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PA Real Estate Exam
Relationships with Consumers
35
Real Estate & Planning
Not Applicable
07/19/2005

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Cards

Term
Consumer Notice
Definition
A document which must be given to any consumer upon first substantive discussion of real estate. This document deals with types of agency relationships, it has a provision dealing with disclosure, the ways agency relationships are created and terminated, conflicts of interest.
Term
Special Agency
Definition
One who ahs the authority to act for a principal in a specific transaction or task
Term
General Agency
Definition
One who has authroity to act for a principal in all business of a prticular kind - power of attorney
Term
Universal Agency
Definition
Having the authority to do all acts that can be lawfully delegated to a representative
Term
Agency can be termiated by:
Definition
Full Performance
Mutual concent
Destruction of the property
Experiation of the agency contract
Death, bankruptcy or insanity of one of the principal or agen
The agent's neglect or abandonment
Term
How is an exclusive agency relationship created
Definition
In writing only. It cannot be implied
Term
How is an oral non-exclusive agency relationship created
Definition
The liscensee must deliver a written memorandum stating terms of the relationship
Term
How is a transaction licensee relatinship created?
Definition
If the consumer will be responsible for the fee: written agreement

If the consumer will not be responsible for the fee: written memorandum signed by consumer
Term
What is necessary before a licensee can be a seller's subagent?
Definition
A written memorandum
Term
In a sales transaction, when must the licensee provide the consumer ntoice
Definition
The initial interview, or first substantive discussion
Term
Is providing the consumer notice sufficent when dealing w/a sales transaction
Definition
No you have to explain
Term
How long must the consumer notice be retained?
Definition
6 months if there has been no business, 3 years if business relationship occured
Term
What proceedure must be used if the initial interview is not face-to-face?
Definition
You have to orally advise the consumer of the various business relationships.
Term
In a leasing transaction when must the licensee provide the consumer notice?
Definition
When the application is taken.
Term
Why should a consumer withold confidential info from a transaction licensee?
Definition
They have limited obligations in regards to confidentiality.
Term
Is a designated transaction licensee relationship possible
Definition
No, it is not allowed
Term
Does a dual agent act as a 'referee' making sure neither client gains an advantage on the other client?
Definition
No, they just cannot giev an advantage to either side.
Term
If a consumer is not familiar with real estate transactions, which realtionship would be most appropriate
Definition
A single agency or designated agency
Term
Can a designated agent be a dual agent
Definition
No designated agents specifically represent ONE party. Dual represents both.
Term
Can a broker be a designated agent
Definition
No, only dual agent
Term
With whom can you share confidential information of your client?
Definition
Broker and any other agent of the client
Term
If a real estate licensee is acting as a seller's agent who is the client and who is the customer
Definition
The seller is the client

The buyer is the customer
Term
If a real estate licensee is acting as a buyer's agent, who is the client and who is the customer?
Definition
The buyer is the client, the seller is the customer
Term
Transaction Licensee
Definition
A broker or salesperson who provides communication or document preparation services without being an agent or advocate of the consumer
Term
Subagent
Definition
A broker, not in the employ of the listing broker, who is engaged to act for or cooperate with the listing broker in selling property as an agent of the seller.
Term
Designated agent
Definition
One or more licensees designated by the employing broker with teh consent of the principal to act exclusively as an agent or as agents on behalf of the principla to the exclusion of all other licensees within the broker's employ
Term
Dual agent
Definition
A licensee who acts as an agent for the buyer and seller or lessee and landlord in the same transaction
Term
fiduciary
Definition
one who is in a position of trust and confidence and therefore owes loyalty to the principal (client)
Term
fiduciary duties
Definition
undivided loyalty, obediance, confidentiality, reasonable care, full disclosure, accountability
Term
accountability
Definition
requires the agent to promptly report to the principal all money and property received and paid out, and upon request, to render an accounting
Term
full disclosure
Definition
requires the agent to disclose to the principal all info which might affect the pricipal's best interests
Term
reasonable care
Definition
requires the agent to protect the client from foreseeable risks of harm and recommend that the principal obtain expert advice when the principal's needs are outside the scope of the agent's knowledge
Term
Confidentiality
Definition
A licensee may not knowingly, during or following the termination of an agency relationship, reveal confidential info of the principal or use confidential info of the principal to the advantage of the licensee or a thrid party.
Term
Obedience
Definition
requires the agent to act subject to the principal's continuous control by not exceeding the scope of authority confererd by the principal and by obtaining and following all lawful instructions
Term
Undivided Loyalty
Definition
prohibits the agent from advancing any interests adverse to the principal's interests
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