Ch 3 Creation And Termination Of Agency Flashcards
If a property is sold by the listing firm, it is considered
An in-house sale
If a property is sold by a firm other than the listing firm, then it is considered what type of sale?
Cooperative sale
What is created automatically with no discussion or action needed on the part of a brokerage firm?
Subagency
On what side does the seller retain the services of a broker?
The listing side
On what side does the buyer retain the services of a broker?
The selling side
What is the best way to create an agency relationship?
In writing
Does a broker owe fiduciary duties to a customer?
No, only a client
True or false: oral agency agreements are unenforceable against clients
True: needs to have a signed listing agreement
An oral agency agreement is _____ against the agent
Enforceable
Why can’t oral agency agreements not be placed in the MLS?
Because it is not in writing
In Texas what are the four statutory agency relationships allowed by TRELA?
Seller agency, buyer, agency, subagency, intermediary
A written listing agreement creates a
Special agency relationship
When a broker hires an agent, it creates what type of relationship?
General agency relationship meaning, the license holder, becomes the general agent of the broker
True or false: all agents within a brokerage share the same agency duties to all clients within the firm
True
All transactions are said to have two sides. What are they?
A listing side, and a selling side
MLS stand for
Multiple listing service
How is commission negotiated?
Commission is negotiated between the seller and the broker it is not set by TREC
What tool significantly facilitate, cooperative sales?
The MLS
If a party to a transaction is not being represented by an agent, that party is considered a
Customer
When one firm sells a property listed by another firm to a buyer that they are not representing the selling firm that represents, the seller is considered in a?
Subagency relationship
Where is sub agency mostly practiced in Texas?
Rural areas
What two conditions must be met in order to have a sub agency relationship?
It must be a cooperative cell, and it must be an unrepresented customer
What are some ways that an agency is terminated?
When the purpose is completed(property is sold.), expiration of contract, anytime a mutual agreement, death are in capacity of either party, revocation of brokers license.
When a broker is given notice of termination, the broker must:
Cease all marketing activities, remove signs and lockboxes, remove listing from websites and other advertising media, terminate the listing in MLS
