Correct answer: Specific agency.
A licensee with specific agency (or special agency) can only operate on behalf of a principal in limited ways for a limited time, usually for only one transaction. A general agency is one in which the agent is authorized to serve as an agent for a variety of purposes. Universal agency refers to the principal’s unrestricted ability to act on his or her behalf. A restricted power of attorney authorizes the agent to act on behalf of the principal, but only for the specific actions listed.
Correct answer: broker Y
Broker Y gets the commission.
Correct answer: Express agency.
The correct relationship in this type of listing agreement is express agency.
Correct answer: special agent
A special agent is a person who has been allowed by his principal to execute a specific deed, sign a specific contract, or find a buyer for specific real estate. Special agents are listing agents. If an agent has many listings with the same seller, that agent is classified as a special agent multiple times. A general agency does not consist of many listings for a single client.
Correct answer: the agent
The agent is the one who takes the biggest risk in an open listing.
Correct answer: the real estate salesperson-buyer relationship
A salesperson may refer to oneself or herself as an agent, but he or she is not an agent. The agent is the broker. A salesperson owes the client (principal) all of the fiduciary duties that an agent owes, but the majority of the agent’s real estate-related operations must be overseen by a broker.
Correct answer: A deed
Even if it is proof of ownership of real property, a deed is personal property. Personal property is anything that can be moved. A deed is considered personal property because it is movable.
Correct answer: After paying licensee commissions, the brokerage firm’s profit.
After licensee commissions have been paid, the brokerage firm has a company dollar.
B is incorrect answer. After paying licensee commissions (but not before), the brokerage business has a company dollar. C is incorrect answer. The phrase “desk fee” is defined in this answer option. D is incorrect answer. The IRS 1031 tax-deferred exchange does not use the word “company dollar.” Capital gains taxes on real estate used for business or investment purposes can be delayed if the parcel is exchanged for another “like-kind” lot under Section 1031 of the US Internal Revenue Code. This enables property owners to postpone paying federal capital gains taxes until the new lot is sold. Note that “”like-kind”” does not equal “identical” in a 1031 exchange. A like-kind real estate property is one that is used for business or investment purposes, such as an office building for an apartment complex.
Correct answer: Power of Attorney
A Power of Attorney (POA) was the document that the investor signed. A properly executed POA allows an agent (known as an attorney-in-fact) to operate in the principal’s place. Fiduciary duties (e.g., duty of disclosure, duty of obedience, duty of secrecy, duty of care, etc.) are owed by an attorney-in-fact to the principal. The principle in this case is a wealthy investor, and the attorney-in-fact is a trusted acquaintance. Note that an attorney-in-fact is not required to be a lawyer.
Correct answer: TRUE
Trust funds are an advance charge paid by the seller to cover advertising expenditures. The handling of trust funds is governed by relatively rigorous restrictions in most states. In general, the funds must be utilized only for the purpose intended, and the principal must be given with a detailed accounting of all expenses. The money must be returned to the principal if it is not used for its intended purpose.
Correct answer: severance
Severance refers to the act of separating or cutting off a piece of real estate from the land. The lender is allowed to acquire the home with all of the fixtures intact because the lender is foreclosing on the real property, and the fixtures are considered real property. The removal of the fixtures from the home in the manner described in the scenario is a tort violation against the lender that can result in civil action, though it is usually not financially prudent for the lender to pursue such action because the litigation costs can be greater than the lender’s financial loss from the damages.
Correct answer: Exclusive agency
Unless the seller finds the buyer, the licensee will earn a commission if a buyer is found in an exclusive agency listing agreement. There is just one brokerage firm with the exclusive agency listing agreement. (canadianpharmacy365.net) In addition, the licensee is given a specific amount of time to find a buyer. Finally, the exclusive agency listing contract is a two-way arrangement. A bilateral contract is a promise for promise exchange. If the licensee finds a buyer, the seller pledges to pay the commission. The licensee undertakes to find a buyer using due diligence.
Correct answer: They each own a piece of real estate.
Although the living arrangements and layout of the buildings may appear to be comparable, the only thing that an apartment lessee and a condominium owner have in common is that they both own real estate. A fee interest is owned by a condo owner (which is a freehold estate). The lessee owns a leasehold interest in the property. Depending on how the condo owner maintains title, his estate could be an inheritance estate as well.
Correct answer: an open listing
An open listing allows any real estate licensee with a listing agreement with the seller to earn a commission if he finds the home’s buyer. An open listing allows the seller to enter into multiple listing agreements with different brokerage firms and only pay a commission to the firm that finds the buyer. Sellers may mistakenly believe that having this type of listing provides them an edge. In most circumstances, however, listing agents in an open listing are less likely to market the property aggressively if another firm may be able to locate a buyer. Furthermore, most Multiple Listing Services (MLS) expressly ban the publication of open listings in MLS listings, requiring any marketing of the property to be done through less effective ways.
Correct answer: Fee simple defeasible
Fee simple defeasible estates are those that can be “defeated.” CC&Rs are referred to as “conditions subsequent,” which means that they must be met after the property has been acquired. When Troy and Ruth’s representative cautioned them about the penalties of non-compliance before they signed the contract, she did so correctly.
Correct answer: Informing the building’s owner of its market value
A property manager is required to keep up with market rentals in the area and to keep track of vacancies in the building under management. The property manager, on the other hand, has no obligation to keep the principle up to date on the building’s market worth. As a party to the duty of agency, a property manager’s responsibilities always include fairness and honesty.
