agency real estate
must not be disclosed while acting as an intermediary unless authorized to do so in writing
The owner will accept a price that's less than the written asking price. The buyer/tenant will pay a price greater than the price submitted in a written offer. Any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law
When a Deceptive Trade Practices ‒ Consumer Protection Act lawsuit is found to be groundless, in Texas, the law allows for which of the following?
The person initiating the lawsuit is responsible for the defendant's attorney fees and court costs.
The Information About Brokerage Service form must be provided in all residential lease transactions.
false
property manager and relationship with their supervising broker
general agent -A person who is authorized to act for another (the principal or client) in a range of matters or multiple transactions -collect rent, evict tenants, and enter into leases with tenants on behalf of your client, the property owner.
In most transactions you will act as a
special agent/limited agent (An agent whose scope of authority is limited to a specific area) -assist with the sale but cannot sign contracts for the client or make decisions regarding the property independent of the clientdesignated agent
A sales agent may only accept a commission for a real estate transaction if the commission is paid by which of the following parties?
the sale agent broker
Who is responsible for providing the title insurance company with an affidavit of title?
the seller
What Is a Sub-Agent?
"In order to get wider exposure for my client's property, I often choose to work with an agent from another firm. If the other agent finds a buyer, I'll split my commission with the agent. The cooperating agent is a sub-agent and owes the seller the same fiduciary duties as a seller agent."
: agency coupled with interest
A situation in which the agent has a financial stake in the transaction beyond the anticipated commission
In what way or ways do consumers compensate brokers for their services?
As a flat fee, fee for service, and/or percentage of sale
fiduciary duties include
Fidelity to the client: You must put the interests of your client—the principal—before your own. Keeping the client informed: You must keep your client informed at all times regarding significant information that is applicable to the transaction(s) in which you are acting as agent for the principal.
When HUD receives a discrimination complaint from Texas, what step does it take?
Forwards the complaint to the Texas Workforce Commission Civil Rights Division
Which act or statute states that the person who committed the fraud, as well as anyone who knew about the fraud, failed to disclose it, and benefited from it, can be held liable for actual damages?
Fraud in Real Estate and Stock Transactions
What's an employment agreement with a property owner who wants to lease out the property?
Property management agreement In order to employ a broker to find tenants, a property owner would need a property management agreement with that broker.
Which of the following options is something that you would only do for a buyer client and not a buyer customer? Ensure a pre-qualification or pre-approval letter accompanies the buyer's offer.Promptly submit all offers to the seller.Safeguard funds entrusted to you.Suggest an earnest money amount based on the practices in your area.
Suggest an earnest money amount based on the practices in your area.
Upon their first substantive conversation with a consumer, a licensee must provide that person with what mandatory informational brochure that explains the type of agency relationships, and what each entails?
The Information About Brokerage Services
Which agency is responsible for enforcing the Texas Fair Housing Law?
The Texas Workforce Commission Civil Rights Division
TREC
charged with passing rules to enforce, interpret, and explain the provisions of TRELA. administering the provisions of Chapters 1101 (TRELA) and 1102 of the Texas Statutes
physical stigma
property that buyers or tenants may shun for reasons that are unrelated to its physical condition or features.
agent
someone who acts on someone else's behalf, at that person's request.
universal agent
someone who's empowered to do anything the principal could do personally.
intermediary (dual agent)
"a broker who is employed to negotiate a transaction between the parties of a transaction, and for that purpose, may act as the agent of the parties." -illegal for a Texas broker to act as an intermediary without first obtaining the written, signed consent of each party to the transaction. -cannot obey both clients' instructions, or be loyal to both clients. Instead treat each party honestly and fairly. must comply with TRELA.
Agents owe their clients the fiduciary duty of:
(OLD CAR) Obedience: Agents must obey all of their clients' lawful instructions. Loyalty: Agents must put their clients' interests ahead of all others, including their own. Disclosure: Agents must disclose all facts pertinent to the transaction. Confidentiality: Agents must keep any confidential information their clients share confidential. Confidentiality is a duty that survives the termination of the agency relationship—it lasts forever. Accounting: Agents must promptly account for all money, property, and paperwork entrusted to them by their clients. Accounting also survives the termination of an agency relationship. Reasonable skill and care: Agents must provide clients with quality, knowledgeable, and prudent service, and live up to the trust their clients have placed in them.
Broker-Lawyer Committee
13 members, 6 lawyers, 6 TREC appointed, one public drafts and revises contract forms so they can be standardized when used by licensees. authority to adopt rules that require license holders to use contract forms that have been prepared by the Texas Real Estate Broker-Lawyer Committee and then adopted by the commission.
A complaint must be filed no later than --- from the date the incident
4 years
TREC members
9 members 6 brokers appointed by the governor 3 represent the public serve 6 year terms
When accepting compensation, which of the following statements is most accurate, according to the NAR Code of Ethics?
A licensee shall not accept compensation from more than one party to a transaction without the consent of all parties.
sub-agent (or subagent)
A licensee from a competing firm who brings the buyer to the deal, but instead of representing the buyer, works under the listing agent as a representative of the seller
According to the NAR Code of Ethics, what is a licensee's responsibility related to written offers on a listing?
All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this obligation in writing.
Statutory Dual Agency
Amendment in 1993 to the Texas Real Estate License Act to provided guided statutory language to replace the "common law" for dual agency.
quiet title action
An action to locate and notify all who may have some claim on the title, and determine the validity of all claims
designated agent
An agent who represents one party in a transaction while another agent who works for the same broker represents the other partyuniversal agent
How can a listing agent terminate an agency agreement with a client before the agreement's completion or expiration date?
By renunciation
What is one major difference between clients and customers?
Clients are owed fiduciary duties.
Client Dutie
Compensation Information Indemnification Availability
A real estate licensee is acting as what type of agent when assigned by the broker to represent one party in an in-house transaction?
Designated
powers of trec
Establishing rules for acceptable advertising by a licensee Establishing the rules of conduct and ethics for all license holders
Which of the following ads complies with Regulation Z's requirements for advertising? Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points. Get a low interest rate of 4.75% on a monthly payment of $900. Get a low interest rate of 4.75%, with 85% loan to value. Get a low interest rate of 4.75% with as little as 3% down.
Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points. interest rate is a triggering term
Unlicensed broker
Individual who performs the actions of a broker without a license from TREC
Which duty requires the client to provide complete, accurate, and timely information to the agent?
Information
What type of ownership interest needs to be disclosed in writing to all parties?
Property held directly or indirectly by the licensee, the licensee's immediate family member, the licensee's firm, or a member of the licensee's firm
file a complaint with TREC. This notice may be provided:
On license or certificate of registration applications On prominently displayed signs at each Texas brokerage In bills for services provided by people licensed by or registered under TRELA On the websites of people who are regulated under TRELA, where it must be prominently displayed
When multiple offers are received, which one of the following is something a licensee should do?
Prepare net proceeds statements on all offers.
trec cannot prohibit real estate license holder from using a contract form
Prepared by the property owner Prepared by an attorney and required by the property owner
Before a broker may act as an intermediary in a transaction, the broker must obtain written consent from the seller and buyer. Which one of the following does the broker use to obtain consent from the buyer?
The buyer representation agreement The buyer representation agreement includes a place for the buyer to authorize the broker to act as an Intermediary. The Intermediary Relationship Notice form is used to affirm this authorization.
Adrian is a broker and a general partner in a limited partnership syndication. The partnership will pay her a fee to sell the partnership's property. Why might Adrian want to act as an intermediary in this transaction? To avoid any potential dual representation issues between the partners and the buyer To be able to offer advice and opinions to her partners To be able to offer advice and opinions to the buyer To get a commission from the partnership and from the buyer
To avoid any potential dual representation issues between the partners and the buyer
To safeguard consumers, what does the Consumer Credit Protection Act, which includes the Truth in Lending Act, require of lenders
To fully disclose the terms and conditions in any offers of credit
Terms to Negotiate
What? - The extent of the services you're offering and any waivers to services or fiduciary duties How? - Requirements for listing price and communication of offers; the commission percentage, and any costs for services you and your broker will be providing When? - Contract or listing termination date
When does express agency exist?
When a written or oral agreement is in place
When would a broker's fee be considered earned and payable?
When the broker finds a ready, willing, and able buyer
A transaction offers compensation to cooperating agents if the sale closes in 40 days. Is this ethical?
Yes, but only if all of the involved parties have full knowledge and provide consent.
Does a broker acting as an intermediary need written consent to appoint a licensee to represent a party?
Yes, the Intermediary Relationship Notice may be used to obtain this consent.
In general, what is the term for a person who's been placed in a position of loyalty and trust?
a fiduciary
Fiduciary
a person who's in a position of trust and owes loyalty to another.
Broker associates
are brokers associated with and working as an agent under another broker.
Who has to approve a sub-agency agreement in order for it to be valid?
both the broker and the principal
How is an agency relationship terminated when either the client or the agent files for bankruptcy?
operation of law
Who is a party to a transaction and the person for whom the agent acts?
principal
