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):
1

Administrative law

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

2

Agent

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

3

At arm's length

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

Common law

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

5

Customer

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

Designated sales associates

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

7

Dual agent

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

Fiduciary

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

Fraud

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

10

General agent

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

Misrepresentation

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

12

No brokerage relationship

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

13

Principal

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

Puffing

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

Residential sales

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

Single agent

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

17

Special Agent

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

Statuary laws

Written statutes and rules enacted by the legislature

19

Transaction broker

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

Universal agent

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

21

What are the 3 brokerage options in Florida?

- Transaction broker
- Single agent
- No brokerage relationship

22

What are subagents

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

How does a transition to another relation ship take place?

- 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

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

5 years

25

When do disclosure requirements NOT apply?

- Auctions
- Business enterprises
- Appraisals
- Rentals
- Nonresidentials

26

What are requirements for the use of designated sales associates?

- 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

What are the duties in a "no brokerage relationship"

- 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

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

Fraudulent or dishonest dealing by trick, scheme, or device

29

What notice must be provided for single agency

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