Texas Law Of Agency

TREC was created in ...?

1949

The Texas Real Estate Commission was created in what year...?

1949

The Seller's Disclosure of Property Condition is discussed in what section of the Texas Property Code...?

5.008

Which of the following can legally employ a real estate salesperson to work on their behalf...?

A Real Estate Broker

If an individual works as an associate broker, who must they work under...?

A Sponsering Broker

A buyer representation agreement is signed by a buyer and a/an...?

A real Estate Broker

This refers to a summary of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title...?

Abstract of Title

This refers to the relationship between a principal and the principal's agent, which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a third party...?

Agency

One who acts for and with authority from another called the principal

Agent

One who acts for and with authority from another, called the principal, is known as a/an...?

Agent

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

A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is known as a/an...?

Associate Broker

A real estate broker may sponsor which of the following...?

Associate Broker, Associate Licensee & Real Estate Salesperson

In order to establish an agency relationship, which of the following must agree to the terms of the agency...?

Both Principle and The Agent

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

Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent is known as a/an...?

Client

An agent's compensation for performing the duties of the agency is known as a/an...?

Commission

A law that is made by a judge's decision in a court case is known as...?

Common law

According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property...?

Confidentiality

An agent's duty to be honest with all parties may be compromised by which fiduciary duty owed to the principal...?

Confidentiality

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

The party the agent brings to the principal as a seller or buyer of the property is known as a/an...?

Customer

Which of the following offers the most protection to a buyer's broker...?

Exclusive Right To Purchase Agreement

Which of the following listing agreements offers the most amount of protection for the broker...?

Exclusive Right To Sell Agreement

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...?

Expressed Contract

If Agent Brandy were to take Seller Jair's listing and agree to discriminate against any minority group, what law would Agent Brandy be breaking?

FHA

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 buyer's broker should diligently assist their client in obtaining the necessary financing to purchase a house...?T-F

False

An agency relationship must be created in order for a broker to show properties to a buyer...? T-F

False

An agent must provide customers with advice if asked by the customer...?T-F

False

By signing a listing agreement with a principal, an agent can serve as a universal agent to the principal...?T-F

False

The real estate broker is responsible for ordering the appraisal for a transaction...? T-F

False

A person in a position of trust and confidence is known as a/an...?

Fiduciary

Ely is a real estate broker who represents that seller in a transaction. Ely owes which of the following to the seller...?

Fiduciary Duties

The duty to not to obtain any advantage over a principal by the slightest misrepresentation, concealment, duress or pressure is known as a...?

Fiduciary Duty

If an agent learns of something that is beneficial to their principal, the agent must reveal the information to the principal as per this fiduciary duty...?

Full Disclosure

What fiduciary duty does a seller's broker owe to a customer...?

Full Disclosure

A property manager is an example of a...?

General Agent

Which of the following is considered a physical stigma for a property...?

Ground water contamination,Lead-based paint,Asbestos

Since an agent owes the duty of confidentiality to his/her principal, which of the following duties owed to a customer may be compromised...?

Honesty

Real estate agents operate as a/an ................to their sponsoring broker?

Independent Contractor

Which of the following is signed between an agent and their sponsoring broker...?

Independent Contractor Agreement

A broker who represents both the buyer and seller in the same transaction operates as a/an...?

Intermediary

According to the fiduciary duty of obedience, the agent must obey which of the following instructions from the principal...?

Lawful Instructions

Statutory law is derived from which of the following...?

Legislation

Which of the following contracts establishes an agency relationship between the seller and broker...?

Listing Agent

Agency between a broker and principal is created through a/an...?

Listing Contract

This is a contract in which a property owner employs a real estate broker to market the property described in the contract...?

Listing Contract

Which of the following contracts can establish an agency relationship...?

Listing agreement,Buyer representation agreement,Property management agreement

This is an agent's duty to place their client's interest above those of all others, including the agent's own self-interest...?

Loyalty

This refers to title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept...?

Marketable Title

Any fact that would influence the decision of a reasonably prudent person is known as a/an...?

Material fact

A false statement regarding a material fact is known as...?

Misrepresentation

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 offers the least amount of protection to the buyer's broker...?

Open Buyer Agency Agreement

Title insurance consists of a contract between an insurance company and a/an...?

Policy Holder

The employer of an agent; one of the main parties in a real estate transaction, such as a buyer, borrower, seller, or lessor

Principle

The party that the listing contract is with is referred to as the...?

Principle

Which of the following receives advice, or an opinion, from a real estate broker...?

Principle

The Information About Brokerage Services form is presented by the broker to the...?

Prospective Client

An expression or exaggeration made by a salesperson that concerns the quality of real property offered for sale or lease is known as...?

Puffing

A listing contract is signed between a principal and a...?

Real Estate Broker

A person acting as the agent for others in negotiating the purchase and sale of real property for a fee is known as a/an...?

Real Estate Broker

Which of the following has the highest authority in an agency relationship...?

Real Estate Broker

A listing contract is signed by a broker and a/an...?

Seller

A listing contract creates what type of agency...?

Special Agency

Abby signs a buyer representation agreement with a buyer. What type of agency was created by the agreement...?

Special Agency

Abby is a real estate broker who represents a seller in a transaction. Abby is serving as what type of agent...?

Special Agent

Agency can be classified in which of the following ways...?

Special,General or Universal

A law that is written by a legislating body is known as...?

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

This is a document which precisely shows the property lines, and size and location of improvements on a particular property...?

Survey

Which of the following is responsible for enforcing TRELA...

TREC

The acronym TRELA stands for which of the following...?

Texas Real Estate Licensing Act

The rules and regulations regarding real estate licenses in Texas are described in which of the following...?

Texas Real Estate Licensing Act

Which of the following orders the appraisal for a transaction...?

The Lender

A real estate broker works for which of the following in a transaction...?

The Principle

The authority of an agent is provided by which of the following...

The Principle

Sam recently entered into a buyer representation agreement with a buyer. Which of the following is a third party to the agreement...?

The Seller

Who is responsible for completing the Seller's Disclosure of Property Condition form...?

The Seller

Which of the following is an example of fairness owed by a seller's agent to a customer...?

The agent must present all offers received from prospective buyers

A broker must disclose which of the following to their principal...?

The broker's opinion of value,How the commission is being split with other brokers,If the broker is receiving an additional commission from another party

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

A buyer's broker can appoint sub-agents to help the buyer find a property...?T-F

True

An agent may not be held liable for innocent acts of misrepresentation...?T-F

True

An agent that can serve the principal in any capacity is known as a...?

Universal Agent

David is serving as a power of attorney for Sarah. David is serving as what type of agent...?

Universal agent

This refers to the relationship between a principal and the principal's agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party..?

agency

COALD

care, obedience, accounting, loyalty, and disclosure

An agent must avoid doing which of the following to a customer...

misrepresenting material facts about the property

A customer is also known as a...?

non-client

"O.L.D C.A.R" stands for?

obedience, loyalty, disclosure, confidentiality, accounting & reasonable care

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

According to this fiduciary duty, an agent must meet deadlines set by the principal and/or client...

reasonable care and diligence

Which of the following can serve as a principal...?

seller, buyer, or lessor

What must a listing broker disclose at their first substantial dialogue with a prospective buyer...?

the brokers agency relationship with the seller

An agent's duty of honesty and fairness applies to which parties...?

the client, principal and customer

An agent owes the fiduciary duty of reasonable care to which of the following parties in a transaction...?

the customer, client and principal