Texas Sales Agent State Law Exam Outline: Agency and Brokerage

A lender's title policy will protect the:

lender against existing, undiscovered title defects

Real estate disclosure laws apply

primarily for 1 to 4 residential units. (Such as a Transfer Disclosure Statement.)

Vanessa just received two offers for a Texas listing. One is $15,000 below the asking price, and one is for the asking price. Vanessa's client, Nevaeh, has asked her in writing to not present offers that are more than $10,000 below the asking price. What should Vanessa do?

Vanessa Should only present the offer that meets Nevaeh (Clients) request.

Combining a principal's funds with the licensee's personal funds is:

considered to be commingling

Duties to Clients

fiduciary duties; truthful representation of facts; respect client relationships; submit offers; avoid illegal practices; document transaction

Intermediary Practice

A broker may act as an intermediary between the parties if the broker complies with the Act and obtains the WRITTEN consent of each party to the transaction.

Broker's Responsibility for Acts of Sales Agent

1. Each real estate broker licensed pursuant to the Act is responsible to the commission, members of the public, and the broker's clients for all acts and conduct preformed under the Act by the broker or by a sales agent associated with or acting for the broker. 2. No Real estate sales agent shall accept compensation for real estate activities from any person other than the sponsoring broker. 3. No real estate sales agent shall pay a commission to any person except through the sponsoring broker

Broker-Salesperson Relationship

1. broker is fully responsible 2. the salesperson can only carry out the responsibilities assigned by the employing broker 3. must always be supervised by the broker

In Texas, when is a licensee required to provide an agency disclosure?

A the time of first substantial dialogue

The acquisition of another's title to real property by means of open, notorious, and continuous use is known as an:

Adverse Possession

The value placed on land and buildings by a governmental unit for use in levying annual real estate taxes is called the:

Assessed Value: is the dollar value assigned to a property to measure applicable taxes.

When MUST an existing agency relationship be disclosed to another party to a proposed transaction?

At the time of licensee's first contact.

A broker lists a property. A potential buyer tells the broker that he has heard that the crime rate in the neighborhood is increasing. Which of the following is the broker's BEST response to the buyer?

Check with local law enforcement authorities about the crime rate.

As an unlicensed assistant in Texas, which of the following activities may Aaron legally perform?

Placing an Advertisement

Rick is representing a business in a sales transaction. Rick owns 3% of the business. Is Rick required to provide a written license holder disclosure notice to the other party in the transaction?

No, because Rick does not own more than 10% of the business.

Tamsyn, a real estate agent located outside of Texas, is hosting an open house for a listing in which she represents the seller. During the open house, a buyer customer asks Tamsyn for her opinion on a real estate-related topic. She gives the buyer a few pieces of advice. What best describes this situation?

Tamron may have unintentionally created a dual agency situation by giving a customer advice while representing the other party.

An unimproved lot is located in the service area of a water supply corporation. The seller is subject to the notice requirements relating to a service provider. What is the buyer's statutory remedy if the seller fails to give the written notice REQUIRED by law?

Terminate the purchase contract with the seller.

Intermediary Broker Duties

The broker acting as the intermediary shall: 1. Treat all parties honestly 2. May not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner 3. May not disclose that the buyer will pay a price greater than the offering price unless authorized in writing to do so by the buyer. 4. May not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by the Act or a court order or if the information materially relates to the condition of the property. 5. Shall comply with the Texas Real Estate License Act

Who can pay money to a licensed salesperson to perform sales activities for a house a broker has listed for sale?

The salesperson's sponsoring broker and no one else.

Joaquin, a broker in Houston, needs to act as an intermediary in one of his transactions. He has received written consent from the parties of the transaction. Now he just needs to fulfill the other requirement, which is providing ______.

The source of the broker's expected compensation