LoA Quiz

On an in house sale, the listing associate is permitted to make recommendations to the buyer customer regarding the feasibility of having the seller pay selected items of the buyer's closing costs

False

Texas requires an express written agreement for a broker to establish either an intermediary or a buyer-agency relationship w/ a client

False

Argyll Realty provides representation services to both buyers and seller but never act as an intermediary. Argyll Realty practices

Nonexclusive single agency

In most cases, a licensed real estate broker is not permitted to perform a formal real estate appraisal in Texas

True. A licensed broker may not perform an appraisal unless they are also licensed as an appraiser

If any Texas real estate broker wishes to establish a written agreement to represent the buyer, the broker would be advised to use

A form prepared by a Texas attorney.

Broker is a one person brokerage office. If in an authorized intermediary relationship she could:

Act as the intermediary but not make appointments. Can be an intermediary, but is not afforded the benefit of appointed licensees to her clients.

A licensee who violates the fiduciary responsibility of loyalty to the client is guilty of

All of these

The listing associate, gives the seller the Seller's Disclosure of Property Condition. The seller says there is really nothing to disclose and since he broke his writing hand, they can just sign the form for him. Which statement is TRUE?

Although Betty may explain each section of the form, she should neither mark the boxes nor sign on the seller's behalf.

A seller listed his property exclusively with Saldivar Realty. Event though the property sold during the period of the listing, if the seller was not required to pay a commission, what type of listing agreement probably existed between the seller and the broker?

Exclusive Agency

TRELA states that an intermediary "may be an agent of the parties to the transactions. TREC's general interpretation of the word "may" is that the broker may elect to assume a nonagency relationship w/ the clients

False.

A broker acting as a subagent of the seller may elect to be an intermediary between the seller client and the buyer client.

False. A subagent of the seller is by definition an agent of the seller through a cooperative agreement w/ another grocer w/ whom the subagent is not associated

The form called "Seller's Disclosure of Property Condition" is a promulgated TREC form

False. Not required.

The fact that child molestation occurred on a property would be an example of physical stigmas which would have to be disclosed.

False. Psychological stigma.

The relationship between a broker and a sales associates is usually on of:

General Agency

The relationship between a broker and a sales associate is usually one of:

General Agency.

A licensed sales associate, transfers sponsorship of her license from Bay Area to Crystal City. What is TRUE regarding the buyer agency agreement Alisa signed w/ George while still in Bay Realty?

George remains a client of Bay Area Realty

The real estate broker who allows his sales associates to list their own homes through the brokerage without charging the usual listing fee has created

Gratuitous Agency. Payment is not the sole factor in creating an agency relationship.

In order to provide reasonable care and diligence to a client, a licensee must

Have a basic knowledge of real estate law.

The fiduciary duties demand that a real estate broker, acting as an intermediary in a transaction, must place:

His personal interest below those of his two clients.

Seller listed her townhouse w/ Bob. Bob mails out flyers, places ads in the local paper, and posts notices on the community bulletin board. Bob has exercised what type of authority as the listing agent?

Implied.

Broker enters into a written agreement to represent seller and buyer that also authorizes broker to act as an intermediary. Broker elects not to make appointments when buyer begins negotiations for the purchase of seller property. Which statement by the sales associate working w/ buyer would NOT be authorized?

In our market, buyers typically ask seller to pay buyer closing costs

Bay Realty practices exclusive seller agency. In an in house sale, the buyer

Is always Bay Realty's customer

Brenda is working w/ George on a customer basis. She shows him numerous properties in the area and price range George indicated he wised to see. George has decided to make an offer on a property. Which remark by Brenda would NOT be appropriate considering her subagency relationship w/ the seller.

Le me prepare a comparative market analysis for you to see if the list price is reasonable for this subdivision

Broker Sue of Holy Loch Realty has scheduled several showings for Gus, a buyer-client. One of the showings is for a property on Loch Awe Road. Three years ago, Sue was in a buyer-agency relationship with the current owner in the purchase of that property. In regard to the property on Loch Awe Road, Sue

Must disclose all of these are true

Broker Maggie Mae is representing her parents in the purchase of their new home. Maggie Mae will have no financial interest in her parents' new home. In regards to her relationship with the buyer, Maggie Mae

Must inform the seller in writing of her relationship regardless of any planned financial interest in the property

Both buyer and seller gave written authorization to Broker to act as an intermediary but without appointments should the situation arise. Buyer expresses interest in sellers property. In regards tot he intermediary transaction that now might arise, TRELA would require:

No further notification to the parties from broker, although it would be prudent to do so.

Subagent shows a property to a buyer, subagent notices water stains on the carpet near the entrance to the guest bathroom. The buyer is greatly interested in the property. Subagent should:

Point out the condition to the buyer then notify the listing associate about possible plumbing leaks and drainage problems. An agent must be honest to all parties to a transaction, including the customer

George listed his property for sale w/ Tony, the principal broker. George decides to seek a tenant for his property rather than sell so he asks Tony to remove the property from the market. If Tony agrees to release George from his obligations under the contract, agency has been terminated by:

Rescission. Mutual consent of the parties.

Although a broker may enter into an oral listing agreement, the broker cannot look to the courts to compel the seller to pay a commission unless the

Seller signed an agreement to pay a commission to the broker for selling the property

The agency relationship is established between the

Sponsoring broker and the principal

The Real Estate License Act is an example of

Statutory Law

Betty is negotiating for the purchase listed w/ Loch. The seller agrees to Betty's request for seller provided financing. In assisting Betty in the documentation of her offer regarding the provisions of the seller financing arrangement, the licensee from Yard could NOT use:

The Special Provisions paragraph of the TREC promulgated contract.

According to TRELA, which agreement between a broker and her clients must be in writing?

The broker will act as an intermediary and make appointments

A customer would NOT be entitled to:

The broker's opinion of value

In most cases, a licensed real estate broker is not permitted to perform a formal real estate appraisal I Texas

True.

A seller's agent is an advocate of the seller

True

Although it does not matter whether the broker's fees are paid by the buyer or the seller, if the agency relationship is unclear, a court will likely consider who paid the fee to be an important factor in determining who is the agents principal.

True

An intermediary is an agent, but w/ different duties from those of a single agent

True

One of the benefits of exclusive seller agency is that the agent of the seller may not be responsible for the misinformation or misstatement of a material fact made by a buyer's agent to the buyer

True

One of the disadvantages of exclusive seller agency is that the broker may lose buyers who want or need representation

True

Only the broker who has the privity of the written contract w/ the seller may initiate a lawsuit against his client

True

Written authorization from both broker's clients. Seller and buyer act as an intermediary and make appointments should the situation arise. Bill preappointed 2 sales associates, to work as appointees. While broker is away, buyer decides to enter into negotiation w/ seller in regards to the appointees

Until both clients are given written notification and the names of the appointees, must perform the duties of an intermediary and remain impartial

Roni has just received her broker's license and immediately opens her own brokerage office. Numerous licensees with whom she has worked with in the past approach her for sponsorship. Although anxious to get started, she has no time to set up a training program. In the past, she focused on property management rather than residential sales and feels insecure in her understanding of intermediary relationships that frequently arise in residential sales. In regard to intermediary services, Roni

Would be best advised to deny intermediary services to clients until she had time to formally establish a clear office policy for her new licensees