Texas Law and Agency 4-7
Statutory dual agency was revoked in what year...?
1996
In order to become a real estate broker in Texas, a real estate salesperson must be active for ...........out of the previous five years?
4
John is a real estate broker who is looking to act as an intermediary in a transaction. John gives the parties the Intermediary Relationship Notice form. Which of the following parties needs to sign the form...?
Both the buyer and seller
Which of the following parties must sign the Intermediary Relationship Notice...?
Both the buyer and seller
Law that is derived from a court decision is known as...?
Common law
If a broker brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is NOT owed to the buyer...?
Confidentiality
If a buyer and broker do not sign a buyer representation agreement, the buyer will serve as a ..........to the broker?
Customer
Prior to signing a buyer representation agreement, the buyer operates as a/an .............to the broker?
Customer
Which of the following practices are prohibited in an intermediary brokerage transaction...?
Disclosing to the buyer that the seller will accept an offer below the asking price Disclosing to the seller that the buyer is willing to pay more than the asking price Disclosing confidential information about either party
A listing given to only one broker (exclusive) who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker.
Exclusive Agency Agreement
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract.
Exclusive Agreement (Exclusive Right to Sell Listing Agreement)
A net listing is illegal in Texas...?
F (False)
When is written consent not needed for a broker to act as an intermediary...?
If representation agreements are signed with both the buyer and seller, which allows the broker to act as an intermediary
A buyer's agent should not provide advice regarding which of the following...?
Legal matters Tax matters Accounting matters
This is a contract in which a property owner employs a real estate broker to market the property described in the contract...?
Listing contract
If an associate licensee is assigned to represent the seller in an intermediary agency transaction, what fiduciary duties does the licensee owe to the seller...?
Loyalty Confidentiality Reasonable skill and diligence
A dispute that arises out of a buyer representation agreement must be resolved first through...?
Mediation
A listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property.
Non-Exclusive Listing (Open Listing)
An open listing contract is an example of a/an...?
Non-exclusive listing contract
According to a listing contract, a broker agrees to do which of the following...?
Put the seller's interests above any others Market the property Represent the property and the seller
A buyer representation agreement is signed by a buyer and a/an...?
Real estate broker
A seller's broker may be compensated by the seller in which of the following means...?
Retainer fee Seller paid fee Commission
A commission is typically calculated as a percentage of the...?
Sales price
Which of the following sections of TRELA requires written consent for a broker to act as an intermediary...?
Section 1101.559
Law that is set down by a body of legislation or by a singular legislator is known as...?
Statutory law
A buyer's broker can appoint sub-agents to help the buyer find a property...?
T (True)
A buyer's broker should NOT provide legal advice to their client...?
T (True)
Which of the following produces the Intermediary Relationship Notice...?
TAR
When an agent represents both sides to a transaction, which of the following parties is responsible for the agency relationship...?
The broker
If a broker acting as an intermediary assigns licensees to represent both the buyer and seller, who becomes responsible for the agency relationships...?
The broker is always responsible for the actions of the licensees
What must a listing broker disclose at their first substantial dialogue with a prospective buyer...?
The broker's agency relationship with the seller
A real estate salesperson who represents a seller owes a fiduciary duty to which of the following parties...?
The real estate salesperson's sponsoring broker and the principal
An associate licensee who was appointed by their broker to represent the seller in an intermediary brokerage can offer opinions and advice to which of the following parties...?
The seller only
How does a seller benefit from an agency relationship...?
The seller's property is broadly marketed The seller can receive advice from the broker The seller can receive assistance from the broker when negotiating with a prospective buyer
TRELA allows a broker to act as an intermediary if which of the following is provided...?
Written consent from all parties
An agent's compensation for performing the duties of the agency is known as a/an...?
Commission
Agency can be implied or...?
Express
A broker must appoint associate licensees to represent the seller and buyer in an intermediary brokerage...?
F (False)
A buyer's broker should diligently assist their client in obtaining the necessary financing to purchase a house...?
F (False)
An agency relationship must be created in order for a broker to show properties to a buyer...?
F (False)
A broker who serves as an intermediary must act fairly and...?
Impartially
Which of the following is needed in order to allow a broker to appoint associate licensees to represent the seller and buyer in an intermediary brokerage...?
Written consent from all parties
In order to earn a commission, a broker must secure which of the following...?
A ready, willing, and able buyer
A real estate salesperson must work under...?
A sponsoring broker
How does a broker benefit from an exclusive agency relationship with the seller...?
An exclusive agency relationship prevents a conflict of loyalty The broker's liability is limited with the buyer's broker The broker is ensured a commission if they sell the property
TRELA considerers which of the following as a fair and impartial act by a broker when acting as an intermediary...?
Appointing separate associate licensees to represent the seller and buyer
Bob is a broker serving as an intermediary in a transaction. He decides to appoint two of his associate licensees to represent the seller and buyer. The associate licensees are prohibited from which of the following actions...?
Disclosing to the buyer that the seller will accept an offer below the asking price Disclosing to the seller that the buyer is willing to pay more than the asking price Disclosing confidential information about either party
Which of the following listing agreements offers the most amount of protection for the broker...?
Exclusive Right to Sell Agreement
Which of the following creates an exclusive agency relationship between a buyer and a broker...?
Exclusive right to purchase agreement
Which of the following offers the most protection to a buyer's broker...?
Exclusive right to purchase agreement
By signing the Intermediary Relationship Notice, what type of agency is created...?
Express
An agency relationship created by oral or written agreement between principal and the agent.
Express Agency
A contract that has been put into words, either spoken or written.
Express Contract
A buyer representation agreement creates what type of agency...?
Express agency
Which of the following fiduciary duties are owed by a broker to a buyer after signing an exclusive buyer representation agreement...?
Full disclosure Loyalty Confidentiality
A real estate salesperson operates as a ..............to their sponsoring broker?
General agent
In a ..........., the buyer pays the purchase price of a property while the seller pays the buyer's brokers commission?
Gross price
Agency that exists as a result of actions of the parties.
Implied Agency
An agreement that has not been put into words, but is implied by the actions of the parties.
Implied Contract
Agency that exists as a result of the actions of the parties is known as...?
Implied agency
A buyer representation agreement needs to be ............in order for the broker to earn a commission?
In writing
If a broker represents both the seller and buyer, the broker is acting as a/an...?
Intermediary
If a broker serving as an intermediary in a transaction needs to appoint separate licensees to represent both the buyer and seller, what form may be used to satisfy the requirement of written consent...?
Intermediary Relationship Notice
What was created in place of statutory dual agency...?
Intermediary brokerage
A buyer's agent should not provide which of the following services to the principal...?
Legal services Financial services Appraisal services
Errors and omissions insurance typically does not cover an agent for which of the following...?
Negligent acts
A buyer's agent is allowed to provide which of the following services to the principal...?
Negotiating services
A listing which provides that the agent may retain as compensation for agent's services all sums received over and above a net price to the owner.
Net Listing
This is a listing contract which provides that the agent may retain as compensation for agent's services, all sums received over and above a net price to the owner...?
Net Listing
Which of the following is a listing contract given to one or more brokers in which the broker procuring a sale is entitled to the commission, but imposes no commission obligation on the owner when the owner sells the property...?
Open Listing
Which of the following listing contracts offers the least amount of protection to the broker...?
Open Listing
Which of the following offers the least amount of protection to the buyer's broker...?
Open buyer agency agreement
A listing contract is signed by a broker and a/an...?
Seller
A broker signed a buyer representation agreement with a buyer. What type of agency was created...?
Special agency
A listing contract creates what type of agency...?
Special agency
A real estate salesperson operates as a ..............to their client?
Special agent
Paragraph 17 of the Residential Buyer/Tenant Representation Agreement lists which of the following...?
Special provisions
Law that is set down by a body of legislation or by a singular legislator.
Statutory Law
A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agent's principal, is known as a/an...?
Sub-agent
A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agent's principal.
Sub-agent
Sam is a real estate broker who is bringing a buyer to a transaction. If Sam did not sign a buyer representation agreement with the buyer, he will serve as a .............to the seller's broker?
Sub-agent
Who serves as the 'prospect' on the Intermediary Relationship Notice form...?
The buyer
An exclusive right to purchase agreement most favors which of the following parties...?
The buyer's broker
Which of the following must be included in a buyer representation agreement...?
The client's duties The broker's duties The term of the contract
According to TRELA, a broker may act as an intermediary if he/she obtains written consent from all parties, which states...?
The source of any expected compensation to the broker
Daniel is a real estate salesperson in a transaction. Daniel serves as a fiduciary to which of the following parties...?
Both the principal and Daniel's sponsoring broker
Section 1101.559 of the Texas Real Estate License Act describes which of the following...?
Broker acting as an intermediary
Robert is looking to exclusively represent a buyer in a transaction. Which of the following document should Robert sign with the buyer...?
Buyer Representation Agreement
An agent's compensation for performing the duties of the agency; in real estate practice, a percentage of the selling price of property, percentage of rentals, etc. A fee for services.
Commission
Law that is derived from court decision. The body of law that grew from custom and practices developed and used in England "Since the memory of man runneth not to the contract".
Common Law
An agency relationship created by oral or written agreement between the principal and the agent is known as...?
Express agency
What type of agency relationship is created through a listing contract...?
Express agency
A contract that has been put into words, either spoken or written, is known as a/an...?
Express contract
If a broker brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is still owed to the buyer...?
Fairness
A real estate salesperson serves as a ............to their sponsoring broker?
Fiduciary
David is operating as a buyer's agent. Which of the following services should David not provide to the buyer...?
Legal services Financial services Appraisal services
A contract in which a property owner employs a real estate broker to market the property described in the contract.
Listing Contract
Tim is a real estate salesperson who's broker is serving as an intermediary in a transaction. Tim was assigned by his broker to represent the seller in the transaction, while another licensee in the office represented the buyer. Tim is allowed to give advice to which of the following parties...?
The seller only
What is the standard broker commission rate for a real estate sales transaction...?
There is no standard commission rate