TEXAS LAW OF AGENCY

An attorney provides which of the following, which is based on a property's abstract of title...? AOpinion of title, BSurvey of title, CTitle plan, DOfficial title

A

Which of the following is considered a third party to a listing contract...?

A customer

Associate Licensee

A licensee who is licensed under a broker

How does a broker benefit from an exclusive agency relationship with the seller...?

An exclusive agency relationship prevents a conflict of loyalty, The broker's liability is limited with the buyer's broker, The broker is ensured a commission if they sell the property, All of the above

If a broker enters into a listing contract with a seller, what duties does the broker owe to prospective buyers...?

Disclosure of material facts

What fiduciary duty does a seller's broker owe to a customer...?

Full disclosure

A broker who represents both the buyer and seller in the same transaction operates as a/an...?

Intermediary

Statutory Law

Law that is set down by a body of legislation or by a singular legislator.

Which of the following contracts establishes an agency relationship between the seller and broker...?

Listing agreement

This is a contract in which a property owner employs a real estate broker to market the property described in the contract...?

Listing contract

This refers to title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept...?

Marketable title

A person acting as the agent for others in negotiating the purchase and sale of real property for a fee is known as a/an...?

Real estate broker

A listing contract is signed by a broker and a/an...?

Seller

Which of the following can serve as a principal...?

Seller, Buyer, Lessor

A law that is written by a legislating body is known as...?

Statutory law

Paragraph 4 of the Residential Buyer/Tenant Representation Agreement describes which of the following...?

The term of the contract

Which of the following is considered a protected class under the fair housing laws...? National origin, Handicap, Color

all of the above

Megan's Law

federal law, and informal name for subsequent state laws, in the United States requiring law enforcement authorities to make information available to the public regarding registered sex offenders. Laws were created in response to the murder of Megan Kanka.

The Texas Real Estate Commission was created in what year...?

1949

The Seller's Disclosure of Property Condition is discussed in what section of the Texas Property Code...?

5.008

Real Estate Salesperson

A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker.

Which of the following receives advice, or an opinion, from a real estate broker...?

A principal

Under the DTPA, an agent who is found guilty of misrepresentation may be required to pay which of the following...? APunitive damages, BSubstantial damages, CPartial damages, DCommon damages

APunitive Damages

This refers to a summary of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title...?

Abstract of title

Which of the following terms are defined in paragraph 3 of the Residential Buyer/Tenant Representation Agreement...?

Acquire, Closing, Property, Market Area

This refers to the relationship between a 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 certain acts dealing with a third party..?

Agency

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. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property.

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.

A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is known as a/an...?

Associate broker

In order to establish an agency relationship, which of the following must agree to the terms of the agency...?

Both the principal and agent

Robert is looking to exclusively represent a buyer in a transaction. Which of the following document should Robert sign with the buyer...?

Buyer Representation Agreement

Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent is known as a/an...?

Client

A law that is made by a judge's decision in a court case is known as...?

Common law

Which of the following duties are owed to a third party in a transaction...?

Competency, Good faith, Fairness, All of the above

According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property...?

Confidentiality

An agent's duty to be honest with all parties may be compromised by which fiduciary duty owed to the principal...?

Confidentiality

If a broker brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is NOT owed to the buyer...?

Confidentiality

What type of agency relationship is created through a listing contract...?

Express agency

A contract that has been put into words, either spoken or written, is known as a/an...?

Express contract

A net listing is illegal in Texas...?

F (False)

According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions...?

F (False)

An agent must provide customers with advice if asked by the customer...?

F (False)

By signing a listing agreement with a principal, an agent can serve as a universal agent to the principal...?

F (False)

The real estate broker is responsible for ordering the appraisal for a transaction...?

F (False)

If a broker brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is still owed to the buyer...?

Fairness

A person in a position of trust and confidence is known as a/an...?

Fiduciary

A person in a position of trust and confidence, as between a principal and broker is known as a...?

Fiduciary

Ely is a real estate broker who represents that seller in a transaction. Ely owes which of the following to the seller...?

Fiduciary duties

The duty to not to obtain any advantage over a principal by the slightest misrepresentation, concealment, duress or pressure is known as a...?

Fiduciary duty

If an agent learns of something that is 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...?

General agent

Since an agent owes the duty of confidentiality to his/her principal, which of the following duties owed to a customer may be compromised...?

Honesty

Real estate agents operate as a/an ................to their sponsoring broker?

Independent contractor

Common Law

Law that is derived from court decision. 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".

According to the fiduciary duty of obedience, the agent must obey which of the following instructions from the principal...?

Lawful instructions

Which of the following contracts can establish an agency relationship...?

Listing agreement, Buyer representation agreement, Property management agreement, All of the above

An agent must disclose which of the following to a prospective buyer...?

Material facts about the property

A false statement regarding a material fact is known as...?

Misrepresentation

An agent must avoid doing which of the following to a customer...?

Misrepresenting material facts about the property

This is a listing contract which provides that the agent may retain as compensation for agent's services, all sums received over and above a net price to the owner...?

Net Listing

A customer is also known as a...?

Non-client

FIDUCIARY DUTIES TO CLIENT ACRONYM

OLD CAR- Obedience, Loyalty, Disclosure, Confidentiality, Accountance, Resonable skill & Care

Agent

One who acts for and with authority from another called the principal.

Which of the following is a listing contract given to one or more brokers in which the broker procuring a sale is entitled to the commission, but imposes no commission obligation on the owner when the owner sells the property...?

Open Listing

The parties to a Residential Buyer/Tenant Representation Agreement are listed in which of the following paragraphs of the contract...?

Paragraph 1

The broker's obligations are described in which of the following paragraphs of the Residential Buyer/Tenant Representation Agreement...?

Paragraph 5

The party that the listing contract is with is referred to as the...?

Principal

An expression or exaggeration made by a salesperson that concerns the quality of real property offered for sale or lease is known as...?

Puffing

According to a listing contract, a broker agrees to do which of the following...?

Put the seller's interests above any others, Market the property, Represent the property and the seller

An agent owes which of the following fiduciary duties to their principal...?

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...?

Special agent

Abby is a real estate broker who represents a seller in a transaction. Abby is serving as what type of agent...?

Special agent

A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agent's principal, is known as a/an...?

Sub-agent

This is a document which precisely shows the property lines, and size and location of improvements on a particular property...?

Survey

A real estate broker owes fiduciary duties to his/her principal...?

T (True)

An agent may not be held liable for innocent acts of misrepresentation...?

T (True)

Which of the following is responsible for enforcing TRELA...?

TREC

The acronym TRELA stands for which of the following...?

Texas Real Estate License Act

The rules and regulations regarding real estate licenses in Texas are described in which of the following...?

Texas Real Estate License Act

Sam recently entered into a buyer representation agreement with a buyer. Which of the following is a third party to the agreement...?

The Seller

Who is responsible for completing the Seller's Disclosure of Property Condition form...?

The Seller

Which of the following is an example of fairness owed by a seller's agent to a customer...?

The agent must present all offers received from prospective buyers

An agent's duty of honesty and fairness applies to which parties...?

The client, The customer, The principal, All of the above

An agent owes the fiduciary duty of reasonable care to which of the following parties in a transaction...?

The customer, The principal, The client

Reasonable Skill and Care

The degree of care and 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, or lessor.

Which of the following is an example of a material fact...? The house is the nicest house on the street, The street is the best street in the city, The existing roof is 20 years old

The existing roof is 20 years old

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.

Which of the following orders the appraisal for a transaction...?

The lender

Customer

The party the agent brings to the principal as seller or buyer of the property.

The authority of an agent is provided by which of the following...?

The principal

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 certain acts dealing with a third party.

Disclosure

The release of relevant information about a property that may influence the final sale, especially if it represents defects of problems.

How does a seller benefit from an agency relationship...?

The seller's property is broadly marketed, The seller can receive advice from the broker, The seller can receive assistance from the broker when negotiating with a prospective buyer, All of the above

An agent that can serve the principal in any capacity is known as a...?

Universal agent