Unit 4: Authorized Relationships, Duties, And Disclosure

Front 1

Common law

Back 1

is law based on usage, general acceptance, and custom

Front 2

Statutory law

Back 2

written statutes enacted by a legislature

Front 3

Administrative law

Back 3

is a body of law created by administrative agencies in the form of rules, regulations, orders, and decisions

Front 4

fiduciary

Back 4

acts in a position of trust and confidence for another. owes complete allegiance to the principal.

Front 5

universal agent

Back 5

is authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another

Front 6

An attorney who manages the trust agreement of a mentally disabled adult is what kind of agent to the client?

Back 6

universal agent

Front 7

general agent

Back 7

is authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal

Front 8

A sales associate is what kind of agent to the broker?

Back 8

general agent

Front 9

special agent

Back 9

is authorized by the principal to handle only a specific business transaction or to perform only a specific act

Front 10

If you hire a certified public accountant (CPA) to prepare your tax return and, if necessary, to answer any inquiries from the IRS concerning the tax return, the CPA is acting as what kind of agent?

Back 10

special agent

Front 11

Administrative law consists of rules and regulations created by the FREC to govern real estate practice in Florida? TRUE OR FALSE?

Back 11

TRUE

Front 12

A person who gives or delegates authority to another is called the agent, while the person who accepts the authority is called the principal? TRUE OR FALSE?

Back 12

FALSE

Front 13

A brokerage relationship can be accidently (inadvertently) created by a licensee's actions and words? TRUE OR FALSE?

Back 13

TRUE

Front 14

The brokerage firm may work as a single agent of either the buyer or the seller (but not for both buyer and seller in the same transaction)? TRUE OR FALSE?

Back 14

TRUE

Front 15

no brokerage relationship or nonrepresentation

Back 15

The parties may agree that the brokerage firm will not represent the buyer or the seller at all.

Front 16

Dual agency

Back 16

occurs when a brokerage firm represents as a fiduciary both the prospective buyer and the prospective seller in the same real estate transaction

Front 17

Residential sales are defined as the sale of improved residential property of two or fewer units, the sale of unimproved residential property intended for use as two or fewer units, or the sale of agricultural property of five or fewer acres? TRUE OR FALSE?

Back 17

FALSE

Front 18

transaction broker

Back 18

is 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

Front 19

single agent

Back 19

as a broker who represents, as a fiduciary, either the buyer or the seller, but not both, in the same transaction.

Front 20

Confidential information learned during the course of the single agency cannot be divulged by the broker until the transaction has concluded and the agent-principal relationship has ended? TRUE OR FALSE?

Back 20

FALSE

Front 21

The brokerage firm cannot represent the buyer as a single agent if the firm has a transaction broker relationship with the seller? TRUE OR FALSE?

Back 21

TRUE

Front 22

The brokerage firm cannot represent the buyer as a single agent or work with the buyer as a transaction broker if the firm is also representing the seller as a single agent? TRUE OR FALSE?

Back 22

TRUE

Front 23

The duty to exercise limited confidentiality is a duty in a no brokerage (nonrepresentation) relationship? TRUE OR FALSE?

Back 23

FALSE

Front 24

The duty to disclose all known facts that materially affect the value of residential real property that are not readily observable to the buyer is a duty of all three types of brokerage relationships? TRUE OR FALSE?

Back 24

TRUE

Front 25

Disclosure Format

Back 25

The duties of the single agent relationship and nonrepresentation must be fully described and disclosed in writing to a buyer or a seller, either as a separate and distinct disclosure document or included as part of another document, such as a listing agreement or buyer broker agreement

Front 26

Licensees must fulfill the duties of a transaction broker when that form of representation is selected? TRUE OR FALSE?

Back 26

TRUE

Front 27

consent to transition

Back 27

to transaction broker notice includes wording regarding the principal's permission to allow the single agent to transition to a transaction broker

Front 28

A real estate brokerage company has entered into a single agent buyer broker relationship with the buyer. In order to show this buyer property that is listed with the same brokerage company, both the seller and the buyer must transition to a transaction broker relationship before the buyer can be shown the seller's property? TRUE OR FALSE

Back 28

TRUE

Front 29

A single agent relationship may be changed to a transaction broker relationship at any time during the relationship between the agent and the principal, provided the agent first obtains the principal's verbal consent to the change in relationship? TRUE OR FALSE?

Back 29

FALSE

Front 30

The broker serves as an advisor to the buyer and the seller in certain nonresidential transactions? TRUE OR FALSE?

Back 30

FALSE

Front 31

Designated sales associates may only be used for certain nonresidential transactions? TRUE OR FALSE?

Back 31

TRUE

Front 32

An agency relationship between a principal and a broker may be terminated by the principal for any reason? TRUE OR FALSE?

Back 32

FALSE

Front 33

Bankruptcy of a prospective buyer will terminate a buyer broker relationship? TRUE OR FALSE

Back 33

TRUE