61 Questions
What is the main role of an agent (broker) in a real estate agency relationship?
Negotiating contracts on behalf of the client
What is the key characteristic of a Special Agency Relationship in real estate?
Pertains to a single transaction where agent cannot enter into contracts on behalf of the principal
What is required for the establishment of an agency relationship in real estate?
A written or verbal contract outlining terms and conditions
In real estate, how can an implied agreement for an agency relationship be formed?
By intentional or unintentional actions of either party
What is the significance of fiduciary duties in an agency relationship?
They impose obligations on agents to act in good faith and trust
Why do certain states prohibit the existence of implied agreements in real estate agency relationships?
To protect clients from unethical behavior by agents
What type of termination occurs when both parties agree to end the contract?
Voluntary
What duty requires an agent to act within the bounds of their expertise?
Skill care and diligence
What is the potential consequence of breaching an agent's fiduciary duties?
License suspension
Which agency type represents both the seller and buyer simultaneously?
Dual Agency
What is the primary objective of disclosure regulations in real estate transactions?
To offer a choice
In fraud, what is required for a party to be damaged by a misstatement?
Reliance on the misstatement
What distinguishes negligent misrepresentation from intentional misrepresentation?
'Negligent omission' involves unintended concealment
When does a buyer agent need to disclose information to sellers?
Upon first substantive contact with the listing agent or seller
What duty does a facilitator in real estate transactions owe to the parties involved?
Accounting, skill, care, diligence; honesty and fair dealing; disclosures affecting property value.
What dual agency type requires informed, written consent before disclosing certain information?
Dual Agency
What type of agency relationship empowers an agent to represent the principal in all matters and contract on behalf of the client?
Universal
In real estate, what is a key requirement for the creation of an agency relationship?
Outlining terms and conditions in a written or verbal contract
For which type of agency relationship is representation limited to a single transaction where agents typically cannot enter into contracts on behalf of their principals?
Special Agency
What is the significance of having a definite expiry date in an agency agreement?
It provides clarity on the duration of agency representation
Under what circumstances can an implied agreement for an agency relationship be formed?
Through intentional actions of both parties
Which type of agency relationship often characterizes most brokerage relationships in real estate?
General Agency
What is the consequence of breaching an agent's fiduciary duties, according to the text?
License revocation
What type of agency relationship represents neither party involved in the real estate transaction?
No Agency
In real estate, what distinguishes fraud from misrepresentation?
The intent behind the statement
Which party must receive written disclosure regarding price, financing positions, or motivations from a dual agent?
Facilitator
What is the primary objective of disclosure regulations in real estate transactions?
To provide informed choices
What type of termination occurs when one party deserts or damages the property related to the contract?
Desertion or Damage of Property
What duty requires an agent to place the client's interests above their own and customers' interests?
Loyalty
When does a buyer agent need to provide written disclosure to sellers?
Upon first face-to-face contact
In real estate, what is required for a party to be damaged by a misstatement?
Reliance on the misstatement and resulting harm
Which agency relationship type represents either the tenant or landlord?
Single Agency
What is the key requirement for establishing an agency relationship in real estate?
Having a definite expiry date in the contract
What type of agency relationship in real estate involves representation in business affairs with similar contracting abilities as the agent?
General Agency
Under what circumstances can an implied agreement for an agency relationship be formed?
Through the actions of either party, intentional or unintentional
What distinguishes Special Agency from other types of agencies in real estate?
It pertains to a single transaction where agents typically cannot enter into contracts on behalf of their principals
What is the consequence of breaching fiduciary duties in an agency relationship?
Legal action taken by the other party
What does a single agency in real estate typically involve?
Representing either the seller or buyer
What are the main duties of a dual agent in a real estate transaction?
Skill, care, diligence, obedience, confidentiality, and accounting
What type of termination occurs when one party deserts or damages the property related to the contract?
Desertion or Damage of Property
What is the consequence of a licensee boasting about a property's benefits?
License suspension
What is required for a party to claim fraud in a real estate transaction?
Knowledge that a statement was false
What is the primary duty of a facilitator in real estate transactions?
Skill, care, diligence; honesty and fair dealing
When does a buyer's agent need to provide written disclosure to sellers in real estate transactions?
Upon first contact with listing agent or seller
"Informed, written consent" is a requirement for which type of dual agency?
"Dual Agency"
What type of agency relationship in real estate involves representation limited to a single transaction where agents typically cannot enter into contracts on behalf of their principals?
Special Agency
Which type of agreement for an agency relationship in real estate can be formed through the actions of either party, whether intentional or unintentional?
Implicit Agreement
What is the key requirement for establishing an agency relationship in real estate?
Written contract only
Which type of agency relationship empowers an agent to represent the principal in all matters and contract on behalf of the client?
Universal Agency
What is the consequence of breaching fiduciary duties in an agency relationship, according to the text?
Potential termination of the agency agreement
Why do certain states prohibit the existence of implied agreements in real estate agency relationships?
To promote written agreements for clarity and protection
What is the consequence of breaching an agent's fiduciary duties in a real estate transaction?
Loss of Compensation
When does a buyer agent need to provide written disclosure to sellers in real estate transactions?
Before or when listing is executed
What type of termination occurs when one party deserts or damages the property related to the contract?
Involuntary Termination
What duty requires an agent to place the client's interests above their own and customers' interests?
Loyalty
What is the primary objective of disclosure regulations in real estate transactions?
To offer a choice
Which agency type represents both the seller and buyer simultaneously?
Dual Agency
Under what circumstances can an implied agreement for an agency relationship be formed?
When actions imply agency relationship
What distinguishes fraud from misrepresentation in a real estate transaction?
Intent to deceive
What does a single agency in real estate typically involve?
Representing either the seller or buyer
What is required for the establishment of an agency relationship in real estate?
Informed written consent
Explore the concept of the agency relationship in real estate, where agents act as representatives for buyers, sellers, tenants, and landlords. Learn about fiduciary duties, trust, good faith, and confidence that form the foundation of this relationship.
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