Based on these facts, the real estate professional will be treated by the IRS as. 12) This form is required by New York law and is designed to help the consumer make informed choices about the relationship he or she may want to have with any real estate licensees? The payment or promise of payment of compensation to a broker is not determinative of whether an agency relationship has been created. Who should the purchaser contact in order to conduct due diligence regarding the ability to build a home on the property and anticipated costs of sewage disposal? Compensation; Agency relationship. 8) If the transaction does not complete, the seller may still be responsible for paying a commission to the broker if the failure to complete was due to the____________ default. Ch 5. Quiz "Agency Relationships." Flashcards | Quizlet Jeff and Susan enter a real estate office asking to see a property listed with another brokerage office. c) The agent has little exposure, since the problem was not mentioned on the signed disclosure form. G. A licensee shall not be considered as acting as a dual agent if the licensee is working with both buyer and seller, if the licensee is the seller of property he owns, or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent. The other listed duties are owed to clients, who are represented by the agent in a fiduciary capacity. c) Brokers are prohibited from commingling the funds of others with their own funds. A licensee shall not be liable to a customer for providing false information to the customer if the false information was provided to the licensee by the licensees client or clients agent and the licensee did not have actual knowledge that the information was false. What is this an example of? a) Show homes, apartments or other real property. b) The New York State Licensing Form for Agents. Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client? d) Accepting a commission directly from a seller. a) Impose a fine of up to $5,000. You can agree to cancellation or not, but you are under no obligation to do so. In this situation, the seller had no duty to disclose the presence of the asbestos tiles. In the hearing decision the section explaining what violations the respondent committed and has references to the specific law that the respondent violated is called? a) Filling in the blanks on a preprinted listing form. 9) In cases brought against licensees in New York by the Department of State which of the following are the correct names of the parties? a. In single agency, the licensee has a client to whom she owes fiduciary obligations of advice and negotiation assistance. A real estate professional facilitates transactions and is called depending on the states lawa transaction broker or a facilitator. c) Write ads for a broker_s approval. The real estate professional is. a) investing b) commingling c) inter mediating d) escrowing. What is the penalty for conviction of a misdemeanor? a) Hold an open house. A client shall not be liable for the acts or omissions of a licensee in providing brokerage services for or on behalf of the client. 8) In the hearing decision the licensee being charged with a violation is always which party? a) $1,000 fine only b) One year in prison only c) Either fine, imprisonment or both d) $5,000 fine. ) In which of the following situations is RECAD disclosure NOT required? Buyer, seller, or both. The Property Condition Disclosure Act requires the seller to submit to the buyer, a Property Condition Disclosure Statement, prior to signing the contract of sale. After she takes a listing of a residence, the owner specifies that he will not sell his home to any family that is not of the same Asian background as the seller. Baton Rouge, LA 70809, Phone: (225) 925-1923 Subagency can only be created by a written agreement. The employer of an agent or broker; the brokers or agents client. An agreement between members of a trade to exclude other members from fair participation in the trade is known as? c) The agent receives a retainer. Resident Representative means (if any) the individual (or, if permitted in accordance with the Companies Acts, the company) appointed to perform the duties of resident representative set out in the Companies Acts and includes any assistant or deputy Resident Representative appointed by the Board to perform any of the duties of the Resident Representative; Factory representative means a representative employed by a person who manufactures or assembles motor vehicles or by a factory branch, for the purpose of making or promoting the sale of its motor vehicles, or for supervising or contacting its dealers or prospective dealers. A. a) Broker's agency b) Buyer's agency c) Subagency. A licensed real estate salesperson from another state may apply for an Alabama real estate license after completing a six-clock-hour reciprocal salesperson license course. In transactional brokerage, a real estate professional facilitates the transaction between a buyer and a seller but does not represent either party and cannot negotiate for either party. c) By termination of the relationship by mutual agreement. Consumer C. Customer D. Fiduciary, What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific transaction? d. The answer is yes, known stigmas must be disclosed by a buyers agent to a client. a) Honesty and fair dealing b) Confidentiality c) Advice on negotiations d) Information about Pat's motivation to sell. All written offers must be presented to the seller as soon as received. Indicate the name of the geographical area in which such property is located. (12) Ministerial acts means those acts that a licensee may perform for a person that are informative in nature. The answer is she must meet the same requirements as an Alabama citizen. An act of recalling a power of authority conferred a license, an agency, etc is known as what? According to which fiduciary duty is an agent prohibited from forcing on his or her client a sale, lease or opportunity to buy? - The agent does not have to work in a specific location - The broker cannot control the agents work activities. In Alabama, a licensee misrepresenting or failing to disclose to any lender, guaranteeing agency, or any other interested party the true terms of a sale of real estate is guilty of a violation of Alabama license law and may also be sued for civil fraud. b. A licensed real estate broker that holds the license of a salesperson. Universal agency empowers the agent to do anything the principal could do personally, such as authorized by a power of attorney. According to section 175.25 of Article 12-A, all advertisements must: 1. indicate advertiser is a broker and give name of broker & phone number 2. . Download PDF of Law of Agency Subagency typically occurs with properties listed on the MLS. 2) Mary Smith asks Broker Jim to help her find her first home. This real estate professional has fiduciary obligations to. E. In the case of dual agency, each client and licensee possess only actual knowledge and information. a) There is a crack in the basement wall. a) Single agency b) Facilitator agency c) Consensual dual agency d) Seller/Landlord agency. Marta is a salesperson representing Kimberly, who is trying to sell her home. F. Nothing in this Chapter or in Chapter 17 of Title 37 shall be construed as to require agency disclosure with regard to a lease that does not exceed a term of three years and under which no sale of the subject property to the lessee is contemplated. a) Negligent b) Active c) Passive d) Puffing. (14) Substantive contact means that point in any conversation where confidential information is solicited or received. . Designated agent. Designated B. The answer is limited consensual dual agency. Example: Property Manager, An agent with limited authority to act on behalf of the principal, such as created by a listing. 31, 1, eff. This allows the licensee to maintain the license, be exempt from continuing education responsibilities, and have the option to activate the license fairly quickly if desired. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. and more. Only if the agent has proven to be incompetent or untrustworthy C. Only of the agents written consent D. With the mutual consent of the parties With the mutual consent of the parties The parties may mutually agree at any time to terminate an agency. Once the disclosure is made, some places allow the buyer to waive the conflict and have the real estate agency represent them as well. March 1, 1998. a) Listing broker b) Buyer c) Seller d) No one. 7) In the case studies, the Department of State is always which party? a) opinion b) complaint c) answer d) determination. When a buyer asks about water problems, the broker responds that there are none. FLORIDA BROKER TEST CH 10 (#8) Flashcards | Quizlet 12) An agency relationship may be involuntarily terminated by which of the following? a. It is not necessary to find a broker, because the licensee can maintain the individuals license on inactive status, without a broker. 1) Which of the following is not a fiduciary duty an agent owes to his or her principal? Ex. a) Broker Tom and Mary b) Broker Tom, Larry and Gail c) Broker Tom d) Mary. A property manager is usually a general agent and may sign leases on behalf of the landlord, in addition to other commitments. Mark (the broker), is selling Marias house (the client). A licensee representing a client shall: (1) Perform the terms of the brokerage agreement between a broker and the client. Is Amazon actually giving you a competitive price? about the physical condition of the property. 11) All of the following may involuntarily terminate an agency relationship except? What type of listing agreement is it where the listing broker earns a commission for the sale of the property, even if the owners themselves sell the property? General C. Special D. Universal . Alabama law requires that an estimated closing cost be given to the purchaser before an offer to purchase is written. c) Issue a reprimand upon a licensee_s conviction of a violation. d. The answer is promptly write up the offer. a. An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell is nevertheless entitled to compensation. A subagent owes the same fiduciary duties to a principal as an agent and may not compromise a sellers position. The answer is complete 30-hours of post-license education within 12 months. a) Suspension b) Revocation c) Fine d) Imprisonment. 2) What is an agent called who represents only one person in the transaction, either the buyer or the seller? Licensees must disclose their own status as a licensee when buying or selling real estate and must also disclose their relationship to a buyer or seller who is a family member. a) Maintain business competition and prevent the unreasonable restraint of trade. In many states, statutes have been enacted to further define agency representation with laws and regulations that set forth the responsibilities of real estate licensees to clients and customers. 2) Under the new regulations when a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a blanket unilateral offer of ______________ to all the other members of that MLS. Broker? b) Condemnation of the property c) By termination of the relationship by mutual agreement. LICENSEES RELATIONSHIP WITH CUSTOMERS. The salesman's company is to receive 50% of a 7% commission, what is the salesman's share of the commission if he received 45% of the amount his company receives? 8) With regard to compensation in cooperative sales, the____________ broker will be the person who handles the commission splits for the transaction. Tom gets Larry, Gail and Bill, who all work for other firms, to help find a buyer for Mary's property. The buyer wants to make a written offer that is 50% below the asking price. (11) Licensee means any person who has been issued a license by the commission as a real estate salesperson or a real estate broker. d) Placing a sign on a property with the owner_s permission. Even though the same agency is representing both sides of the transaction, the separate assignments allow the transaction to proceed with both parties vigorously represented. d) Inform the seller. In this circumstance, the parties are. 2) Brokers are prohibited from ______________ the funds of others with their own funds. 9071 Interline Avenue 2020 Act 270 Report, Choose a DivisionBillingEducationExamsITLicensingRegulatory ComplianceOther, 3892. 31, 1, eff. Occurs when a purchaser hires a broker to represent them. CARD TM Hazard Communication Standard Pictogram The Hazard Communication Standard (HCS) requires pictograms on labels to alert users of the chemical hazards to which they may be exposed. A Single Agent is defined by Florida Statutes Chapter 475, Part I as a broker who represents either the buyer or seller of real estate, but not both in the same transaction. Definitions a) Laches b) Estoppel c) Caveat Emptor d) Fraud. b) Failing to provide a definition of an exclusive right to sell and an exclusive agency when taking a cooperative listing. Rumor is that there is high interest in the property, and multiple offers will probably be presented in the very near future. 452, 1, Acts 2015, No. RECAD disclosures are required any time an individual buys or sells real estate. Adam agrees to buy Beatrice's real estate for $123,000. a) Mutual consent b) Authorization c) Compensation d) Fiduciary duties. REAL ESTATE Q&A - SINGLE AGENT VS. TRANSACTION BROKER - Law Office of A. An applicant for a real estate license passes the Alabama license exam. Agent must act in accordance to clients demands/instructions, Agent must work in the best interest of his client, Agent must communicate with client / must present all offers. 9:3891-3899) As amended 2015, 3891. The primary difference between single agency and limited consensual dual agency is. A licensee is not considered to be a subagent of a client or another broker solely by reason of membership or other affiliation by the broker in a multiple listing service or other similar information source. Dual agency exists when an agent represents both the buyer and the seller in the same transaction. A seller tells the listing agent he filed for bankruptcy the previous year. Only the listing agent can make changes on MLS, and there is no such thing as a sudden death clause in real estate transactions. Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. The opinion is that standard dual agency promotes the fallacy that the agency can represent both sides of a sale neutrally and still reach a result that is in the best interests of each party, rather than the agency itself. What occurs when the agent represents the seller but also works in the best interests of the buyer? Who is acting as a designated agent, or agents, in this scenario? D. A licensee shall not be liable to a client for providing false information to the client if the false information was provided to the licensee by a customer unless the licensee knew or should have known the information was false. Who would be vicariously liable for Bill's actions? Designated Representative means a responsible natural person authorized by the owners and operators of an affected source and of all affected units at the source, as evidenced by a certificate of representation submitted in accordance with Subpart B of 40 CFR part 72, to represent and legally bind each owner and operator, as a . By contrast, insurance brokers represent insurance buyers. According to this doctrine, a principle cannot claim that an implied agency relationship did not exist? (1) Agency means a relationship in which a real estate broker or licensee represents a client by the clients consent, whether express or implied, in an immovable property transaction. However, such a relationship shall not constitute dual agency if the licensee is the seller of property that he owns or if the property is owned by a real estate business of which the licensee is the sole proprietor and agent. Duties of licensees representing clients, 3894. The licensee represents the seller. The sales associate is the agent of the broker. Single agent disclosure. The parties sign a purchase contract, which contains language saying the property is sold as-is. What liability does the associate broker have? 9) A buyer_s agent is generally paid by the traditional commission arrangement between the listing broker and the cooperating broker whereby the___________pays the commission, which is then split between the listing agent and the buyer agent. d. The answer is before any compromising information is solicited from the consumer by the licensee. (c) Confidential information can be disclosed by a designated agent to his broker for the purpose of seeking advice or assistance for the benefit of the client. Designated Agent Definition: 1k Samples | Law Insider A. Which department is responsible for issuing real estate licenses? Subscribe to our newsletter and learn something new every day. Chapter 5: Unit 2 - Agency Relationships and Disclosures - Quizlet The Broker signs the agreements, not the agent. The listing agent is called. a) Federal Trade Commission (FTC) b) Internal Realtor Syndicate (IRS) c) Internal Commission Committee (ICC) d) Antitrust Business Commission (ABC). Who represent the insured? COMPENSATION; AGENCY RELATIONSHIP. 7) Which type of agency would be most advantageous to a buyer? c) Prevent fraud in the mortgage market. Examples of these acts include but are not limited to: (a) Responding to phone inquiries by persons as to the availability and pricing of brokerage services. However, there is another less common scenario in which a single agent represents both a buyer and a seller in the same real estate transaction. The fiduciary duty that prohibits the agent from advancing any interests adverse to the principals interest or conducting the principals business in such a way as to benefit a customer, a subagent, the agent or any other party to the detriment of the principals interest unless required by statute, regulation or common law is known as? Public officers performing their official duties are exempt from the license law requirements. The answer is a general agent. a) Article 12-A appeal b) Article 8 proceeding c) State court appeal d) Article 78 proceeding.
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