Level 4

Front 1

Common law can be traced back to customs and precedent established by court decisions over the centuries in?

Back 1

England

Front 2

The rules and regulations coming out of the Florida Real Estate Commission would be an example of?

Back 2

A blend of common and statutory law

Front 3

In a Florida real estate transaction, who can accurately be referred to as an agent?

Back 3

Broker and there sponsored sales associates

Front 4

Per Florida statute, "a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship" is the definition of a(n):

Back 4

Customer

Front 5

A fiduciary is expected to put whose interests ahead of their own?

Back 5

Client

Front 6

Common law

Back 6

Can be traced back to customs and precedent established by court decisions over the centuries in England.

Front 7

Statutory laws

Back 7

Are those laws that are introduced at the state or federal level.

Front 8

Administrative law

Back 8

Comes about as a result of one or more state statutes giving rise to authorized administrative bodies created to regulate or govern areas of concern for the state.

Front 9

agency relationship

Back 9

An agency relationship is a relationship wherein one party authorizes another to represent their interests and that second party accepts the responsibility given to them.

Front 10

Caveat emptor

Back 10

the concept that a buyer is responsible for verifying the quality and value of the goods prior to the purchase

Front 11

Customer

Back 11

an individual with whom a license holder has no fiduciary relationship but to whom accounting, honesty and fairness, and disclosure of not readily observable material facts about a property are still required

Front 12

Dual agent

Back 12

the role of a licensee in an in-house transaction where the brokerage offers both parties fiduciary level representation; illegal in Florida

Front 13

Fiduciary

Back 13

an individual upon whom is placed the highest levels of trust and confidence when acting on behalf of another

Front 14

Principal

Back 14

in general usage, the client of an agent; in Florida real estate, the client of a single agent operating as a fiduciary

Front 15

Subagency

Back 15

a form of agency that arises when an employing broker enlists the use of sponsored sales associates and/or sponsored associate brokers to accomplish a client's goal

Front 16

Special agency

Back 16

The relationship between real estate brokers and the parties they represent will almost always be a special agency relationship,

with the single, specific goal being the sale or purchase of a property. When brokers are granted special agency by the parties, it is usually accomplished via listing agreements and buyer-broker agreements.

Front 17

General agency in real estate

Back 17

The classic example of a general agency relationship is the relationship between a broker and a sponsored licensee, with the sponsored licensee as the general agent of the broker.

Front 18

Creation of agency requires two essential components which are?

Back 18

1. Consent

2. Control

Front 19

Express agency

Back 19

Can be created in written or oral form. Both forms are considered valid, with the written form offering more clarity and protection for both parties.

In real estate, express agency is usually created via:

• Listing agreement

• Buyer-representation agreement

Front 20

Implied agency

Back 20

An implied agency relationship arises when a party assumes consent to the relationship based solely upon inferences formed by the actions, conduct, and words of either or both.

Front 21

Agency by ratification

Back 21

Agency by ratification is created when an agent takes an unauthorized action on behalf of a party which is accepted after the fact by the party.

Front 22

Gratuitous agency

Back 22

An agent can, of course, agree to work for no compensation. This creates gratuitous agency. The agent is still held to all the duties of an agency relationship.

Front 23

Ostensible Agency and Agency by Estoppel

Back 23

The not-so-distant cousins of implied agency are ostensible agency and agency by estoppel. Both are created when the actions or words of an individual lead a third party to believe:

1. Agency exists between an individual and the agent (when it doesn't), AND

2. Neither the individual nor the agent takes action to correct that impression at

the time

The legal principle behind agency by estoppel says that if the third party is hurt by the impression of the existence of agency, the parties responsible for creating that impression can be held liable for the injury to the third party.

Front 24

In a no brokerage relationship:

Back 24

• Licensees are agents, not fiduciaries.

• The parties that agents work with are

customers, not clients.

The key point here is that Florida allows parties to a real estate transaction (buyers and sellers) to opt out of representation if they so choose.

Front 25

Transaction broker

Back 25

a broker who provides limited representation to a buyer, a seller, or both, in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.

Front 26

Single Agent

Back 26

Single Agent = Fiduciary =

Exclusive

The single agent exclusively represents one side of the transaction at a fiduciary level.

Front 27

Single agent notice

Back 27

In Florida, brokers who wish to operate as single agents must inform the party of what this form of representation entails. They accomplish this with a written disclosure known as the Single Agent Notice.

Front 28

-Is not owed fiduciary duties.

-May or May not be represented by a licensee.

Back 28

Customer

Front 29

-Have customers not clients.

-An individual with authority to act on behalf of another.

Back 29

Agent

Front 30

-Puts there clients interests ahead of everyone else’s.

-Have clients not customers.

Back 30

Fiduciary

Front 31

-Is represented by a fiduciary.

-Also known as principal.

Back 31

Client

Front 32

Dual agents

Back 32

This is illegal under any circumstance in Florida residential transactions!

Front 33

Sales Associate Peyton is sponsored by Broker Archie. In that relationship, Peyton is a(n) to Archie's customers and clients:

Back 33

Si agent

Front 34

What is required for an agency relationship to form?

Back 34

Consent of an agent and the client or customer.

Front 35

From the customer or client's perspective, what kind of agent is their broker?

Back 35

Special agent

Front 36

A special agent's scope of authority is narrow and usually:

Back 36

Short term

Front 37

Anthony is Joe's agent, operating as the property manager of the luxury apartment building Joe owns. Anthony's responsibilities are ongoing and have binding power on Joe. What kind of agent is Anthony?

Back 37

General agent

Front 38

Sales Associate Andie's supervising broker is Geni. In their general agency relationship, who is the party being represented?

Back 38

Geni broker

Front 39

If a Florida licensee violates their duties, the violation could result in license suspension or revocation, or a penalty (per occurrence) of up to what amount?

Back 39

$5k

Front 40

designated sales associate

Back 40

sales associates designated by the broker to serve as single agents for the parties in an in-house nonresidential transaction at the request of the parties

Front 41

residential sale

Back 41

the sale of improved property of four units or fewer; unimproved property intended for the use of four units or fewer; or agricultural property of 10 acres or fewer

Front 42

Which of the following is not one of the main components of the brokerage relationship disclosure act?

Back 42

(A) the applicability and limitations of designated sales associates.

(B) the applicability and limitations of the act.

Hint 42

Answer: (A)