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Texas Real Estate Exam > Law of Agency 2 > Flashcards

Law of Agency 2 Flashcards

1
Q

Fiduciary

A

Based on Trust

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2
Q

Indemnification

A

Protection against damage or loss

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3
Q

Agency is…

A

The relationship the agent has with the principal. When the agent acts for, or on behalf of the client. A fiduciary relationship.

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4
Q

Customer

A

A person who receives limited brokerage services without establishing an agency relationship

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5
Q

Client

A

Also known as the principal

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6
Q

An agency relationship exists when one person, the ____ acts for, or on the behalf of another person, the ____

A

Agent, principal

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7
Q

(True/False) The principal must always remain loyal to the customer

A

False

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8
Q

The duties of the principal to the agent include all of the following, EXCEPT: Trust, Reimbursement, Performance, Indemnification

A

Trust

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9
Q

____ means that the principal will protect the agent from suffering a loss due to the agent’s reliance on information received from the principal.

A

Indemnification

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10
Q

(True/False) A licensee has no duties to a customer

A

False

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11
Q

A buyer’s agent…

A

Represents the buyer

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12
Q

A sub-agent…

A

Is a licensee not associated with the seller’s broker

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13
Q

Special Agency

A

also known as limited agency

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14
Q

General Agency

A

The right to represent the principal in a particular type of transaction or business

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15
Q

Express Authority

A

Authority that comers from specific instructions, either oral or written

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16
Q

Universal Agency

A

The power to act for the principal in all transactions

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17
Q

Agency by ratification

A

Established when an agent acts without prior authorization and the principal accepts it.

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18
Q

Real estate agents owe certain non-fiduciary duties to customers such as…

A

Honesty and fairness

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19
Q

(True/False) The Texas Real Estate License Act is the only law impacting third-party obligations in the real estate brokerage business

A

False

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20
Q

The federal law requiring all states to release information to the public about known, convicted sex offenders, when necessary, to protect the public’s safety is…

A

Megan’s Law

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21
Q

(True/False) A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent

A

True

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22
Q

What events can stigmatize a property?

A

Suicide on the premises. Paranormal activity. Death on the property.

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23
Q

(True/False) Licensees must disclose where or not a former tenant had AIDS or an HIV-related disease to potential buyer.

A

False

24
Q

(True/False) A seller does not have to disclose any stigma that relates to a material defect in the property.

A

False

25
Q

What are the three types of agency?

A

General, Special, Universal

26
Q

(True/False) A general agent has less authority than a universal agent.

A

True

27
Q

A property manager is a common example of what type of agent?

A

General Agent

28
Q

A buyer/tenant representation agreement creates what type of agency relationship with the broker?

A

Special

29
Q

A written listing agreement provides an agent with ____ authority.

A

Express

30
Q

The duties of the agent to the principal can be remembered by using the acronym….

A

OLDCAR

31
Q

(True/False) An agent can share confidential information about a client’s property once the listing agreement is terminated.

A

False

32
Q

(True/False) Commingling is legal in the state of Texas.

A

False

33
Q

(True/False) A real estate agent does not have any duties to a customer, only a client.

A

False

34
Q

(True/False) A variety of seller’s disclosure notices comply with the Texas Property Code.

A

True

35
Q

(True/False) A seller must always fill out the Seller’s Disclosure of Property Condition.

A

True

36
Q

(True/False) An agent does not have to disclose whether or not there has been a suicide on the property.

A

True

37
Q

(True/False) Agents should always disclose whether or not a previous or current tenant has had AIDS or HIV- related illness.

A

False

38
Q

Real estate agents owe certain non-fiduciary duties to customers such as…

A

Honesty and fairness

39
Q

(True/False) The Texas Real Estate License Act is the only law impacting third-party obligations in the real estate brokerage business.

A

False

40
Q

The federal law requiring all states to release information to the public about known, convicted sex offenders, when necessary, to protect the public’s safety is…

A

Megan’s Law

41
Q

(True/False) A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.

A

True

42
Q

Which of the following happened, iris believed to have happened, on a property can “stigmatize” it?

a) Suicide on the premises
b) Paranormal activity
c) Death on the property
d) All of the above

A

d)All of the above

43
Q

(True/False) Licensees must disclose whether or not a former tenant had AIDS or an HIV-related disease to potential buyers.

A

False

44
Q

(True/False) A seller does not have to disclose any stigma that relate to a material defect in the property.

A

False

45
Q

CMA

A

Analysis based on properties that have recently sold that are most similar to the subject property.

46
Q

Net Listing

A

The real estate broker’s commission is the difference between the minimum net established by the seller, and the price that the buyer is willing to pay

47
Q

Listing Agreement

A

Contract with a seller that gives the broker the right to find a purchaser for his or her property .

48
Q

Open Listing

A

The seller can list his or her property with multiple competing brokers.

49
Q

Exclusive Agency

A

The seller lists the property with only one broker, but can sell it him or herself without paying a commission

50
Q

(True/False) Oral listing agreements are allowed in Texas

A

True

51
Q

All of the following elements should be included in a listing agreement, EXCEPT…
A)The IABS form
B)A beginning date and termination date
C)The percentage of the broker’s commission
D)Intermediary consent

A

C)The percentage of the broker’s commission

52
Q

The shared information from the MLS can be used by agents to prepare a(n)…

A

Comparative Market Analysis

53
Q

Subagency is…

A

When a licensee not associated with the seller’s broker is representing the seller through a cooperative agreement with the seller’s broker.

54
Q

(True/False) Brokers do not need written authorization to advertise on social media

A

False

55
Q

All listing agreements must have a definite ____ date.

A

Termination

Texas Real Estate Exam (19 decks)

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