Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Law of Agency > law of agency > Flashcards

law of agency Flashcards

You may prefer our related Brainscape-certified flashcards:
MPRE flashcards MBE flashcards Civil Procedure 1L flashcards
1
Q

the relationship between a principal and the person’s agent

A

Agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

founded in trust or confidence

A

fiduciary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The origin of agency relationships began in the United States in

A

1919 when California passed the first real estate act and real estate salespeople began to be licensed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Texas passed its first real estate act, the Texas Real Estate Dealers Act in __________

A

1939

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

In Texas in 1939 Real estate salespeople were granted a _____________, not an agent’s license.

A

dealer’s license

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

n 1949 the __________________ was created by the Texas Real Estate License Act (TRELA).

A

Texas Real Estate Commission (TREC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

It was ______________ that began to offer both a broker & a salesperson license.

A

the TRELA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The Texas Real Estate Commission is composed of

A

nine members

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

TREC: Six are ________ and three are

A

brokers

members of the public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

TREC members are

A

appointed by the governor with the advice and consent of the senate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

TREC members must

A

be a qualified voter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Brokers on TREC must

A

have been engaged in the brokerage business as licensed brokers as their major occupation for the five years preceding appointment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

All agency relationships are created at the _________________.

A

broker level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The TREC commission shall

A

(1) administer this chapter and Chapter 1102;
(2) adopt rules and establish standards relating to permissible forms of advertising by a license holder acting as a residential rental locator;
(3) maintain a registry of certificate holders; and
(4) design and adopt a seal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The TREC commission may

A

(1) adopt and enforce rules necessary to administer
All agency relationships are created at the broker level.
this chapter and Chapter 1102; and
(2) establish standards of conduct and ethics for persons licensed
under this chapter and Chapter 1102 to:
(A) fulfill the purposes of this chapter and Chapter 1102; and
(B) ensure compliance with this chapter and Chapter 1102

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Salespersons must have a sponsoring broker before

A

they may practice real estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

All agency relationships are created at the ____________ level

A

broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Another word for client is

A

principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

customers may be referred to as

A

third parties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The broker must always be obedient to the client as long as the instructions given to the broker from the client

A

are for a legal purpose

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The broker who represents a person as a client owes that client fiduciary duties. These duties include

A 
obedience,
 loyalty, 
disclosure, 
confidentiality, 
accounting, and 
reasonable care
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

If the client instructs the broker to discriminate against one of the protected classes

A

the broker must cancel the listing agreement or buyer’s agreement and discontinue working for this person.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

The broker must put the client’s interest

A

above the broker’s interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The broker and salesperson must always disclose to the seller that

A

they are the buyer when they buy their own listings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The agents must have permission from the seller to

A

buy the listing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

the agent must also disclose when they are

A

selling their own property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

An example of loyalty to the client can be seen when a buyer’s broker helps negotiate a

A

lower price for the buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

The broker must disclose all __________________. He must also disclose

A
  • material facts to the buyer and seller
  • his opinion of the price of the property to
    his client.
  • all offers to his seller client,
  • the identity of the buyer and financial
    information he has concerning the buyers
    ability to purchase the property.
  • He must also disclose to his seller client
    if he knows he will have an interest in the
    property in the future.
    -For example, acting as a property
    manager for the buyer or relisting the
    property for the buyer in the future.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

broker must keep confidential all information he learns about a client unless

A

the client gives his permission to reveal the information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

broker may not tell a buyer that a client needs to sell quickly & will take a lower price

A

unless the seller has given him permission to do so. That permission should be in writing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

The broker must not _________ funds. He must keep all money received

A

commingle

in a separate account from his business or personal account.

Texas law requires that this must be a trust account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

The commission may suspend or revoke a license issued under this
chapter or take other disciplinary action authorized by this chapter if the license holder, while acting as a broker or salesperson

A
  1. fails within a reasonable time to
    properly account for or remit money that
    is received by the license holder and
    that belongs to another person;
  2. commingles money that belongs to
    another person with the license holder’s
    own money;
  3. fails to deposit, within a reasonable
    time, money the license holder
    receives as escrow agent in a real estate
    transaction:
    (A) in trust with a title company
    authorized to do business in this
    state; or
    (B) in a custodial, trust, or escrow
    account maintained for that
    purpose in a banking institution
    authorized to do business in this
    state;
  4. disburses money deposited in a
    custodial, trust, or escrow account, as
    provided in Subdivision (30), before the
    completion or termination of the real
    estate transaction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

A broker must perform his job with _____________. He must keep ____________________ —and offer advice to his clients with care

A

expertise and knowledge

current in the real estate market—both local and national

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Client’s duties to broker

A 
duties include:
compensation, 
indemnification, 
information, and 
cooperation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

The Canons of Professional Ethics and Conduct are;

A

fidelity,
integrity &
competency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

A licensee may be told many things in confidence by a client. The licensee may disclose confidential information if:
A. it will help to obtain a higher price for the property
B. the client tells the agent to disclose the information
C. the client gives the agent permission in writing to disclose the information
D. the buyer asks the agent for the information

A

C the client gives the agent permission in writing to disclose the information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q 
The origin of agency relationships began in the United States when the first real estate act was passed in:
A. Texas in 1952
B. Oklahoma in 1936
C. New York in 1896
D. California in 1919
A

D. California in 1919

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

A broker is not allowed to commingle funds. Commingle means to:
A. spend the client’s money
B. receive a commission from a customer
C. place the client’s money in the broker’s account
D. pay the client a rebate

A

C. place the client’s money in the broker’s account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q 
The Code of Ethics and Standards of Practice of the National Association of Realtors® is not:
A. law
B. written by NAR
C. about ethics
D. divided into 17 articles
A

A. law

MISSED

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q 
The Texas Real Estate Commission was created by the Texas Real Estate License Act in: 
A. 1949
B. 1948 
C. 1946 
D. 1945
A

A. 1949

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

There are four types of representation discussed in the Information About Brokerage Services. They are

A
  1. Broker represents owner
  2. Broker acts as subagent
  3. Broker represents buyer
  4. Broker acts as intermediary
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

The broker representing the owner is referred to as the

A

seller’s broker or the listing broker.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

A broker may represent a buyer as a client or customer. If representing the buyer as a customer, the broker is considered to be a

A

subagent of the seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

In a subagent relationship, the seller’s broker and the buyer’s broker are always

A

from two different companies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

a licensee may represent a buyer as a client. This relationship is usually created between the buyer and the buyer’s broker with a written buyer representation agreement, but the agency relationship may be created _______________.

A

orally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

A broker may act as an intermediary between the parties if the broker complies ___________________________

A

with the Texas Real Estate License Act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

In an Intermediary The broker must obtain _____________ through the listing agreement and the buyer representation agreement

A

written consent from the buyer and the seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

IABS signed forms should be maintained in .

A

the licensee’s records

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Other information may be added or removed from the IABS form provided by TREC as long as the _________________. For example, a brokerage may include _______________

A

wording from TRELA in the forms remains unchanged

the name of the company on IABS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

According to the Information About Brokerage Services form, a broker may act as a buyer’s agent, a seller’s agent, a subagent, or an intermediary.
A. True
B. False

A

A. True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

A buyer’s agent may not tell the buyer any information told to the agent by the owner.
A. True
B. False

A

B. False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

The broker representing the owner is referred to as the seller’s broker or the listing broker. A. True
B. False

A

A. True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

A real estate company may put the name of the company on the IABS form as long as the information from TRELA is not changed.
A. True
B. False

A

A. True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

The broker who lists the property for sale or lease is not the owner’s agent.
A. True
B. False

A

B. False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

___________ is the oldest form of representation

A

Seller agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Up until the early _______’s, all brokers represented the seller, there was no buyer representation.

A

1990

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

A fiduciary duty means the____________ must put the seller’s interest above their own

A

broker and all of his salespeople

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

The listing agreement between the broker and the seller must:

A
  1. Be in writing, in order to satisfy the Statute of Frauds
  2. Must be signed by the seller
  3. Must have a definite termination date
  4. Must have a legal description of the property
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

The listing agreement is an employment agreement between the seller and the listing broker and becomes the personal property of ________________

A

the broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

If the salesperson who listed the property moves his license to another company, the listing __________________

A

stays with the broker who sponsored the salesperson when the listing was taken.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

If the original sponsoring broker and the seller both agree, the listing may ___________________________________

A

be cancelled and the salesperson may relist the property in the new broker’s name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

The listing agreement creates a special _____________ relationship between the broker and the seller.

A

expressed agency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

The listing agreement only authorizes the broker to do one specific thing, which is

A

finding a “buyer ready, willing and able to buy the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

The broker is considered to have earned his commission when he has found that “ready, willing and able” buyer. If the seller at that point decides not to sell the property,

A

the seller still owes the broker the commission.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

The listing agreement is considered an expressed agency or expressed agreement between the broker and the seller because it

A

specifically states what is expected of the broker.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

In order to terminate the listing agreement as well as the agency relationship, one of the following must happen:

A
  1. Death or incapacity of the broker or the client
  2. Completion of the agreement, i.e. the property sold
  3. The listing agreement has expired
  4. The broker and the client can mutually agree to cancel the listing agreement
  5. It will also come to an end if the seller loses the title to the property through
    foreclosure or bankruptcy
  6. Destruction of property
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

There are four types of listing agreements:

A

Exclusive Right to Sell,
Exclusive Agency,
Open Listing, and
Net Listing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

The _____________ is the highest form of listing

A

Exclusive Right-to-Sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

With _________________ listing agreement the listing broker is assured of receiving a commission if anyone brings a buyer for the property and the property sells.

A

Exclusive Right to Sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

The ______________ agreement is often used for this type of listing.

A

TAR (Texas Association of Realtors) Exclusive Right-to-Sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

In this type of listing the seller reserves the right to sell the property himself and not pay a commission to the listing broker.

A

Exclusive Agency

If anyone else brings a buyer and the property sells, the listing broker will then receive a commission.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

the seller may give a listing to more than one broker. The seller gives each listing broker the right to attempt to sell the property, but the only broker that is paid a commission is the broker who produces a buyer that closes on the property.

A

Open Listing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

the seller states the amount he wishes to net from his property and allows the broker to keep the remainder as his commission

A

Net Listing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

The Texas Real Estate Commission _____________ promulgate any employment contracts and the listing agreement is an employment agreement

A

does not

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Licensees are required to use contracts

A

-promulgated by TREC,
-prepared by the property owner,
or
-written by an attorney and required by a
principle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

The listing agreement is an _____________ agreement

A

employment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

The______________________ attorneys make available for licensees use many forms and addenda including the Residential Real Estate Listing Agreement Exclusive Right to Sell.

A

Texas Association of Realtors®

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

The listing agreement is filled out by _____________ taking the listing from the seller.

A

the licensee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

The listing agreement may be filled in with a

A

pen or a computer software program may be used

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

The most often used listing agreement is the Texas Association of Realtors®

A

RESIDENTIAL REAL ESTATE LISTING AGREEMENT EXCLUSIVE RIGHT TO SELL

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

The broker is not entitled to a commission if:

A
  1. the seller cannot deliver a deed or title policy as required in the contract,
  2. the seller loses the property in foreclosure,
  3. the property does not sell as a result of a casualty loss that is not restored by the seller.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

Paragraph 5-C states the broker’s commission is payable

A
  1. at closing and funding,
  2. if the seller refuses to sell after a ready, willing and able buyer has been produced,
  3. if the seller breaches the listing agreement,
  4. as otherwise stated in the listing.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

To be valid, a listing agreement must have

A

a termination date.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

The broker gives the seller advice and opinions about the price and may also
do a Competitive Market Analysis (CMA),

A

but the seller makes the final decision concerning the price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

If the property is in an owners association, ______________________________________ must be given to the buyer

A

a Subdivision Information, Including Resale Certificate For Property Subject To Mandatory Membership In An Owners Association form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

if the address of the seller is different from the address of the property being listed.

A

The address used is the address of the seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

If the property has a metes and bounds description it will need

A

to be attached in an exhibit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

Paragraph 5-D (1) states the broker will receive a portion of any monies collected from a defaulting buyer

A

by the seller.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

Paragraph 5-D (2) allows the broker to receive a fee from a service provider for __________ This is in addition to other compensation the broker will receive.

A

a referral.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

If the seller sells the property within a specified time after the listing has expired, the broker will be entitled to a commission

A

if the buyer’s attention was called to the property by the broker during the listing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

The broker must give a list of _____________ to the seller within 10 days after the listing expires

A

all potential buyers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

If the seller has relisted the property with another broker who is a member of TAR,

A

the first broker will not receive a commission.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Paragraph 12
SELLER’S REPRESENTATIONS
This paragraph states that

A

the seller has fee simple title,
there is no agreement with another person to acquire the property,
there are no delinquencies in the mortgage, all information the seller has provided is correct and
the seller does not have a listing agreement with another broker.
It also states that any pool on the property meets code.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

Paragraph 13 SELLER’S ADDITIONAL PROMISES

The seller makes several additional promises including:

A

cooperating with the broker in showing the property,

referring all prospective buyers to the broker, not leasing the property without the broker’s approval.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

LIMITATION OF LIABILITY
The seller is instructed to notify their insurance company if ________________. The paragraph states that the broker is not responsible or liable for ____________________________________. The seller agrees to hold the broker harmless from any damage, cost, attorney’s fees and expenses that are caused by the seller.

A

the property becomes vacant

any loss or damage to the property that is not caused by the broker.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

If the broker breaches the listing, the seller may use __________________________.

A

any remedy allowed by law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

The broker and seller agree to attempt to resolve any dispute by_______________. If the dispute cannot be resolved, they agree to _____________________________

A

negotiation

mediation. They will select a mediator and share the cost equally.

98
Q

If the seller and broker dispute ends in a lawsuit, the prevailing (winning) party may recover _______________________________

A

attorney’s fees and court costs from the non-prevailing (losing) party

99
Q

Paragraph 21-A states that all commissions are always

A

negotiable and are not fixed or set by TREC or any organization.

100
Q

_____________________ signs and dates the listing agreement.

A

The broker’s associate taking the listing

101
Q

Exclusive agency????? The buyer must be an “Exclusive Prospect”—

A

meaning their attention was not called to the property by the listing broker or any other broker.

102
Q

The seller must notify the listing broker in writing of the name and address of

A

the “Exclusive Prospect.”

103
Q

If the seller’s disclosure notice is not delivered by the effective date, the buyer has the right to cancel the contract within _______ days after receiving the notice.

A

seven

104
Q

a disclosure of the

seller’s knowledge of the condition of the property,

A

seller’s disclosure notice

105
Q

is considered to be an addendum to the listing agreement..

A

the seller’s disclosure notice

106
Q 
The Seller’s Disclosure Notice must be filled out by:
A. the seller
B. the buyer
C. the agent
D. all of the above
A

A. the seller

107
Q 
A listing agreement between the seller and the broker may be terminated by:
A. death of the broker
B. sale of the property
C. expiration of the listing agreement
D. all of the above
A

D. all of the above

108
Q 
The broker may give the seller advice and opinions about the price of the property and may do a CMA for the seller. The final decision concerning the listing price is made by the:
A. broker
B. salesperson
C. seller
D. broker and salesperson
A

C. seller

109
Q 
The listing agreement must be in writing to satisfy:
A. the Statute of Frauds
B. the fair housing laws
C. TREC
D. the broker
A

A. the Statute of Frauds

110
Q 
An open listing may be given to:
A. one broker
B. a broker and two salespeople
C. many brokers
D. a buyer
A

C. many brokers

111
Q

four different types of agency:

A

seller agency,
buyer agency,
sub-agency, and
intermediary

112
Q

T/F

he broker is not given permission to sign any documents in the name of the seller.

A

True

113
Q

If the seller counter-offers, the buyer customer’s broker cannot help
negotiate the transaction.

A

in a sub agency

114
Q

The __________________ make the decision to allow or not allow sub-agency.

A

listing broker and the seller

115
Q 
There must always be \_\_\_\_\_\_\_\_\_\_ company(ies) involved in a sub-agency transaction. 
A. one
B. two 
C. three 
D. four
A

B. two

116
Q 
When the broker is a subagent of the seller, he is working with the buyer as a(n):
 A. client
B. subagent
C. customer
D. intermediary
A

C. customer

117
Q 
The seller agrees to allow or not allow sub-agency in the:
A. listing agreement
B. buyer’s agreement
C. contract
D. all of the above
A

A. listing agreement

118
Q 
The broker is representing the buyer as a client. If the buyer wishes to purchase a property listed with another company, the broker will represent the buyer as a(n):
A. customer
B. subagent
C. intermediary 
D. client
A

D. client

MISSED

119
Q 
The broker working with the buyer as a customer owes a fiduciary duty to:
A. the buyer
B. the seller
C. the buyer and seller
D. himself
A

B. the seller

120
Q

Until buyer agency became popular, the buyer had no representation and was always treated as a ________________.

A

customer

121
Q

If the buyer is represented as a customer, the broker will become a ___________ of the seller and will owe his fiduciary duty to the
r.

A

subagent

selle

122
Q

True or False
While representing the buyer as a customer, the licensee may show property to the buyer, fill out an offer for the buyer, and collect a commission for the transaction.

A

True

123
Q

While representing the buyer as a customer, The licensee must always remember:

A

No advice may be given on the price of the property

No opinions of the property may be given to the buyer

124
Q

________________ are owed to the customer and all __________________ must be disclosed to the buyer.

A

Honesty and disclosure

material facts and latent defects

125
Q

A buyer may also be represented as a client and be given _________________ by the licensee.

A

advice and opinions

126
Q

When the buyer is represented as a client, the buyer representation can be created either in

A

writing or oral.

127
Q

If the agreement is oral, the broker states that

A

he will represent the buyer as a client and the buyer agrees.

128
Q

With an oral agreement - While in the process of locating a property to purchase, the buyer may work with many brokers on a client
level and will not owe loyalty to any of them

A

as long as the agreement is oral

129
Q

The agent who is the_________________ in the transaction writes the offer and takes the transaction to close will want to receive a commission.

A

procuring cause

130
Q

the Real Estate License Act states that a broker may not sue for a commission unless there is a ____________________________________

A

written agreement signed by the person who has agreed to pay the commission.

131
Q

The ________________” in The RESIDENTIAL BUYER/TENANT REPRESENTATION AGREEMENT is very important. The agreement is only good within that area.

A

“market area

132
Q

The client agrees that the broker may show other customers and clients the

A

same properties that are being shown to him

133
Q

The buyer will work exclusively with the broker within the market area and will

A

inform everyone that he is represented by the broker.

134
Q

Client and broker state that they have the legal capacity to sign this agreement and the client states that they have

A

not signed an exclusive representation agreement with another broker in the same market area.

135
Q

The broker will first look to the ___________ to collect a fee.

A

seller or landlord

136
Q

If the broker cannot collect a fee from the seller or landlord,

A

the buyer will pay the fee.

137
Q

The broker may not receive a commission until his commission is earned and payable.

Broker may retain any additional commission or bonus received from the transaction.

If the buyer buys one of the broker’s listings, the broker will look to the seller for the commission.

The broker is entitled to a commission if he negotiates construction or improvements.

A

.

138
Q

SPECIAL PROVISIONS Only _____________ should be added

A

factual information

139
Q

The TAR General Information And Notice To A Buyer may be given to the buyer by the agent. It gives information on

A

annexation, inspections, MLS, residential service contracts and many other subjects of interest to the buyer.

140
Q

The TAR Amendment to Buyer/Tenant Representation Agreement may be used to

A

change anything in the buyer agreement

141
Q 
A broker helping a buyer locate a property to purchase may work with the buyer as a:
A. client
B. customer
C. client or customer
D. none of the above
A

C. client or customer

142
Q 
A buyer may sign a buyer agreement with:
A. several brokers, but not in the same market area
B. only one broker
C. one broker in each city
D. a limit of two brokers
A

A. several brokers, but not in the same market area

143
Q 
Most contracts provide that the seller will deliver possession of the property to the buyer:
A. several days before the closing date
B. at the time the sale closes and funds
C. when the property has been rekeyed
D. the day after the closing
A

Most contracts provide that the seller will deliver possession of the property to the buyer at the time the sale closes and funds

B. at the time the sale closes and funds

144
Q

The TAR Residential Buyer/Tenant Representation Agreement states that the buyer’s broker is allowed to:
A. represent other prospects
B. show other prospects the same properties shown to the buyer
C. not represent other prospects
D. both A and B

A

D. both A and B

145
Q 
The only person who is allowed to give legal advice is:
A. the broker for the seller
B. the salesperson
C. an attorney
D. the broker for the buyer
A

C. an attorney

146
Q

In the early 1990’s, intermediary began to be used to represent

A

both a buyer and seller in the same transaction

147
Q

It is the way the company does an “in house sale

A

Intermediary

148
Q

Intermediary has been agreed to in the listing

agreement and the buyer representation agreement when they

A

were signed by the seller and the buyer

149
Q

If the buyer and seller did not agree to intermediary, the broker cannot represent both in the transaction, and one client must become a customer of the broker or go

A

to another company to be represented as a client.

150
Q

A broker may act as an intermediary between parties to a real estate transaction if:

(1) the broker obtains ______________ for the broker to act as an intermediary in the transaction; and
(2) the written consent of the parties____________________ of any expected compensation to the broker.

A

written consent from each party

states the source

151
Q

An intermediary shall act

A

fairly and impartially

152
Q

A broker must agree to act as
an intermediary under this
subchapter if the broker agrees
to represent in a transaction:

A

(1) a buyer or tenant; and

(2) a seller or landlord.

153
Q

The broker has the choice of making or not making appointments in this form. If he makes appointments, the salesperson representing the seller is appointed to the seller and the salesperson representing the buyer is appointed to the buyer.

A

.

154
Q

Since appointments have been made, the salespeople may continue to give advice, opinions, and negotiate between the buyer and seller. However, as stated in the licensing act, they cannot tell the buyer that the seller will accept less money for the property or the
buyer will pay more for the property.

A

.

155
Q

For an intermediary transaction to occur, there must be __________ company(ies) involved: A. one
B. two
C. three
D. four

A

A. one

156
Q

The broker:
A. may appoint a salesperson only to the buyer
B. may appoint a salesperson only to the seller
C. must appoint a salesperson to the buyer if a salesperson is appointed to the seller
D. may not make appointments

A

C. must appoint a salesperson to the buyer if a salesperson is appointed to the seller

MISSED

157
Q

The TAR Intermediary Relationship Notice states:
A. the name of the agent appointed to the seller
B. the name of the agent appointed to the buyer
C. the legal address of the property
D. both A and B

A

D. both A and B

158
Q

The Texas Real Estate License Act states:
A. a broker must act as an intermediary if the broker agrees to represent in a transaction both the buyer and seller
B. a broker may act as a dual agent if he does not make appointments
C. a broker may appoint two intermediaries in the same transaction
D. a broker may act as subagent and an intermediary in the same transaction

A

A. a broker must act as an intermediary if the broker agrees to represent in a transaction both the buyer and seller

159
Q 
Intermediary agency has:
A. become rare and seldom used
B. never been used for an “in house sale”
C. never been used in Texas
D. replaced dual agency
A

D. replaced dual agency

160
Q

Agency is always created at the _________ level

A

broker

161
Q

A person who is represented as a client by a broker is also the client of

A

all of the salespersons the broker sponsors.

162
Q

The broker is authorized to perform only one act. He is authorized to find a “ready, willing, and able buyer” to purchase the property if he is representing the seller.
the broker is a ________________

A

special agent

163
Q

Broker is authorized to perform many acts and transactions with this type of relationship.

A

General Agent

164
Q

A property manager is a _____________ agent

A

General Agent

165
Q

A general agent may

A
  • list the property for rent,
  • qualify the tenants,
  • bind the owner to the lease,
  • collect rent,
  • file evictions,
    as well as many other duties.
166
Q

The broker-salesperson relationship is an example of

A

general agent

167
Q

The salesperson is authorized to do many things for the broker. The salesperson may

A

list property in the brokers name and
bind the broker to the listing agreement, advertise in the brokers name,
work with buyers,
and perform many more duties.

168
Q

___________ agency can be created with the listing agreement between the broker and seller or the buyer representation agreement between the broker and buyer

A

Special

169
Q

General agency can be created by the

A

property management agreement between the broker and property owner or
the independent contractor agreement between the sponsoring broker and his salesperson.

170
Q

A _________ agent may perform any acts or transactions the principal may perform.

A

universal

This relationship is rare in real estate. It would be more often used between an adult child and an elderly parent. The child could do all business and make all decisions for the parent.

171
Q

Gratuitous agency is

A

free agency

172
Q

When an agent offers free
advice, he is responsible for the advice. An agent offering a free CMA to a potential client could be held responsible for the “free advice” if

A

the person later sold the property based on the CMA and the CMA suggested price was too low.

173
Q

An agent is considered to be an expert in real estate and is always responsible for what he says even.

A

if he is not receiving a commission

174
Q

_________________ is agency after the fact

A

Agency by ratification

For example, the agent writes
an offer from a customer on a property that has not yet been listed. The agent presents the offer to the owner of the property and the owner accepts the offer and sells the
property

175
Q 
An example of gratuitous agency is:
A. working for both the buyer and seller
B. working for free
C. setting your commission rate to high
D. giving advice and opinions to a customer
A

B. working for free

176
Q 
A listing agreement between a seller and broker or a buyer agreement between a buyer and broker is an example of:
A. special agency
B. general agency
C. gratuitous agency
D. dual agency
A

A. special agency

177
Q 
A property management agreement between a broker and an owner is an example of:
A. special agency
B. general agency
C. gratuitous agency
D. dual agency
A

B. general agency

178
Q 
Agency is always created at the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ level.
A. salesperson
B. seller
C. buyer
D. broker
A

D. broker

179
Q 
Agency after the fact is:
A. agency by ratification
B. gratuitous agency
C. implied authority
D. universal agency
A

A. agency by ratification

180
Q

A broker may work for

another broker and is then sometimes called a

A

broker associate.

181
Q

The Texas Real Estate License Act has many laws governing the way a broker must conduct his business. It has requirements concerning

A
  • location,
  • display of license,
  • more than one office and
    -the relationship between the broker and
    his salespersons.
182
Q

A broker who maintains more than one place of business in this state shall obtain

A

a branch office license for each additional office

183
Q

______________________ is not required to maintain a place of business in this state

A

A nonresident licensed broker

184
Q

The broker does not have to display the licenses of the broker and salespeople if the office is a sales office,
but licenses must be displayed

A

if the office is an apartment locator office

185
Q

All salespersons licenses must be kept in

A

the broker’s custody and control

186
Q

the salesperson may not act as a

salesperson

A

until he has a sponsoring broker

187
Q

A salesperson may have only one broker, but may

A

change brokers at any time.

188
Q

When the association of a salesperson with the salesperson’s sponsoring broker terminates, the broker shall immediately return the salesperson license to

A

the commission.

189
Q

A salesperson may not pay a

commission to a person except through

A

the broker with whom the salesperson

is associated at that time

190
Q

The amount of the commission is set in

A
  • the listing agreement,
  • buyer agreement and
  • the property management agreement.
191
Q

In order to collect a commission the broker must always

A
  • advise the buyer to have the abstract
    examined by an attorney or
  • obtain a title insurance policy
192
Q

The broker will want to be the procuring cause of the transaction. Procuring cause means

A

the agent put into motion the events that caused the buyer to purchase the property.

193
Q

There are four employment contracts that a broker may use.

A
  • The listing agreement is used between a
    seller and a broker.
  • The buyer representation agreement is
    used with a buyer.
  • The property management agreement is
    used between the broker and the owner
    of a property the broker wishes to manage.
  • The independent contractor agreement is
    used between the broker and
    his sponsored salespeople.
194
Q

A material fact is

A

any fact that a buyer would want to know about before making a decision to purchase the property.

195
Q

a material fact could include:

A
  • structural problems,
  • zoning changes,
  • dangerous conditions on the property and - - building code violations.
196
Q

A_____________ is a defect that is known to the seller and hidden from the buyer. It is not easily discoverable by an inspector.

A

latent defect

197
Q

The broker is required to disclose

A

any known latent defects and must not hide them even at the seller’s request

198
Q

A single agency company works

A

only with buyers or sellers, but not with both.

199
Q

A company working with both sellers and buyers, but not in the same transaction could also be called a

A

single agency company.

200
Q

could not do an in- house sale and represent both the buyer and seller

A

single agency company

201
Q

If the salesperson works as an employee, the broker must comply with all employer/employee laws. The broker must

A

withhold income tax and Social Security from the salesperson’s compensation.

The employee may receive benefits such as vacation and sick leave.

202
Q

malpractice insurance for real estate agents.

A

Errors and Omissions Insurance

203
Q 
The Texas Real Estate License Act has requirements concerning a broker’s:
A. location
B. display of license
C. branch office
D. all of the above
A

D. all of the above

204
Q 
A salesperson license is issued by: 
A. TREC
B. TAR 
C. ABOR 
D. NAR
A

A. TREC

205
Q 
A material fact is any fact that a buyer would want to know about before making a decision to purchase the property. These could include:
A. zoning laws
B. structural problems
C. both A and B
D. none of the above
A

C. both A and B

206
Q 
The broker must always be licensed and \_\_\_\_\_\_\_\_ in order to receive a commission:
A. have at least one salesperson
B. employed
C. own a real estate company
D. be a member of NAR
A

B. employed

207
Q

Errors and Omissions Insurance is malpractice insurance. It is:
A. required by TREC
B. offered by insurance companies in Texas
C. sponsored by TAR
D. free from NAR

A

B. offered by insurance companies in Texas

208
Q

If a seller asks the licensee to discriminate, the licensee

A

cannot take the listing on the property unless the seller agrees not to discriminate

209
Q

The Civil Rights Act of 1866 is a federal law that was passed at the end of the Civil War. It says that no one can discriminate because of _______ in residential housing.

A

race

210
Q

In 1968 the Civil Right suit of Jones v Alfred H Mayer Company became a landmark case in Fair Housing laws. It is the Fair Housing law that makes it illegal to discriminate based on

A

race, color, religion and national origin.

Title VIII of the Civil Rights Act of 1968

211
Q

In 1974 the Civil Rights Act of 1968 was amended to include______ as a protected class.

A

sex

212
Q

The Civil Rights Act was amended again in 1988 to include

A

handicap and familial status.

In the 1988 amendment, handicap is defined as either a physical or mental impairment.

It also includes persons infected with AIDS
or the HIV virus.

213
Q

If a handicapped person wants to lease a property, they must be allowed to make reasonable modifications to the property. The modifications are to be paid for

A

by the handicapped person and are to be done in a workman like manner.

214
Q

The handicapped person is also required to

A

return the property to its original condition if the modifications will substantially impact the leasing of the property to a future tenant.

215
Q

Returning the property to its original condition is the financial obligation of

A

the handicapped tenant.

216
Q

It is illegal to put families

with children

A

all in the same building when leasing residential real estate

217
Q

It is illegal to have ________ only communities. Communities for the elderly are exempt.

A

adult

218
Q

The age requirements for communities for the elderly are:

A

occupied by persons 62 or older

80% of the units occupied by at least one person 55 or older

219
Q

The 1988 amendment protects familial status or families with children. Under this amendment, anyone under the age of

A

18 is considered a child. People with

children cannot be limited in their choice of property because they have children.

220
Q

occurs when a group of agents go into a neighborhood and use fear of a minority group moving into the neighborhood to encourage the homeowners to sell their homes to the agents for a low price.

A

Block busting

221
Q

the practice of directing home seekers to a neighborhood because of race, religion, color,
national origin, sex, handicap or familial status

A

Steering

222
Q

The Americans with Disabilities Act was passed in 1992 and primarily pertains to

A

commercial property.

223
Q

The act is designed to protect the consumer against “false, misleading, or deceptive acts or practices” in the advertising, selling, or leasing of real estate

A

Deceptive Trade Practice Act

224
Q

The DTPA has a list of practices that are illegal under the act. Several of these that apply to real estate are:

A
  • Representing that goods are original or new
    if they are not
  • Failure to disclose information about the
    property known at the time of the
    transaction if it would be important to a
    consumer in making a decision about the
    property
  • Representing that something is of a
    particular style, model, or brand if it is not
  • Advertising goods or services with intent
    not to sell them as advertised
  • Representing that work or services have -
    been performed on, or parts replaced in,
    goods when the work or services were not
    performed or the parts replaced.
225
Q

“to praise extravagantly.”

A

Puffing

226
Q

to give a false or misleading representation because of lack of knowledge

A

Unintentional misrepresentation

227
Q

“intentional perversion of truth in order to induce another to part with something of value

A

fraud

228
Q

A consumer is not required to prove fraud in a DTPA suit against a licensee.

A

True

229
Q

A consumer may waive his rights to bring a suit under the DTPA. The waiver must

A

be in writing and signed by the consumer

230
Q

A DTPA suit must be filed within_________ after the date on which the false, misleading, or deceptive act or practice occurred.

A

two years

231
Q

The recovery under the DTPA is limited to ___________ unless the defendant ___________. The damages may then be ______—-

A

economic damages

committed the act intentionally

trebled.

232
Q

The Sherman Antitrust Act most common violations are



A
  • price-fixing,
  • boycotting competitors, and
  • allocation of client/customers or markets.
233
Q

The Sherman Antitrust Act was passed in _______ and is the oldest of all United States federal antitrust laws

A

1890

234
Q

the practice of several brokers agreeing to all charge the same amount of commission. This would be done to push the rate of commissions higher and lead to more profit for the real estate companies

A

Price- fixing

235
Q

occurs when one or several real estate companies make a decision not to work with other companies. It would be done in an attempt to put those companies out of business.

A

boycotting companies

236
Q

when companies set territories for each company and agree to stay out of each other’s territory. It could also be dividing customers. One company could agree to
only sell one price range while another agreed to sell a different price range.

A

Allocation of client/customers or markets

237
Q

An individual who violates the antitrust laws may be charged with ____________ The penalty is __________________. A person who suffers a loss may receive

A

a misdemeanor or a felony.

a fine and up to three years imprisonment

triple the amount of the actual damages.

238
Q 
Civil Rights Act of 1866 says no one can discriminate because of:
A. race
B. national origin 
C. handicap
D. familial status
A

A. race

239
Q

The most common violation(s) of the antitrust laws is/are:
A. price-fixing
B. boycotting competitors
C. allocation of client/customers or markets
D. all of the above

A

D. all of the above

240
Q 
The Americans with Disabilities Act was passed in 1992 and primarily pertains to:
A. residential homes
B. Fair Housing
C. real estate agents
D. commercial property
A

D. commercial property

241
Q

If a seller orders the licensee to discriminate, the licensee:
A. may not take the listing
B. must report the seller to HUD
C. may take the listing
D. may take the listing, but cannot collect a commission

A

A. may not take the listing

242
Q

Communities for the elderly are exempt from familial status if:
A. the units are occupied by persons 62 or older
B. 80% of the units are occupied by at least one person 55 or older
C. both A and B
D. neither A nor B

A

C. both A and B

Law of Agency (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions