Session 05 - Agency

Front 1

Remember point: Special Agent is for a:

Back 1

Specific transaction

Front 2

The broker generally acts as what type of agent with their client?

Back 2

Special Agent; specifically to purchase or sell a house

Front 3

What document is required for an agent to become a universal agent?

Back 3

Power of attorney

Front 4

The individual who hires an agent to act on their behalf is the:

Back 4

Principal or the Client

Front 5

The third party to the transaction who is not represented is the:

Back 5

Customer

Front 6

The agent works for the:

Back 6

Client / Principal

Front 7

The agent works with the:

Back 7

Customer

Front 8

An individual who has a valid power of attorney is called an:

Back 8

Attorney in fact

Front 9

A property manager is what type of agent to the owner of the propety

Back 9

General Agent; a basic ongoing relationship

Front 10

What is the key element of a general agent?

Back 10

ongoing relationship

Front 11

A universal Agent has what type of powers?

Back 11

Unlimited Powers

Front 12

This agency created by actions or words that is often unintended agency.

Back 12

Implied Agency

Front 13

This agency is formed when the agent represents both he buyer and the seller or landlord and tenant in the same transaction?

Back 13

Dual agency

Front 14

In order to be a dual agent, the agent must have?

Back 14

Informed written consent of both parties

Front 15

What type of agency is created when the agent has an interest in the property?

Back 15

Agency coupled with an interest.

Front 16

What type of agency is created after the fact?

Back 16

Ratified Agency

Front 17

What is not a determination in agency?

Back 17

Compensation.

Front 18

If two agents are working in the same brokerage and one agent is representing the buyer and the other agent is representing the seller what type of agency is created?

Back 18

Limited Dual Agency

Front 19

If an agent is representing either the seller or the buyer what type of agency is created?

Back 19

Single Agency

Front 20

True or False:

All offers must be in writing before presenting them to the client?

Back 20

FALSE: ALL offers must be submitted whether they are verbal or written. It is recommended that all verbal offers be backed up in writing asap.

Front 21

The fiduciary relationship between the principal and the agent is one of

Back 21

Faithful Servant

Front 22

Keeping the client informed about current property showings and price reductions of other house listed in the area falls under what element of agency?

Back 22

Care

Front 23

What is the term for an agent depositing a clients earnest money into their personal bank account?

Back 23

Commingling

Front 24

Not telling a prospect buyer that he seller just lost his job falls under what element of agency?

Back 24

Confidentiality

Front 25

If the agent has no other business dealings with a client, it is considered what type of transaction?

Back 25

An Arms Length Transaction

Front 26

What is the term for a broker using the clients earnest money to cover a commission check?

Back 26

Conversion

Front 27

Do agents disclose their clients filing for bankruptcy?

Back 27

Yes; if it is a material fact.

Front 28

What does the element of Obedience refer to?

Back 28

Follow the client's lawful instructions.

Front 29

If the sales persons license expires during the listing period, what happens to the listing?

Back 29

Still in affect; broker can re-assign

Front 30

If the property is destroyed by fire what is the sellers option?

Back 30

re-list under a new agreement as vacant property.

Front 31

What is the best and most common way to terminate agency?

Back 31

Performance

Front 32

How long does the fiduciary relationship last?

Back 32

A lifetime.

Front 33

What is the term for the client firing the agent?

Back 33

Revocation

Front 34

What is the term for the agent quitting?

Back 34

Renunciation

Front 35

When does an agent - seller relationship typically terminate if no sale has been completed?

Back 35

Upon the listing expiration date.

Front 36

What happens to a listing if the sales agent files bankruptcy?

Back 36

remains in effect. owned by the broker.

Front 37

Agency relationships usually have time limits. Listings agreements and buyer broker agreements have?

Back 37

a beginning and ending date

Front 38

Under the common law of agency, the agent owes the pricipal:

Back 38

COLD AC

• Care
  
• Obedience
  
• Loyalty
  
• Disclosure
  
• Accountability
  
• Confidentiality
  

Front 39

Material Fact:

Back 39

A fact that a reasonable person would find relevant in a buyer or selling decision.

Front 40

The customer is entitled to what two things:

Back 40

Fairness and honesty

Front 41

Stigmatized property is all about:

Back 41

Events that happened on the property

Front 42

What do real estate agents have theat is similar to malpractice that doctors have:

Back 42

Errors and Omissions Insurance

Front 43

What is the term for legally exaggerating the features of a property?

Back 43

Puffing

Front 44

When a real estate agents license is temporarily removed, it is?

Back 44

Suspended

Front 45

If a civil penalty is issue, what is the maximum per violation

Back 45

$1000

Front 46

The fact that a prospective buyer would find relevant in purchasing the property is a ?

Back 46

Material Fact

Front 47

What is a defect that is not readily detected called?

Back 47

Latent Defect

Front 48

Which do agents disclose: stigmatized property or material facts?

Back 48

Material Facts

Front 49

Misrepresentation with intent is considered?

Back 49

Fraud

Front 50

Individuals who are HIV positive are considered under what FFHA protected class?

Back 50

Disability

Front 51

Reasonable care that a person should take to investigate property is

Back 51

Due Diligence

Front 52

What is not covered under E&O insurance:

Back 52

Misrepresentation & Fraud.