Law of Agency Flashcards
This person hires an agent
Principal
The agent works on behalf of this person
The client (Principal)
This type of agency allows for the greatest range of authority
Universal
This is provided to the agent when there is written documentation that the agency relationship exists
Express authority
This is the most limited of all the agency relationships
Special Agency
This type of agency is created when actions lead another person to assume that one is an agent (Ex: you have a key to the neighbor’s home and show the property)
Ostensible agency
If a buyer HASN’T signed a buyer’s rep agreement, who is representing the buyer?
No one
This establishes a relationship with a broker…
The buyer/tenant representation agreement
This can be written or oral…
Disclosure of Representation
These are required to place their own selfish interests behind that of their clients…
Fiduciaries
A broker is obligated to treat who honestly?
Client, customer, and agents
Broker must have a written consent to act as…
an intermediary
the IABS form is the property of…
TREC
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe’s listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty. Who is representing the buyer?
No one because the buyer is a customer, not a client
Agent Joe at ABC Realty has a listing. Agent Sean at City realty has a buyer who wishes to purchase Joe’s listing. The buyer that Agent Sean is working with has chosen to not enter into an agency relationship with City Realty. Who is City Realty representing? What type of transaction is this?
The seller because City Realty is a subagent of ABC Realty in this transaction / Co-op Transaction
An exemption to using the IABS form is…
A lease for less than 1 year with no sale anticipated
A licensee not associated with the client’s broker but who is representing the client through a cooperative agreement with the client’s broker is known as:
Subagent
This must be in at least 10 point type, must have the exact language prescribed in the License Act and must be provided to a buyer or seller at the first substantive discussion of a real estate transaction.
IABS (Information About Brokerage Services)
Jeffrey wants to see property that your company has listed; he does not want to be represented. The agent must:
Give Jeffrey the IABS form
A licensee must present the IABS form when?
At the first substantive discussion of a real estate transaction
A licensee has a listing with a seller and has a buyer’s representation agreement signed with a buyer who desires to purchase this agent’s listing. How is the agent operating?
As a non-appointed associate in an intermediary relationship
TREC was established in…
1949
What is the real estate licensing authority in Texas?
TREC
A termination date in a listing agreement must be what?
Definite
What are an agent’s duty to a client?
OLDCAR
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accounting
- Reasonable care
The duty of ___ means that an agent must follow all of the lawful instructions of the client
Obedience
Confidential information between client and agent should be…
kept confidential forever
In most states other than TX, the most common method of dealing with in-house transactions between client buyers and sellers is:
Dual Agency
When handling escrow funds for clients, the License Act requires that funds be deposited in a “reasonable time” which is defined as…
2 business days
The listing agreement should contain:
The legal description of the property
What are elements of a listing?
Terms of sale, such as the sales price and financing terms acceptable to the seller
Sam listed his property with 3 different real estate brokers. In each agreement he reserved the right to sell the property himself without paying a commission. The type of listing that Sam signed with each broker was an:
Open Listing
Data used for a CMA should be no older than:
6 months
The report used to give a seller or buyer a indication of market value is called:
Comparative Market Analysis
Listings may be terminated by….
- Death
- Either party
- Broker or Client
- Mutual Agreement
Listings are the property of the…
Broker
Duties of Principal to Agent
CRIP
- Compensation
- Reimbursement
- Indemnification (protect the agent from suffering a loss due to the agent’s reliance in information received from the principal)
- Performance
If a broker dies what happens to the listing with he seller?
It automatically terminates
If a broker sells a property on behalf of a seller without a signed listing agreement,the courts will most likely declare that the broker is:
A volunteer, an agent in a listing agreement that is unenforceable against the seller, and unable to enforce payment of the commission
Commission rates are set by…
Client and broker
This authorizes intermediary, is limited to the market area designated in the agreement and authorizes the agent to show properties to competing buyers.
The Tar Buyer Representation Agreement
If a broker’s agents are independent contractors, there can be a policies and procedures manual for the agents, but the broker…
can’t require mandatory compliance
In TX, Workman’s Compensation must be paid for real estate agents by brokers. T/F?
False
Sally is an unlicensed assistant to Agent Bill at ABC Realty. In her role as a transaction coordinator, Sally recently called a buyer and discussed some minor title issues that turned up in the title search. She also mentioned to the buyer that rates are down, and that considering the buyer’s situation, an FHA loan might be more attractive than a conventional loan. Based on this conversation, we can say that Sally:
Is dealing with issues that should only be discussed by a licensed assistant
A property that has been the scene of a murder or an alleged haunting is:
Stigmatized
What is a statutory defense for a lawsuit brought about by the DTPA?
Written information obtained from a government record
Actual awareness of a falsity, deception, or unfairness of an act under DTPA is known as:
Knowingly
An agent is not liable for a misrepresentation or concealment of material fact by a party if:
The licensee did not know of the falsity of the misrepresentation
