Unit 9

Question 1

What is the principal in the law of agency

Answer 1

the person who hires another to act on their behalf

Question 2

Who can be the principal in a real estate transactions

Answer 2

buyer
seller
landlord
tenant

Question 3

Who is the principal in dealing with sales associates

Answer 3

the broker

Question 4

What does the agent owe the principal

Answer 4

fudiciary duty

Question 5

What does the agent owe third parties

Answer 5

honesty

fair dealing

Question 6

What type of agency relationship provides services but doesnt provide representation of the client

Answer 6

facilitators/transaction brokers

Question 7

What are some examples of a facilitator/transaction broker relationship

Answer 7

providing contracts to use in a transaction

listing a property on the MLS and specifying that the buyer is representing themselves

Question 8

What are the common law fiduciary duties

Answer 8

obedience 
loyalty
disclosure 
confidentiality 
accounting 
reasonable care and skill

Question 9

What is obedience

Answer 9

have to obey lawful requests

Question 10

What is loyalty

Answer 10

the clients interests must be placed above all others

Question 11

What is disclosure

Answer 11

disclose about known material facts must be disclosed to all parties (buyers, sellers, etc.)
and any knowledge beyond material facts must be disclosed to your client

Question 12

What is confidentiality

Answer 12

must keep your clients confidential information private

Question 13

What is an example of confidential information that needs to be kept private

Answer 13

price
terms
motivations
(PTM)

Question 14

What is accounting

Answer 14

your accountable your any monies entrusted to yuo

Question 15

What is reasonable care and skill

Answer 15

your suppose to know more about the real estate transaction process better than the public

Question 16

What is an agents duties to third parties

Answer 16

disclosure
accounting
honesty and fair dealing

Question 17

What is an example of a disclosure need to be given to a third party

Answer 17

an agency disclosure, stating who I am and who I represent

also known material facts

Question 18

Do you still need to disclose material facts when the property is being sold “as is”

Answer 18

yes

Question 19

What are the levels of scope of an agents authority (from largest scope to smallest)

Answer 19

universal
general
special

Question 20

What is the scope of special agency

Answer 20

can perform specific acts but cannot bind the principal with a contract

Question 21

What are examples of special agency

Answer 21

you cant sign a contract, accept an offer, but help me sell/buy/find a place to rent

listing brokerages to the seller
buyer brokerage firm to a buyer

Question 22

What is the scope of general agency

Answer 22

able to perform ongoing acts on behalf of someone with limited ability to bind contractually

Question 23

Examples of general agency

Answer 23

a associate liscencee with a brokerage firm
listing aggreements
buyer/tenant representation agreements
property manager to owner

Question 24

can a licensee be a property manager

Answer 24

no, only a brokerage firm

Question 25

What is the scope of universal agency

Answer 25

performs in place of the principal, unlimited ability to bind the principal

Question 26

What is an example of universal agency

Answer 26

power of attorney

Question 27

What express agency

Answer 27

created by written or oral agreement

Question 28

What is implied agency

Answer 28

created based on the parties behavior

Question 29

In a real estate transaction, does the source of compensation determine the agency?

Answer 29

no

Question 30

What type of agency is a real estate associate to a broker

Answer 30

single agency with the broker as the principal

Question 31

What is a designated agent

Answer 31

when two agents working for the same broker represent the buyer and the seller, the broker will "designate which agent will represent who"

Question 32

What is a nonagent (transaction broker)

Answer 32

no duties to either party | just helps both with the formalities of transfering a propertyy (ministerial acts)

Question 33

Reasons an agency could be terminated

Answer 33

death or incapacity of either party expiration of the agency terms mutual agreement by both parties to end their contract completion of the purpose of the agency

Question 34

What is an example of a mandatory disclosure that agents need to make

Answer 34

presence of lead based paint

Question 35

What are some disclosures that a seller typically needs to make

Answer 35

known strutural defects | violations of zoning or building codes

Question 36

What are latent defects

Answer 36

defects that wouldnt be found by normal inspection

Question 37

What law requires that sex offenders and child kidnappers register there location of residency

Answer 37

Megans Law