Test

Question 1

What is agency?

Answer 1

It is when the agent, acts for or on behalf of another person, the Principal.

Question 2

This principle is widely recognized as…

Answer 2

The, Client.

Question 3

The ____ is the one who hires and gives authority to the agent.

Answer 3

The, Principal.

Question 4

The ____is the one who represents or works for the principle.

Answer 4

The, Agent.

Question 5

The purpose of _______is to protect the public from unscrupulous brokers and sales agents.

Answer 5

TRELA
The Texas Real Estate License Act.

Question 6

This broker are able to sell the listings of another broker and either act as a sub-agent to the listing broker or represent the buyers under an agency agreement.

Answer 6

Cooperative broker

Question 7

A principal has a set of duties and responsibilities towards an agent.
These are?

Answer 7

C.R.I.P
compensation, reimbursement, indemnification and performance.

Question 8

The agent’s payment should be made upon the completion of the agency.

Answer 8

Payment focompensation.

Question 9

The principal is responsible for reimbursing the agent for expenses that exceed the expenses related to the sale and were incurred on the principal’s behalf.

Answer 9

Reimbursement

Question 10

What is indemnification?

Answer 10

The principle will protect the agent from suffering a loss due to the agents, reliance on information received from the principal

Question 11

If the seller provides false information and the broker passes it on to the potential buyer, can the broker justified in asking for indemnification?

Answer 11

True

Question 12

When a property is listed by an agent, it is generally expected to be available for showings. The principal also has a duty to assist the agent in achieving their objectives. This is commonly referred to as

Answer 12

Performance

Question 13

A listing agreement or buyer representation agreement in writing serves as evidence that the agency relationship exists and gives the agency _____

Answer 13

Express authority

Question 14

If the principal give oral instructions to the agent, can this be considered as express authority?

Answer 14

True

Question 15

Weekend and evening showings are standprard practice in residential real estate and this authority is defined as

Answer 15

Implied authority

Question 16

Restatement of Agency, States the….

Answer 16

Fiduciaries are held to the highest amount of good faith and are required to exclude all self-interest.
Make full disclosure of all relevant facts.

Question 17

One common example of a general agent is real estate is

Answer 17

Property Manager

Question 18

It has less authority than the universal agent.
And as a ____agent, an individual has the right to represent his/her principal in a particular type of transaction or business

Answer 18

General Agent

Question 19

What does OLDCAR means?

Answer 19

Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable care

Question 20

An agent must follow all of the clients lawful instructions. This duty is know as

Answer 20

Obedience

Question 21

When a broker spends their client’s funds without authorization, that broker is guilty of

Answer 21

Conversion

Question 22

How agency can be terminated?

Answer 22

1-the expiration of the period stated in the listing contract
2-at any time by mutual agreement
3-Bankruptcy of either party

Question 23

Even thought the broker now has a fiduciary duty to the buyer, he also has the on-going duty of CONFIDENTIALITY to the seller.
The duty of confidentiality last forever unless…..

Answer 23

The broker is required by law or a court order to disclose the information.

Question 24

Under TREC’s advertising rules, what words are consider misleading

Answer 24

Brokerage

Question 25

The broker’s logo does not generally count as the broker name unless,

Answer 25

Contains either the broker’s license name or assume business name (DBA) in full (not a shortened version of it) and the printed name is 1/2 the size of the largest contract information in the ad

Question 26

In texas, most sellers prepare a seller’s disclosure notice. Is the seller responsible for its accuracy?

Answer 26

Yes

Question 27

When some adverse event occurs on the property, people believe that this event can affect the sale of the property. This is considered

Answer 27

Stigmatized

Question 28

Is death on the property considered as stigmatized?

Answer 28

Yes

Question 29

Requirements of a valid listing agreement include:

Answer 29

1-The signatures of all of the owners and the listing agent
2-A legal description of the property, including the street address
3-The agreement to pay a stated commission to the broker, usually a percentage of the sales price

Question 30

Give the seller the right to list the property with multiple competing brokers and to sell the property personally without liability for payment of a commission

Answer 30

Open listing

Question 31

The open listing has resulted in many lawsuits between brokers, each claiming commission. These actions are know as

Answer 31

Procuring cause lawsuits