2022 Clever Real Estate. Definition. There is a financial incentive for a dual . A) demand B) Location C) scarcity D) utility, Ginnie Mae is a federal agency that backs A) conventional loans B) FHA and VA residential loans C) hard money lenders D) private lenders, Parallel wooden beams that support flooring are called A) sills B) joists C) posts D) anchor bolts, According to the statute of frauds, a lease for more than one year must be A) written by an attorney B) in writing C) acknowledged by a notary public D) signed by both the lessor and lessee, A simplified alternative to capitalization of net income that does not take into account vacancies, bad debts or expenses is called A) building residual B) gross income multiplier C) 4-3-2-1 rule D) land residual, An example of an appurtenance that "runs with " or is transferred with the land is A) a tree B) an emblement C) a fixture D) stock in a mutual water company, A real estate broker who acts as a dual agent and represents both the buyer and the seller in the same transaction must make sure that both parties A) sign the escrow instructions B) act in good faith C) pay a commission D) give their consent, Redlining is the discriminatory practice by lenders of A) steering buyers to particular neighborhoods. 21 Q Designated agency is allowed in. Yes. The state presumes you consent to a dual agency situation, unless you sign a written agreement stating you do not. Of course, dual agency carries some significant risks as well particularly if you dont fully understand them. How does a cooperating broker accept a unilateral blanket offer of subagency? The buying, financing, managing, leasing and selling of real estate assets is a lucrative cycle that sellers' agents need and want to maintain, according to a 2014 Fischer report identifying how tenants lose out when agencies represent both parties. Under what circumstances will most states allow dual agency and what is it called? A) four years B) 18 months C) two years D) One year, The return of title to a borrower after the payoff of a debt is accomplished by the trustee executing and delivering which document to the truster? February 14, 2012. A dual agent is neutral regarding conflicting interests of the seller and buyer. Deal honestly and fairly 2. The man gives the woman a written, revocable, nonexclusive right to cross over his land as a short cut to his rear yard. D) permitted on residential property, Loans that do NOT involve government cooperation, such as a guarantee or insurance, are known as Knowledge of appeals court assistance, the support the bpr, agency real estate licensee that the funds. A) quitclaim deed B) grant deed C) notice of default D) Reconveyance deed, Agency disclosure law requires specified agency disclosures A) only on dual agency transactions B) in all residential transactions involving one to four dwelling units C) only when there are two real estate companies involved in the transaction D) on all sales of real property, B) in all residential transactions involving one to four dwelling units, To be valid, a deed must have all of the following EXCEPT A) be recorded at the county recorder B) a grantor's signature C) be in writing D) a granting clause, Agency agreements may be terminated by A) death or bankruptcy of the principal or broker B) all of these C) destruction of the property D) expiration, The legal presumption is that all property acquired during marriage is A) joint tenancy B) severalty C) tenancy in common D) community property, The appraisal method used to appraise amenity-type property is A) the replacement cost approach B) the reconciliation approach C) the sales comparison approach D) the income approach, Real property does NOT include A) a mobilehome not permanently attached to a foundation B) appurtenances C) fixtures D) land, A) a mobilehome not permanently attached to a foundation, Homeowners can exclude from taxation up to $250,000 of profit for a single person and $500,000 for a married couple so long as they A) purchased a replacement residence B) did not take depreciation C) owned and occupied the property for two out of the last five years D) classified the property as an investment, C) owned and occupied the property for two out of the last five years, A lien is an example of A) an encumbrance B) an easement C) an encroachment D) an exemption, The price a property will bring when neither the buyer nor the seller is actin under duress and it has been on the market for a reasonable length of time is defined as A) the replacement value B) the utility value C) the market value D) the value in use, An owner of property can protect against a mechanic's lien for unauthorized work by filing A) a preliminary notice B) a homestead C) a payment bond D) a notice of nonresponsibility, One of the requirements to acquire title by adverse possession is to pay all the property taxes for A) one year B) five years C) seven years D) three years, The limits on what can be paid out of the Recovery Account are A) $20,000 per licensee/$100,000 per transaction B) $100,000 per transaction C) $20,000 per licensee D) $50,000 per transaction/$250,000 per licensee, D) $50,000 per transaction/$250,000 per licensee, The California Real Estate Commissioner is appointed by A) the governor of California B) the California legislature C) the head of the Business Transportation and Housing Agency D) the local REALTOR association, A city or county's master plan is an example of government land-use controls where the authority is derived from the government's A) power of escheat B) taxing authority C) power of eminent domain D) police power, The California Real Estate Law was upheld in A) 1950 B) 1919 C) 1900 D) 2000. If youre close to your contracts end date, you may want to just wait it out. Theyre often privy to information that can factor into negotiations, such as both parties bottom lines, the motivations for selling or buying, and so on. Under a designated agency, two agents who work for the same firm or broker may represent the seller and buyer, respectively. The appraisal principle of regression provides that a property of higher value tends to decrease in value when surrounded by properties of A) lower value B) Higher income C) lower capitalization D) different character A) lower value An easement by prescription terminates after nonuse for A) 1 year. Acting for both parties at the same time in the same transaction without the knowledge and consent of both parties B. Although this practice is legal in some states, it is highly controversial and generally not recommended. The information below is found in 55.1-703): A: "Subagent" means a licensed real estate broker, licensed associate real estate broker, or licensed real estate salesperson who: (1) is not affiliated with or acting as the listing real estate broker for a property; (2) is not a buyer's agent; (3) has an agency relationship with the seller or lessor; and. Are there any limits on working with another broker? Main Menu. These fees are generally around 1% to 3% of the purchase price of the property and they are payable when the contract goes unconditional. Agents must get written consent from both parties prior to the transaction, otherwise they will solely represent the original party. Property Management Agreement (PMA) (figure 16.1), with or without dual agency agreement, must be in writing. Similarly, a still-ongoing class action lawsuit alleges that New York brokerage Houlihan Lawrence pushed dual agency deals that resulted in distorted pricing. Dual agency is a real estate term that means one agent or brokerage represents both the seller and the buyer in the same real estate transaction. The contract between an owner of residential real property and an agent, by which the agent has been authorized to sell or lease the residential real . SOLD FEB 10, 2023. The broker must obtain written consent from both parties. a. Dual agency is allowed with disclosure and informed consent. You can imagine the kind of havoc that would wreak if you had a buyer or seller after a deal was closed saying, "There was an undisclosed dual agency, because you forgot to send me the disclosure form, and I want to unwind this deal." That would be a very expensive case to defend and resolve. Try Clever's free agent-matching service. California Agents Must Disclose and Obtain Consent for Dual Agency Relationships. A) not be incarcerated B) be 18 years of age or older C) not be under the influence of drugs D) be a resident of the United States, A remedy for a breach of contract is to sue to fulfill the terms of the contract, which is called Sellers typically pay a 5.5-6% commission thats split between their agent and the buyers agent. When only one agent is involved in a sale, the seller only has to pay that one agent instead of two. Make sure the real estate agent is licensed, active and in good standing with the Board. Buyers and sellers must provide written consent before signing with an agent. Although the exact amount of the commission will vary, it is typically between 5% - 6% of the purchase price. Recent Legal Matters. Theyll still earn more from a dual agency sale than a traditional transaction in which the commission is split between two agents. 1. A dual agent is defined by California Civil Code 2079.139d) as "an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction." California Civil Code 2079.17 specifies the disclosure requirements for dual agents. Consent may be obtained in a listing agreement, buyer agency agreement, or on a stand-alone consent form. A) prescription B) condemnation C) implication of law D) express grant, A fictitious business name statement must be renewed every No. QUESTION 15 Undisclosed multiple agency is permitted in: A. interstate commercial transactions B. FSBO residential transactions C. foreclosed property sales D. none of the above I. Seller's Broker: A broker who lists a property, or a salesperson who is licensed to the listing broker, represents the Seller and acts on behalf of the Seller. Lets say that, as a seller, you confide in your listing agent that youre willing to accept an offer $50k below asking price. Or will they disclose your bottom line to help their new client get a great deal? Designated agency allows the separate licensees to act as single agents for their respective clients. Buyers can catch a break on Realtor commissions if both sides are using the same agent. The practice of providing fiduciary duties to both a buyer and a seller in the in-house deal without disclosing it as dual agency is in fact undisclosed dual agency and an act of fraud. In a dual agency deal, many buyers will attempt to make a lower offer or negotiate a lower sale price, knowing the seller is paying less in realtor commission fees. $850,000 Last Sold Price. Agents are required to get written consent as soon as possible. Vicarious liability. Dual agency is a real estate scenario where a real estate agent represents both the buyer and seller on the same transaction. We offer this because we're confident you're going to love working with a Clever Partner Agent. 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