Florida Real Estate Review Unit 4 and 5

The brokerage relationship disclosure requirement in Chapter 475, F.S., apply to the

• sale of a 20 unit apartment complex

• sale of a condominium unit.

• residential lease agreement in a duplex.

• sale of a bookstore business and real property

Which statement BEST describes the duty of loyalty in a single agent relationship

• The broker must act in the best interest of the principal

• The broker must disclose all latent defects to prospective buyers.

• The broker is held to a standard of care that requires knowledge concerning the land and physical characteristics of the property.

• The broker must be able to account for all funds received on behalf of the principal.

A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is

• a dual agent

• a transaction broker

• bound to fiduciary duties to both the buyer and the seller

• a single agent of both the buyer and the seller

A licensee of ABC Realty must give the no brokerage relationship notice to

• A buyer who has a single agent relationship with XYZ Realty

• Every prospective buyer and prospective seller in all cases.

• A for-sale-by-owner (FSBO) seller before showing the FSBO home to a buyer customer of ABC Realty.

• >very prospective buyer who walks through an open house listed by ABC Realty.

A transaction broker has all the duties listed following EXCEPT

• limited confidentiality.

• to use skill, care, and diligence.

• to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.

• obedience.

In the common public relationship that exists in a typical real estate transaction, buyers and sellers are said to be dealing

• in a fiduciary capacity

• at arm's length with each other

• in an agency status with each other

• under the doctrine of ethical confidentiality.

If a principal fives the broker instructions that will result in loss or harm to the principal, the broker

• is justified in not carrying out such instructions.

• should carry out such instructions without question.

• should carry out only that portion of the instructions that will not cause loss or harm to the principal.

• should inform the principal of possible, harm inherent in the instructions, and then either do as instructed or withdraw from the relationship.

A broker's obligations to consumers with whom the brokerage firm has no brokerage relationship include the duty of

• full disclosure.

• accounting for all funds.

• loyalty.

• limited confidentiality.

Designated sales associates are BEST described as

• single agents for the buyer and the seller in nonresidential transactions where the buyer and the seller meet certain asset thresholds

• the sales associates designated to represent the buyer and the seller in a transaction broker relationship.

• undisclosed dual agents.

• the sales associates in charge of the required brokerage disclosure forms for the brokerage office.

Which relationship is a general agency relationship?

• Brokerage company employed under a listing contract.

• Relationship between the employing broker and a broker associate.

• Sales associate working with a prospective buyer.

• Relationship between a sales associate and the seller who has listed property with the brokerage.