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Texas Real Estate Exam > Law of Agency 1 > Flashcards

Law of Agency 1 Flashcards

1
Q

Procuring Cause of Sale

A

The effort that results in the sale of property - the act of bringing a ready, willing and able buyer to a seller resulting the sale of the seller’s property.

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2
Q

Duties of a Principal

A

A principal owes his agent compensation, reimbursement, indemnification and performance

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3
Q

Sherman Anti-Trust Act

A

Federal law that preserves business competition by prohibiting monopolies, monopolistic practices and restraint of trade - in real estate the biggest impact is on commissions - always negotiable

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4
Q

Appointed Associate

A

A licensee appointed by a broker in Texas in an intermediary situation to work with either the buyer or the seller in the transaction.

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5
Q

Exclusive Agency Listing

A

A listing where one broker is the exclusive agent and will earn a commission if the property is sold, unless the seller sells it himself - the seller is competing with his broker.

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6
Q

Special Agency / Limited Agency

A

A principal gives an agent the power to perform specific acts, but not to bind the principal

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7
Q

Commission

A

A negotiated compensation in a broker’s employment contract

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8
Q

Open Listing

A

A listing where a seller reserves the right to list with as many brokers as he chooses - he also reserves the right to sell the property himself - only a broker who brings a contract to the seller will earn a commission

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9
Q

Subagent

A

An agent for a person who is already an agent for a principle - the listing salesperson under a listing broker - this is not a Texas definition

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10
Q

Blind Ad

A

An advertisement that does not clearly indicate the licensed status of the party placing the ad - real estate licensees are prohibited from placing blind ads

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11
Q

Agency coupled with an interest

A

Any transaction where the agent is also the seller, or the agent is also the buyer - this dual role must always be disclosed

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12
Q

Broker

A

A properly licensed party who serves a principal in an agency relationship - also called an agent

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13
Q

Oral Agency

A

An agency relationship created by an oral or spoken agreement

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14
Q

Agency

A

The fiduciary relationship between a broker and a principal or a broker and a client

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15
Q

Buyer Representation Agreement

A

An employment contract obligating a broker to act as a fiduciary to a buyer

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16
Q

Implied Agency

A

Agency as a result of customary, usual or typical conditions

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17
Q

Fiduciary Responsibilities

A

The responsibilities a broker has to clients in an agency relationship; includes placing the interest of the client first, full disclosure of all facts, material and other, and giving advice and opinions

18
Q

Duties of an agent

A

An agent owes his client obedience, loyalty, disclosure, confidentiality, accounting and reasonable care (old car)

19
Q

Intermediary

A

A broker in Texas who has the written permission of both the buyer and the seller to represent both parties in a single transaction.

20
Q

Dual Agent

A

A broker who has the written permission of both the buyer and the seller to represent both parties in a single transaction

21
Q

Exclusive Right to Sell

A

A listing where one broker will earn a commission when the property is sold, no matter who sells it

22
Q

General Agency

A

A principal gives an agent the power to bind him in a particular trade or business

23
Q

Designated Agent

A

A licenses appointed by a broker in a dual agency situation to work with either the buyer or the seller in the transaction

24
Q

Principal / Client

A

A party represented by a broker in an agency relationship

25
Q

Universal Agency

A

A principal gives an agent the power to transact matters of all types for him

26
Q

Fiduciary

A

A party acting for another in a position of trust - a broker, an agent

27
Q

Agency by Ratification

A

Agency established when an agent acts without permission of the principal and the principal accepts or rectifies those actions

28
Q

Agency by Estoppel

A

A principal fails to maintain due diligence over his agent and as a result the court prevents the principal from denying the agency relationship

29
Q

Public Responsibilities

A

The responsibilities a broker has to customers or third parties including honesty, fairness and disclosure of material facts.

30
Q

Management Agreement

A

An employment contract obligating a broker to act as a fiduciary to a property owner

31
Q

Fiduciary Relationship

A

The relationship based on trust - the relationship governed by the law of agency between a broker and a principal

32
Q

Listing Agreement

A

An employment contract obligating a broker to act as a fiduciary to a seller

33
Q

Ostensible Agency

A

Agency as a result of the actions of an agent and the response of others to those actions

34
Q

Customer

A

A third party - one a broker is working with, but who is not represented by that broker

35
Q

Oral Agency

A

An agency relationship created by an oral or spoken agreement

36
Q

Implied Agency

A

Agency as a result of customary,usual, or typical conditions

37
Q

Fiduciary Responsibilities

A

Responsibility broker has to clients in an agency relationship.

Placing interest of client first

Full disclosure of all facts and materials

Giving advice and opinions

38
Q

Duties of an Agent

A

Agent owes client:

O-bedience
L-oyalty
D-isclosure

C-onfidentiality
A-ccounting
R-easonable Care

39
Q

Intermediary

A

Broker in Texas who has written permission of buyer and seller to rep both parties in a single transaction

40
Q

Limited Agency

A

Principle gives agent power to perform specific acts but not to bind the principle

Also called special agency

Texas Real Estate Exam (19 decks)

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