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Law of Agency > Module 7 > Flashcards

Module 7 Flashcards

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1
Q

A common law practice that allows a broker to represent both the buyer and seller within a transaction with their written permission.

A

Dual agency

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2
Q

A situation defined by Texas state law when a broker represents both a buyer and seller in the same transaction.

A

Intermediary

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3
Q

The legislation in Texas gave the intermediary process.

A

Senate Bill 489

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4
Q

When a broker appoints associates within the brokerage firm to represent the listing and selling side of a transaction.

A

Intermediary with Appointments

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5
Q

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

A

In-House Sale

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6
Q

When a broker represents both parties to a transaction but cannot give advice or opinion to either buyer or seller.

A

Intermediary without Appointments

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7
Q

The practice that allows a real estate firm to represent both the buyer and seller with their written permission.

A

Dual agency

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8
Q

Occurs when a broker appoints associates within a brokerage firm to represent the listing and selling side of a transaction.

A

Intermediary With Appointments

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9
Q

Occurs when an agent sells his or her own listing, but cannot give advice or negotiate for either party.

A

Intermediary Without Appointments

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10
Q

The legislation that gave the industry the Intermediary process.

A

Senate Bill 489

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11
Q

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

A

In-house sale

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12
Q

Originally, all brokers represented sellers because representation was linked to_______________.

A

compensation

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13
Q

Prior to ______________, transactions between client buyers and client sellers were done following the common law of dual agency in Texas.

A

1993

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14
Q

Senate Bill 489, passed in 1995, amended the License Act by creating this process:

A

intermediary

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15
Q

In order to practice intermediary, the broker must remain:

A

impartial

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16
Q

Intermediary allows the broker to:

A

appoint one agent to the seller and another agent to the buyer

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17
Q

All of the following statements about a broker in intermediary are true EXCEPT:

The broker may not be appointed to either party

The broker must disclose confidential information to

The broker may appoint agents to advise the brokers clients

The broker must remain neutral

A

A broker in intermediary must NOT disclose confidential information

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18
Q

With regard to the payment of a fee (commission) by a client,

A

a broker can represent a buyer or seller in a transaction regardless of who is paying the broker’s fee

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19
Q

In 1993 TREC addressed the issue of representing clients on both sides of a transaction by adding ___________ to the License Act.

A

statutory dual agency

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20
Q

In 1995, Senate Bill 489 introduced the ______________ process to brokerage in Texas.

A

intermediary

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21
Q

When a broker sells its own listing, the transaction is known as a(n) _________________.

A

in-house sale

22
Q

A conflict of interest occurs when

A

brokers represent both buyer and seller in a transaction

23
Q

A(n) ____________ is a process that makes it possible to bring client buyers and sellers together while at the same time representing their best interests.

A

Intermediary

24
Q

The appointed associates will give advice and opinion to their respective parties.

A

Intermediary with Appointments

25
Q

To appoint or not is at the discretion of the
_________.

A

broker

26
Q

When representing both the buyer and seller in a transaction the broker must do so as a(n)

A

Intermediary

27
Q

In order to practice Intermediary, the broker must have

A

written consent from both parties

28
Q

Agent Sue is the listing agent for Seller Steve. Agent Megan is the buyer’s agent for Buyer Sally, a client of the firm. When Buyer Sally makes an offer to purchase Steve’s property, the process will most likely be

A

intermediary with appointments

29
Q

ion, select the submit button below
When the Intermediary process begins, the Broker must provide to the clients the

A

Intermediary Relationship Notice

30
Q

Agent Sue with Acme Realty is both the listing agent and buyer’s agent in a transaction. The process used was

A

Intermediary without appointments

31
Q

Some brokers have a policy that requires an appointed associate in an Intermediary transaction. They avoid Intermediary without appointments because Intermediary without appointments ______.

A

carries a higher level of risk than Intermediary with appointments

32
Q

True or False: It is illegal in Texas for a broker to be on both the listing and selling side of a transaction.

A

F

33
Q

True or False: The broker has no duty to inform the client of the intermediary relationship as it is assumed in Texas.

A

F

34
Q

True or False: According to Texas real estate laws, a broker must always appoint associates in an intermediary relationship.

A

F

35
Q

True or False: Intermediary without appointments requires that the broker sponsor at least two agents.

A

F

36
Q

True or False: To appoint associates or not in an in-house transaction is at the discretion of the broker.

A

T

37
Q

True or False: The Intermediary process makes it possible to bring client buyers and sellers together while at the same time representing their best interests.

A

T

38
Q

True or False: A cooperative sale is one in which a brokerage firm sells its own listing.

A

F

39
Q

Addresses if appointments will be made

A

Paragraph D

40
Q

Notifies the parties that they are both clients of the broker

A

Paragraph B

41
Q

A place for relevant disclosure

A

Paragraph F

42
Q

Reminds both parties that they previously authorized the use an intermediary

A

Paragraph C

43
Q

Acknowledges the notice and consent for intermediary

A

Paragraph E

44
Q

True or False: A broker in an in-house sale must always work as an intermediary.

A

F

45
Q

True or False: Intermediary gives the broker two options, intermediary with appointments or intermediary without appointments.

A

T

46
Q

True or False: A broker who is an intermediary may not work as an appointed associate.

A

T

47
Q

True or False: Intermediary requires written consent from both the buyer and the seller.

A

T

48
Q

True or False: In intermediary with appointments, the broker appoints one agent associated with the broker to give advice and opinion to one party while the broker gives advice and opinion to the other party.

A

F

49
Q

True or False: Disclosed dual agency takes precedence over intermediary in Texas.

A

F

50
Q

True or False: In intermediary, the broker may never disclose material fact to either party.

A

F

51
Q

True or False: A broker may not represent only one party in a transaction.

A

F

52
Q

True or False: A broker practicing intermediary doesn’t have to treat all parties fairly if the broker has appointed associates to the two parties.

A

F

Law of Agency (13 decks)

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