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59 Cards in this Set
- Front
- Back
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Agency
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A trust relationship created when a principal grants an agent the right to represent them in third party dealings
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Universal Agents
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Authorized to do everything that can be lawfully delegated to a representative
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General Agents
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Authorized to handle all of the principal's affairs in specified areas
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Example of a Universal Agent
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Court appointed guardians
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Example of a General Agent
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Property Managers
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Special Agents
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Have limited authority to conduct a specific transaction
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Actual Authority
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Authority intentionally given to an agent by the principal either expressly or by implication
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Express Authority
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Communicated by the principal to the agent in words, either written or verbal
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Implied Authority
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Communicated to the agent by the principal's actions
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Incidental Authority
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Authority to do everything reasonably necessary to carry out the principal's express orders
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Listing Agreement
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An agency contract stating that the seller will pay a broker commission for finding a ready, willing, and able buyer
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Listing agreements are considered what by the Statute of Frauds
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Considered employment agreements
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Listing agreements lasting more than one year
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Must be in writing
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Buyer Broker Contracts
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Written agency contracts stating that a buyer will pay a broker's commission when RE is purchased
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Apparent or Ostensible Agency
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Occurs when someone not authorized acts as if he is that person's agent
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Estoppel
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A principal who causes third persons to believe that someone is their agent, then the principal cannot deny the agency relationship even though it did not exist in fact
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The Principal of Client
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The party the licensee has entered into a contract with to represent, and hence owes a fiduciary responsibility to
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The four types of agency relationship are:
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(1) Agency relationship between a licensee and a seller
(2) Agency relationship between a licensee and a buyer (3) Dual agency relationship between a licensee and both seller and buyer (4) In company split agency |
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(1) Agency relationship between a licensee and a seller
(2) Agency relationship between a licensee and a buyer (3) Dual agency relationship between a licensee and both seller and buyer (4) In company split agency |
The four types of agency relationship are:
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The five business models under which brokers can operate are:
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(1) Split agency and dual agency
(2) Dual agency w/ all in-house transactions (3) Exclusive Buyer Agency (4) Exclusive Seller Agency (5) Split agency but no dual agency |
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(1) Split agency and dual agency
(2) Dual agency w/ all in-house transactions (3) Exclusive Buyer Agency (4) Exclusive Seller Agency (5) Split agency but no dual agency |
The five business models under which brokers can operate are:
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Consumer Guide to Agency Relationships
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Document that discloses the types of agency relationships a brokerage practices
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When must the seller's agent give the Consumer Guide to Agency Relationships to the seller?
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Prior to marketing or showing the seller's property
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What six points does the Consumer Guide to Agency Relationships disclose?
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(1) Explains all permissible types of agency relationships
(2) Broker's policy regarding representation (3) That the broker represents the buyer even though seller may compensate the broker (4) Broker's policy on customers who are not represented (5) That by law this document must be presented and acknowledged (6) The broker's name, Fair Housing language and logo |
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(1) Explains all permissible types of agency relationships
(2) Broker's policy regarding representation (3) That the broker represents the buyer even though seller may compensate the broker (4) Broker's policy on customers who are not represented (5) That by law this document must be presented and acknowledged (6) The broker's name, Fair Housing language and logo |
What six points does the Consumer Guide to Agency Relationships disclose?
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When must the buyer's agent give the Consumer Guide to Agency Relationships to the buyer?
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At the first substantive contact, but no later than:
(1) Initiating financial prequal (2) Requesting specific financial info (3) Showing buyer the property other than open house (4) Discussing making an offer (5) Submitting an offer |
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At the first substantive contact, but no later than:
(1) Initiating financial prequal (2) Requesting specific financial info (3) Showing buyer the property other than open house (4) Discussing making an offer (5) Submitting an offer |
When must a buyer's agent give the Consumer Guide to Agency Relationships to a buyer?
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When must the seller receive a copy of the buyer's signed Agency Disclosure form?
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Before an offer is presented
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When must a seller's agent give the buyer an Agency Disclosure form?
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Not necessary unless seller's agent begins to work like a buyer's agent
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Agency Disclosure Form
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Discloses the actual agency relationship that will result in a specific transaction
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When is the Agency Disclosure form initiated by the buyer's agent?
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When the buyer indicates a desire to write an offer
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When does the sellers agent have to present, explain, and obtain the sellers signature on the Agency Disclosure form?
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Prior to presenting a purchase offer
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The three sections of the front of the Agency Disclosure Form
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(1) Transactions involving two agents from different brokers
(2) Transaction involving two agents from the same broker (3) Transaction involving only one agent |
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(1) Transactions involving two agents from different brokers
(2) Transaction involving two agents from the same broker (3) Transaction involving only one agent |
The three sections on the front of the Agency Disclosure Form
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Explains Dual Agency in detail:
(1) What agent/broker will and wont do 2.How management will function (3) Buyer and seller's responsibilities (4) Compensation unless negotiated (5) Consent to dual agency by signature (6) How to contact the Div of RE |
The six points on the back of the of the Agency Disclosure Form
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The six points on the back of the of the Agency Disclosure Form
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Explains Dual Agency in detail:
(1) What agent/broker will and wont do 2.How management will function (3) Buyer and seller's responsibilities (4) Compensation unless negotiated (5) Consent to dual agency by signature (6) How to contact the Div of RE |
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(1) Transactions involving two agents from different brokers
(2) Transaction involving two agents from the same broker (3) Transaction involving only one agent |
The three sections of the Agency Disclosure Form
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When must a seller's agent give the seller a Consumer Guide to Agency Relationships?
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Prior to marketing or showing the seller's property
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The five times a buyer's agent must present the buyer with a Consumer Guide to Agency Relationships
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(1) Determining pre-qual evaluation
(2) Requesting financial info from buyer (3) Showing a property other than an open house (4) Discussing or making an offer (5) Submitting an offer |
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The five times disclosure forms are not required
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(1) Referrals from one licensee to another
(2) At open houses unless offer is written (3) Rentals for 18 months – (4) Foreign real estate deals (5) Cemetery deals |
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(1) Referrals from one licensee to another
(2) At open houses unless offer is written (3) Rentals for 18 months – (4) Foreign real estate deals (5) Cemetery deals |
The five times disclosure forms are not required
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Patent Defect
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Defects that are visible
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Latent Defect
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Defects that are not visible
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Caveat Emptor
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Buyer Beware
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What are defects that the Seller or the Seller's Agent know about that must be disclosed to the Buyer?
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Latent
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What are defects that the Seller or the Seller's Agent may know about but don't have to be disclosed to the Buyer?
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Patent
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What are the four duties of a buyer's agent?
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(1) Seek property at a price and terms acceptable to client
(2) Present all purchase offers to seller or seller's agent (3) Disclose to the seller or seller's agent that he is the buyer's agent (4) Verbally disclosing at first contact w/ an unrepresented seller if there is any intention of seeking compensation from seller |
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(1) Seek property at a price and terms acceptable to client
(2) Present all purchase offers to seller or seller's agent (3) Disclose to the seller or seller's agent that he is the buyer's agent (4) Verbally disclosing at first contact w/ an unrepresented seller if there is any intention of seeking compensation from seller |
What are the four duties of a buyer's agent?
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(1) Seek a purchase offer at a price and terms acceptable to client
(2) Present all purchase offers to the client (3) Provide seller w/ a copy of Agency Disclosure form signed by the buyer prior to presenting any purchase offers to the seller |
What are the three duties of a seller's agent?
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What are the three duties of a seller's agent?
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(1) Seek a purchase offer at a price and terms acceptable to client
(2) Present all purchase offers to the client (3) Provide seller w/ a copy of Agency Disclosure form signed by the buyer prior to presenting any purchase offers to the seller |
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Fraud
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Intentional or negligent misrepresentation of concealment of material facts
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Actual fraud, deceit, or intentional misrepresentation
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Intentional fraud
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Constructive fraud or negligent misrepresentation
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Negligent fraud
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Generally, what three actions agents can't be sued for?
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(1) Opinion
(2) Prediction (3) Puffing |
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(1) Opinion
(2) Prediction (3) Puffing |
Generally, what three actions agents can't be sued for?
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As is clause
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Applies only to personal property and not to RE purchases
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Five elements of Actionable Fraud
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(1) False statements or concealing material
(2) Lying or false statements that you should know (3) Inducing another into a transaction (4) Playing on other's naivety to get a deal (5) Person harmed as result of entering transaction |
