Real Estate Brokers: Working Relationships

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Questions and Answers

What is the Broker's primary duty when acting as an agent for the Landlord?

To deal fairly and honestly with the Tenant

To provide utmost good faith, loyalty, and fidelity to the Landlord (correct)

To represent the Tenant's interests above all

To ensure the property is rented at the highest price

Under what circumstance does a Broker represent the Tenant?

When a Tenant signs a written Tenant Agreement with the Broker (correct)

When there is a verbal agreement with the landlord

When the Broker works primarily as an intermediary

When the Broker decides to act in the Tenant's favor

What should a Tenant refrain from disclosing to the Broker when the Broker is the Landlord's agent?

Personal preferences about the rental property

Questions about the rental process

Concerns related to the property condition

Information the Tenant does not want shared with the Landlord (correct)

What is a key difference between a Landlord's Agent and a Tenant's Agent?

A Tenant's Agent requires a written agreement with the Tenant (D) Signup and view all the answers

In what capacity does a Broker assist the Tenant when representing the Landlord?

As a customer, providing fair dealings and accurate answers (A) Signup and view all the answers

Which statement best describes the Broker's relationship with the Tenant without a written agreement?

The Broker has no legal obligations towards the Tenant (D) Signup and view all the answers

What type of relationship does a Broker have with the Landlord when no written agreement is in place?

Intermediary without specific duties (B) Signup and view all the answers

Which liability applies when a Broker acts as a Landlord's Agent?

Only the Landlord is vicariously liable for the Broker's actions (C) Signup and view all the answers

What is required for a Broker to establish an Intermediary relationship with a Tenant or Landlord?

A written agreement (B) Signup and view all the answers

Which of the following duties is NOT owed by an Intermediary to the Tenant or Landlord?

Maintain utmost good faith (D) Signup and view all the answers

In what situation can a Broker disclose material information about a Tenant or Landlord without consent?

If required by law (D) Signup and view all the answers

What defines a customer in a real estate transaction?

A party with no agency or intermediary relationship (B) Signup and view all the answers

Which of the following is true regarding a designated agent?

They are designated by a responsible broker (B) Signup and view all the answers

What is the primary obligation of a Broker when working with a customer?

To treat the customer fairly and disclose all material matters (B) Signup and view all the answers

Which scenario allows a broker's relationships with both parties to change to Intermediary?

When both parties give written consent (C) Signup and view all the answers

What obligation do Brokers have regarding known adverse material facts?

They must disclose to all potential tenants and landlords (B) Signup and view all the answers

What must a Tenant do if they wish to rent a property that the Broker is managing?

Consent to change the Broker's status to Intermediary (A) Signup and view all the answers

Which of the following statements about a broker acting as Intermediary is FALSE?

The Broker is obligated to negotiate on behalf of the parties (A) Signup and view all the answers

Which duty must a Broker fulfill as an Intermediary?

Perform written agreement terms with parties (D) Signup and view all the answers

If a Tenant's Agent is aware of a Tenant's adverse financial facts, what must they do?

Disclose it to both the Tenant and prospective Landlords (A) Signup and view all the answers

How should a Broker approach handling a customer's information?

With confidentiality and privacy (A) Signup and view all the answers

What is a crucial distinction between an Agent and an Intermediary?

An Agent owes fiduciary duties to their client (C) Signup and view all the answers

What fiduciary duties does a broker owe when acting as the agent for one party?

Utmost good faith, loyalty, and fidelity (A) Signup and view all the answers

When does a broker act as an intermediary?

When a written agreement is signed with the seller and/or buyer (C) Signup and view all the answers

Which of the following statements about intermediaries is true?

They have no fiduciary duties towards either party (A) Signup and view all the answers

What is required for a broker to be considered a seller's agent?

A written listing agreement with the seller (B) Signup and view all the answers

What duty does a broker owe to a customer in a real estate transaction?

Honesty and fairness while disclosing material matters (B) Signup and view all the answers

What happens if a buyer signs a Buyer Agency Agreement with a broker?

The buyer is liable for the broker’s actions under that agreement (B) Signup and view all the answers

Under Wyoming law, what is the status of commission rates for real estate brokerage relationships?

Negotiable between broker and parties involved (C) Signup and view all the answers

What must a broker disclose as a buyer's agent?

All adverse material facts about the buyer (A) Signup and view all the answers

What should a customer avoid sharing with a broker?

Information they do not want disclosed to the other party (B) Signup and view all the answers

Which of the following is NOT a required act of an intermediary?

Acting as an advocate for either party (B) Signup and view all the answers

If a landlord signs a contract with a broker, what is the broker's responsibility?

To advocate solely for the landlord’s benefits (B) Signup and view all the answers

What must happen for the written disclosure and acknowledgment to become a valid agreement?

The landlord or tenant must execute it (A) Signup and view all the answers

Which of the following accurately describes the role of a customer in a real estate transaction?

The customer has no agency or written agreement with the broker (B) Signup and view all the answers

What duty does a Broker have as an Intermediary to the parties involved in a transaction?

Account promptly for all money and property received. (C) Signup and view all the answers

Which statement correctly describes the relationship between a Designated Agent and the parties involved?

A Designated Agent represents one party only. (B) Signup and view all the answers

Under what condition can a Broker serve as an Intermediary for both Buyer and Seller?

When written consent is given by both parties. (A) Signup and view all the answers

Which of the following is NOT a duty of an Intermediary?

Provide expert advice on material matters. (B) Signup and view all the answers

When acting as an Intermediary, which of the following is true?

The Intermediary must exercise reasonable skill and care. (D) Signup and view all the answers

What must a Broker disclose to prospective Buyers regarding the property?

Known adverse material facts about the property. (D) Signup and view all the answers

Which of the following must the Intermediary disclose to the parties?

Their interest in the property. (B) Signup and view all the answers

If a Buyer Agency Agreement is signed, what can occur if the Buyer wishes to make an offer on a property listed by the same Broker?

The parties may consent in writing to change to an Intermediary relationship. (C) Signup and view all the answers

Which of the following is a key feature of a Broker's obligations as an Intermediary?

To inform both parties of any material facts. (D) Signup and view all the answers

What is a key requirement for changing an established agency relationship to an Intermediary relationship?

Written consent from the parties involved. (A) Signup and view all the answers

What differentiates a designated agent from an Intermediary?

A designated agent owes fiduciary duties to both parties. (C) Signup and view all the answers

Which of the following is NOT a material disclosure that an Intermediary must provide to the parties?

Confidential details without consent. (B) Signup and view all the answers

What is the main condition for a Broker to change their role from agent to Intermediary?

Written consent from the involved parties is required. (D) Signup and view all the answers

Which situation would provide the Intermediary the right to disclose private information?

If disclosure is required by law. (B) Signup and view all the answers

Study Notes

Working Relationships with Real Estate Brokers

Landlord's Agent - the Broker represents the Landlord and owes them a duty of utmost good faith, loyalty, and fidelity. The Broker will not have a written agreement with the Tenant.
Tenant's Agent - the Broker represents the Tenant and owes them a duty of utmost good faith, loyalty, and fidelity. The Broker requires a written agreement with the Tenant.
Intermediary - This is a non-agency relationship and requires written agreements with both Landlord and Tenant. The Broker will not represent either party and owes no fiduciary duties.
Customer - This is a party to a real estate transaction with no established intermediary or agency relationship.
Designated Agent - A licensee designated by the Brokerage Firm to act as an agent or intermediary for the Landlord or Tenant. Requires written designation by the brokerage firm and acknowledgement by the Landlord or Tenant.

Duties of an Agent

Agents owe the party they represent a duty of utmost good faith, loyalty, and fidelity.
Agents will have additional obligations as enumerated in the Intermediary section.

Duties of an Intermediary

Intermediaries must exercise reasonable skill and care.
Intermediaries must comply with Wyoming law.
Intermediaries are not agents or advocates.
Intermediaries must obtain the written consent of the parties before assisting the Buyer and Seller in the same real estate transaction as an Intermediary to both parties to the transaction.
Intermediaries must disclose any interests Intermediaries may have that are adverse to the interest of either party.
Intermediaries must disclose to prospective Buyers, known adverse material facts about the property.
Intermediaries must disclose to prospective Sellers, any known adverse material facts.
Intermediaries must disclose to the parties that an Intermediary owes no fiduciary duty, is not allowed to negotiate on behalf of the Buyer or Seller, and may be prohibited from disclosing information about the other party, which if known, could materially affect negotiations in the real estate transaction.

Broker Relationships with Buyers and Sellers

Seller’s Agent - the Broker represents the Seller and owes them utmost good faith, loyalty, and fidelity. This requires a written agreement with the Seller.
Buyer’s Agent - the Broker represents the Buyer and owes them utmost good faith, loyalty, and fidelity. This requires a written agreement with the Buyer.

Change from Agent to Intermediary - In-House Transaction

If a Buyer who has signed a Buyer Agency Agreement with Broker wants to look at, or submit an offer on property Broker has listed as an agent for the Seller - the Seller and the Buyer may consent in writing to allow Broker to change to an Intermediary (non-agency) relationship with both the Buyer and the Seller.
An established relationship cannot be modified without the written consent of the Buyer or the Seller. The Buyer or Seller may, but are not required to, negotiate different commission fees as a condition to consenting to a change in relationship.

General Notes

The real estate commission is not fixed by law and is set by each Broker individually and may be negotiable between the Buyer or Seller and the Broker.
Brokers are generally prohibited from offering legal advice.

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Description

Test your knowledge about the various working relationships real estate brokers maintain with landlords and tenants. This quiz covers the roles of Landlord's Agent, Tenant's Agent, Intermediary, Customer, and Designated Agent. Understand the duties and agreements associated with each role.