Module 6 Flashcards
A relationship that exists when one person (the agent) acts on behalf of another person (the principal)
Agency
A person who works in an agency relationship for or on behalf of another person.
Fiduciary
Also referred to as “Limited Agency”; Authorization by a principal to perform a single act or transaction. The real estate broker is usually a special agent for a seller, authorized to find a buyer for a particular property
Special Agency
An agency created by the acts or words of the principal and agent where the agency is inferred by circumstances
Implied Agency
A broker that will only represent one client in a transaction at a time
Single-Agency Broker
The seller side of the transaction
Listing Side
A relationship in which one firm sells a property listed by another firm to a customer-buyer that is not represented
Subagency
The required method in Texas to provide written notice to consumers regarding information about brokerage services
IABS
(1) A sum lent or employed as a fund or investment, as distinguished from its income or profits. (2) The amount of the note due and payable. (3) A main party to a transaction – the person for whom the agent works.
Principal
An agency relationship that allows the agent to transact all matters for the client, conducting business under full authority
Universal Agency
One who purchases or sells property without being represented by an agent (when a potential buyer initially contacts an agent for information regarding a property, he/she is a customer)
Customer
When actions lead another person to assume that one is an agent (form of implied agency relationship); created by the actions of the parties involved rather than by written agreement or a document
Ostensible Agency
Facilitates a buyer and seller to reach an agreement in a real estate transaction, even though he/she does not represent either party
Transactional Broker
The buyer side of the transaction
Selling Side
Occurs when a single brokerage firm sells one of its own listings; the broker is on both the listing and the selling side of the transaction
In-House Sale
Someone retained to perform a certain act, but who is subject to the control and direction of another only as to the end result and not as to the way in which he or she performs the act. Unlike an employee, an independent contractor pays for all of his/her expenses, social security, and income taxes and receives no employee benefits (most real estate sales agents are independent contractors)
Independent Contractors
Also known as the Principal; the person who employs an agent to perform a service for a fee
Client
An agency relationship that allows the agent to bind the client into a particular transaction or business (ex: a property manager)
General Agency
The authority derived from express agency.
Express Authority
When an agent acts without prior authorization, and upon learning this, the principal accepts it (an agency relationship that is established after the fact)
Agency by Ratification
A broker who has written consent to represent both the buyer and the seller in the same transaction
Dual Agency Broker
A transaction that has one broker working with the seller and another broker working with the buyer
Cooperative Sale
A broker who is employed to negotiate a transaction between both parties and for that purpose may be an agent of both parties to the transaction, acting fairly so as not to favor one party over the other
Intermediary
DTPA - Part of the Federal Consumer Protection Act, originally passed in 1973 and made specifically applicable to real estate in 1975, prohibiting a lengthy number of false, misleading or deceptive acts or practices.
Deceptive Trade Practices Act
Any relationship in which one party acts for or represents another
Agency
Another name for the principal
Client
A Texas consumer protection law
DTPA
A person who is authorized to act for another person
Agent
A person who has the legal authority to act as a broker or sales agent in a real estate transaction
License Holder
The _________ hires and gives authority to the Agent.
Principal
An agent that has the authority to bind the client into a trade or a particular transaction.
General Agency
The most limited type of agency relationship that does not give the agent the authority to bind a principal only advise the principal.
Special Agency
A relationship that allows an agent to transact all matters for the client. The agent can sign documents and bid the client the same way the client would.
Universal Agency
A person who acts for or on behalf of another person, representing the best interests of the other person.
Agent
A person who hires an agent and gives the agent authority.
Principle
Jeffrey holds a real estate sales agent’s license in the state of Texas. He is selling a house that he owns. Jeffrey advertises the property online on several social media sites. Each ad states that Jeffrey is not just the owner of the property but that he holds a real estate license.
This is an example of disclosing what type of relationship?
agency coupled with an interest
Maria represents an owner who wants her lease house to be listed in the MLS for $2700 a month. Maria shares with the owner a CMA that shows the property could be leased for closer to $3000 a month. The owner instructs Maria to list it for $2700 which Maria does.
What duty is Maria following?
obedience
Imelda represents Robert who wants to sell his condominium. Robert instructs Imelda to list the condo for $215,000 but he’ll take an offer if it is over $200,000 because he needs a quick sell. Tony, an unrepresented buyer who is interested in making an offer on the condo, asks Imelda what price he should offer. Imelda tells Tony to offer $200,000 to see how her client would respond.
What duty is Imelda violating?
confidentiality
Tina would like to sell her house, so she meets with the local specialist, an agent named Roberta. After presenting a detailed marketing plan and CMA. Tina desires to hire Roberta as her agent. Roberta and Tina establish their relationship with a written listing agreement.
How have Tina and Roberta created the agency relationship?
express authority
Ignacio is excited to make an offer on a property he just viewed with his agent, Ming. He is willing to offer full price. Ming is aware of a very similar property in the neighborhood that is listed for $25,000 less than the one Ignacio is interested in. Ming suggests to Ignacio that he at least view that property before making an offer on the first property.
Which duty to her client is Ming fulfilling?
disclosure
The property is sold by the Listing Firm in an _______________.
In-House Sale
True or False: Each transaction has two sides: a listing side and a selling side.
T
True or False: Because of the agency relationship the broker has with the broker’s clients, all the sales agents of the broker share the same agency duties of the broker.
T
True or False: Brokers are general agents of the buyer or seller in a transaction.
F
True or False: The seller is on the selling side of the transaction.
F
True or False: Subagency is a cooperative sale that occurs when the selling broker along with the listing broker represents the seller.
T
True or False: The agent working with the buyer is the selling agent.
T
True or False: Both brokers in a cooperative sale must represent the seller in the transaction.
F
True or False: An agent sponsored by a broker is usually a general agent of the broker.
T
True or False: A cooperative sale has only one broker who works with both the buyer and seller.
F
True or False: The broker represents a seller through a special agency relationship.
T
___________ may give advice and opinion.
Appointees
(Intermediary With Appointments)
An IABS must be provided to all involved parties at this point in the potential transaction.
Substantive Dialogue
Agent Sue is meeting a potential seller this evening to give her information about listing her property for sale.
Information About Brokerage Services
A buyer calls a listing agent to get information about a home he saw listed for sale. The agent reminds the buyer that she represents the seller.
Disclosure of Representation
Agent Mary, a buyer’s agent, calls Agent Steve, a listing agent, to ask questions about some of the features of Agent Steve’s listing. During her introduction, Agent Mary, tells Agent Steve that she represents a buyer.
Disclosure of Representation
A buyer calls a listing agent about a property the agent has listed for sale. After the conversation, the agent emails the buyer a document that discloses how agency works.
Information About Brokerage Services
If a broker wishes to terminate the sponsorship of a licensed sales agent, he/she must
notify the agent in writing and return the agent’s license to TREC immediately.
In the real estate brokerage business, most license holders are not employees of the broker. They are ______________________, engaged in a principal-agent relationship.
Independent Contractors
The purpose of the Seller’s Disclosure Notice is to have the owner of the property disclose all facts and defects concerning the property. This is a good tool to use as a defense in a ___________ lawsuit.
DTPA
_____________ means actual awareness, or flagrant disregard of prudent and fair business practices.
Intentionally
________________ means actual awareness of a falsity, deception, or unfairness of an act.
Knowingly
________________ are defined as tangible chattels (real property is tangible when purchased or leased).
Goods
According to the Texas Real Estate License Act, 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 this type of relationship:
Subagency
The most limited of all the agency relationships and is also referred to as “limited agency”:
Special agency
Exists when one person (the agent) acts for, or on behalf of another person (the principal):
Agency Relationship
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:
client
Texas law that was passed in 1973 that allows an aggrieved consumer to sue a seller of goods for damages:
DTPA
A broker representing the seller in a real estate transaction:
Match the description to the corresponding term.
Seller’s Agent
A person who receives limited brokerage services without establishing an agency relationship:
Customers
A broker selling the listing of another broker:
cooperative
The relationship is based on trust:
Fiduciary
Investigates allegations of discrimination and enforces the State and Federal laws:
EEOC
