Double Stars Flashcards
**This act makes it illegal to practice any act of real estate brokerage without a license. Because agency relationships constitute the foundation of the practice of brokerage, license holders should have a deep understanding of agency concepts and law.
***The Texas Real Estate Act - TRELA
**A relationship that is built around trust.
***Fiduciary
***An agency exists when:
***One person, the agent, acts for or on behalf of another person, the principal, who is also known as the client.
***1. The principal will count on the agent for specific professional advice. The agent is the “expert”
***2. The relationship almost always involves money or property. The agent must work in his or her client’s best financial interests at all times. This duty is defined as a fiduciary duty - one based on trust. The agent is sometimes referred to as the fiduciary.
***When was the Texas Real Estate License Act passed?
***1939
***When was the Texas Real Estate Commission created to enforce and administer TRELA?
***1949
***What is the purpose of TRELA?
***To protect the public from unscrupulous brokers and sales agents.
Is TREC concerned with an agents earnings or involve itself in brokerage disputes?
No. Handled at state level
Who solves disputes between brokers and sales agents?
These matters must be solved through mediation, arbitration, or the courts.
***A broker works FOR a client.
***A broker works WITH a customer.
***A broker selling the listing of another broker.
May complete the transaction as a sub agent of the listing broker or may represent the buyers under an agency agreement; he or she is also known as the other broker.
***Cooperative Broker
***Another name for - Customers
***Third-parties, public
***What are the duties of a principal to an agent?
***C R I P
C-Compensation
R-Reimbursement
I-Indemnification
P-Performance
***The fact that the agent should be paid on the completion of the agency
***Compensation
***Refers to the fact that the agent should be reimbursed by the principle for expenses incurred on behalf of the principal, above and beyond the expenses related to the sale itself.
***Reimbursement
Means that the principal will protect the agent from suffering a loss due to the agents reliance on information received from the principal. ***
Indemnification*
Means the principal will protect the agent from suffering a loss due to the agents reliance on information received from the principal.
Performance
The agent must always remain loyal to the principal
True or False
True
What is the most desirable method of creating an agency with a buyer, seller, landlord, or tenant?
To do it in writing.
When a broker is the owner of a property that is being sold, or when a broker is interested in buying a property.
An agency coupled with interest
CHILD, SPOUSE, PARENT
Paragraph #4
A written listing agreement or buyer representation agreement is evidence that the agency relationship exists, and provides the agent with _______
Express Authority
Fiduciaries are held to the highest amount of good faith, are required to exclude all selfish interest, are prohibited from putting themselves in position where personal interest and representative interest will conflict and must, in any direct dealing with the principal, make full disclosure of all relevant facts and give the latter an opportunity to obtain independent advice.
TRUE OR FALSE
TRUE
This type of agent has less authority than the universal agent. Has the right to represent his or her principal in a particular type of transaction or business. ONE COMMON EXAMPLE IS A PROPERTY MANAGER
General Agency
TRUE OR FALSE
An agent is obligated to follow all of the lawful instructions of a client
TRUE
If a buyer wants you to violate a law, get out asap.
Mixing a clients funds with the business, operating, or personal funds of a broker.
Commingling
When a broker spends his or her clients funds without authorization.
Conversion
If the prospect is a buyer, the goal is to secure the buyer as a ____
Client
Best accomplished through the use of a buyers representation agreement to establish the brokers agency relationship with the buyer formally.
An agency can be terminated at anytime by mutual agreement. TRUE OR FALSE
TRUE
The parties are certainly free to terminate the agreement.
37 is sub agency
Customer - sub agency
What are two other laws that impact the real estate brokerage business?
Texas Deceptive Trade Practice Act
Fraud in Real Estate and Stock Transactions
All ads must contain who’s name?
The brokers name. Not your name
Who is responsible for registering the assumed business names and team names that operate under a brokerage?
The Broker.
The agent is responsible for registering any alternate name he/she uses in advertising.
Team names must end in what two words?
Team or Group
In Texas, most sellers prepare what kind of notice?
A sellers disclosure notice.
The seller is completely responsible for this.
ALL sellers have an obligation to disclose any known __________ to a buyer.
Material Defects
Members of Texas REALTORS may use the Texas REALTORS sellers disclosure notice (TXR-1406)
This form is more comprehensive than the TREC version within sections to review
MUST USE TREC FORMS WITHIN AUSTIN CITY LIMITS**
When is a party stigmatized?
When some adverse event occurs on site, or some people believe that a past event or condition is affecting it.
MUST DISCLOSE - MURDER, DEATH
DONT HAVE TO DISCLOSE - SUICIDE OR DEATH BY NATURAL CAUSES
NEVER DISCLOSE - HIV/AIDS
Mold Remediators must provide a certificate of mold remediation no later than __ days after the work is complete.
10
Texas Law requires the seller of a property to provide the buyer with copies of all certificates of mold remediation received for the property during the ____ years preceding the sale.
5 YEARS
Real estate brokers prefer this type of listing.
A commission is paid even if the property is sold by the owner.
Exclusive Right to Sell
PARAGRAPH FOUR IN THE TEXAS REALTORS LISTING AGREEMENT
All listing agreements must have a DEFINITE start and finish date
