Chapter 7 - Subchapter Q Flashcards
Sec. 1101.801.
Effect of Disciplinary Action on Liability states that disciplinary action taken against a person under Section 1101.652 does not relieve the person from civil or criminal liability.
1101.802.
Liability Relating to HIV Infection or AIDS says that notwithstanding Section 1101.801, a person isn’t civilly or criminally liable because the person failed to inquire about, make a disclosure relating to, or release information relating to whether a previous or current occupant of real property had, may have had, has, or may have AIDS, an HIV-related illness, or HIV infection as defined by the Centers for Disease Control and Prevention of the United States Public Health Service.
Sec. 1101.803.
General Liability of Broker states that a licensed broker is liable to the commission, the public, and the broker’s clients for any conduct engaged in under this chapter by the broker or by a salesperson associated with or acting for the broker.
Sec. 1101.804.
Liability for Providing Certain Information states that a license holder or nonprofit real estate board or association that provides information about real property sales prices or the terms of a sale for the purpose of facilitating the listing, selling, leasing, financing, or appraisal of real property isn’t liable to another person for providing that information unless the disclosure of that information is specifically prohibited by statute.
Sec. 1101.805.
Liability for Misrepresentation or Concealment addresses a broker’s responsibility for his or her salesperson’s acts.
In this section, “party” has the meaning assigned by Section 1101.551.:
⦁ A prospective buyer, seller, landlord, or tenant
⦁ An authorized representative of a buyer, seller, landlord, or tenant, including a trustee, guardian, executor, administrator, receiver, or attorney-in-fact.
Note: The term does not include a license holder who represents a party.
⦁ This section prevails over any other law, including common law.
⦁ This section does not diminish a broker’s responsibility for the acts or omissions of a salesperson associated with or acting for the broker.
⦁ A party isn’t liable for any misrepresentation or concealment of a material fact made by a license holder in a real estate transaction, unless the party knew of the misrepresentation or concealment and failed to disclose the party’s knowledge of it.
⦁ A licensee isn’t liable for any misrepresentation or concealment of a material fact made by a party to a real estate transaction, unless the license holder knew of the misrepresentation or concealment and failed to disclose the licensee’s knowledge of it.
⦁ A party or a license holder isn’t liable for any misrepresentation or concealment of a material fact made by a sub-agent in a real estate transaction unless the party or license holder knew of the falsity of the misrepresentation or concealment and failed to disclose the party’s or license holder’s knowledge of the falsity of the misrepresentation or concealment.
Sec. 1101.806.
Liability for Payment of Compensation or Commission says that this section does not apply to an agreement to share compensation among license holders or limit a cause of action among brokers for interference with business relationships.
According to this section:
⦁ A person may not maintain an action to collect compensation for an act as a broker or salesperson that is performed in this state unless the person alleges and proves that the person was a license holder at the time the act was commenced or an attorney licensed in any state.
⦁ A person may not maintain an action in this state to recover a commission for the sale or purchase of real estate unless the promise or agreement on which the action is based, or a memorandum, is in writing and signed by the party against whom the action is brought or by a person authorized by that party to sign the document.
⦁ A license holder who fails to advise a buyer as provided by Section 1101.555 may not receive payment of or recover any commission agreed to be paid on the sale.
