Unit 5 Of the RECA Fundamentals Questions & Answers Already Passed!!

Can you fill out forms on behalf of a buyer when you are employed by the seller? - Answer-yes, you can because you are helping the sale go through. but you can't give them any discretionary advice or judgment calls. you cant give them confidential advice you cant also represent them ELEMENTS OF REPRESENTATION RELATIONSHIPS - Answer-Creation of Law Consensual Controlled by Principal: Usually Involves Fiduciary Duties: Affects Principal's Legal Position Is a real estate agent allowed to represent both buyer and seller? - Answer-No the agent would then be in a conflict of interest. The agent is only allowed to either represent the buyer or the seller.... Unless there is a written letter stating that both parties are okay with the conflict of interest. The ways in which representation relationships may be terminated include the following - Answer-- By agreement (both agree to go separate ways) •By revocation (one of the 2 parties isn't fulfilling their side of the bargain.) •By operation of Law by Agreement There are 3 methods of terminating a representation relationship by agreement - Answer-Mutual Consent: The principal and agent both agree Expiry: the contract has taken so long and now has expiredCompletion/Performance. the purpose relationship is achieved sold!! There are representative relationships and non-representative relationship relationships. When does it become a representative relationship? - Answer-When they sign a contract or a verbal agreement. What are an agents Fiduciary duties ??? - Answer-the fiduciary duties of an agent are to act in the best interests of a client at all times What are the 5 D's of Role of clarity? - Answer-1 Discuss 2 Determine 3 Document 4 Disclose 5 Do What are the fiduciary duties an agent owes to a client? - Answer-- Utmost Loyalty - Avoid conflicts of interest - disclose conflict of interests - Handle confidential information properly - Not making secret profits - To account What are the FUNDAMENTAL Principles of Fiduciary Duties? ` - Answer-- Trust and confidence - Best interests - Loyalty What are the obligations to the client that you have?? - Answer-• Exercise Skill and care • Act Honestly • Perform Mandate• Obey Lawful Instructions • Act in Person • Disclose Information • Negotiate Favorable Terms • Maintain Confidentiality Fiduciary Duties