Podcast
Questions and Answers
Who is primarily concerned with agency law?
Who is primarily concerned with agency law?
In the situation where a broker accepts a deposit but mishandles the funds, who bears the risk of loss?
In the situation where a broker accepts a deposit but mishandles the funds, who bears the risk of loss?
Which of the following is not necessary for the creation of an agency relationship?
Which of the following is not necessary for the creation of an agency relationship?
If a buyer submits a full price offer through a qualified broker, what happens next?
If a buyer submits a full price offer through a qualified broker, what happens next?
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Which of the following actions would lead to the termination of an agency agreement?
Which of the following actions would lead to the termination of an agency agreement?
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What happens if the seller or broker dies or becomes incapacitated?
What happens if the seller or broker dies or becomes incapacitated?
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What is the principal's rights concerning the agent's services?
What is the principal's rights concerning the agent's services?
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Which phrase best describes a real estate agent’s duty to keep her principal informed?
Which phrase best describes a real estate agent’s duty to keep her principal informed?
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If Broker Larsen finds that a property lacks sewer service after being informed otherwise, which action is expected?
If Broker Larsen finds that a property lacks sewer service after being informed otherwise, which action is expected?
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What is typical regarding a real estate salesperson's employment status?
What is typical regarding a real estate salesperson's employment status?
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Who is liable for the misrepresentation to Burns regarding the sewer service?
Who is liable for the misrepresentation to Burns regarding the sewer service?
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What duty does an agent representing a seller owe to the buyer?
What duty does an agent representing a seller owe to the buyer?
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Under what condition can a real estate agent represent both buyers and sellers in a transaction?
Under what condition can a real estate agent represent both buyers and sellers in a transaction?
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In which situation would an agency relationship not terminate?
In which situation would an agency relationship not terminate?
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When is a broker allowed to fill out the seller's portion of the transfer disclosure statement?
When is a broker allowed to fill out the seller's portion of the transfer disclosure statement?
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Study Notes
Agency Law
- Agency law governs relationships among agents, principals, and third parties.
Duties and Rights
- Agents and principals have specific duties and rights.
- Agents owe fiduciary duties to their principals.
- Principals have specific rights in dealings with agents.
- Third parties have rights related to agreements they enter into with agents.
Listing Agreements
- Brokers may accept buyer deposits.
- Risk of lost deposits fall on the seller, if the broker acted within authority to accept deposits.
Offer Acceptance
- Brokers must disclose all offers to the seller.
- Broker's actions may not be permissible if they fail to disclose all offers.
- This is due to a fiduciary duty to the seller.
Agency Relationship
- Agency relationships require mutual agreement.
- Payment of consideration isn't necessary to form the relationship.
- Agency relationships are always fiduciary in nature.
Termination of Agency
- Death or incapacity of the seller or broker will terminate the agency.
- Seller's rejection of a buyer's offer does not terminate the agency relationship.
- Principal may unilaterally revoke the agency agreement.
- Failure to fulfill the terms and conditions in an agency relationship may violate a specific performance requirement.
Fiduciary Duties
- Brokers owe fiduciary duties to the seller.
- Brokers owe fiduciary duties to inform the seller about any latent defects.
- Sellers' agents are obligated to disclose offers.
Dual Agency
- A broker representing both parties in a transaction must inform both parties in writing.
- Parties must mutually agree to a dual agency arrangement in writing.
Disclosure Requirements
- Brokers must disclose all known latent defects to the buyer.
Transfer Disclosure Statement
- Brokers cannot complete seller portions of transfer disclosure statements.
- This responsibility of disclosure may not be delegated.
Termination of Relationship by Operation of Law
- If a seller or broker dies, the agency relationship will be terminated.
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Description
This quiz covers the fundamentals of agency law, focusing on the duties and rights of agents, principals, and third parties. It also addresses listing agreements, offer acceptance, and the termination of agency relationships. Test your knowledge and understanding of these critical legal concepts.
