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Texas National Exam Test Prep > Agency Relationships > Flashcards

Agency Relationships Flashcards

1
Q

The Principal-Agent relationship is a

A

Fiduciary Relationship

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2
Q

What is a Fiduciary Relationship?

A

relationship is based on trust

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3
Q

What governs the relationship between a Broker and their Principal?

A

Common Law of Agency

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4
Q

The principal is also known as

A

The Client

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5
Q

What must be presented at the time of the first meaningful contact with a party or prospect?

A

Disclosure of information about Agency

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6
Q

As an agent, we must treat everyone with ________ and ___________.

A

Honesty and Fairness

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6
Q

When is the disclosure of agency typically given to the seller and the buyer?

A

With a Seller, this is often at the listing presentation. With a Buyer, this is often on his/her first visit to your office.

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7
Q

What are the two levels of responsibility an agent has?

A

Public Responsibility and Fiduciary Responisbility

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8
Q

What is an agent’s Public Responsibility, and who does it apply to?

A

Duties to Customers and third parties in a transaction: Honesty, integrity, fairness, disclosure of material facts, and accounting of funds

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9
Q

What is an agent’s Fiduciary Responsibility, and who does it apply to?

A

Clients; Being honest and acting with integrity, give full disclosure, be loyal and competent

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10
Q

Agency SHOULD be created by ____________. However, agency CAN be created _______ or by ___________.

A

Written Agreement, Orally, Ratification

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11
Q

What does Agency by ratification occur?

A

When a principal accepts actions that were not authorized by the agency agreement

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12
Q

What type of agency Occurs due to actions, and there is NO written or oral agreement?

A

Implied Agency

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13
Q

A person with power of attorney is called an

A

Attorney-in-Fact

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14
Q

What are the three levels of agency?

A
  1. Universal
  2. General
  3. Special
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15
Q

Which agency gives the agent the authority to represent their client in all business and personal matters, the equivalent of having unlimited power of attorney and is very rare in real estate?

A

Universal Agency

16
Q

What agency gives the agent the power to bind their principal in a particular trade or business?

A

General Agency

17
Q

True or false: In an general Agency an agent can sign a legally binding agreement in the name of their principal

A

True

18
Q

What are two examples of General Agency?

A

Owner - Property Manager
Broker - Sales Agent

19
Q

Which agency gives the agent the power to perform only specific acts and NO others and does NOT have the power to bind their client/principal in a transaction?

A

Special Agency

20
Q

What is the preferred method of creating an agency relationship?

A

written agreement

21
Q

What contract Employs the Broker to act as a fiduciary to the Buyer? (Creates a SPECIAL Agency relationship).

A

Buyer’s Representation Agreement

22
Q

What contract Employs the Broker to act as a fiduciary to the Seller? (Creates a SPECIAL Agency relationship)

A

Listing Agreement

23
Q

What contract Employs the Broker/Property Manager to act as a fiduciary to the Owner? (Creates a GENERAL Agency relationship).

A

Management Agreement

24
Q

An independent contractor agreement between a broker and a license holder also creates a …

A

General Agency

25
Q

What is a Single Agency Broker?

A

One who does NOT act as a dual agent, the broker recommends that one of the parties (usually the buyer) either find another broker or continue in the transaction unrepresented

26
Q

single agency is the practice of representing _________ the buyer or the seller but ___________ in the same transaction

A

EITHER ; never both

27
Q

True or false: An example of a single agency is am apartment locator

A

True

28
Q

What is a Transactional Broker/Facilitator/?

A

a licensee who assists a buyer and seller in reaching an agreement in a real estate transaction but does not have an agency relationship with either party

29
Q

A middleman in a transaction is also known as ?

A

Transactional Broker/Facilitator

30
Q

What is a broker who agrees to represent BOTH parties with their written permission?

A

Dual Agency Broker

31
Q

In Texas, a broker who agrees to represent both parties in a single transaction must do so as an.?

A

Intermediary

32
Q

Intermediary is a _________ Law concept

A

Statutory

33
Q

True or False: Statutory Law ALWAYS takes precedence over Common Law

A

True

34
Q

Dual Agency or Intermediary may only be permitted if

A

BOTH the buyer and seller agree in writing

35
Q

A Principal’s (or Client’s) Duties to an Agent are:

A

CRIP
Compensation
Reimbursement
Indemnification
Performance

36
Q

What is Indemnification?

A

the principal is to Defend the agent when the agent acts on the client’s instruction

37
Q
A

Texas National Exam Test Prep (5 decks)

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