LOC Chapter 5
Which of the following is false when negotiating binding contracts for the sale, lease, exchange, or rental of any interest in real property?
A real estate agent in Texas must use only contracts promulgated by TAR.
An agency relationship which is created after the fact when the principal agrees to be bound by the actions of another person who was acting without authority.
Agency by ratification
A condition that must be met to close a real estate transaction
Contingency
The use of force or pressure to make one party agree to a contract.
Duress
___________ is the use of force or pressure by one party to make the other party agree to the contract.
Duress
The type of listing where the owner agrees to list the property with only one broker; however, the owner reserves the right to sell the property himself
Exclusive agency listing
The listing that affords the broker the most protection.
Exclusive right-to-sell
Buyer agency agreements can be created in three ways. Name one.
Expressed oral agreement
Buyer's agency agreements can be created in which of the following ways?
Expressed oral agreement and implied agency
A gross lease is where a tenant pays a percentage of their gross sales as rent.
False
If the seller breaches the listing, the seller will NOT be liable to the broker for the commission. If the broker breaches the listing, the seller may use any remedy allowed by law.
False
The open listing is where the owner agrees to list the property with only one broker; however, the owner does reserve the right to sell the property themselves.
False
The conveyance of real estate is covered by real estate contracts.
Freehold estates
A listing where the owner wants to receive a set amount.
Net listing
A possessory right or interest in land or property.
Non-freehold
A listing where the owner employs as many brokers as they wish, as well as retain the right to sell the property themselves.
Open listing
Sources of forms used by real estate agents in Texas include _________, _________, and lawyers.
TREC / TAR
A non-freehold estate is the same thing as a leasehold estate.
True
Buyer's agency agreements can be created in the following three ways: expressed oral agreement, implied act, and agency by ratification.
True
By signing the listing agreement, the seller is not giving the listing broker or listing agent any authority to sign any documents on their behalf.
True
If the seller and the listing broker agree to intermediary, the listing broker may also represent a buyer in the transaction.
True
One of the most common contingencies in real estate contracts is a mortgager contingency.
True
The listing agreement states that all commissions are always negotiable and are not fixed or set by TREC or any organization.
True
With a contract for deed, the seller holds legal title to the property as security for payment while the buyer has equitable title.
True
With an estate for years has a defined beginning date and ending date for a specific term.
True
A way for the buyer to transfer obligations to another is called ______________________.
assignment
To be valid, a listing agreement must have a termination date. The length of a listing term is often decided by the market conditions and the ___________ policy.
broker's
A(n) _____________ is a legally binding agreement between parties, to do or not do something.
contract
The ___________________________ is the most widely used residential listing in Texas.
exclusive right to sell
By law, the ________________________ must have a termination date. The agreement cannot automatically renew.
listing agreement
It is ___________ to seek specific performance AND collect earnest money at the same time.
not possible
A contract form that has been prepared by a(n) ______________or prepared by a(n) __________, and required by a principal are all exceptions from using the promulgated forms by TREC.
principal / attorney
The seller's evidence of title is the ________.
title insurance policy
