Flashcards in Unit 4-Authorized Relationships, Duties, and Disclosure Deck (17)
What is an AGENT?
Person entrusted with another's business authorized to represent and act for the principal
Brokerage Relationships in FL
3-No Brokerage relationship
Under FL presumed all licenses are operating as Transaction Brokers unless a single agent or NO Broker relationship established IN WRITING
Provide LIMITED REPRESENTATION to a buyer, seller, OR both in a RE transaction but does not represent either in a fiduciary capacity
Single Agent Relationship
Represent EITHER buyer or seller as FIDUCIARY but NOT BOTH in same transaction
No Broker Relationship
Brokerage all NOT represent the buyer or the seller.
They simply facilitate the transaction from contract to close. EX: For Sale By Owner
Who establishes the appropriate type of relationship?
What are the three types of Law?
1-Common Law(unwritten law)
Judge made law
Based on fundamental principle of absolute loyalty
Written statutes enacted by legislature
Created by administrative agencies in form of rules, regulations, orders and decisions
Statute 475 Empowers FREC to govern RE practice.
What is Dual Agency and is it legal practice in FL?
When a brokerage firm represents both the buyer and the seller as fiduciary in the same relationship
It is essentially accepting a single agent relationship with the buyer and then accepting one with the seller
It is ILLEGAL in FL
What defines a RESIDENTIAL SALE?
Sale of improved property of 4 or fewer units
Sale of unimproved property intended for use as 4 or fewer units
Sale of Agricultural property of 10 acres or less
Wha are the duties of a transactional broker?
-Deal Honestly and Fairly
-Account for all funds
-Use skill, care and diligence
-Disclose all known facts
-Present all offers
-Exercise Limited Confidentiality
-Perform any additional duties mutually agreed
What are the two ADDITIONAL duties of a Single Agent broker relationship that distinguish it from that of a Transactional Broker?
Act in good faith according to principals lawful instructions
What are the 3 essential duties of ALL Brokerage Relationships
A-account for all funds
D-deal honestly and fairly
D-disclose all known facts
Brokerage Relationship Limitations
1-if TRANSACTION w/Seller
- may act as transaction for buyer in same transaction OR No Broker capacity
2-if SINGLE AGENT for seller
-may act as NO Broker w/Buyer
What are the WRITTEN disclosure requirements for the 3 broker relationships.
For a SINGLE AGENT and NON REPRESENTATION relationship..it must be disclosed to buyer OR seller as either a separate and distinct Disclosure Document OR included in part of another document such as a LISTING AGREEMENT or BUYER/BROKER AGREEMENT
For NO BROKER-must be disclosed before showing property
FOR TRANSACTIONAL BROKER...unless another relationship has been established IN WRITING... There is no requirement for disclosure
How long must a broker retain relationship disclosure documents?
May a SINGLE AGENT relationship be changed to a TRANSACTION relationship? When and how?
YES. It may be changed at ANY TIME.
Requires the principals written consent to change
Buyer, seller or BOTH must sign the "CONSENT TO TRANSITION TO TRANSACTION BROKER" notice required by CH 475 F. S
** if principal REFUSES TO SIGN... continue as single agent!