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5 Written Questions

5 Matching Questions

  1. What is an inadvertent dual agency?
  2. Duty 5: Accounting for Trust Funds
  3. Duty 3: Present ALL written communications
  4. Duty 1: Loyalty
  5. Renunciation by agent
  1. a 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).
  2. b An agent must always place the principal's interests above the interests of a third party. For instance, a seller's agent must negotiate with the buyer to get the highest price possible for the seller.
  3. c I QUIT!!! An agent can renounce (quit) the agency at any time. The agent may be liable for any damages caused by the breach.
  4. 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.
  5. e WATCH OUT LISTING AGENT! Don't get too buddy-buddy with the buyer. Many dual agency lawsuits involve unintended dual agency, in which the seller's agent's conduct with the buyer created an agency by implication be- tween the agent and buyer.

5 Multiple Choice Questions

  1. In addition to the general duties that licensees owe to any party to whom they render services, there are specific duties that licensees owe to the parties they represent. If the agent represents the seller, these duties are owed only to the seller. If the agent represents the buyer, these duties are owed only to the buyer. If the agent is a dual agent, these duties are owed to both buyer and seller.
  2. Under Washington real estate law, there is no vicarious liability between a real estate agent and a principal. A seller or buyer is ordinarily not liable for any act, error, or omission by a broker or salesperson.
  3. An independent contractor is hired to perform a particular job, and uses her own judgment to decide how the job should be completed. In contrast, an employee is hired to perform whatever tasks the employer requires, and is given instructions on how to accomplish each task.
  4. Think of this as Washington's requirement that ALL the cards be put on the table: Washington law requires real estate agents in residential transactions to make agency disclosures to both the buyer and seller informing them which party (or parties) they represent.
  5. KEEP SECRETS!!! The agent must place the principal's interests above the interests of a third party by refusing to reveal confidential information. The duty not to disclose confidential information continues even after the agency relationship has ended; thus, a broker could not tell subsequent clients information about a past client obtained while representing that past client.

5 True/False Questions

  1. Duty 4: Disclosure of material factsinformation that has a substantial negative effect on the value of the property or on a party's ability to perform his or her contractual duties, or that defeats the purpose of the transaction. RULE OF THUMB: Anything that might make it difficult for the parties to complete the transaction (such as the bankruptcy of one of the parties) should be disclosed. (Sex offender presence does not need to be disclosed)

          

  2. Revocation by principalI QUIT!!! An agent can renounce (quit) the agency at any time. The agent may be liable for any damages caused by the breach.

          

  3. What is a material fact?information that has a substantial negative effect on the value of the property or on a party's ability to perform his or her contractual duties, or that defeats the purpose of the transaction. RULE OF THUMB: Anything that might make it difficult for the parties to complete the transaction (such as the bankruptcy of one of the parties) should be disclosed. (Sex offender presence does not need to be disclosed)

          

  4. What is a General Agent?A general agent is authorized to handle all of the principal's affairs in one or more specified areas. Property managers are considered general agents

          

  5. What is a Dual Agency?Dual agency exists when an agent represents both the buyer and the seller in the same transaction. Dual agency is legal in Washington, although it is discouraged. To act as a dual agent, a broker must have the written consent of both parties to the transac- tion. He must also act impartially towards both buyer and seller and refrain from acting to the detriment of either party.

          

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