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Law of Agency > Module 3 > Flashcards

Module 3 Flashcards

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1
Q

The seller retains the services of a broker.

A

Listing Side

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2
Q

The buyer retains the services of a broker.

A

Selling Side

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3
Q

A property is sold by a firm other than the listing firm.

A

Cooperative Sale

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4
Q

A transaction in which a broker is on both the listing and selling side.

A

In-House Sale

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5
Q

A license holder is not associated with the seller’s broker, but is representing the seller through a cooperative agreement with the seller’s broker.

A

Subagency

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6
Q

The system used by its members to share listings between brokers.

A

Multiple Listing Service (MLS)

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7
Q

A common and legal way to create agency in Texas.

A

Oral Agency Agreements

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8
Q

A property is sold by the listing firm.

A

In-house Sale

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9
Q

A property is sold by a firm other than the listing firm.

A

Cooperative Sale

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10
Q

Created automatically with no discussion or action needed on the part of a brokerage firm.

A

Subagency

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11
Q

The seller retains the services of a broker.

A

Listing Side

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12
Q

The buyer retains the services of a broker.

A

Selling Side

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13
Q

The best way to create an agency relationship is to do so

A

in writing

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14
Q

In Texas, there are 4 statutory agency relationships allowed by TRELA:

A

Seller Agency
Buyer Agency
Subagency
Intermediary

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15
Q

An oral agency agreement is enforceable against the ____________, and in unenforceable against the _____________.

A

broker, client

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16
Q

If a broker learns confidential information during a listing presentation, the broker by _________ might be bound to keep the information confidential if the broker is unsuccessful in obtaining the listing.

A

implication

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17
Q

The written listing agreement creates a ________________ relationship.

A

Special agency

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18
Q

The relationship between the broker and sponsored agents is a ___________ relationship.

A

General agency

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19
Q

Broker Bob’s company, Acme Realty is a small firm with three agents, Sue, Megan and Bill. Agent Sue lists Seller Steve’s property. Who owns the listing agreement?

A

Broker Bob

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20
Q

Broker Bob’s company, Acme Realty is a small firm with three agents, Sue, Megan and Bill. Agent Sue lists Seller Steve’s property. In the firm, who has a fiduciary duty to represent the interests of Seller Steve?

A

Broker Bob, Sue, Megan, and Bill

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21
Q

Determine whether the following individuals are part of the Listing Side or the Selling Side of a transaction: Buyers Agent

A

Selling

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22
Q

Determine whether the following individuals are part of the Listing Side or the Selling Side of a transaction: Listing agent

A

Listing

23
Q

Determine whether the following individuals are part of the Listing Side or the Selling Side of a transaction: Listing Broker

A

Listing

24
Q

Determine whether the following individuals are part of the Listing Side or the Selling Side of a transaction: Buyers Broker

A

Selling

25
Q

Determine whether the following individuals are part of the Listing Side or the Selling Side of a transaction: Sellers Broker

A

Listing

26
Q

Determine whether the following individuals are part of the Listing Side or the Selling Side of a transaction: Sellers Agent

A

Listing

27
Q

Determine whether the following individuals are part of the Listing Side or the Selling Side of a transaction: Selling agent

A

Listing

28
Q

Agent Joseph works for Broker Pete. Joseph signed a Buyer’s Representation Agreement with Buyer Markus. Agents Cindy and Flora just signed Independent Contractor Agreements with Broker Pete.

Which of the following is true?

A

Joseph, Cindy, Flora and Pete all share the same agency relationship with and duties to Markus.

29
Q

Agent Joseph signed a listing agreement with Sherri and Steven to sell their condo while sponsored by Broker Pete, then left to go work for Broker Randy.

Who is responsible for taking offers on behalf of Sherri and Steven’s condo?

A

Broker Pete is responsible for taking offers on behalf of Sherry and Steven’s condo.

30
Q

Agent Joseph used to be sponsored by Broker Pete. He originally signed the listing agreement with Sherri and Steven in Broker Pete’s name. Joseph is now sponsored by Broker Randy and he submits an offer for a buyer who wants to purchase Broker Pete’s listing. The offer has been accepted by Sherri and Steven.

Which of the following is true?

A

Broker Randy is the cooperating broker.

31
Q

Broker Pete is the listing broker for Sherri and Steven’s condo. Agent Joseph, who works for Broker Randy, has submitted an offer on the condo that has been accepted by Sherri and Steven. Broker Pete has been notified by TREC that his broker’s license has been revoked due to a host of violations including but not limited to unlawful trust fund handling.

What happens to the listing?

A

All Broker Pete’s agency agreements with buyers and sellers are terminated

32
Q

The duties of the agent do not end with the termination or expiration of an agency relationship. The duty of confidentiality extends

A

forever into the future

33
Q

The client is reasonable in expecting confidential information will be kept

A

confidential.

34
Q

Agent Bill at Acme Realty negotiated a listing agreement with Seller James. Three days later Bill unexpectedly died. After Bill’s death, what is the status of the listing agreement?

A

Bill’s death would have no effect on the agreement.

35
Q

Agent Megan negotiated a listing agreement with Seller Sarah. Megan explained that the firm’s policy is to have listing agreements that do not have a definite termination date. Listings with the firm can be terminated only with notice from the client. This practice is:

A

Not proving a definite termination date is a violation of the license act.

36
Q

If the broker’s license is revoked

A

the listing agreements and buyer representation agreements are terminated.

37
Q

Seller Brian gave Acme Realty notice of termination of the listing agreement 60 days into a 180 day term. Seller Brian…

A

has the power to terminate but could be liable for damages if the courts determine that it was not done with just cause.

38
Q

When a broker is given notice of termination, the broker must

A

cease all marketing activities and change the status of the listing to “terminated” in MLS.

39
Q

Confidential information learned in an agency relationship must remain confidential

A

forever unless disclosure is required by law or court order.

40
Q

True or False: Agents of a brokerage firm all share the same agency duties to all clients of the firm.

A

T

41
Q

True or False: An oral agency agreement is not enforceable against the client or the agent.

A

F

42
Q

True or False: There is no assumed or implied agency in Texas.

A

T

43
Q

True or False: A special agency relationship is created when a broker hires an agent.

A

F

44
Q

True or False: When one firm sells a property listed by another firm to a buyer that they are not representing, the selling firm represents the seller in a subagency relationship.

A

T

45
Q

True or False: Agency can only be terminated by mutual agreement or operation of law.

A

F

46
Q

True or False: When a listing agreement has been terminated, the agent must go into the MLS and designate it as a “withdrawal.”

A

F

47
Q

True or False: Confidentiality of the broker is the duty that survives termination of the agency agreement.

A

T

48
Q

True or False: The broker in the selling firm, if different from the listing firm, is known as the “cooperative broker” in the transaction

A

T

49
Q

True or False: If a license holder fails to specify a termination date in a listing contract, TREC can suspend or revoke his or her license.

A

T

50
Q

Seller Kristin meets with agent Angel and likes his plan for marketing her home. She decides to sign a listing agreement with him, thereby creating a _________ relationship.

A

Special agency

51
Q

Broker Susan is representing the seller at WE Sell it Fast Realty while Broker Daniel from Daniels properties is working with a buyer customer. Susan is representing the seller. Who is Daniel representing?

A

The seller

52
Q

In Texas there is no _____ agency relationship with any party to as transaction.

A

Implied

53
Q

The commission charged is negotiated between the ______ and the ______.

A

Seller, broker

54
Q

Which of the following is not one of the 4 statutory agency relationships allowed in Texas?

A

Dual Agency

Law of Agency (13 decks)

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