Real Estate Ch. 5
Real estate person
a person performing any of the acts included in the definition of real estate broker but while associated with supervised by a broker
Real estate broker
a person/organization acting as the agent for others in negotiating the purchase and sale of real property/other commodities for a fee
Broker must agree if you want to change your ___, because they are responsible for your ___. Once an agency is created you get ___.
agencies actions authority
Confidentiality
an agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position.
Universal agent
an agent that can serve the principal in any capacity
General agent
an agent with full authority over one property of the principal, such as a property manager
Special agent
an agent with limited authority to act on behalf of the principal, such as created by a listing contract
Loyalty
an agent's duty to place the client's interest above those of all others, including the agent's own self-interest
Material Fact
any fact that would influence the decision of a reasonably prudent person
What is a minor fact? What is a material fact?
blue pipes in wall, not red Copper pipes, not plastic
In a contract between your broker and your agent the ___ is the principal. You're an agent of your ___ and therefore your ___ are under them. Never use your ___ or information.
broker broker powers name
The way you present your ___ ___ sheet is voluntary but the ___ must be the same as what is mandated.
broker information information
If you have a client who is wanting to discriminate against a person, you explain that you ___ discriminate against anyone, and if you do ___ them you must ___ the house to ___. If not, you are breaking the ___.
cannot represent show everyone law
Law favors ___ over ___.
customers agents
There are ___ agencies, due to different ___. If under a(n) ___ you explain to your client they're duty is to you(r) ___.
different contracts broker broker
Customer deserves ___; can tell them about all defects, environmental & survey issues. Clients deserve ___ ___; all of the above is included, and as well as opinions, negotiating strategies, advice, etc.
loyalty Fiduciary duties
Agent
one who acts for and with authority from another called the principal
Client
prior to signing a listing agreement, a party in a real estate transaction who'll employ an agent
Your broker works for a principal only if they have ___ a(n) ___. No ___ no ___.
signed contract contract duty
Fiduciary Duty
that duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress/pressure
Reasonable Skill and Care
the degree of care skill ordinarily used by others competently engaged in the same business
Principal
the employer of an agent; one of the main parties in a real estate transaction, such as a buyer, borrower, seller/lessor
Obedience
the fiduciary relationship that obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract.
Customer
the party the agent brings to the principal as seller/buyer of the property
Agency
the relationship between principal and the principal's agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do a certain acts dealing with a 3rd party
Disclosure
the release of relevant information about a property that may influence the final sale, especially if it represents defects of problems
The TX Real Estate Commission was created in what year..?
1949
Which of the following receives advice/an option, from a real estate broker..? A principal A customer A neutral 3rd party All of the above
A principal
Which of the following can legally employ a real estate salesperson to work on their behalf..? A real estate broker A real estate associate Another real estate agent An associate broker
A real estate broker
If an individual works as an associate broker, who must they work under..?
A sponsoring broker
This refers to the relationship between a principal and the principal's agent which arises out of a contract, either expressed/implied, written/oral, wherein the agent is employed by the principal to do certain acts dealing with a 3rd party..?
Agency
One who acts for and with authority from another, called the principal, is known as a(n)..?
Agent
A real estate broker may sponsor which of the following..? Real estate salesperson Associate broker Associate licensee All of the above
All of the above
Which of the following can serve as a principal? Seller Buyer Lessor All of the above
All of the above
Which of the following contracts can establish an agency relationship..? Listing agreement Buyer representation agreement Property management agreement All of the above
All of the above
A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is known as a(n)..? Real estate salesperson Associate broker Trustee Broker partner
Associate broker
In order to establish an agency relationship, which of the following must agree to the terms of the agency..? The agent only The principal only Both the principal and agent Neither the principal and agent
Both the principal and agent
What is the other acronym for fiduciary duties?
COALD
A law that is made by a judge's decision in a court case is known as..?
Common law
According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property..?
Confidentiality
According to this fiduciary duty, an agent must keep confidential at information that may weaken the principal's bargaining position..?
Confidentiality
The party the agent brings to the principal as a seller/buyer of the property is known as a(n)..?
Customer
If you discriminate on a minority group by instructions from a client, what law are you breaking..?
FHA
The duty to not to obtain any advantage over a principal by the slightest misrepresentation, concealment, duress/pressure is known as a(n)..?
Fiduciary duty
What fiduciary duty does a seller's broker owe to a customer..?
Full disclosure
Which of the following is signed between an agent and their sponsoring broker..? Listing contract Purchase contract Independent contractor agreement Sales contract
Independent contractor agreement
A broker who represents both the buyer and seller in the same transaction operates as a(n)..?
Intermediary
According to the fiduciary duty of obedience, the agent must obey which of the following instructions from the principal..? Lawful instructions Unlawful instructions Any instructions from the principal Only the instructions the agent believes is relevant to the transaction
Lawful instructions
Statutory law is derived from which of the following..? Legislation Court decisions Judge rulings Common actions
Legislation
Agency between a broker and principal is created through a(n)..?
Listing contract
This is an agent's duty to lace their client's interest above those of all others, including the agent's own self-interest..?
Loyalty
Any fact that would influence the decision of a reasonable prudent person is known as a(n)..?
Material fact
What does OLD CAR stand for?
Obedience Loyalty Disclosure Confidentiality Accounting Reasonable care & diligence
The party that the listing contract is with is referred to as the..?
Principal
A listing contract is signed between a principal and a(n)..?
Real estate broker
According to this fiduciary duty, an agent must meet deadlines set by the principal and/or client..?
Reasonable care and diligence
A buyer representation agreement between a buyer and broker creates what type of agency..?
Special agency
Abby is a real estate broker who represents a seller in a transaction. Abby is serving as what type of agent..?
Special agent
An agent with limited authority to act on behalf of the principal is known as a(n)..?
Special agent
Which of the following is the most restrictive type of agency..?
Special agent
A law that is written by a legislating body is known as..?
Statutory law
Which of the following is responsible for enforcing TRELA? NAR TAR TREC TX attorney general
TREC
Who controls education standards for licensees? ___ administers TRELA? Where can you find TX Occupations Code?
TREC TREC TREC, 7.A ch. 1101-1102
The acronym TRELA stands for which of the following...? TX Real Estate License Association TX Real Estate License Act TX Real Estate Legal Act TX Real Estate Legislation Act
TX Real Estate License Act
The rules and regulations regarding real estate licenses in TX are described in which of the following..? TX Real Estate License Act TX Real Estate Law TX Bureau of Real Estate Article 12-A of the State Real Estate Law
TX Real Estate License Act
The authority of an agent is provided by which of the following..? The customer The principal The lender Anyone involved in the transaction
The prinicpal
True or False: A real estate broker owes fiduciary duties to his/her principal.
True
An agent that can serve the principal in any capacity in known as a(n)..?
Universal agent
Associate broker
a licensed real estate broker who chooses to work under the name and supervision of another licensed broker
Associate licensee
a licensee who's licensed under a broker/who has entered into a written contract with the broker to act as the broker's agent in a real estate transaction
Fiduciary
a person in a positions of trust and confidence, as between principal and broker; broker as a fiduciary owes certain loyalty which cannot be breached under the rules agency
A(n) ___ doesn't mean that you represent a person, a(n) ___ does.
fee contract
A person in a position of trust and confidence, as between a principal and broker is known as a(n)..?
fiduciary
OLD CAR is an acronym for what?
fiduciary duties
If an agent learns of something that's beneficial to their principal, the agent must reveal the information to the principal as per this fiduciary duty..?
full disclosure
A property manager is an example of a(n)..?
general agent
Increased litigation means __ education.
increased
Common Law
law that's derived from court decisions. The body of law that grew from custom and practices developed and used in England "Since the memory of man runneth not to the contract."
Statutory Law
law that's set down by a body of legislation or by a singular legislator
You cannot disclose your client's confidential information such as the amount of ___ they have or whether the listed price can be ___ or ___.
money increased decreased
TRELA has a ___ member committee.
9
This refers to the relationship between a principal and the principal's agent, which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a 3rd party..?
Agency
Agency can be classified in which of the following ways..? General agency Special agency Universal agency All of the above
All of the above
What document is needed in order to create a relationship so that agent could sell the subject property..? Residential Listing Agreement Buyer Representation Agreement Information About Brokerage Services One-To-Four Family Residential Contract
Buyer Representation Agreement
Prior to a signing a listing agreement, a party in a real estate transaction who'll employ an agent is known as a(n)..?
Client
What is the one of the most important things to pay attention to?
Deadlines
True or False: According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions.
False
True or False: By signing a listing agreement with a principal, an agent can serve as an universal agent to the principal.
False
True or False: The real estate broker is responsible for ordering the appraisal for a transaction.
False
A person in a position of trust and confidence is known as a(n)..?
Fiduciary
Real estate agents operate as a(n) ... to their sponsoring broker.
Independent contractor
Ely is a real estate broker who represents that seller in a transaction. Ely owes which of the following to the seller..? Intermediary duties Common duties Fiduciary duties Al of the above
Intermediary duties
Which of the following orders the appraisal for a transaction..? Broker Lender Agent Seller
Lender
Which of the following contracts establishes an agency relationship between the seller and broker? Sales contract Listing Contract Purchase contract Buyer representation agreement
Listing agreement
The Information About Brokerage Services form is presented by the broker to the..?
Prospective agent
A person acting as the agent for the others in negotiating the purchase and sale of real property for a fee is known as a(n)..? Real estate broker Client Customer Attorney
Real estate broker
Which of the following has the highest authority in an agency relationship..? Real estate broker Real estate salesperson Associate broker Associate licensee
Real estate broker
An agent owes which of the following fiduciary duties to their principal..? Legal council Accounting services Reasonable care and diligence All of the above
Reasonable care and diligence
Abby signs a buyer representation agreement with a buyer. What type of agency was created by the agreement..?
Special agency
A real estate agent is an example of a(n)..?
Special agent