RE Chapter 6

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RE Chapter 6
2014-09-11 15:09:52

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  1. A person authorized to represent a principal in business dealings with other parties
  2. There is no need to pay ______ to create an agency relationship
  3. An agent who is appointed by the seller's agent to perform some or all of the seller's agent duties
  4. If a principal authorizes the appointment of a subagent, the principal is responsible for ________
    The acts of the subagent
  5. The original seller's agent is _______ to buyers for the wrongful acts of the subagent
    NOT responsible
  6. If the seller's agent appoints a subagent without the seller's approval, the seller's agent is ________, and the seller is ______
    • Liable for acts of the subagent
    • NOT liable
  7. A broker acting as a subagent has a fiduciary duty to ____, but no fiduciary duty to _____
    • The seller
    • The agent who appointed him
  8. When a broker is authorized by another broker to act as a subagent WITH the seller's approval, the subagent is primarily responsible to:
    The seller
  9. Agent that represents both buyer and seller in a transaction
    Dual Agent
  10. Agent who is more client-oriented, representing only either the buyer or the seller
    Single Agent
  11. An agent authorized by a principal to perform acts associated with an ongoing business for the principal, includes "continuity of service"
    General Agent
  12. An agent who is authorized by a principal to perform a particular act or transaction, without the continuity of service
    Special Agent
  13. Ways in which an agency may be created (4)
    • Express agreement
    • Implied agreement
    • Ratification
    • Estoppel
  14. Method of creating an agency agreement using words, either oral or written
    Express Agreement
  15. Method of creating an agency agreement by acts and conduct, rather than words
    Implied Agreement
  16. Method of creating an agency agreement in which the principal approves the agency after it has been performed
  17. Method of creating an agency agreement in which a legal and equitable doctrine prevents someone from denying there is an agreement, because of his previous acts or words that indicate his involvement
  18. Statement by a tenant confirming the terms of the lease, and that the tenant has no claims against the landlord
    Estoppel Certificate
  19. Under limited circumstances, an agency agreement may be created by ______ or ____
    • Necessity
    • Emergency
  20. Doing something by lie, trickery, or deceit, may NOT be used as a means of creating an agency relationship
  21. An agent has authority which the principal _______, _____, or ____ (apparently) confers upon him
    • Actually
    • Expressly
    • Ostensibly
  22. The authority a principal intentionally confers upon an agent, or by want of ordinary care, allows an agent to believe himself to possess
    Actual Authority
  23. Authority created by an express agreement between the parties of a contract, which precisely delineates the activities the agent is authorized to undertake
    Express Authority
  24. Also known as Specific Authority
    Express Authority
  25. Authority of an agent that may result from the conduct of the parties, can occur when an agent provides services to both a buyer and seller without realizing they both considered him their agent
    Ostensible Authority
  26. Also known as Implied Authority
    Ostensible Authority
  27. General responsibilities of an agent to a principal (2)
    • Fiduciary duties
    • Confidentiality
  28. Fiduciary duties of an agent (5)
    • Utmost care
    • Integrity
    • Trust
    • Loyalty
    • Place interests of principal above all others
  29. The agency relationship between a broker and a principal is similar to the relationship between _____ and ______ in a trust deed
    • Trustee
    • Beneficiary
  30. A broker representing a principal does NOT become _____ for the principal
    An attorney-in-fact
  31. Confidential or privileged information obtained by an agent about his principal must be kept confidential _____
  32. A principal is responsible for _______ actions, but a seller is NOT liable for _____
    • An agent's
    • Misrepresentations made by the BUYER'S agent
  33. Duties of an agent (not fiduciary, just general) (3)
    • Disclose all material facts to the principal
    • Present all offers (unless frivolous or instructed not to)
    • Obey principal's lawful instructions
  34. If an agent does not obey a principal's lawful instructions, he is _____
    Liable for damages
  35. In order to be compensated, an agent must do one of 2 things:
    • Find a ready, willing, & able buyer matching the terms of the listing
    • OR
    • Secure a binding contract between the buyer and seller
  36. An agent who procures an a perfect offer, or secures a binding contract, is entitled to ___, even if _____
    • Commission
    • Seller cannot/will not sell
  37. An agent must be ____ at the time of sale and have a _______ to enforce the listing and collect a commission
    • Licensed at the time of sale
    • Written employment contract
  38. If a seller wants to pay a commission to a broker under an oral listing, it is ________
    Permissible for the broker to accept the commission
  39. An "as is" clause does NOT eliminate the duty to ______
    Disclose material facts
  40. A salesperson who is working as an agent for a seller has the responsibility to _____ and cannot withhold ________
    • Treat the buyer fairly & honestly
    • Material information
  41. Failure to disclose material facts, usually latent defects, that goes against an agent's liability to third parties
  42. In actual practice, a buyer who is a victim of misrepresentation sues _________
    Both the broker and the seller
  43. If an agent acts in excess of his authority or misrepresents a party, he is liable to _______
    Both the principal AND the third party
  44. A real estate agent may NEVER change the terms of a buyer's offer without _______
    The buyer's approval
  45. An agent who intentionally misrepresents a property to a buyer may be subject to ______ (3)
    • Tort liability in a civil action
    • Criminal action
    • Discipline by the RE Commissioner
  46. A seller caught up in an agent's intentional misrepresentation may be subjected to (2)
    • A rescission of the contract
    • Civil suit for damages
  47. A negligent or intentional wrongful act arising from breach of duty
  48. When a broker relies on false information from the seller and the buyer rescinds, the broker is entitled to _______ and ______
    • Full commission
    • Indemnity from legal action by the buyer
  49. California's Agency Disclosure law requires agents to disclose the common agency relationships of sales or leases for more than ________, of _____ residential units
    • One year
    • 4 or less
  50. Sets forth disclosure obligations and describes certain duties a licensee owes to a principal in a real property transaction
    Agency disclosure form
  51. A real estate brokerage which represents buyers only, and not sellers
    Buyer's agency
  52. 3 required steps of agency disclosure
    • Disclose
    • Elect
    • Confirm
  53. The act of giving the seller or buyer the required agency disclosure form
  54. The listing agent must deliver an agency disclosure form to the seller ________, and before ______
    • As soon as practical
    • Entering into a listing agreement
  55. A selling broker must deliver an agency disclosure form to the buyer ______ and before the buyer ________
    • As soon as practical
    • Signs the offer to buy
  56. To choose the agency relationship for the transaction, one of the required steps of agency disclosure
  57. As soon as practical, both listing and selling agents must disclose to the seller or buyer whether they are acting as _____ or ______
    • The exclusive agent
    • Dual agent
  58. Disclosed agency relationships must be confirmed ______, either in the _____ or _______, prior to or coincident with _____
    • In writing
    • RPA
    • Separate writings 
    • The execution of the contract
  59. If an agent does NOT properly disclose a dual agency to all parties, he may (3)
    • Be disciplined
    • Provide grounds for either party to rescind
    • Not receive any commission
  60. A transaction in which both the buyer and the seller are represented by licensees working for one broker
    In-house Sale
  61. The only legal agency relationships in an in-house sale are "_______" or "_______"
    • Agent for Seller
    • Dual Agent
  62. Dual-agency is most often used in _____
    In-house sales
  63. An agent must reveal if a buyer is _______ to him
  64. Whenever he is a principal in a transaction, an agent must disclose to a buyer and/or seller that ______
    He has a license
  65. An agent may not make any _______ profit in a real estate transaction, and his commission must be revealed to ______
    • Undisclosed
    • Both buyer and seller
  66. A ______ who is not licensed may make a secret profit without violating the law
  67. In an in-house sale, it is impossible for the licensee to be an agent for the ____ only, because the brokerage already has an agency relationship with the ______
    • Buyer
    • Seller
  68. An agency may be _____, but not ____, by estoppel
    • Created
    • Terminated
  69. Ways an agency may be terminated (7)
    • Death or incapacity (of broker or principal)
    • Mutual consent (of agent & principal)
    • Destruction (of subject matter)
    • Expiration
    • Agent renounces (still liable)
    • Principal renounces (still liable)
    • Completion of purpose (close of escrow)
  70. Describes when all properly prepared and signed escrow instructions become an enforceable contract, and all the terms of the instructions have been fulfilled
    Complete Escrow
  71. Dept of Corporations is now called the _____
    Dept of Business Oversight
  72. An existing loan with a good history of on-time payments, preferred by investors because they have less risk
    Seasoned Loan
  73. An agreement providing for a sum of money to be received by a series of payments at fixed intervals over a period of time, examples include monthly payments to lenders & installment payments to landlords
  74. When a broker dies, all licensees employed by a him must _____
    Stop real estate activity immediately
  75. If a broker has unexplained trust fund account overages, he must keep _____, keep the funds _______, and _____ the money to ______ within ______ if he cannot find the owner
    • A separate record of account overages
    • In the trust account
    • Turn over 
    • State Controller's office
    • 3 years
  76. The seller & agent have no liability for failure to disclose the fact of any death which occurred on the property more than _____ prior to the date ______
    • 3 years
    • The buyer makes an offer
  77. Any death which occurred on a property within ______ should be disclosed if deemed to be "_____"
    • 3 years
    • Material
  78. A real estate development with the presence or potential presence of a hazardous or toxic substance, pollutant or contaminant, typically resulting in abandoned structures and vacant lots
    Brownfield Development
  79. Real estate appraisers are licensed and regulated in CA by the __________
    Bureau of Real Estate Appraisers (BREA)
  80. The annual net income (cash flow BEFORE taxes) divided by the total capital (cash) invested
    Cash on cash return
  81. Homes that are usually one story, with flat or low pitched roofs; large amounts of glass; and designed with both indoor and outdoor living in mind
    Contemporary Style
  82. A wall built on the line between two adjoining properties, which are under different ownership, for the use of both properties; example is a wall between condo units
    Party Wall
  83. Licensees who are acting as agents in transactions must disclose their ________ on all solicitation materials intended to be the _______, and on ______ agreements when acting ______ in those transactions
    • BRE license numbers
    • First point of contact with consumers
    • Purchase agreements
    • As agents
  84. Solicitation materials include _____ (3), but do not include (2)
    • Business cards
    • Stationery
    • Advertising fliers
    • Newspaper ads
    • For sale signs
  85. An agent may refuse to take a listing if ______, but he has to refuse the listing if _____
    • It is overpriced
    • The seller is committing fraud/discriminating
  86. Unit of comparison most often used to appraise industrial property
    Cost per cubic foot
  87. A small house will usually cost ____ per square foot than a large house