UNIT 3—BROKERAGE RELATIONSHIPS, DUTIES AND DISCLOSURE

You can expect to see seven questions on the end-of-course exam and seven questions on the state exam from this unit.

Learning Objectives

After successfully completing this topic, you will be able to
• describe which provisions of the Brokerage Relationship Disclosure Act apply only to residential real estate sales,
• list types of real estate activities that are exempt from the disclosure requirements,
• define residential transaction,
• distinguish among nonrepresentation, single agent and transaction broker,
• list and describe the duties owed in the various authorized relationships,
• describe the disclosure procedures for the various authorized relationships,
• describe the required content and format of the various disclosure forms,
• explain the procedure for transition from a single agent to a transaction broker,
• describe the disclosure requirements for non-residential transactions where the buyer and seller have assets of $1 million or more, and
• list the events that will cause an agency relationship to be terminated.

Key Terms

Overview

Florida law is specific about how brokers and sales associates handle their relationships with customers. Consumers are not always aware of the legal duties of “their” sales associate. Sometimes licensees fail to comply with the requirements of the law. This unit will describe the requirements of the law related to brokerage relationships.