Texas Real Estate Agency - UNIT 5 - Buyer Agency

Which of the following are buyer-paid compensation?

All of these ( Flat fee, Hourly rate, percentage fee)

In which of the following capacities can a license holder work with a buyer?

All of these (As an agent of the buyer, As a subagent of the buyer, As a subagent of the seller)

Which of the following items are negotiable for a buyer in the purchase of real estate?

All of these (Termite report, repairs, closing costs, Earnest money deposit, seller financing, sales price, Interest rate, due date, possession date)

When must the Information About Brokerage Services Notice be given to a party in a real estate transaction ?

At the first substantive communication

Why does a buyer representation agreement contain a definition termination date?

Because TREC can take disciplinary action against a license holder for failing to include one

Which of the following is the most widely accepted method of compensation for the buyer's broker in residential sales?

Commission-sharing with the listing broker

Which of the following agency relationships is NOT available between a license holder and a buyer in a typical buyer/tenant representation agreement?

Dual agency

A buyer agent provides which of the following services to a buyer?

Has fiduciary duties to the buyer

Which of the following is typically NOT addressed in a buyer/tenant representation agreement?

Property description

If the seller fails to provide the required Seller's Disclosure Notice by the time specified in the contract, the contract is

voidable by the buyer.

The role of the license holder in an exclusive buyer agency agreement is to

assist the buyer in making a purchase.

The fee to be paid to a buyer's broker by a buyer-client is determined by agreement between

buyer's broker and the buyer.

George, a new sales agent sponsored by Best Realty, does not obtain a written buyer representation agreement with Samuel although George has agreed to act as Samuel's agent in his purchase of a new home. Samuel prefers to use a handshake instead of a written agreement. Under which of the following options does George have the best chance of prevailing if Samuel refuses to pay him for his services after the sale has closed?

None of these.

Which of the following is the best practice for license holders to establish a buyer/agency relationship?

A written agreement signed and dated by all the parties to the agreement

When is a license holder required to tell an unrepresented party whom the license holder represents?

At the first contact

Ruth, a buyer's broker, asked the listing broker if she is willing to split the commission on a transaction. The listing broker would not agree to the split. What should Ruth do?

Explain the situation to the buyer.

Which of the following is TRUE regarding the statement in the TREC contracts regarding the fee to be shared between the listing broker and the other broker?

It is merely information provided for the benefit of the buyer and seller.

Under the TREC-promulgated Information About Brokerage Services Notice, there are blank spaces on the last page that are used for what purpose?

For the person receiving the notice to acknowledge receipt of the notice

Which of the following is an advantage of exclusive buyer agency?

It reduces the possibility of the unauthorized representation of more than one party.

Is a buyer's agent held to the same standard of skill and care in dealing with the buyer as a subagent of the seller?

No, the buyer's agent is held to a higher standard.

Under a typical buyer representation agreement, what happens if the buyer's agent wants to show a house that the buyer is interested in to another buyer?

The agent can show the properties to competing buyers and represent such buyers.

When determining whether to require a retainer fee, a broker should

establish a consistent fee policy for all clients.

Gloria wants to buy a home in Austin. She has been searching the internet and has narrowed down her search to three areas. Gloria contacts Gordon at A-1 Realty for assistance. Gordon and Gloria sit down to discuss what Gordon can do for Gloria if she hires him as her agent. Gloria is concerned about how much she will have to pay Gordon for his services. How does the Texas Association of REALTORS® sample buyer representation agreement address payment of Gordon's commission.

The broker will seek payment from the seller, but if the seller refuses, the buyer will pay the broker.

In which of the following situations might a license holder representing a buyer use a registration agreement?

When the buyer wants to purchase an FSBO

A Broker is NOT required to provide a broker price opinion to which of the following?

A customer

Which of the following is a benefit enjoyed by buyers who enter buyer-agency relationships?

Access to a larger marketplace

What is the purpose of the sentence on page 9 of the TREC One to Four Residential Contract regarding a listing broker's payment of fees to the other broker?

It is only a notice to the parties about the listing broker and other broker fee split.

A sales agent by the name of Jane Roe, who is sponsored by A-1 Realty, advertises under the name Roe and Associates. How does the Real Estate License Act treat this type of advertising?

Jane Roe may not use the name.

Is the buyer's agent's fiduciary duty to a buyer different from a seller's agent's fiduciary duties?

The fiduciaries duties are the same

Which of the following statements is FALSE regarding reasons why a buyer may wish to be unrepresented as a customer in a transaction?

Listing agent just a facilitator for the transaction

Which of the following BEST explains why a buyer's broker may prefer to be paid directly by the buyer?

Remove control of payment from a nonclient

What are three benefits of a buyer/agency relationship to the buyer?

Tailored buyer representation agreement, access to larger marketplace, and stronger negotiating strategy

Dewey has entered into a buyer agency relationship with Acme Realty. Dewey has just been released from prison after serving 18 years for real estate fraud, manslaughter, and embezzlement of his previous employer's funds. Dewey asks Acme to negotiate on his behalf for the cash purchase of a condo listed for $680,000 in Pike's Landing. Acme Realty will be paid by Dewey and also expects to be paid by the seller. Which information about Dewey must Acme Realty disclose to the seller?

That Acme Realty expects to be paid by Dewey, as well as the seller

Which of the following is a TRUE statement regarding the Information About Brokerage Services Notice?

The notice must be provided at the first substantive discussion about a specific property.

Which of the following statements is TRUE regarding an exclusive buyer representation agreement?

There must be a definite termination date.

Is subagency allowed in buyer representation?

Yes, an agent can be a subagent of a buyer's agent.

Must a buyer's agent disclose his relationship with a buyer to an owner who is selling a property on her own?

Yes, at first contact

Is it permissible for a seller to pay a buyer's broker fee?

Yes, it should be stated in the contract.

Buyers may hear that the TREC-promulgated contract forms for residential sales contain some buyer compromises and want their buyer's agent to help them prepare an addendum to the contract. Which of the following guidelines should a license holder follow in this situation?

You are not an attorney and must avoid the unauthorized practice of law.

In Texas, when a buyer contracts with a buyer's broker, determining which broker was the procuring cause of the sale, and therefore deserving of the commission,

is generally a nonissue.