ROCKWELL: WASHINGTON REAL ESTATE PRACTICES
Managing Broker - Answers - Person who performs real estate brokerage services on
behalf of a real estate firm, under the supervision of a designated broker.
Is a managing broker allowed to supervise other licensees? - Answers - Only with
authorization from the designated broker.
What are the requirements to be a managing broker? - Answers - Licensed as a broker
for 3 of the last 5 years.
Takes additional courses.
Takes managing broker exam.
Does every branch need to have a designated broker? - Answers - No. They do a
branch manager who will be supervised by the designated broker.
What license must a branch manager have? - Answers - A managing broker's license
because they will be supervising other licensees.
What are the three characteristics of real estate agents as independent contractors (that
is recognized by the IRS)? - Answers - You set your own hours.
You're paid by commission.
You only get worker's compensation insurance.
What are the 4 planning items you must have before starting your real estate business?
- Answers - Business plan.
Budget.
Cash reserves plan.
Start-up expenses.
Agent - Answers - A person who acts or does business for another.
Principal - Answers - The person that an agent is authorized to represent.
AKA Client.
Client - Answers - The person that the agent is authorized to represent.
AKA Principal.
Customer - Answers - The third party with whom the principal goes into business with.
Non-agency - Answers - The licensee does not represent either party in the
transaction.
,What are the two categories of real estate agent duties? - Answers - Duties owed to
principal and duties owed to any party.
What are the 7 duties an agent owes to any party? - Answers - -Reasonable care and
skill.
-Honesty and good faith.
-Present all written communications.
-Accounting.
-Disclose all material facts.
-Provide pamphlet on agency law.
-Agency disclosure.
Group of people with care bear logos on their stomach.
Halos over their heads.
Sheets of paper for wings.
One hand full of money.
The other hand holding a hammer.
Flying over a big ol brochure of the law
Do you owe any duties to parties when acting as a non-agent? - Answers - Yes, you
still owe the 7 duties owed to any party.
If an agent's negligence causes one of the parties financial loss, will they be required to
pay compensation? - Answers - Yes, because of the duty of reasonable care and skill.
What is best practice if you don't know the facts to something? - Answers - To admit
that you don't know or remain silent to avoid misrepresentation.
If the buyers ask for information that an agent is not legally required to disclose (ex:
previous crime in the property), are they required to disclose it upon inquiry? - Answers
- Yes, by duty of good faith.
If you know a client has clinical depression and needs a lot of sunlight, are you required
to tell her that the lakefront property may not be good for her because the windows fog
up? - Answers - Yes, by duty of good faith.
Are you required to give the seller new offers after they had already accepted one?
Even if it's lower? - Answers - Yes. ALL offers are to be delivered asap.
Material Facts - Answers - Information that may have substantial negative impact on
the value of the property or on a party's ability to perform, or that impairs or defeats the
purpose of the transaction.
Latent Defect - Answers - A hidden structural defect that would not be discovered by
ordinary inspection.
,Is an agent required to actively discover material facts to disclose? - Answers - No.
Is the agent required to investigate the other party's financial position? - Answers - No.
Does an agent need to independently verify statements from reasonably reliable
sources? - Answers - No.
Can you be accused of negligence if you relay information that comes from an
unreliable source? - Answers - Yes.
Are you required to disclose murders, gang activity, and other information that does not
directly affect title or value? - Answers - No. But you should by good duty if it suits the
context.
Are you required to disclose about drug manufacturing on the property? - Answers -
Yes, if it hasn't been decontaminated and it affects the physical condition of the
property. If it has been resolved, no.
Are you ever allowed to mix your money with the trust fund money? - Answers - No.
That's commingling.
Agency Law Pamphlet - Answers - Pamphlet with the actual provisions of
Washington's real estate law. Required to be given to principals of parties before they
sign an agency agreement.
When are you required to give parties an agency law pamphlet? - Answers - Before
any document is signed.
Can the agency disclosure be made orally? - Answers - No, it must be in writing.
When must the agency disclosure be presented? - Answers - Before the party signs an
offer.
When a licensee is not performing the minimum services required under an exclusive
brokerage agreement, and is, therefore, not acting as the consumer's agent.
What law set forward agent responsibilities? - Answers - Real Estate Brokerage
Relationships Act in the Washington's Real Estate Agency Law.
Inadvertent Dual Agency - Answers - Occurs when a real estate agent while
representing one party to a transaction, unintentionally becomes the agent of the other
party -- a dual agent --by leading the other party to believe he is acting as their agent.
Illegal.
, What does the Real Estate Brokerage Relationships Act change about buyer agency
relationships? - Answers - It presumes that the licensee working the buyer is the
buyer's agent unless there is a written agreement to the contrary (such as a listing
agreement).
Cooperating Agents - Answers - All agents involved in a transaction.
Someone who has been authorized by a person to represent that person in dealings
with third parties is a(n): - Answers - Agent.
A person who authorizes an agent to represent them is a(n): - Answers - Principal.
A person who performs brokerage services on behalf of a real estate firm under
someone else's supervision is a(n): - Answers - Broker.
Dual Agency - Answers - Representing both parties to a transaction.
This is unethical unless both parties agree to it, and it is illegal in many states, but not
Washington.
A licensee who can assume supervisory duties for a real estate firm, though a
designated broker retains ultimate authority, is called a(n): - Answers - Managing
broker.
This Washington statute incorporated some of the common law of agency but also
changed many aspects of an agent's duties. - Answers - Real Estate Brokerage
Relationships Act.
Statutory Duties vs Fiduciary Duties - Answers - Statutory duties clearly define the
duties required from an agent, while fiduciary duties come from common law and are
subject to a different interpretation by the legal system.
The duty to operate with the same standard of competence expected of any real estate
licensee is the duty of: - Answers - reasonable care and skill.
The duty to avoid inaccurate or misleading statements during a real estate transaction is
the duty of: - Answers - honesty and good faith.
Even if an offer is ridiculously low, you are bound to present it to a seller under the duty
to: - Answers - present written communications.
Any information that affects a property's physical condition or title must be disclosed to
all parties under the duty to: - Answers - disclose material facts.
An agent must report to parties about the status of funds held in trust under the duty of:
- Answers - accounting.
Managing Broker - Answers - Person who performs real estate brokerage services on
behalf of a real estate firm, under the supervision of a designated broker.
Is a managing broker allowed to supervise other licensees? - Answers - Only with
authorization from the designated broker.
What are the requirements to be a managing broker? - Answers - Licensed as a broker
for 3 of the last 5 years.
Takes additional courses.
Takes managing broker exam.
Does every branch need to have a designated broker? - Answers - No. They do a
branch manager who will be supervised by the designated broker.
What license must a branch manager have? - Answers - A managing broker's license
because they will be supervising other licensees.
What are the three characteristics of real estate agents as independent contractors (that
is recognized by the IRS)? - Answers - You set your own hours.
You're paid by commission.
You only get worker's compensation insurance.
What are the 4 planning items you must have before starting your real estate business?
- Answers - Business plan.
Budget.
Cash reserves plan.
Start-up expenses.
Agent - Answers - A person who acts or does business for another.
Principal - Answers - The person that an agent is authorized to represent.
AKA Client.
Client - Answers - The person that the agent is authorized to represent.
AKA Principal.
Customer - Answers - The third party with whom the principal goes into business with.
Non-agency - Answers - The licensee does not represent either party in the
transaction.
,What are the two categories of real estate agent duties? - Answers - Duties owed to
principal and duties owed to any party.
What are the 7 duties an agent owes to any party? - Answers - -Reasonable care and
skill.
-Honesty and good faith.
-Present all written communications.
-Accounting.
-Disclose all material facts.
-Provide pamphlet on agency law.
-Agency disclosure.
Group of people with care bear logos on their stomach.
Halos over their heads.
Sheets of paper for wings.
One hand full of money.
The other hand holding a hammer.
Flying over a big ol brochure of the law
Do you owe any duties to parties when acting as a non-agent? - Answers - Yes, you
still owe the 7 duties owed to any party.
If an agent's negligence causes one of the parties financial loss, will they be required to
pay compensation? - Answers - Yes, because of the duty of reasonable care and skill.
What is best practice if you don't know the facts to something? - Answers - To admit
that you don't know or remain silent to avoid misrepresentation.
If the buyers ask for information that an agent is not legally required to disclose (ex:
previous crime in the property), are they required to disclose it upon inquiry? - Answers
- Yes, by duty of good faith.
If you know a client has clinical depression and needs a lot of sunlight, are you required
to tell her that the lakefront property may not be good for her because the windows fog
up? - Answers - Yes, by duty of good faith.
Are you required to give the seller new offers after they had already accepted one?
Even if it's lower? - Answers - Yes. ALL offers are to be delivered asap.
Material Facts - Answers - Information that may have substantial negative impact on
the value of the property or on a party's ability to perform, or that impairs or defeats the
purpose of the transaction.
Latent Defect - Answers - A hidden structural defect that would not be discovered by
ordinary inspection.
,Is an agent required to actively discover material facts to disclose? - Answers - No.
Is the agent required to investigate the other party's financial position? - Answers - No.
Does an agent need to independently verify statements from reasonably reliable
sources? - Answers - No.
Can you be accused of negligence if you relay information that comes from an
unreliable source? - Answers - Yes.
Are you required to disclose murders, gang activity, and other information that does not
directly affect title or value? - Answers - No. But you should by good duty if it suits the
context.
Are you required to disclose about drug manufacturing on the property? - Answers -
Yes, if it hasn't been decontaminated and it affects the physical condition of the
property. If it has been resolved, no.
Are you ever allowed to mix your money with the trust fund money? - Answers - No.
That's commingling.
Agency Law Pamphlet - Answers - Pamphlet with the actual provisions of
Washington's real estate law. Required to be given to principals of parties before they
sign an agency agreement.
When are you required to give parties an agency law pamphlet? - Answers - Before
any document is signed.
Can the agency disclosure be made orally? - Answers - No, it must be in writing.
When must the agency disclosure be presented? - Answers - Before the party signs an
offer.
When a licensee is not performing the minimum services required under an exclusive
brokerage agreement, and is, therefore, not acting as the consumer's agent.
What law set forward agent responsibilities? - Answers - Real Estate Brokerage
Relationships Act in the Washington's Real Estate Agency Law.
Inadvertent Dual Agency - Answers - Occurs when a real estate agent while
representing one party to a transaction, unintentionally becomes the agent of the other
party -- a dual agent --by leading the other party to believe he is acting as their agent.
Illegal.
, What does the Real Estate Brokerage Relationships Act change about buyer agency
relationships? - Answers - It presumes that the licensee working the buyer is the
buyer's agent unless there is a written agreement to the contrary (such as a listing
agreement).
Cooperating Agents - Answers - All agents involved in a transaction.
Someone who has been authorized by a person to represent that person in dealings
with third parties is a(n): - Answers - Agent.
A person who authorizes an agent to represent them is a(n): - Answers - Principal.
A person who performs brokerage services on behalf of a real estate firm under
someone else's supervision is a(n): - Answers - Broker.
Dual Agency - Answers - Representing both parties to a transaction.
This is unethical unless both parties agree to it, and it is illegal in many states, but not
Washington.
A licensee who can assume supervisory duties for a real estate firm, though a
designated broker retains ultimate authority, is called a(n): - Answers - Managing
broker.
This Washington statute incorporated some of the common law of agency but also
changed many aspects of an agent's duties. - Answers - Real Estate Brokerage
Relationships Act.
Statutory Duties vs Fiduciary Duties - Answers - Statutory duties clearly define the
duties required from an agent, while fiduciary duties come from common law and are
subject to a different interpretation by the legal system.
The duty to operate with the same standard of competence expected of any real estate
licensee is the duty of: - Answers - reasonable care and skill.
The duty to avoid inaccurate or misleading statements during a real estate transaction is
the duty of: - Answers - honesty and good faith.
Even if an offer is ridiculously low, you are bound to present it to a seller under the duty
to: - Answers - present written communications.
Any information that affects a property's physical condition or title must be disclosed to
all parties under the duty to: - Answers - disclose material facts.
An agent must report to parties about the status of funds held in trust under the duty of:
- Answers - accounting.
