Duties of License Holder

Question 1

____ states that “a licensee must deal honestly ad fairly with all parties”

Answer 1

TREC

Question 2

The duty of reasonable care includes what 2 components?

Answer 2

Integrity & Competency

Question 3

“_____ _______” includes any kind of trust escrow, custodial, property management account, or any other account in which a licensee holds money on behalf of another person.

Answer 3

Trust Account

Question 4

A trust account shall retain a documentary record of each deposit or withdrawal from the account for a period of _ _____.

Answer 4

4 yrs

Question 5

Seller A approaches Broker A about listing his property and representing him in this transaction.

1) Broker A must give Seller A a written statement that explains agency law.
2) Broker A has no obligations of agency disclosure because she has no conflicting agency relationships.

Answer 5

Broker A must give Seller A a written statement that explains agency law.

Question 6

Broker A holds an open house for Seller A’s property.

1) Broker A must give each potential buyer the written statement about agency.
2) Broker A must tell each potential buyer that she represents the seller.

Answer 6

Broker A must tell each potential buyer that she represents the seller.

Question 7

Buyer B’s agent (Broker B) comes into Broker A’s office to discuss Seller A’s property.

1) Broker A must give oral or written disclosure of her agency relationship with Seller A.
2) Broker A must give Broker B TREC’s information about Brokerage Services form.

Answer 7

Broker A must give oral or written disclosure of her agency relationship with Seller A.

Question 8

Agent D, who represents BuyerD, visits the office of Agent E, who represents Seller E. Agent D tells Agent E that here client is very interested in Seller E’s property.

1) Agent E must give oral disclosure of her agency relationship with Seller E.
2) Agent E must give Agent D the written statement about agency law.

Answer 8

Agent E must give oral disclosure of her agency relationship with Seller E.

Question 9

Broker X is the agent for Owner X, and Broker X is helping Owner X find a tenant. Tenant A approaches Broker X about the property, and they discuss the possibility of a six-month lease.

1) Broker X must give Tenant A the written statement that explains agency law.
2) Broker X is not required to give Tenant A the written statement that explains agency law.

Answer 9

Broker X is not required to give Tenant A written statement that explains agency law.

Question 10

Agency relationships are _________ in nature, Which means that the agent is placed in a position of trust to the principal.

Answer 10

Fiduciary

Question 11

Fiduciary duties are not just ethical or moral obligations; they are the ___ __ ______.

Answer 11

Law of Agency

Question 12

The agent owes the principal these 7 duties:

Answer 12

1) Loyalty
2) Obedience
3) Confidentiality
4) Honest and Fair Dealing
5) Reasonable Care
6) Accounting
7) Agency Disclosure

Question 13

When a license holder acts as a broker or salesperson, he or she must uphold what 4 duties to all parties?

Answer 13

1) Honest and Fair Dealing
2) Reasonable Care
3) Accounting
4) Agency Disclosure