ethics Flashcards Preview

Real Estate Exam Florida > Section 3: Authorized Relationships and Ethics > Flashcards

Flashcards in Section 3: Authorized Relationships and Ethics Deck (29)
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1
Q

Administrative law

A

A body of law created by administrative agencies in the form of rules, orders, and decisions

2
Q

Agent

A

A person entrusted with another’s business; the person authorized by the principal to act on the principal’s behalf

3
Q

At arm’s length

A

When people conduct negotiations on their own behalf without trusting the other’s fairness or integrity and without being subject to the other’s control or influence

4
Q

Common law

A

Judge-made law manifested in decrees and judgments of the courts as opposed to statuary law

5
Q

Customer

A

a member of the public who is or may be a buyer or a seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship

6
Q

Designated sales associates

A

Two real estate licensees from the same brokerage company designated to represent the buyer and the seller as single agents in NONRESIDENTIAL transactions

7
Q

Dual agent

A

refers to a broker who represents as a fiduciary for BOTH the buyer and the seller in a residential real estate transaction.

  • This is ILLEGAL in Florida
8
Q

Fiduciary

A

Occurs when a broker is in a relationship of trust and confidence with the broker as agent and the seller or the buyer as principal.

9
Q

Fraud

A

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

10
Q

General agent

A

A person authorized by the principal to handle the affairs related to a business or trade, or to handle all the business at a certain location; for example, a property manager

11
Q

Misrepresentation

A

The misstatement of fact or the omission or concealment of a factual matter

12
Q

No brokerage relationship

A

An arrangement where the broker does not represent either the buyer or the seller, but instead the broker works to facilitate the transaction

13
Q

Principal

A

the seller OR the buyer, but NOT both, in a single agent relationship.

The principal authorizes the agent to act on the principal’s behalf, while the principal is responsible for the actions of the agent

14
Q

Puffing

A

Term used to describe a licensee’s boasting of a property’s benefits including comments that are not made as representations of fact and, thus, are not grounds for misrepresentation

15
Q

Residential sales

A

Defined in Florida license law to mean the sale of:

  • Improved residential property of four or fewer units
  • Unimproved residential property intended for use as four or fewer units
  • The sale of agricultural property of ten or fewer acres
16
Q

Single agent

A

A broker who represents either the buyer or the seller (but NOT both) and has a fiduciary relationship with the party represented

17
Q

Special Agent

A

Authorized by the buyer or the seller to handle only a specific business transaction or to perform a specific act; a broker who has a single agent relationship is a special agent with limited power or authority

18
Q

Statuary laws

A

Written statutes and rules enacted by the legislature

19
Q

Transaction broker

A

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

20
Q

Universal agent

A

Authorized by the principal to perform all acts that the principal may personally perform and that may be lawfully delegated

21
Q

What are the 3 brokerage options in Florida?

A
  • Transaction broker
  • Single agent
  • No brokerage relationship
22
Q

What are subagents

A

Agents who are authorized to assist and represent the agent

  • A subagent has the same duties as an agent
  • A broker’s sales associates are general agents of the broker and subagents of the broker’s principals
  • Sales associates and broker associates owe the same fiduciary obligations to the principal as does their broker
23
Q

How does a transition to another relation ship take place?

A
  • Accomplished with a Consent to Transition to transaction Broker Notice
  • Buyer’s or seller’s signature or initials are required before the licensee may change from one brokerage relationship to another
  • If the principal refuses to sign or initial the consent to transition notice, the broker must continue to act as a single agent
24
Q

How long must brokerage disclosure documents and buyer broker agreements be kept?

A

5 years

25
Q

When do disclosure requirements NOT apply?

A
  • Auctions
  • Business enterprises
  • Appraisals
  • Rentals
  • Nonresidentials
26
Q

What are requirements for the use of designated sales associates?

A
  • Must be in nonresidential sales ONLY
  • Buyer and seller must EACH have assets of at least $1 Million dollars
  • Broker assigns one sales associate to work with the buyer and another to work with the seller as a single agent
  • Buyer and seller must request the arrangement and sign disclosure notice
27
Q

What are the duties in a “no brokerage relationship”

A
  • Deal honestly and fairly
  • Disclose all known facts that materially affect the value of the residential real property
  • Account for all funds entrusted to a licensee
28
Q

What charge can be filed for selling property by way of lottery?

A

Fraudulent or dishonest dealing by trick, scheme, or device

29
Q

What notice must be provided for single agency

A

The single agency notice. It must be provided at or before the time of entering into a listing agreement.