Chapter 4: Broker Relationship & Ethics

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Chapter 4: Broker Relationship & Ethics
2011-06-16 22:15:42
Real Estate Exam

Broker Relationships & Ethics
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  1. Agent
    Person Entrusted with another persons business
  2. Customer
    member of the public who is or may be a buyer or seller of real property
  3. Designated Sales Associates
    Two sales associates in same brokerage each representing the seller and buyer respectively
  4. Fiduciary
    Position of trust or confidence for another
  5. Fraud
    breach of contract/ trust
  6. General Agent
    Authorized to perform only acts related to a business or to employment of a particular nature

    ie property manager
  7. Puffing
    licensees boasting property's benefits
  8. Residential Sale
    defined as the sale of improved residential property of 4 or fewer units
  9. Single Agent
    • Represents the buyer or seller (not both)
    • if they work with other agents- subagents

    • Confidentiality
    • Obedience
    • Loyalty
    • Disclosure (full)

    • Deal Honestly and Fairly
    • Account for all funds
    • Skill Care and Diligence in the transaction
    • Present all offers and counteroffers in a timely manner
    • disclose all known facts that materially affect the value of residential real property and not readily observable to buyer
  10. Special Agent
    authorized to handle only a specific business transaction or a specific act

    • CPA
    • Single Agent Relationship
  11. Universal Agent
    authorized by principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another

    ie- overseeing financial affairs, medical care, employment opportunities and living arrangements
  12. Law of Agency
    • Common Law- Case law ; absolute Loyalty
    • Statutory Law- rules enacted by legislatures and other governing bodies
  13. Transaction Broker
    Has limited fiduciary to buyer and seller and is working for the transaction

    • Deal honestly and fairly
    • Account for all funds
    • Use Skill, care and diligence
    • Disclose all known facts that are nor readily observable to buyer
    • Present all offers and counter offers in timely manner
    • Exercise limited confidentiality unless waved by a party
    • Perform any additional duties that are mutually agreed to with a party
  14. Dual Agent

    Acts in a full fiduciary capacity for buyer and seller
  15. Residential transactions
    Disclosure requirements DO NOT apply to

    • non residential transactions
    • rental or leasing of real property
    • auctions
    • appraisals
    • dispositions of any interest in business enterprises or bus opportunities
  16. No Brokerage Relationship
    • Deal Honestly and Fairly
    • Disclose all known facts
    • Accounts for all funds
  17. Misreprentation
    misstatement of fact or omission or concealment of a factual matter. can lead to fraud
  18. Professional Ethics
    • golden rule
    • NAR's Code
    • clients
    • other brokers
    • general public