Test Flashcards
What is agency?
It is when the agent, acts for or on behalf of another person, the Principal.
This principle is widely recognized as…
The, Client.
The ____ is the one who hires and gives authority to the agent.
The, Principal.
The ____is the one who represents or works for the principle.
The, Agent.
The purpose of _______is to protect the public from unscrupulous brokers and sales agents.
TRELA
The Texas Real Estate License Act.
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.
Cooperative broker
A principal has a set of duties and responsibilities towards an agent.
These are?
C.R.I.P
compensation, reimbursement, indemnification and performance.
The agent’s payment should be made upon the completion of the agency.
Payment focompensation.
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.
Reimbursement
What is indemnification?
The principle will protect the agent from suffering a loss due to the agents, reliance on information received from the principal
If the seller provides false information and the broker passes it on to the potential buyer, can the broker justified in asking for indemnification?
True
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
Performance
A listing agreement or buyer representation agreement in writing serves as evidence that the agency relationship exists and gives the agency _____
Express authority
If the principal give oral instructions to the agent, can this be considered as express authority?
True
Weekend and evening showings are standprard practice in residential real estate and this authority is defined as
Implied authority
Restatement of Agency, States the….
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.
One common example of a general agent is real estate is
Property Manager
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
General Agent
What does OLDCAR means?
Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable care
An agent must follow all of the clients lawful instructions. This duty is know as
Obedience
When a broker spends their client’s funds without authorization, that broker is guilty of
Conversion
How agency can be terminated?
1-the expiration of the period stated in the listing contract
2-at any time by mutual agreement
3-Bankruptcy of either party
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…..
The broker is required by law or a court order to disclose the information.
Under TREC’s advertising rules, what words are consider misleading
Brokerage
The broker’s logo does not generally count as the broker name unless,
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
In texas, most sellers prepare a seller’s disclosure notice. Is the seller responsible for its accuracy?
Yes
When some adverse event occurs on the property, people believe that this event can affect the sale of the property. This is considered
Stigmatized
Is death on the property considered as stigmatized?
Yes
Requirements of a valid listing agreement include:
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
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
Open listing
The open listing has resulted in many lawsuits between brokers, each claiming commission. These actions are know as
Procuring cause lawsuits
