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Law of Agency > Module 1 > Flashcards

Module 1 Flashcards

1
Q

Acts for or on behalf of another person

A

Agent

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2
Q

Synonym for the word principal.

A

Client

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3
Q

The payment of a fee for completing an agreed activity like agency.

A

Compensation

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4
Q

Involves trust, especially in regard to the relationship between an agent and principal.

A

Fiduciary

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5
Q

Compensation from harm or loss.

A

Indemnification

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6
Q

Doing what is required by the agency agreement.

A

Performance

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7
Q

The party who is represented by an agent.

A

Principal

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8
Q

The paying back of expenses incurred on behalf of someone else.

A

Reimbursement

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9
Q

Based on trust

A

Fiduciary

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10
Q

Protection against damage or loss

A

Indemnification

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11
Q

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

A

Customer

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12
Q

Also known as the principal

A

Client

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13
Q

BLANK makes it illegal to practice any act of real estate brokerage without a license

A

The Texas Real Estate License Act (TRELA)

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14
Q

The agent must always remain loyal to the

A

principal

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15
Q

agency is the relationship between two parties

A

a principal and an agent

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16
Q

In an agency relationship, the client gives BLANK to the agent to work on the client’s behalf.

A

authority

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17
Q

Agency is the relationship between two parties, the BLANK and the principal.

A

agent

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18
Q

An agent must always remain BLANK to their client.

A

loyal

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19
Q

The role of an agent when working for the principal is always for the BLANK of the principal.

A

benefit

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20
Q

The BLANK relationship is based on trust.

A

fiduciary

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21
Q

The principal and the BLANK are the same person.

A

client

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22
Q

Texas Real Estate License Act (TRELA) Was enacted by legislation in 1939 to protect the public against

A

unscrupulous brokers and sales agents

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23
Q

A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is:

A

(1) a license holder; or

(2) a real estate broker licensed in another state who does not conduct in this state any of the negotiations for which the commission or other compensation is paid.

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24
Q

This is a multiple choice question. Once you have selected an option, select the submit button below
Agent Phillip received an earnest money check payable to the title company from a buyer. Five days later he found the check under some paperwork on his desk. He deposited the check immediately.

Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent’s license.

A

Violation of TRELA

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25
The Texas Real Estate Commission was created in
1949
26
Agent Dirk negotiated a transaction where the buyer wrote a $2000 earnest money deposit. The earnest money was deposited in Dirk’s escrow account. The transaction fell through, and feeling sorry for the buyer, he refunded the earnest money without the consent of the seller. Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent's license.
Violation
27
Part of the licensing process is to determine
moral character
28
A broker may pay a fee to
another broker
29
Agent Dwayne discovered that a great way to get more listings was to tell homeowners in the neighborhood that a huge commercial project was about to commence that would seriously devalue property in the subdivision. The claim was false, but it did result in a number of listings.
Violation
30
Agent Willard got a call from a promising prospective buyer on one of the properties that he had put signs on without the owner’s knowledge. He went ahead and began negotiating a sale knowing that the seller had not even put it on the market. His rationale was that “Everything is for sale at some price.” Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent's license.
Violation
31
Agent Maggie was showing properties to a buyer who inquired about the racial makeup of the neighborhood. She declined to respond to the inquiry. Decide if the actions are in violation of TRELA and could result in the suspension or revocation of the agent's license.
Not a violation
32
A broker works for a
client
33
A broker works with a
customer
34
A broker selling the listing of another broker
Cooperative Broker
35
These are the duties to customers (third parties) in a transaction:
honesty Disclosure of material fact Handle all funds with care Be responsible for written or oral statements
36
These are the duties to a client.
Put the interests of the client first Give full disclosure to the client (advice and opinions in addition to disclosing all pertinent facts - both material and other) Exhibit trust and honesty Exercise good business judgment Be loyal to the principal Be competent
37
A person licensed by the Texas Real Estate Commission (TREC) to act as a broker or sales agent in a real estate transaction.
License Holder
38
A broker who represents a seller, landlord, buyer or tenant. (2) Sales agent or broker license holders who represent the broker with whom they are associated.
Agent
39
A license holder not associated with the seller’s broker, but who is representing the seller through a cooperative agreement, often through membership in a Multiple Listing Service (MLS), with the seller’s broker.
Subagent
40
A broker selling the listing of another broker. A cooperative broker may complete the transaction as a subagent of the listing broker, or may represent the buyers under an agency agreement; he also known as the other broker
Cooperative Broker
41
An individual holding a broker’s license issued by TREC. Brokers may act independently in conducting real estate transactions, or may engage other broker or sales agent license holders to represent them in the conduct of their real estate business.
Broker license holder
42
A broker associated with and conducting all of his or her business as an agent of another broker.
Broker associate
43
An individual holding a license issued by TREC - an agent of the sponsoring broker. He or she may conduct business only through his or her sponsoring broker.
Sales agent license holder
44
A sales agent or broker license holder associated with and conducting business as an agent of his or her sponsoring broker.
Sales associate
45
A broker representing the seller in a real estate transaction, also referred to as a Seller’s Broker, Listing Broker, or Listing Agent.
Seller's agent
46
A broker representing the buyer in a real estate transaction, also referred to as a Buyer’s Broker, Selling Broker, or Selling Agent.
Buyers agent
47
A broker representing a landlord in a real estate transaction.
Landlords' agent
48
A person, sometimes called a principal, who engages the professional advice or services of another, called an agent, and whose interests are protected by the specific duties and loyalties of an agency relationship. Many of these duties are outlined in a listing or buyer/tenant representation agreement.
client
49
A person who receives limited brokerage services without establishing an agency relationship.
customer
50
Duties of Principal to Agent
Both Compensation and Indemnification
51
Agent Bill is instructed to arrange for lawn mowing for a seller who has moved out of state. Bill pays for the mowing and submits an invoice to the seller.
Reimbursement
52
Broker Sam sells a property for Seller Sue. At closing Broker Sam is to be paid a commission.
Compensation
53
Seller Wanda lists a property with Broker Susan. Wanda completes a seller’s disclosure indicating that there are no defects. After closing, the buyer discovers major termite damage and considers a lawsuit. Wanda considers implicating the broker in the misrepresentation.
Indemnification
54
Seller Jane lists with Broker Bob. The house is never in showing condition, and Jane continually tells Bob that “Now is not a good time to show”.
Performance
55
Refusing to tell a buyer how long a property has been on the market.
Customer level only
56
Helping the buyer formulate a negotiating strategy
Client level only
57
Disclosing material facts about a seller’s property.
Both customer and client level
58
Refusing to provide a negotiating strategy to a seller.
Client level only
59
Providing public information related to the property, such as square footage and taxes.
Both customer and client level
60
Telling a buyer that a seller’s property is overpriced.
Client level only
61
Disclosing to a buyer that the current use of a property is in violation of deed restrictions.
Both customer and client level
62
Presenting a comparative market analysis to a buyer, showing the property is overpriced.
Client level only
63
Telling the seller that the buyer can offer more money for his property.
Customer level only
64
Leading a buyer to believe that you are working in the buyer’s best interest.
Client level only
65
The Texas Real Estate License Act was created in
1939
66
The Texas Real Estate License act was created to ___________ the public.
protect
67
TREC’s role is to administer the provisions of
The License Act
68
____________ is a duty of the principal to the agent.
Indemnification
69
The Canons of Professional Ethics and Conduct include
Integrity
70
Agency Law does not require an agent to look after the best interests of a ________________
customer
71
An agency relationship exists when on person, the BLANK, acts for or on behalf of another person, the BLANK
Agent, principle
72
Which of the following is grounds for suspension or revocation of a real estate license by TREC?
Splitting a commission with a person other than a license holder
73
The commission can deny licensure to an applicant based on the applicants BLANK
Determination of fitness
74
A(n) BLANK is a broker selling the listing of another broker
Cooperative broker

Law of Agency (13 decks)

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