real estate unit 23 Flashcards


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1

As defined by BRRETA, a ministerial act could involve which of the following services?

Filling out a contract offer form for a buyer who requires no assistance in determining a monetary figure, as well as other details to include in the offer

2

BRRETA regulates all of the following contracts EXCEPT

those between brokers and salespersons.

3

Under the Brokerage Relationships in Real Estate Transactions Act, a broker owes a client the duty of

performing according to the terms of the brokerage engagement

4

Which of the following disclosures is required of a broker acting as a dual agent?

A statement that the broker represents two clients whose interests are, or at times, could be adverse

5

A prospective buyer who is represented by a broker signs a contract to purchase a property serviced by a septic system. The seller's property disclosure statement indicated that the system had recently been professionally serviced. After closing on the property, the buyer informed the agent who had represented him that the septic system failed and needed to be replaced. He claimed that the agent should have advised him to have the system inspected as a condition to close. Would BRRETA support this claim on behalf of the buyer-client?

No; under the statute, the broker only has to exercise “ordinary” care and the broker would not be held responsible for advising a client to pursue a matter the client could reasonably act on independently.

6

Under BRRETA, transactional brokers may

be compensated by either or both parties in the transaction.

7

In Georgia, a fiduciary agency relationship is established with a client

if the brokerage engagement agreement with the client defines the relationship as a fiduciary relationship.

8

In addition to requiring that all brokerage engagements between brokers and clients be in writing and more precisely identifying both duties and disclosures for real estate licensees, the 2000 revision of BRRETA

limited liability for real estate brokers and their affiliated licensees.

9

An owner of an office building enters into a brokerage engagement with a real estate company to find tenants for the building. The broker shows the property to a prospective tenant customer who decides that the office space is not right for his business. The customer asks the broker to represent him in finding another property for which he might lease space to operate his business. The broker agrees and signs a tenant brokerage engagement with this individual. What would be TRUE of the two brokerage relationships at this point?

The broker has a single agency relationship with the prospective tenant and a single agency relationship with the owner of the office building.

10

Buyer A notices a stain on the ceiling of a property being shown by the listing agent. According to BRRETA, the

listing agent is under no legal obligation to conduct an inspection of the property to identify unknown adverse conditions.

11

With regard to the termination of brokerage engagements, BRRETA

states that the agreement will terminate in one year only if the engagement lacks a termination date and the parties do not end it by authority granted in the agreement.

12

As a basis for legal actions surrounding real estate agency in Georgia, BRRETA is intended to be used in what capacity?

As a law that is to be interpreted strictly by the wording of the statute alone

13

In their relationships with their clients, brokers and their affiliated agents are required by BRRETA to exercise

ordinary care

14

Agent John is representing buyer Jane as a buyer agent and finds a home for Jane. Jane decides to sell the house and now John is her listing agent. One of John's old buyer-clients, Sue, places an offer on Jane's house through Jim, an agent in John's office. Which of the following is TRUE?

John’s and Jim’s broker can know confidential information about Jane and Sue.

15

Which of the following brokerage services might a transactional broker provide for the parties in a transaction?

Fill out an offer to purchase form for a buyer who provides all the necessary details to complete the contract offer

16

A broker who does not have a client relationship with any of the parties in a real estate transaction and only offers ministerial acts on the behalf of the parties is a

transaction broker.

17

Two real estate licensee affiliates for the same broker find themselves working on the same transaction. Licensee A is exclusively representing the buyer, and licensee B is exclusively representing the seller. Under BRRETA, what would be TRUE in these circumstances?

Both licensees are designated agents in this transaction.

18

BRRETA allows a single agent in a real estate transaction to

receive compensation from a client or customer in a transaction.

19

Concluding that the relationships between real estate brokers and the general public were not well served by the common laws of agency, the Georgia Legislature enacted BRRETA primarily to

prevent harmful misunderstandings and misrepresentations between brokers and clients or customers.

20

Licensee affiliate Stan is acting as Susan's designated buyer's agent. If Susan instructs Stan to keep confidential that as soon as she closes on the property, she plans to tear down the existing home and build a new one, then as the designated agent, Stan

may disclose the information to his broker, but not to any other affiliated licensee of the broker, including the other designated agent

21

In its enactment of BRRETA, the Georgia General Assembly intended for the law to

uphold common law requirements regarding proof of fraud in claims of misrepresentation.

22

In the early 1990s, multiple listing services throughout the country eliminated the requirement that brokers showing listings from the MLS to buyers represent the sellers and listing brokers for these properties because

the requirement resulted in ever increasing litigation throughout the country.