People dealing at ‘arms-length” conduct negations on their own behalf without trusting the other’s fairness or integrity and without being subject to the other’s control or influence. In such cases, the legal doctrine of “caveat emptor (let the buyer beware)” applies.
What two types of agency are formed in general business dealings?
The two types of agency formed in general business are;
A general agent is:
Authorized by a principle to perform acts associated with the continued operation of a particular job or certain business.
A sales associate is a ___________ agent to a __________ broker.
A sales associate is a general agent to a principal broker.
A special agent is:
A special agent is authorized by a broker or owner-developer to handle a specific business transaction or can perform a specific act.
For example; a broker ent
There are 3 duties required in all Brokerage Relationships.
The three duties required in all Brokerage relationships are;
1) A. - Account for all funds
2) D - Deal honestly and fairly
3) D - Disclose all known facts that affect the value of the residential property.
If there is no brokerage relationship does “ ADD “ apply?
Transaction Brokerage duties include
Transaction Brokerage duties include “ADD” and
4) use skill, care & diligence.
5) present all offers & counteroffers
6) limited confidentiality
7) perform duties that are mutually agreed to
Single Agency offers the highest degree of representation which includes; “ADD”, numbers 4 and 5 in addition to;
11) Disclosure (Full)
The unique duties of a Single Agent = “COLD”
8) C- Confidentiality
9) O- Obedience
10) L- Loyalty
11) D- Disclosure (Full)
Transaction Broker is a limited representative agency and has the least liability. How is liability affected from a customer standpoint?
The customer in a transaction broker relationship is not responsible for the acts of a licensee, as a principal might be in a single agent relationship.
Residential sales transactions are defined as;
a) Improved residential property of 4 or fewer units.
b) Unimproved residential property zoned for 4 or fewer units
c) Agricultural property of 10 or fewer acres.
Written disclosures are required only for residential sale transactions when the brokerage firm acts in the capacity of a __________ agent or in a ___ brokerage relationship.
Single Agent & No Brokerage Relationship require written disclosure for residential sales transactions.
Transaction Brokerage Relationship is ____________ in the state of Florida, therefore there is _____ written disclosure requirement
The relationship is presumed in the state of Florida, therefore there is no written disclosure requirement.
The timeframe to retain brokerage relationship disclosures is;