California Legal Aspects Of Real Estate, (Express), Chapter 5, Agency Law And Disclosure

Front 1

Agent

Back 1

The person who is authorized to represent and act on behalf of another person

Hint 1

Broker

Front 2

Agency law

Back 2

A body of law that governs relationships between a licensee and a seller, a buyer, a landlord or a tenant

Front 3

Agency

Back 3

A relationship established between a principal and a real estate agent

Front 4

Brokerage Agreement

Back 4

A written or oral agreement for brokerage services in exchange for compensation

Front 5

Client

Back 5

A person sho is being represented by an agent

Front 6

Consumer

Back 6

A person requesting or receiving licensed services

Front 7

Customer

Back 7

A person who is not represented by an agent, but receiving ministerial acts

Front 8

Ministerial Acts

Back 8

Acts performed by a licensed agent for a customer that are informative or clerical in nature

Front 9

Fiduciary Relationship

Back 9

A relationship in which one party places special trust, confidence and reliance in another

Front 10

Principal

Back 10

The person who hires the agent and elevates to the agent the responsibility of represent the principal’s interest

Hint 10

Client

Front 11

What are the 3 types of agencies?

Back 11

Universal, General, and Special

Front 12

Universal Agency

Back 12

The principal (Client) empowers the agent to perform an and all actions that may be legally delegated to an agency representative

Hint 12

Power of Attorney

Front 13

General Agency

Back 13

The agency created between the broker and salespeople. The principal, client, delegates to the agent ongoing tasks and duties within a particular business or enterprise.

Hint 13

Authority to enter contracts

Front 14

Special Agency

Back 14

The agency between the broker and clients. The principal, client, delegate authority to conduct a specific activity, after which the agency relationship terminates.

Front 15

Agency is always formed at the...

Back 15

Broker Level

Front 16

In real estate, there are two types of agency relationships existing at the same time. What are they?

Back 16

The broker with clients through the listing and buyer representation agreements and the broker with licensees, created by the intendant contractor agreement

Front 17

What authorities are not allowed when working with clients?

Back 17

Accept an offer on a listing

Allow the buyer to move into the property before closing without the owners permission

Propose and offer on a property on behalf of a buyer client without the clients permission

Front 18

Fiduciary duties

Back 18

Placing the clients needs above the desires of the brokers and salespeople

Front 19

What do we call a relationship in which one party places special trust, confidence, and reliance in another?

Back 19

Fiduciary relationship

Front 20

Real Estate Brokerage is based on what kind of agency?

Back 20

Special Agency

Front 21

Under what circumstances would a client be responsible for misrepresentation committed by his or her real estate agent?

Back 21

If the client actually knew of the misrepresentation.

Front 22

What are the fiduciary duties that the agent owes his or her principal, client?

Back 22

Care

Obedience

Accountability

Loyalty

Disclosure or Notice

Front 23

An agent is bound to...

Back 23

Inform the client of all facts that might affect the client’s interests in the transaction

Front 24

What gives consumers the idea that the real estate professional have a high lever of expertise in real estate?

Back 24

The state requires them to be licensed

Front 25

These days, how do consumers often view a home purchase?

Back 25

as an investment

Front 26

In a home sale involving 2 licensees, absent a buyer representation agreement, who do the brokers represent?

Back 26

Both the listing broker and the selling broker represent the seller

Front 27

What is the primary reason that you need to have a clear understanding of agency concepts?

Back 27

The increased interest in litigation

Front 28

What are reasons why the question of representation is an important one?

Back 28

Consumer representation

Intricacy

Multiple Brokers

Professionalism in the industry

Public view of the profession

Increased Litigation

Front 29

Attorney in Fact

Back 29

Person receiving the responsibility of power of attorney.

Front 30

Express Agency

Back 30

When both parties know what they are supposed to do and what they can expect from the other

Front 31

Implied agency

Back 31

Giving advise, an opinion or negotiating on the customer’s behalf

Front 32

Written Agency

Back 32

A written document creating a clear, concise and understandable aggrement

Front 33

A general agency exists between the broker and the sales person. If the salesperson violates the licensing act, who besides the salesperson would be held responsible?

Back 33

The broker

Front 34

If a licensee leaves his or her broker, how many listing agreements and buyer agency agreements is the salesperson allowed to take to the next broker?

Back 34

A broker owns all agency agreements. The agency would not be allowed to take any.

Front 35

IF the broker has a multitude of tasks to perform for a client, the broker would be considered what type of agent?

Back 35

General Agent

Front 36

Name the three components of written agreements the create agency?

Back 36

Clear, concise, and understandable

Front 37

What is the broker’s responsibility fo a client?

Back 37

Meeting the needs of the client above the needs of everyone else, including himself/herself

Front 38

What is the licensee’s responsibility to a client?

Back 38

The licensee is representing the broker and has the same responsibility to the client as the broker does. Meeting the needs of the client above everyone else.

Front 39

What types of things is a broker NOT authorized to do for the client?

Back 39

Accept an offer

Allow the buyer to move on the property before closing without owners permission

Proposing an offer on a property without the client’s permission

Front 40

Under what conditions might a broker be responsible for something someone else in a transaction stated to a client or customer?

Back 40

The broker would be responsible if her or she should have known the information because a reasonable person would have known it.

Front 41

What actions demonstrate exercising care when representing a buyer?

Back 41

Helping the buyer locate appropriate housing

Evaluating property values and conditions

Determining financing alternatives

Presenting offers and counteroffers with the buyer’s interests in mind

Front 42

What exception exists to the duty of obedience when working with a client?

Back 42

An agent is not bound by duty if it is not legal.

Front 43

An agent’s fiduciary responsibilities to a client usually end when the transaction closes. This is not true of which duty?

Back 43

Confidentiality

Front 44

A licensee cannot give legal advice unless?

Back 44

Has a separate license to do that.

Front 45

What are the two types of customers?

Back 45

Seller and Buyer

Front 46

Material fact

Back 46

Anything the customer may not be able to discover on his or her own that would change the approach on where’re or not to continue with the transaction.

Front 47

Why should a customer be told to be careful what her or she says around the listing agent?

Back 47

The seller will be told information that will enhance the seller’s negotiating position

Front 48

Licensees should always...

Back 48

Provide disclosures to customers and treat them with honesty and fairness

Front 49

The best way to end an agency is to

Back 49

Close the deal

Front 50

Receission

Back 50

When both the client and the broker agree to end the relationship that they are in

Front 51

With the death of the owner, what happens to the listing agreement?

Back 51

The agency relationship dies, end agency

Front 52

What might sellers do if they are not happy with the tigress the agent is making in showing and selling their home?

Back 52

The client can request the listing be revoked.

Front 53

There should never be an

Back 53

Undisclosed agency

Front 54

Single Agency

Back 54

Two different brokers have agency agreements with the buyer and seller

Front 55

Dual agency

Back 55

When one broker has agency agreements with both the buyer and seller. This could involve owner or tow salespeople at the brokerage.

Front 56

Listing and selling agents in California are required to provide what kind of disclosures?

Back 56

Written and oral before creating an agency relationship with a client. Disclosure Regarding Real Estate Agency Relationship, C.A.R Standard Form AD

Front 57

All agency relationships must be confirmed in?

Back 57

Writing, with purchase contract or CAR standard form AC-6

Front 58

What can a licensee not provide to a customer?

Back 58

Advice and counsel

Front 59

Although legal in California, why is dual agency not encouraged?

Back 59

The conflict of interests it creates between parties in a real estate transaction since it limits the ability of brokers and agents to perform their fiduciary responsibilities.