Agency Policies

Question 1

Texas agency disclosure laws apply to what type of licensees?

Answer 1

Commercial and residential

Question 2

What causes the highest probability of problems for licensees?

Answer 2

Lack of Communication

Question 3

Why must real estate licensees discuss all proposed agency relationships with buyers and sellers (landlords and tenants)?

Answer 3

So they may make an informed decision

Question 4

In addition to specific requirements for agency disclosure, TREC requires that the licensee deliver to prospective parties a second provision known as what?

Answer 4

A written information statement

Question 5

When must disclosure of agency relationships and whom the licensee currently represents in the transaction take place?

Answer 5

Early in the first substantive meeting about real property

Question 6

What two required disclosures concerning agency must licensees make orally or in writing?

Answer 6

Written information statement

Agency disclosure form

Question 7

What is the best defense a company has to offset problems in the area of agency?

Answer 7

A written policy regarding agency relationships practiced and authorized by the brokerage

Question 8

What are three items that should be covered in the Handling Common Situations section of a policy manual? (See screen 13 for other correct answers.)

Answer 8

Open houses
Subagency representation
Listing presentation requirements

Question 9

What will brokers avoid if they take control over agency relationships by developing a company disclosure policy?

Answer 9

Unintended and illegal agencies

Question 10

Policies and procedures are written to protect the brokerage and licensees, but they should also be written to serve whom?

Answer 10

The customer and client

Question 11

When a prospect comes into an open house, our duty is to whom?

Answer 11

The seller

Question 12

When should agency and other working relationships be firmed up

Answer 12

Always as soon as possible to avoid any confusion on the part of all parties, including the licensee

Question 13

Many communication problems could be eliminated if the licensee would:

Answer 13

Decide in each transaction whether to represent the buyer or the seller.
Decide whether intermediary brokerage might be possible.
Disclose to the buyer or seller whom they represent after the agreement has been signed.
Document the disclosure with an adequate written confirmation.
Act consistently with the disclosed decision.

Question 14

Before deciding on the status of the working relationship

Answer 14

the licensee should define what role to play in each situation.

Question 15

Agency

Answer 15

as defined, is a consensual relationship that requires a delegation of authority by the principal and consent by the agent (broker or licensee).

Question 16

Texas Real Estate License Act specifies the duties of licensees to disclose their agency relationships.

Answer 16

A broker who represents a party in a real estate transaction or who lists real estate for sale under an exclusive agreement for a party is that party’s agent.
A license holder who represents a party in a proposed real estate transaction shall disclose such representation, orally or in writing, at the time of the license holder’s first contact with: another party to the transaction, or another license holder who represents another party to the transaction.

Question 17

The statute requires

Answer 17

both the written information statement and a disclosure of any agency relationships.

Question 18

The best defense a company has regarding problems in the area of agency is

Answer 18

a well thought out written policy regarding agency relationships practiced and authorized by the brokerage.

Question 19

Brokers should develop a company disclosure policy

Answer 19

so that they take control over agency relationships and avoid unintended and illegal agencies. Timely, proper disclosure is the key to a successful and effective agency program.

Question 20

When a prospect comes into our open house

Answer 20

our duty is to the seller and we must use our best efforts to sell the home to the prospect.

Question 21

Before entering into an intermediary relationship

Answer 21

written consent must be obtained from both parties

Question 22

Brokers must

Answer 22

supervise their licensees