Washington Agency Overview Flashcards

Washington Agency Overview Flashcards In the event that two separate brokers from the same firm represent different parties to a transaction,...A) each broker represents only the party with whom he or she has an agency relationship.B) both brokers are presumed to represent both parties as dual agents.C) only one agent from a brokerage firm may be involved in a transaction at any given time.D) the firm's designated broker has broken the law and is subject to fines, imprisonment or both.

• each broker represents only the party with whom he or

she has an agency relationship.Explantion: This is referred

to as "split" or "designated" agency. In a transaction in which different brokers with the same real estate firm represent different parties, the firm's designated broker is a dual agent, while each broker solely represents the party with whom he or she has an agency relationship, unless all parties agree in writing that both brokers are dual agents.True or FalseAgency disclosures are required only when brokers work with new clients?

FalseExplanation: Each agency disclosure required is

specific to a transaction. In other words, each transaction requires a new disclosure.In normal real estate practice, a broker's price opinion...A) is the same as an appraisal.B) must conform to federal appraisal standards.C) can help the seller price the property.D) must be completed for each listing taken, per state regulations.

C) can help the seller price the property.Explantion: Under

Washington law, comparative market analyses (CMAs) are termed broker's price opinions (BPOs). Although not required by law, a broker's price opinion is helpful to determine a value range for the property.True or FalseIn Washington, a written agency agreement is necessary before a broker can sue for a commission?

TrueExplanation: Many licensees will formalize the buyer

agency relationship with a buyer agency agreement; however, the agency relationship will exist whether or not a written agreement is executed. (Note that a broker cannot sue for a commission unless there is a written agency agreement.) In Washington a property owner may refuse to sell based on the buyer's?A) National originB) HandicapC) Marital statusD) Economic qualification

D) Economic qualificationExplantion: The seller must

understand that the property will be shown and offered without regard to the race, color, religion, national origin, family status, sex, or handicap of the prospective buyer.Washington also prohibits discrimination based on marital status and temporary disabilities.Split agency (assigned agency or designated agency)Occurs when a designated broker assigns one agent in the real estate firm to represent the seller in a transaction, and a different agent from the same real estate firm to represent the buyer in the same transaction.True or FalseAn agency disclosure can cover several transactions such as selling a person's house and then representing the seller in purchasing a replacement house?

FalseExplanation: Each agency disclosure required is

specific to the transaction. In other words, each transaction requires a new disclosure. The agency disclosure must be made in writing in a separate paragraph in the purchase and sale agreement or in a separate document. The agency disclosure may be made after an offer is prepared, provided that disclosure is made before the agreement is signed.

Alpha Realty was hired to manage an apartment complex with 42 units. The owner has authorized Alpha to collect and disburse funds on the owner's behalf. This authorization must be included in?A) The summary statementB) The BPOC) Each new leaseD) The property management agreement

D) The property management agreementExplantion: A

written property management agreement, which includes authorizations such as this, is required before managing the property.In Washington, confidential information concerning a principal includes all of the following EXCEPT?A) Information that was acquired by the broker during the course of an agency relationship with the principal.B) Information that the principal has not disclosed or authorized to be disclosed to third parties.C) Information relating to material facts about the property.D) Information that the principal reasonably expects to be kept confidential.

• Information relating to material facts about the

property.Explantion: One of the duties owed to a principal

is the duty "not to disclose any confidential information from or about the principal." There is now a statutory definition of confidential information that supersedes the common law definition.A listing agreement would NOT be ended by?A) Expiration of the term agreed upon by the partiesB) Termination of the relationship by mutual agreement of the partiesC) Successful closing of a saleD) Lowering the property's listing price

D) Lowering the property's listing priceExplantion: In

Washington, an agency relationship, such as the listing agreement, begins when the broker enters into an agreement with the sellers and continues until the property is sold, the listing expires, the parties agree to end it, or the listing is ended by law.When performing real estate brokerage services in Washington, a broker must disclose to parties in writing whom the broker represents. This disclosure would not need to indicate that the broker representsA) The buyerB) Both the buyer and the sellerC) The sellerD) Their designated broker

D) Their designated brokerExplantion: A broker must

disclose to all parties in writing whom the broker represents when performing real estate brokerage services in a transaction. The disclosure must indicate whether the broker represents the buyer, the seller, both parties, or neither party.Liability for the harm caused by others is referred to as?A) The liability of substitutionB) Imputed liabilityC) Vicarious liabilityD) Mutual liability

C) Vicarious liabilityExplantion: The provisions in

Washington's agency statute regarding vicarious liability are a substantial departure from common law. Vicarious liability is liability for the harm caused by others. Until 1997, a principal could have been held liable for the harm caused by his or her real estate agent.Practice ActivityListing & Property Management AgreementsMatch the objects to the appropriate target.1) Listing agreement2) Property management agreement3) Broker Price Opinion4) Summary statementA) An agreement with the sellerB) Allows broker to hold security depositsC) Lists reciepts and expenses for each propertyD) Must state that it is not an appraisal 1) Listing agreement - A) An agreement with the seller2) Property management agreement - B) Allows broker to hold security deposits3) Broker Price Opinion - D) Must state that it is not an appraisal4) Summary statement - C) Lists reciepts and expenses for each property The Law of Real Estate Agency (pamphlet) The agency pamphlet that must be given to all parties in the transaction by their broker is a brochure designed to inform and educate the public about agency law. The cover page is a summary of Washington's agency statute and refers the reader to specific sections of the statute. The

body of the pamphlet itself is the complete text of the agency statute. Also states the duties of a Broker, Seller's Agent, Buyer's Agent, Dual Agent, and more. Agents are required to provide prior to each contract being signed.Facilitation (non-agency or transaction brokerage)When a licensee provides services that does not require agent representation. Must treat all parties objectively and cannot promote the interests of one party over the those of the other party.

In a real estate transaction, the buyers and sellers must be given the agency pamphlet designed to inform and educate the public concerning agency law by?A) The Real Estate Commission's Agency Review BoardB) The local real estate boardC) Their brokersD) The title company at closing

C) Their brokersExplantion: The agency pamphlet that

must be given to all parties in the transaction is a brochure designed to inform and educate the public about agency law. The cover page is a summary of Washington's agency statute and refers the reader to specific sections of the statute. The body of the pamphlet itself is the complete text of the agency statute.Dual agencyA situation in which one firm represents both the buyer and the seller in a transaction each with different agents, making the designated broker the dual agent. Or when both parties agree in writing that both licensees, as well as the designated broker are dual agents.a. The challenge of dual agency is to fulfill the fiduciary or statutory obligations to one principal without compromising the interests of the other, especially when the parties' interests may not only be separate, but even opposite.b. This is unethical unless both parties agree to it, and while permitted in Washington it is illegal in other states.Louise is a skilled broker at Alpha Realty. After a particularly challenging transaction finally closes, the client gives her a check for $500 "for all your extra work." Which of the following statements is accurate?A) Louise may receive compensation only from her designated broker.B) While such compensation is irregular, it is appropriate for Louise to accept the check.C) Louise's designated broker is entitled to 80 percent of the check.D) Louise should accept the check and deposit it immediately in a special escrow account.

• Louise may receive compensation only from her

designated broker.Explantion: Only the licensee's

designated broker can pay compensation.In a "split" or "designated" agency transaction, who among the following is considered a dual agent?A) The designated brokerB) No oneC) The broker who represents the buyerD) The broker who represents the seller

A) The designated brokerExplantion: "Split" or "designated"

agency occurs when two separate brokers from the same real estate firm represent different parties to a transaction.In a transaction in which different brokers with the same real estate firm represent different parties, the firm's designated broker is a dual agent, while each broker solely represents the party with whom he or she has an agency relationship, unless all parties agree in writing that both brokers are dual agents.A listing taken by a real estate broker is technically an employment agreement between the seller and the?A) FirmB) Broker and firm togetherC) BrokerD) Local multiple listing service

A) FirmExplantion: A listing agreement is an employment

contract that creates a special agency relationship between the property owner and the firm, which is under the supervision by the designated broker. Brokerage service agreements belong to the firm, not the broker.Practice ActivityAgency TermsMatch the objects to the appropriate target.1) Dual agency2) Vicarious liability3) Client4) Imputed knowledge5) Facilitation6) Split agency7)