5 Written Questions
5 Matching Questions
- Duty 5: Accounting for Trust Funds
- Implication agency relationships
- Are taxes withheld from independent contractors?
- Duty 1: Reasonable care and skill
- So, the agent wants to give the pamphlet to the party he is providing services to...he decides to do this after they've signed a written agreement. That's cool, right?
- a If an agent's negligence or in- competence harms a third party, the agent may be liable
- b WRONG WRONG WRONG! The Pamphlet must be given out before ANY written agreement is signed!!!
- c Important employment and tax laws apply when someone is classified as an employee, particularly those involving the withholding of income taxes and social security. Unlike employees, independent contractors do not have taxes withheld from their earnings.
- d Licensee must watch the money closely!!!! A licensee must account for any trust funds: money or valuable items received on behalf of a party to a transaction. The licensee must report to the party on the status of the trust funds and avoid commingling (mixing) them with her own money. The duty of accounting continues after the termination of the agency.
- e Implied agency: one not expressed in words, but understood from actions or circumstances.
5 Multiple Choice Questions
- Even if a salesperson is considered an independent contractor for tax purposes, the broker is still considered responsible for supervising the salesperson's actions and may be liable for a salesperson's misconduct.
- A licensee is obligated to present all types of written communications, including all written offers, to and from either party in a timely manner. Offers and counteroffers must be presented regardless of how unacceptable they may appear. The party, not the licensee, will decide whether or not to accept a particular offer. The licensee should present offers even if the property is subject to an existing contract (although not if the listing has expired).
- ABSOLUTELY NOT!!! NO KICKBACKS!!! An agent must not make any secret profits off the agency. A secret profit is a financial benefit that the agent receives without the principal's consent, such as a kickback from referring the principal's business to a contractor. An agent may still use the services of a contractor with whom she has an interest, so long as the interest is disclosed and the principal consents.
- A universal agent is authorized to do anything that can be lawfully delegated to a representative.
- The extent to which the principal can be bound by the agent's actions depends on the scope of authority granted to the agent; Types: Universal, general, special.
5 True/False Questions
What is Vicarious liability and why does it matter in principal/agent relationships? → Under general agency law, the principal may be held liable for his agent's wrongful acts. This is known as vicarious liability. Thus, a buyer or seller may be liable for the acts of his broker or a salesperson working for that broker.
Are latent defects to be disclosed, even if the property is listed "as is?" → YES YES YES! You MUST disclose those defects as well. In fact, if the seller is trying to get you NOT to disclose them, you should refer to take the listing!
What are the four (4) ways to terminate...an agency relationship? Think Mr. RT, also, think together, then seperate forms of attack. → Express agreement, ratification, estoppel, implication
What is Imputed Knowledge? (Does it apply in Washington State?) → Under general agency law, a principal is considered to have notice of information that the agent has, even if the agent never actually tells the principal. As a result, a principal could be liable for failing to disclose a problem to a third party, even if the agent never told the principal about the problem. This rule does not apply in Washington State = Principal is NOT automatically liable for things known by his agent.
Is dual agency representation encouraged? → HECK NO! But it is allowed, PROVIDED, there is a written consent from BOTH parties.