5 Written questions
5 Matching questions
- What are the agent's duties to the principal?
- What is a Universal Agent?
- Revocation by principal
- Mutual agreement to terminate
- What is a Dual Agency?
- a YOU'RE FIRED!!! The principal may revoke the agency by firing the agent whenever she wishes. The principal may be liable for any damages caused by the breach.
- b A universal agent is authorized to do anything that can be lawfully delegated to a representative.
- c 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.
- d The parties may terminate the relationship by mutual agreement at any time. If the original agreement was in writing, the termination should be in writing.
- e 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.
5 Multiple choice questions
- NOPE! Agents are meant to be Sherlock Holmes! Alicensee has no duty to investigate any matters that he does not specifically agree to investigate. This includes inspecting the property, investigating either party's financial position, or verifying the seller's statements.
- 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.
- HECK NO! But it is allowed, PROVIDED, there is a written consent from BOTH parties.
- Express agreement, ratification, estoppel, implication
- 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)
5 True/False questions
Express agreement for agency → Most agencies are created by an express written agreement, such as a listing agreement or a buyer agency agreement. However, the agreement does not need to be in writing to create a valid agency, nor does the agreement have to be supported by consideration.
Why is the scope of authority in an agency relationship important? What are the three basic types? → 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.
Are agents and brokers employees or independent contractors? → Real estate brokers are virtually always independent contractors in relation to their principals. And most real estate salespersons and associate brokers are independent contractors in relation to their brokers, although in rare instances they're classified as employees.
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.