Recent

  • Show all results for ""
Agency Relationships in Real Estate
31 Questions
100 Views

Agency Relationships in Real Estate

Created by
@LuxuriantOstrich

Questions and Answers

What will an investigation of the complaint most likely determine regarding Sal's referral fee to Betty?

  • Sal violated Florida's real estate license law by asking Betty to pay a referral fee.
  • Since Sal accepted the commission, both brokers violated F.S. 475.
  • Broker Betty violated F.S. 475 by paying the commission to Sal.
  • The Florida real estate license law was not violated. (correct)

    • Which of the following best describes the practice of dual agency in Florida?

  • Dual agency is another name for Transaction Brokerage.
  • Dual agency is legal, provided it is disclosed to both parties.
  • Florida law creates a presumption of dual agency unless another relationship is formed.
  • Dual agency is a violation of Florida Statute 475. (correct)

    • Which statement correctly describes Ben's situation regarding the verbal offer?

  • Ben is not required to submit the oral offer.
  • Ben must only present the written offer since the law requires him to present offers in the order they are received.
  • Ben is required to present both offers to the seller. (correct)
  • Ben should not present the oral offer because oral offers not accompanied by an earnest money deposit are worthless.

    • What can the licensee infer from the conversation with the buyer's broker?

    <p>The agent who is calling is in a single agency relationship.</p> Signup and view all the answers

    Which of the following statements is correct regarding the broker's agreement to rebate commission?

    <p>This is legal, provided that all parties are informed and agree.</p> Signup and view all the answers

    Which of the following statements is correct regarding the agent's disclosure to the buyer?

    <p>The agent may disclose the above information in a No Brokerage Relationship.</p> Signup and view all the answers

    Regarding single agency, which of the following statements is most correct?

    <p>A licensee is prohibited from representing the buyer and seller as a single agent in the same transaction.</p> Signup and view all the answers

    Which brokerage relationship status includes a full fiduciary relationship?

    <p>Single Agency</p> Signup and view all the answers

    What best describes the situation where a sales associate agreed to kick back part of her commission to the buyer?

    <p>This arrangement is acceptable provided all parties are notified and agree.</p> Signup and view all the answers

    Who owes fiduciary duties in a single agency relationship?

    <p>The broker only</p> Signup and view all the answers

    All of the following activities are exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act, EXCEPT:

    <p>Showing property to a party that is not being represented</p> Signup and view all the answers

    As an agent, a broker is employed by and acts on behalf of whom?

    <p>A principal</p> Signup and view all the answers

    In which of the following situations does a general agency relationship exist?

    <p>When a sales associate is employed by a broker</p> Signup and view all the answers

    Broker Joan just received an oral offer to purchase a listed property. No earnest money accompanied the oral offer. Which of the following statements is correct?

    <p>Joan must present the offer.</p> Signup and view all the answers

    Which of the following statements best describes a transaction broker?

    <p>A transaction broker provides limited representation to both parties.</p> Signup and view all the answers

    An agent failed to advise a principal regarding the value of the owner's property prior to accepting a listing. Which fiduciary duty did the agent breach?

    <p>Disclosure</p> Signup and view all the answers

    Broker Tom sold a property which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with?

    <p>Failure to account</p> Signup and view all the answers

    Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan. While Stan showed the customer property and obtained a binding contract for purchase, Mary went to the beach. Upon return, she discovered Stan demanded a share of the commission. Which statement is correct?

    <p>Stan may share the commission with Mary.</p> Signup and view all the answers

    What is an agent required to do in an agency relationship?

    <p>Attempt to obtain the most favorable price and terms on behalf of the principal.</p> Signup and view all the answers

    When can an agent disclose confidential or harmful information about a principal?

    <p>Never</p> Signup and view all the answers

    Each of the following is contained in the definition of a residential transaction, EXCEPT:

    <p>Dispositions of business interests involving property of five or more residential units</p> Signup and view all the answers

    When can both parties in a transaction pay a broker a commission?

    <p>When both parties agree to the dual commission</p> Signup and view all the answers

    All of the following provide control of agency relationships in real estate, EXCEPT:

    <p>The Department of Financial Services</p> Signup and view all the answers

    Which of the following statements best describes policy and procedure manuals?

    <p>Policy and procedure manuals are useful in maintaining good relations within a brokerage office.</p> Signup and view all the answers

    A broker has appointed two sales associates to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which statement is correct?

    <p>The sales associates are referred to as designated sales associates.</p> Signup and view all the answers

    Each of the following relationships is adversarial, EXCEPT:

    <p>Fiduciary</p> Signup and view all the answers

    Fairness and honesty are required of all licensees in which brokerage relationship?

    <p>Any real estate transaction</p> Signup and view all the answers

    According to the Brokerage Relationship Disclosure Act, which is the only brokerage relationship form that must be signed or initialed?

    <p>Consent to Transition to Transaction Broker</p> Signup and view all the answers

    Which of the following statements is correct regarding a broker's authority to act on behalf of the principal?

    <p>A broker must follow all legal instructions of the principal or withdraw.</p> Signup and view all the answers

    In many brokerage relationship situations, the broker gives permission for the sales associate to work directly with a principal. Which of the following is true in this situation?

    <p>The sales associate has a fiduciary relationship with both the broker and the principal.</p> Signup and view all the answers

    In regards to agency relationships, which statement is most correct?

    <p>A special agent is only authorized to perform a single act on behalf of the principal.</p> Signup and view all the answers

    Study Notes

    Agency Relationships

    • Fiduciary duties exist in single agency relationships, where the broker acts on behalf of the principal (buyer/seller).
    • Brokers must present all offers, regardless of earnest money deposits, to uphold their duty.
    • A broker is employed and acts on behalf of the principal in all agency relationships.

    Types of Agency Relationships

    • General agency occurs when a sales associate is employed by a broker, enabling ongoing authority within a specific trade.
    • Transaction brokers provide limited representation without fiduciary duties to either party in a transaction.
    • Designated sales associates can represent both parties in a nonresidential transaction, provided certain conditions are met.

    Disclosure Requirements

    • The Brokerage Relationship Disclosure Act mandates written disclosures in specific agency relationships; exceptions apply in certain situations.
    • Confidentiality of the principal's harmful information must be maintained by the agent throughout the relationship and beyond.

    Commission and Compensation

    • Brokers involved in a transaction can agree to a commission split but must have explicit permission from both parties.
    • A broker can receive dual commissions only if both parties consent to the terms.

    Responsibilities and Ethics

    • Licensees must operate with fairness and honesty in all transactions, regardless of the agency relationship established.
    • Failure to disclose known facts impacting property value is a breach of the fiduciary duty of disclosure.
    • Florida statutes, including F.S. 475, govern agency relationships and enforce ethical conduct for real estate professionals.
    • Agency law derives from common law, influencing broker and agent behavior in real estate transactions.

    Special Situations

    • Agents may only disclose confidential information under specific legal guidelines, typically remaining confidential indefinitely.
    • Relationship dynamics like arm's length (adversarial) and fiduciary relationships (trust-based) have distinct legal implications.

    Case Studies and Examples

    • An Ohio broker visiting Florida can receive referral fees if they do not engage in the transaction directly.
    • Dual agency is not permitted according to Florida Statute 475, and any illicit conduct may result in disciplinary action.

    Manuals and Procedures

    • Policy and procedure manuals, while not legally required, are essential for maintaining order and minimizing disputes within real estate offices.### Dual Agency and Brokerage Relationships
    • Florida law presumes dual agency unless another relationship is established.
    • Brokers can represent either sellers or buyers, and dual agency without clear consent is illegal.

    Presenting Offers

    • Brokers must present any and all offers received, including oral ones, to the seller.
    • Failure to present an offer may be considered concealment or breach of trust.

    Single Agency Relationship

    • A single agent represents either the buyer or seller, establishing a fiduciary relationship in a transaction.
    • The calling broker represents the buyer, indicating a single agency relationship.

    Commission Rebates

    • Brokers may legally offer rebates if all parties are informed and consent to the arrangement.
    • RESPA ensures fees related to real estate settlements are disclosed and have legitimate services backing them.

    Nonrepresentation and Confidentiality

    • An agent has an obligation to deal honestly in nonrepresentation scenarios.
    • When disclosing personal seller circumstances, agents must consider the implications of confidentiality.

    Illegality of Dual Agency Representation

    • Licensees cannot legally represent both a buyer and seller in the same transaction.
    • Attempting to do so creates an illegal dual agency scenario.

    Fiduciary Relationships

    • Only single agency relationships provide a full fiduciary relationship between broker and client.
    • Fiduciary duties arise from law, not merely contractual agreements.
    • Kickback arrangements are acceptable if all involved parties are informed and consent is obtained.
    • Specific criteria must be met to remain compliant with RESPA regulations regarding kickbacks.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    This quiz covers the essential elements of agency relationships in real estate, including fiduciary duties, types of agency relationships, and disclosure requirements. Understand the roles of brokers, agents, and principals to succeed in real estate transactions.

    More Quizzes Like This

    Law of Agency Chapter 3: Special Agency
    10 questions

    Law of Agency Chapter 3 Quiz & Flashcards

    LuxuriantOstrich avatar
    LuxuriantOstrich
    Real Estate Agency Agreements and Commissions
    11 questions

    Real Estate Agency Agreements and Commissions

    SustainableAntigorite1088 avatar
    SustainableAntigorite1088
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser