Law of Agency

A common misconception regarding agency is that:

1. Confidential information about a client about a client is only confidential during the course of the agency agreement. 2. Senate bill 489 ended sub-agency in the state of Texas and replaced it with intermediary. 3. The selling side of a transaction is the side in which the agent works with the seller.

Which of the following creates risk for the broker

1. Mishandeling trust funds 2. Unintentially creating an unwritten agency relationship with a potential Buyer/seller 3. Failing to give proper disclosures in a timely manner.

Which of the following statements should a license holder only say AFTER a buyers representation agreement has been signed.

1. My professional opinion is that the market value of this property is $350,000" 2. I will wright up the offer of $347,000 for you at my office 3. Its my professional opinion that his house is overpriced for the neighborhood. ***All of these are correct.

Trec rewuires most records of brokerage firms be retained for at least how many years?

4

According to the TAR Residential Buyer/Tenant Representation Agreement, Paragraph 11 E, if the buyer purchases one of the brokers listings

???

Any dispute arising under the contract that cannot be resolved through informal informal means will be submitted to ____ prior to resorting to arbitration or litigation.

???

If a broker____, it is not a violation of federal law.

???

According to DTPA, Trade and Commerce includes the ___ of any good service affecting the people of Texas

Advertising/Distribution/Offering for sale or leasing

Exclusive Agency Agreements

Allow the seller to sell the property himself without paying the broker commission.

The _______ is usually a fixed percentage of the sales price negotiated between the broker and the client, payable to the broker.

Brokers Fee

The agreement that buyers sign allowing a broker to represent them is called a ___

Buyer/Tenant Representation Agreement.

Sherman Anti-Trust Act

Commission rates must always be a matter of negotiation between the broker and the client. Any hint or indication that there is a standard/going rate for commissions in a given market area could be evidence of violation and restraint of trade. Fixing commission rates in an area is considered illegal fixing.

The shared information from the MLS can be used by agents to prepare an

Comparative Market Analysis

Truth in Lending Act (TILA)

Discloses all information for loans and actual costs of borrowing consumers.

Which of the following is not one of the 4 statutory agency relationships allowed in Texas?

Dual Agency

The TAR independent contractor agreement for Sales Associates

Gives the associates the authority to sign listing agreements on the brokers behalf

Federal Fair Housing Act

Guarantees Sale and rental of most housing for any race/gender origin

What does the consumer protection notice CN 1-2 notify of?

How to file a complaint against a license holder & recovery trusts accounts

What form must an agent provide to a potential client at the first substantive discussion of a real estate transaction?

IABS (Information About Brokerage Services)

In Texas there is no ____ agency relationship with any party to a transaction.

Implied

If one agent in the firm is working with both the buyer and the seller,___ says that another agent in the firm needs to be brought into the transaction

Intermediary with appointments

The commission can deny licensure to an applicant based on an applicants?

Moral Character

Which of the following would NOT be an example of Reasonable Care

Not making the buyer client aware of new listings coming on the market so that he can focus on one listing at a time.

The duties of the agent to the principle can be remembered by using the acronym:

OLDCAR (Fiduciary)

Americans with Disabilities Act (ADA)

Prohibits discrimination against those with disabilities by denying them full and equal employment of accommodations and services.

Real Estate Settlement Procedures Act (RESPA)

Prohibits practices such as kickbacks and referral fees. Ensures that consumers throughout the nation are provided with helpful information about the cost of mortgage settlement and are protected from high charges.

Securities Act of 1933

Prohibits the deceit in the sale of securities and provides for the complete and accurate disclosure of all information for investors (Because Real Estate is an expectation of a profit.)

In real estate, an example of a general agent would be an

Property Manager

The IRS requires that independent contractors pay a deposit for the agents estimated tax liability on _______basis

Quarterly

Unlicensed Assistants may not::

Receive a commission on a rel estate action

Where would you find the canons of Professional Ethics and Conduct for Real Estate license holders

Rules of the commission

What could expose someone to broker liability

Scheduling an appointment to view properties without a listing agreement.

A buyer is

Someone who wants to buy a home and is on a timeline to do so

Which of the following is grounds for suspension or revocation of license by TREC

Splitting a commission with someone who is not a license holder

When an agent and potential party enter into a _____ discussion of a real estate transaction, the party must be provided with a TREC prescribed agency information form.

Substantive (Information about brokerage services)

Who can suspend or revoke a sales agents license under the DTPA violation

TREC

___requires that TREC investigates complaints against license holders according to a risk based approach

TRELA

The Deceptive Trade Practices Act is found in the___

Texas Business and Commerce Code

An agency relationship exist between whom?

The Client and the Agent

The___ notifies the parties that both the seller and the buyer are clients of the broker

The Intermediary Relationship Notice

Which of the following is NOT an advantage of a brokerage policy of Seller Agency Only -

The broker collects both selling and buying commissions

The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract is also known as.

The procuring cause of sale.

According to the TAR residential buyer/tenant representation agreement, paragraph 11 E if the buyer purchases one of the brokers listings ..

The seller pays the entire commission

The listing side of a transaction occurs when:

The seller retains the service of a broker.