Podcast
Questions and Answers
Which fiduciary duty requires an agent to act in accordance with their client's instructions?
Which fiduciary duty requires an agent to act in accordance with their client's instructions?
Which fiduciary duty is violated when an agent benefits from a transaction at the expense of their client?
Which fiduciary duty is violated when an agent benefits from a transaction at the expense of their client?
Which fiduciary duty is violated when an agent fails to disclose material facts about a property to their client?
Which fiduciary duty is violated when an agent fails to disclose material facts about a property to their client?
Which fiduciary duty focuses on an agent's financial responsibility to their client?
Which fiduciary duty focuses on an agent's financial responsibility to their client?
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Which fiduciary duty is violated when an agent makes a mistake due to neglecting their responsibilities?
Which fiduciary duty is violated when an agent makes a mistake due to neglecting their responsibilities?
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Which of the following relationships does NOT describe a typical agent-principal relationship in real estate?
Which of the following relationships does NOT describe a typical agent-principal relationship in real estate?
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In the context of a real estate transaction, what does 'confidentiality' mean for an agent?
In the context of a real estate transaction, what does 'confidentiality' mean for an agent?
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Who is considered a 'client' in a real estate transaction?
Who is considered a 'client' in a real estate transaction?
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What type of agency relationship exists when a broker represents both the buyer and the seller in a transaction?
What type of agency relationship exists when a broker represents both the buyer and the seller in a transaction?
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Which of these is NOT a duty of an agent to their principal?
Which of these is NOT a duty of an agent to their principal?
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In which scenario would a 'Broker's Agent' be involved?
In which scenario would a 'Broker's Agent' be involved?
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What kind of agency relationship is created when a seller tells their listing agent they will pay a bonus if the agent finds a buyer above a certain price?
What kind of agency relationship is created when a seller tells their listing agent they will pay a bonus if the agent finds a buyer above a certain price?
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Which of the following situations could create a conflict of interest for a real estate agent?
Which of the following situations could create a conflict of interest for a real estate agent?
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Study Notes
Agency Relationships
- Agent: A person who conducts business or manages an affair for another, authorized by them.
- Agency Relationships Examples: Agent-Broker, Agent-Landlord, Agent-Tenant, Agent-Owner, Agent-Buyer, Agent-Buyer's Lawyer, Title Company, Seller's Lawyer, Lender, Mortgage Broker.
- Principal/Client: The person the agent works for.
- Customer: A third party involved in a transaction (e.g., buyer looking to purchase a property).
- Broker's Agent: An agent assisting another agent (not from the same firm) in finding a property for sale/purchase.
- Buyer Agent: Represents the buyer of real estate.
- Seller's Agent: Represents the seller of real estate.
- Sub-agent: An agent of another agent acting on behalf of the principal.
- Tenant's Agent: A real estate agent representing tenants in commercial property transactions.
- Implied Agency: Agency relationship inferred from the actions of the parties involved.
- Landlord's Agent: A person with authority to act for a landlord, whether orally or in writing.
Fiduciary Duties
- Confidentiality: Agents must protect their principal's confidential information, safeguarding their bargaining position. Confidentiality does not include withholding material facts regarding property condition.
- Disclosure: Relevant information about the property, including potential defects, must be disclosed to influence a sale.
- Fiduciary: A person who handles business or assets for another, implying trust & confidence.
- Fiduciary Duties: Legal obligations of a fiduciary to act in the best interests of the client/beneficiary.
- Obedience: Agents must obey client instructions within the contract. Act in good faith.
- Undivided Loyalty: Agents cannot act against the principal's interests. Must not favor a customer or sub-agent to the detriment of the principal, unless required by law.
- OLD CAR: A mnemonic device to remember key fiduciary duties: Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable Care.
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Description
Explore the various agency relationships in real estate through this quiz. Understand the roles of agents, principals, and customers, along with examples such as buyer's agent, seller's agent, and more. Test your knowledge on how these relationships function in property transactions.
