PCF - Chapter 2

It is illegal to NOT divulge the existence of a second offer. A. True B. False

F

Understand that when you are in a multiple offer situation, you are in an adversarial situation with the other agent. A. True B. False

F

Which offer the seller accepts, if any, will be decided by the listing agent. A. True B. False

F

A real estate broker or salesperson, while acting as an agent for another, is a(n) _____________.

FIDUCIARY

Above all else, dealing honestly in a transaction is the most important duty. A. True B. False

T

As a Texas REALTOR®, you also have access to more than a hundred forms for various types of real estate transactions that are not covered by TREC-promulgated forms. A. True B. False

T

Either party may withdraw an offer before it is accepted. A. True B. False

T

The effective date on the contract is determined by the final date of acceptance. A. True B. False

T

The public can use the promulgated contract forms approved by TREC. a. True b. False

T

When representing a buyer, seller, landlord, or tenant, the agent pledges to protect and promote the interest of their client. A. True B. False

T

In addition to providing an existing survey, the seller must also provide the _________________ if the parties want to use the existing survey for the new loan for the buyer.

T-47 affidavit

_______Contracts created by another entity other than TREC that can be used by licensees

TAR

_______ is the Canon of Professional Ethics that speaks to knowledge of the industry.

competency

The main job of the Joint Broker-Lawyer Committee is to ___________________________.

draft and revise contract

The three Canons of Professional Ethics are ____________, ___________, and ______________.

fidelity, integrity and competency

Drafts and revises contracts.

joint broker lawyer committee

If there is an addendum that addresses the issue of concern, then it should be used and not stated in the __________________________paragraph of the contract.

special provision (paragraph 11)

The Texas Real Estate Commission is a nine-member commission appointed by _____________.

the governor

The obligation to the client's interests is primary but that does not relieve REALTORS® of the obligation to _____________________. A. Explain your relationship with your client to all other parties in the transaction. B. Treat all parties honestly. C. Disclose your client's position. D. Make the other party feel that they are being respected too.

B. Treat all parties honestly.

A license holder may undertake to draw or prepare documents fixing and defining the legal rights of the principals to a real estate transaction. A. True B. False

F

All the following are common errors in the contracts EXCEPT: A. Improper use of the Special Provisions section B. Terms for performance too short C. Not disclosing what stays with the property D. Failure to date the contract

. Not disclosing what stays with the property

What is true about the TREC promulgated contracts? A. The contracts are available to any persons. B. TREC revises contracts every year. C. Only brokers must use the promulgated contracts. D. A licensee must be in the real estate business for three months before using the promulgated forms.

. The contracts are available to any persons.

The Joint Broker-Lawyer Committee consists of _______________members.

13

TREC does NOT promulgate listing forms and Buyer Representation Agreements. A. True B. False

A. True

All the following are true about the Texas Real Estate Commission EXCEPT: A. There are nine members. B. All members are brokers with a minimum of 5 years' experience. C. Members of the Commission are appointed by the Governor. D. Members serve six years staggered terms.

B. All members are brokers with a minimum of 5 years' experience.

You can give legal advice to a buyer or seller if you understand all the facts. A. True B. False

B. False

The effective date is determined by the final date of acceptance. All the following are elements of final acceptance EXCEPT: A. The final contract must be in writing. B. Acceptance must be unequivocal. C. An email must be attached to the contract. D. The buyer and seller must sign the contract and initial all handwritten changes.

C. An email must be attached to the contract.

What year was the Texas Real Estate Commission created to administer TRELA? A. 1959 B. 1972 C. 1991 D. 1949

D. 1949

Having an inadequate legal description in the contract most often happens with ___________ property.

Rutal, unsubdivided

_______ is the policy making body that protects the public.

TREC

Withdrawing an offer is called _____________________.

rescission

The main purpose of the Broker-Lawyer Committee is to draft and revise contracts for use by the licensees in Texas. A. True B. False

True

What two of the most common agreements that are not promulgated by the Texas Real Estate Commission but are available through the Texas Association of Realtors® for use by licensees who are members of TAR.

listing agreement, buyer representation agreement

This paragraph must have factual details only concerning the contract.

paragraph 11 (special provisions)