• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/36

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

36 Cards in this Set

  • Front
  • Back

What is agency?

A legal relationship between the broker and their client who authorizes the broker to act on their behalf.

Who/what is the principal?

The cluent who authorizes the broker.

Who or what is an agent?

The broker who derives authority from the principal by written agreement.

Who or what is a sub-agent?

A person who is authorized to act by the agent. (Co-broker)

The sellers broker and the buyers broker have what relationship?

Co-brokers.

What is needed for a co-broker to be a sub-agent?

Contract/written agreement.

What are the four different types of agency relationships?

Special, General, Universal, and Ostensible/Implied agency.

What type of agency does a business manager have?

Universal Agency.

What is special agency?

When an agent is authorized to do one particular thing.

What is the opposite of special agency?

Universal Agency.

What is general agency? Example?

Partial responsibility. the agent is authorized to perform a series of tasks associated with the continued operation of a particular job. Like a property manager.

What is another name for ostensible agency and what is it?

Implied. When there is no express agreement in place but the parties are acting like they have an agency agreement.

What are the five different types of agents?

Seller's, buyer's, designated, dual agent, and transaction broker.

When a seller hires an agent and signs a listing agreement that agent is which type of agent?

Seller's Agent.

When a buyer hires an agent and signs an agency agreement that agent becomes which type of agent?

Buyer's Agent.

When the broker appoints a specific agent to represent a specific principal that agent is what type of agent?

Designated Agent.

When the broker works for both the buyer and seller what type of agent are they and what must they do?

Dual Agent. They must have a written disclosure and permission from both parties.

What is a transaction broker?

A facilitator. A broker who works for neither the buyer nor the seller. They are both customers but not clients.

Is payment of a commission how an agency agreement is made?

No. Express or implied agreement originating from the principal is how an agency agreement is made.

What is a person called that has power of attorney?

Attorney-in-fact.

Power of attorney is a written instrument that gives an agent limited or unlimited authority to act in a principals place. True or False?

True.

What does the acronym L.O.A.N.R.A.T. mean?

It spells out the duties of the agent to the principal to be Loyal, Obedient, Accountable, give Notice (or disclosure), give Reasonable care, be Accurate, and Truthful.

What duty does the agent have to the principal as an adviser and an advocate with a legal or ethical relationship of trust?

Fiduciary duty.

Obedience: What instructions is an agent allowed to be disobedient to.

Unlawful instructions.

An agent must pursue a principals best interest above their own or that of others, this is which duty of an agent to a principal?

Loyalty.

If an agent is an undisclosed buyer of the principal's property or has an undisclosed interest they are breaching which of their duties to their principal?

Loyalty.

Why must an agent promptly communicate and explain all written offers to the seller if the seller has not yet accepted an offer?

It is their duty as an agent to give notice and give full disclosure of all material facts.

What must the agent be accountable for?

The funds and property of others.

Why must an agent fact check and not rely on others word?

Because it's the agent's duty to be accurate.

An agent must be honest and disclose all facts that materially affect the value of the property to all parties regardless of who they represent. True or False?

True.

Does the principal have any duties to the agent? If so, what are they?

Yes. Compensation and truthfulness.

What, if any, are the duties of the agent to third parties?

No misrepresentation, Disclosure of adverse material facts about a property, fairness and pretty much all of the same duties they have to their principal.

What is the difference between latent defects and patent defects?

Latent defects are hidden and patent defects are obvious. Both must be disclosed if known.

Caveat empton, buyer beware, is no longer valid under law. True or False?

True.

If the property is being sold "as is" does this mean that you don't have to give full disclosure about the material facts of the property?

No.

An agent must deal fairly with the buyer and account for the buyers...

Property.