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Questions and Answers
What is a special agent's authority?
What is a general agent authorized to handle?
All matters for the principal in a specified area.
What is the role of a universal agent?
Has the greatest possible degree of authority.
What does the term 'attorney-in-fact' refer to?
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Who is considered the principal in a real estate relationship?
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What is 'imputed knowledge'?
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Define subagent.
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What are third parties in agency relationships?
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What happens if a third party is harmed by an agent's actions?
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The mnemonic 'OLD CAR' stands for the fiduciary duties: Obedience, Loyalty, Disclosure, ________, Accountability, and _________.
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Negligence refers to a legal term for a breach of duty caused by carelessness.
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What is the duty of confidentiality?
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What is the term for an advertisement that cannot be easily proven false?
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What is required from brokers in regards to transaction records?
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Match the following brokerage relationships with their definitions:
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The authorized brokerage relationship disclosure requirements apply to all transactions except ________.
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What must occur before changing from a single agent to a transaction broker?
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In a transaction broker relationship, there is a duty of complete confidentiality.
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What duty does a single agent listing broker have towards a buyer interested in their listing?
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Study Notes
Types of Agents
- Special Agents: Limited authority for specific transactions, e.g., real estate brokers handling a single property sale.
- General Agents: Authorized to manage all aspects in a specified area, such as property managers who market, maintain, and lease properties.
- Universal Agents: Hold the highest authority, typically granted through a power of attorney.
- Attorney-in-Fact: The individual who holds power of attorney to act on behalf of another.
Key Concepts in Agency
- Principal: The individual who grants authority to an agent to act on their behalf, e.g., a broker being the principal to an associate.
- Agent: Any person authorized to act for a principal.
- Subagent: An agent acting on behalf of another agent.
Third Parties and Liability
- Third Parties: Those involved in a transaction but outside the agency relationship, often referred to as customers.
- Liability to Third Parties: Principals may be held liable for their agents' actions, including those of subagents, if harm occurs.
Fiduciary Duties
- Fiduciary Responsibilities ("OLD CAR"): Includes obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care.
- Negligence: Breach of duty due to carelessness or incompetence can lead to legal consequences.
- Disclosure: Agents must inform principals of any material facts impacting decisions.
Termination of Relationships
- Brokerage relationships can end due to various reasons such as accomplishment of purpose, mutual agreement, or by operation of law (e.g., death or mental incapacity).
Florida Brokerage Relationships
- Three authorized relationships: single agency, transaction brokerage, and non-representation (no brokerage).
- Dual Agent: A broker representing both buyer and seller in a transaction.
- Single Agent Duties: Include loyalty, confidentiality, full disclosure, and timely presentation of offers.
Compliance and Requirements
- Brokers must keep records for five years related to any transaction.
- Agents must comply with honesty and fairness and disclose material facts in residential sales only.
Additional Knowledge
- Puffing: Exaggerated claims in advertising that are unlikely to cause harm.
- Transaction Broker: Acts as a facilitator without being an agent.
- Changing Relationships: A written consent is required to transition from single agent to transaction broker.
Confidentiality and Ethics
- Confidentiality must be maintained for any sensitive principal information.
- Failing to comply with fiduciary duties can expose agents to penalties and lawsuits.
Special Case Considerations
- Exclusive Agency Listings: Might have specific legal implications if the seller or broker's circumstances change (e.g., bankruptcy).
- Real Estate Licensee: Must meet state agency requirements and maintain ethical standards in practice.
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Description
This quiz contains flashcards focused on the definitions and roles of different types of real estate agents, such as special and general agents. Understand their specific authority and responsibilities in real estate transactions. Great for students in real estate courses.
