Chapter 6: Law Of Agency And Real Estate Brokerage Flashcards
Any relationship in which one party acts for or represents another is called
Agency
A person who is authorized to act for another
Agent
Another name for principal
Client
A person who has the legal authority to act as a broker or sales agent in a real estate transaction
License holder
A Texas consumer protection law
DTPA
The principal is also known as
The client
What is a fiduciary relationship?
Relationship based on trust
What are the 3 types of agency?
Universal, General and Special
What type of agent has full authority to conduct business on behalf of the client?
Universal agent
What right does a general agent have?
Right to represent a principal in a particular type of transaction or business
What is a common example of a general agent?
Property managers
A broker is responsible for what activities on the part of his associates?
-compliance with fair housing laws
- compliance with advertising regulations
- compliance with regulations for disclosure
-use of promulgated forms
-compliance with all aspects of the TRELA
What agency allows an agent to only perform limited duties for the principal?
Special agency
Special agency is also referred as
Limited agency
What acronym describes an AGENTS duty to their principal?
OLD CAR
OBEDIENCE
LOYALTY
DISCLOSURE
CONFIDENTIALITY
ACCOUNTING
REASONABLE CARE
What acronym describes a PRINCIPALS duty to an agent:
CRIP
COMPENSATION
REIMBURSEMENT
INDEMNIFICATION
PERFORMANCE
Any potential party to a transaction is an unrepresentative customer until they become
A client
When a potential buyer contacts an agent for information regarding a property
Customer
It’s a license holder, behaves in a manner that makes a party reasonably believe that he, or she is being represented then what will be created?
Implied agency
A _______ will not act as a dual agent when their client is interested in purchasing one of the broker’s in house listings
Single-agency broker
What type of broker is considered the middleman?
Transactional broker
A __________ facilitates a buyer and seller to return agreement in a little estate transaction, even though he, or she does not have any agency relationship with each other 
Transactional broker
All transactions are said to have 2 sides:
Listing and selling side
A _______ side occurs when the seller retains the services of the broker
Listing
A _________ side occurs when the buyer retains the services of a broker
Selling
When an agent is working with the buyer they are referred as the
Selling agent
If a property is sold by the listing firm it is referred to as
An in-house sale
If a property is listed by one firm and later sold by another this is
A cooperative sale
True or false: the commission in a transaction is to be paid by the listing broker to a cooperating broker is negotiated between the seller and listing broker in the listing agreement
True
The set of rules that make it possible to bring client buyers and sellers together while at the same time representing their best interests
Intermediary
In order to practice intermediary, the broker must have _____________ from both parties, stating the source of any anticipated compensation
Written Consent
What are the two forms of intermediary
With and without appointments
If one agent is involved in his selling his or her own listening to his or her homebuyer it will be
Intermediary without appointments
If two agents from the same brokerage are involved, one working with the seller and the other with the buyer, it will be
Intermediary with appointments
What provide consumers with necessary information regarding agency relationships with license holders?
Information about brokerage services IABS
If a broken wishes to terminate a license, sales agent, sponsorship, he or she must notify the agent
In writing
What Texas law was passed in 1973 and allows an agreement consumer to see a seller for goods for damages
Deceptive Trade Practices Act DTPA
The sellers disclosure notice is a good tool to use as a defense in a ______ lawsuit
DTPA
According to their DTPA ________ means actual awareness, or flagrant disregard of prudent and unfair business practices
Intentionally
When a potential buyer contacts an agent for information regarding a property he or she is a
Customer
______ means actual awareness of a falsity, deception, or unfairness of an act
Knowingly
What is defined as tangible chattels?
GoodS
When an agent ask without prior authorization, and the principal finds out about it, and accept it
Agency by ratification
In real estate, a buyer or seller is considered an agent customer until he or she becomes an
Client
The agreement between a broker and the client is most often a
Special agency relationship
The broker and his or her associates are most often in a
General agency relationship
