5 Written questions
5 Matching questions
- Duty 5: Good faith and continuous effort
- Does Washington State impose a duty to investigate upon the agent?
- Does it matter when the agency disclosure happens?
- Unilateral offer of subagency
- Duty 5: Accounting for Trust Funds
- a 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.
- b IN WRITING AND BEFORE!!! The agency disclosures must be made to the buyer before the buyer signs the offer, and to the seller before the seller signs the offer. The disclosure must be in writing, either in a separate paragraph in the purchase and sale agreement or in a separate disclosure document.
- c For listing agreements with this term, a buyer's agent who finds a buyer is STILL a subagent of the seller, rather than agent for the buyer.
- d Don't quit!!! Licensees must make a good faith and continuous effort to fulfill the terms of the agency agreement. For instance, a seller's agent must make a good faith and continuous effort to find a buyer for the property.
- e 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.
5 Multiple choice questions
- Actual authority is authority granted to the agent by the principal, either expressly (written or orally), or by implication (the authority to do what is necessary to carry out actions that were expressly authorized) -- A person has apparent authority when he has no actual authority to act, but the principal negligently or deliberately allows it to appear that the actions are authorized. The principal may be liable for acts committed by an apparent agent (or ostensible agent)
- This agent has limited authority to do a specific thing or conduct a specific transaction. In most cases, a real estate broker is a special agent because she has only limited authority; for instance, she can only negotiate with third parties and cannot sign a contract on the seller's behalf. (She would need a power of attorney to bind the seller.)
- 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.
- A licensee must disclose any material fact, if the fact is not apparent or readily ascertainable by the party.
- Real estate salesperson is broker's agent (broker being principal). Broker's principal is the seller/buyer, so a salesperson representing a broker is a "subagent", aka an agent of an agent
5 True/False questions
In Washington State, how is an agency relationship developed between a licensee and a buyer or seller? → When licensee undertakes to provide real estate services; seller = begins with written agrm't; buyer = automatic, once real estate brokerage services are performed
What is the Broker/Salesperson relationship? → BROKERS ARE ULTIMATELY THE AGENT! A real estate salesperson cannot act directly as the agent of a principal in a real estate transaction. Rather, the salesperson acts as the agent of his broker, and it is the broker who acts as the principal's agent.
Mutual agreement to terminate → When in doubt, sub it out! Don't be a hero and try and be everything to your principal! A licensee must advise the principal to seek expert advice on any matters relating to the transaction that are beyond the agent's expertise (such as matters best handled by a lawyer or a home inspector).
What is a Universal Agent? → This agent has limited authority to do a specific thing or conduct a specific transaction. In most cases, a real estate broker is a special agent because she has only limited authority; for instance, she can only negotiate with third parties and cannot sign a contract on the seller's behalf. (She would need a power of attorney to bind the seller.)
Duty 1: Reasonable care and skill → Real estate agents must avoid inaccuracies in their statements to prospective buyers. Opinions, predictions, or puffing - Misrepresentations, which may be grounds for a lawsuit, should not be confused with opinions, predictions, or puffing. The latter are nonfactual or exaggerated statements a buyer should know he cannot rely on