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Law of Agency > Module 4 > Flashcards

Module 4 Flashcards

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1
Q

Being truthful; a special duty applied to license holders buying or selling property in their names.

A

Honesty

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2
Q

False representation of a fact used to induce a person to enter a contract; a false promise.

A

Fraud

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3
Q

A property on which a past event or condition affects its sale.

A

Stigmatized Property

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4
Q

Any form of communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services.

A

Advertising

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5
Q

Commonly known as a DBA, is a name used in business by a broker that is other than the name shown on the broker’s license issued by the Commission, a team name, or an alternate name.

A

Assumed Business Name

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6
Q

Members of the National Association of REALTORS®.

A

REALTORS®

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7
Q

Commonly known as an alias, a name used by an individual license holder other than the name shown on the license issued by the Commission.

A

Alternate Name

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8
Q

A name used by a group of one or more license holder sponsored by or associated with the same broker that performs real estate under an elusive collective name other than the broker’s licensed name or assumed business name.

A

Team Name

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9
Q

A law enacted in response to the murder of Megan Kanka, that requires the registration of sex offenders. All 50 states have adopted a variant of the law.

A

Megan’s Law

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10
Q

A broker who associates with and gets paid through another broker under a relationship that is intended to be a continuous relationship.

A

Associated Broker

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11
Q

A document used by sellers to tell of their knowledge of the condition of their property.

A

Seller’s Disclosure Notice

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12
Q

Fungi that can be found both indoors and outdoors.

A

Mold

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13
Q

Commonly known as a DBA, is a name used in business by a broker that is other than the name shown on the broker’s license issued by the Commission, a team name, or an alternate name.

A

Assumed Business Name

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14
Q

Being truthful; a special duty applied to license holders buying or selling property in their names.

A

Honesty

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15
Q

Commonly known as an alias, a name used by an individual license holder other than the name shown on the license issued by the Commission.

A

Alternate Name

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16
Q

A property on which a past event or condition affects its sale.

A

Stigmatized

17
Q

A name used by a group of one or more license holder sponsored by or associated with the same broker that performs real estate under an elusive collective name other than the brokers’s licensed name or assumed business name.

A

Team Name

18
Q

TREC Rules require license holders be honest and fair to:

A

all parties in a transaction

19
Q

The Texas Real Estate License Act states that TREC could revoke or suspend a license holder’s license if the license holder engages in misrepresentation, dishonesty, or fraud when representing:

A

anyone

20
Q

Which of the following is NOT a fiduciary duty?

Disclosure
Obedience
Confidentiality
Honesty

A

Honesty

21
Q

Fraud in Real Estate and Stock Transactions considers fraud to be when:

A

false representation of a material fact is made

22
Q

Advertisements must include the broker’s name in at least ________ the size of the largest contact information.

A

half

23
Q

Advertisements must not use the words

A

company, brokerage, or associates

24
Q

The ________ is responsible for the accuracy of the seller’s disclosure

A

seller

25
Q

If the Seller delivers the notice in the five days allotted, what rights does the Anna have after receiving the notice?

A

Anna has the right to terminate the contract for any reason with 7 days after receiving the notice.

26
Q

f the Seller never delivers the notice, what rights does the buyer have?

A

The buyer has the right to terminate at any time prior to closing

27
Q

If Anna elects to terminate under 7B, will she be refunded earnest money?

A

Yes

28
Q

What is the best way to avoid issues that arise under Paragraph 7B?

A

deliver the Seller’s Disclosure prior to the Buyer making an offer to purchase

29
Q

Imagine that Paragraph 7B(3) had been checked rather than 7B(2). Under which of the following circumstances would a seller be exempt from providing a Seller’s Disclosure?

A

A lender selling a property that they had acquired in a foreclosure

30
Q

If a seller is exempt from delivering a Seller’s Disclosure, does that mean that they are exempt from disclosing known defects?

A

NO

31
Q

What can cause a property to be stigmatized?

A

Murder, suicide, and death

32
Q

Agent Sue works with Broker Bob at Acme Realty. Sue just listed Seller Steve’s home and discovered that a previous owner had committed suicide in the home 4 and a half years ago. Steve instructs Sue not to mention it. Sue thinks that suicide on the property is a significant issue. She defies Steve’s instructions and discloses the suicide to a potential buyer.

Has Sue violated her fiduciary duty to Steve?

A

Sue has violated her fiduciary to Steve because she made a disclosure that is not required.

33
Q

Assume that Sue disclosed the information about the death on the property in response to a direct question from the potential buyer. Has Sue then violated her fiduciary duty to Steve?

A

Sue has violated her fiduciary to Steve because she made a disclosure that is not required. The fact that it was a direct question from a buyer is not relevant.

34
Q

What if the previous owner had died of HIV-related illness in the home and Sue disclosed that fact?

A

She violated the License Act and her fiduciary duty to Steve by disclosing the HIV related death.

35
Q

A brokers responsibility for disclosure is limited to areas:

A

Accessible for visual inspection

36
Q

According to TRECs advertising rules, which of the following terms MUST be used in a real estate team name?

A

Group

37
Q

TRECs advertising rules require sales agents to include the broker’s name, the brokerage name, or the broker’s________ in at least 50% of the largest contact information font on all forms of advertising

A

NAME

38
Q

Any stigma that relates to a material defect in a property must be _____

A

disclosed

39
Q

License holders must not disclose whether or not a former tenant had _____ to potential buyers.

A

AIDS or an HIV related disease

Law of Agency (10 decks)

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