Section 4 Review Flashcards
(40 cards)
Who is considered a fiduciary?
Someone who acts in a special position of trust and confidence in respect to the principal
when is a fiduciary relationship formed?
when one party agrees to act for the benefit of the other party.
Who is a principal in a fiduciary relationship?
The person delegating authority for the other to act on his or her behalf
what are three types of agency relationships?
Universal
General
Special agent
what is a universal agent?
Broad powers that cross over into all aspects of an individual’s life
what is a general agent?
Someone who performs a task in One specific area of the principal’s life.
When a broker is hired to be a property manager, they are acting as what kind of agent?
General agent
what is a special agent?
appointed for a specific purpose or to handle a single business transaction
when is a real estate broker a special agent?
when working for either a buyer or a seller in the transfer of property.
Acting as a fiduciary for two opposing parties creates what?
dual agency relationship
Is dual agency legal in FL?
NO
who determines agency relationships?
Broker
who does a Transaction Broker represent?
Both the buyer and/or seller as a Transaction Broker in the same transaction
who does a Single Agent represent?
may represent EITHER a buyer or seller but never both in the same transaction.
who doe the broker represents in a No Brokerage Relationship?
may represent EITHER a buyer or seller or both parties in the same transaction.
Does payment form agency?
payment has no bearing on the creation of an agency relationship.
Agency may be terminated by what 5 conditions?
Lapse of time Purpose achieved Mutual agreement Certain events Court action.
Agency disclosure is a requirement for residential sales and must be met as outlined in the what?
Brokerage Disclosure Act
A broker is presumed to be working in the capacity of a transaction broker unless what?
a disclosure is made in writing that either a single agency or a no brokerage relationship has been formed.
A single agent disclosure must be provided before or at the time of what?
entering into a listing agreement or before showing the property to a buyer.
The no brokerage notice must be provided when?
before showing property to a buyer.
when do disclosures not have to be made by a licensee?
When a single agent or transaction broker already represents the buyer or seller
at a bona fide open house or model showing
unanticipated casual encounters
When responding to general questions of an advertised property
While communicating about real estate services being offered
When selling new residential units and working for the owner/developer.
In a No Brokerage Relationship, the broker is still bound to which 3 duties?
- Deal honestly and fairly
- Disclose all known facts that materially affect the value of the property
- Account for all funds entrusted to the licensee.
In a Single Agency Relationship, the broker is still bound to what duties?
Deal honestly and fairly
Disclose all known facts that materially affect the value of the property
Account for all funds entrusted to the licensee
Be Loyal to their PARTY and Maintain Confidentiality
Provide Full disclosure to their party
Show Skill, care, and diligence in the transaction
Present all offers and counteroffers in a timely manner.
