Unit 9 Quiz Flashcards

Unit 9 Quiz Flashcards The brokerage deposits trust funds into the firm's operations account. This is an example of conversion, commingling, proper accounting, fraud commingling; trust funds must be placed in a trust account, not the broker's business/ operations account."A fact, situation, or property defect that, if known, might change a party's decision to go forward with a transaction is an irrelevant fact; a material fact; an alternative fact; a proven fact.While showing an income producing property, the broker advised the consumer that the property is likely to be very profitable in the future because of its location, The broker's actions might result in the creation of the universal agency, general agency, ostensible agency, implied agency.

IMPLIED AGENCY; ACTING AS IF YOU ARE

SOMEONES AGENT, SUCH AS GIVING ADVICE OR

SHARING OPINIONS, CAN CREATE AN IMPLIED

AGENCY.

If a broker and a seller have a fiduciary relationship, the broker could inform a buyer that the seller will accept substantially less than the listed price; fail to tell the buyer about hidden structural problems to protect the seller; disclose the buyer's financial qualifications; honor the seller's request to refuse to shoe the property to minorities.diclosure to the buyer's financial qualifications; as a fiduciary of the seller, the broker has the duties of obedience, confidentiality, accountability, accountability, and reasonable care and skill (old car). However, these fiduciary duties do not require or permit the broker to commit fraud or violate antidiscrimination laws.A real estate agents fiduciary obligation includes all of the following except acting as an advocate, obedience and loyalty, disclosure of confidential information about the principal, disclosure of all risks and benefits of the transaction.Disclosure iconfidential nformation about the principal. The law of agency specifies fidicuary obligations to the principal, including loyalty, confidentiality, disclosure, obedience, reasonable care and skill (diligence) and accounting. This makes the agent an advocate for the principal.The brokerage firm has received an earnest money deposit on a listing. The brokerage firm should deposit on a listing.The brokerage firm should deposit the money in the firm's operations account, deposit the money within 5 days, hold the earnest money until the lender sends notice to deposit, deposit the money following the terms of the purchase contract.Deposit the money following the terms of the purchase contract. The broker is obligated to follow the contract contract to determin when and where to deposit earnest money if the contract does not specify, then state law would be followed.Unit 9 A listing brokerage is the seller's agent, the buyer's principal, the buyer's agent, the third party.The seller's agent; the seller hires the listing broker to help the seller sell a property.A seller informs a salesperson that a house is for sale "as is". The salesperson should inform all potential buyers that there is nothing wrong with the property even though the salesperson has not inspected it; visually inspect the property, and if the salesperson sees a water leak in the ceiling the salesperson should disclose that information to potential buyers about the condition of the property; advise potential buyers that an "as is" property requires no

property disclosures.visually inspect the property; and if the salesperson seees a water leak in the ceiling, the salesperson should disclose that information to potential buyers. licensees must reveal all material facts they or reasonably should know.A real estate professional acting solely as a seller's agent is MOST likely to be held liable for claims of mis respresentation by a buyer if the agent committed which of these acts in the course of the transaction? Failed to

provide previous purchase prices for the property; Obeyed the seller's instruction to leave all discussions of property condition to the seller; continued to accept and present offers on the property after the seller accepted the buyers offer; Deposited the earnest money check in a personal account to cleat before transferring it to the trust account.

OBEYED THE SELLER'S INSTRUCTIONS TO LEAVE

ALL DISCUSSIONS OF PROPERTY CONDITION TO

SELLER. REGARDLESS OF THE SELLER'S

INSTRUCTIONS, AGENTS MAY BE CHARGED WITH

MISREPRESENTATION IF THEY FAIL TO DISCLOSE A

MATERIAL FACT ABOUT PROPERTY CONDITION.

The document used to form the relationship between the agent and the principal is an open listing, a fiduciary agreement, a facilitations contract, a lease.fiduciary agreement; Fiduciary agreements create the representation obligations of agents to pricipals.Universal agency; The principal gives the agent control over all of the principal's affairs in a universal agency.Appointment of a universal agent is often part of an end of life plan What type of agency could be unwillingly created by a licensee's actions, such as giving advice to customer?Universal Agency; Implied Agency; Special Agency; General Agency.All of these; Confidentiality requires that an agent never disclose the price a principal might have accepted, the reasons the principal took the action she did, or or what terms the principal may have agreed to.A brokerage firm's trust account must be which type of an account? Money market account; Investment account; Investment account; Demand account; Any type of account When a property manager signs a property management contract with an owner, the property manager is a general agent of the property owner, the property manager is a general agent of the property owner; a third party to the contract; a universal agent of the broker; a principal of the property owner.General agent of the property owner. Property management is an ongoing business relationship. The property manager is the general agent (fiduciary) of the property owner.What duties does a listing agent owe to a third party buyer?Fairness and disclosure of benefits and risks; Honesty accounting, and disclosure of material facts; Honesty, confidentiality, and fairness; Disclosure of material facts, honesty, and loyalty.Honesty, accounting, and disclosure of material facts. a listing agent owes a third party honesty, fairness, accounting, and disclosure of all material facts. Agents must disclose benefits and risks to the principal, not to a third party. Agents owe DAH to third parties.Special agency, in a special agency, the agent is authorized to perform a series of acts associated with the continued operation of a particular act without the ability to bind the principal contractually.What type of agency relationship exists when an agent is authorized to perform in place of the principal with unlimited ability to contractually bind the principal? Special Agency; General Agency; Universal Agency; Implied Agency.

MATERIAL FACT; WHILE STATE LAWS ULTIMATELY

DEFINE MATERIAL FACTS, A FACT IS CONSIDERED

MATERIAL TO A transaction if knowledge of the fact would alter a party's decision regarding the transaction.A type of agency in which the agent is authorized to help a buyer buy or help a seller sell, but the agent cannot sign a purchase contract on behalf of the client is a special agency; a general agency; a universal agency; an implied agency.Principal grants power of attorney to an attorney in fact. An attorney in fact is often hired to act on behalf of the principal, should the principal become incapacitated or otherwise be able to act on his own behalf.The fiduciary duty of confidentiality requires lifetime secrecy regarding which of these of the client? Price; Terms; Motivations; All of these Demand account; a trust account must freely allow the deposit and withdrawl of funds, such as a checking account.Given no instructions regarding trust funds from the owner, brokerages providing property management services must deposit rents and security deposits into which account?Building opertating account; Property manager's account;