Tx Law of Agency Real Estate Practice Exam

When does express agency exist?

When a written or oral agreement is in place (Express agency requires expression an agreement of terms. This can be expressed orally or in writing. It's always best to get any agreement in writing, however.)

___must abide by the Canons Of Professional Ethics and Conduct, enforced by the Texas Real Estate Commission.

All Texas real estate licensees ( All real estate licenses in Texas are bound by the canons of professional ethics and conduct.)

Which of the following forms is automatically provided as part of the listing agreement, regardless of the age, location, or type of property?

Information about brokerage services (Texas Law Requires that licensees provide all prospective clients or customers with the information about brokerage services form upon the first substantial dialogue about a specific property. The form is considered a notice that gives a choice of representation.)

Which of the following is true about for sale signs?

They require the sellers written permission to post. (You probably wouldn't want someone posting a sign in your yard without your permission, would you?)

Customers, lenders, and appraisers are all?

Third parties (these are all third parties.)

Jason is the seller's agent. His seller has a leaky roof he'd rather keep secrets from buyers. What should Jason do?

Inform the seller that the roof leak is a material fact that he is obligated to disclose to buyers. (A roof leak is a material fact that the licensee has a duty to disclose to other parties. If the seller is adamant that it not be disclosed the licensee should consider walking away from the listing)

TREC does not have the right to do which of the following?

Prohibit a license holder from using a contract that has been drafted by the property owners attorney. (TREC may not prohibit a license holder from using a contract form for the sale, exchange, lease, or option of an interest in real property, If that contract we're prepared by the property owner or by an attorney, and required by the property owner.)

At least 60 days prior to filing A lawsuit under DTPA, what is the consumer required to do?

Provide a written notice to the person against whom the suit is to be filed. (At least 60 days before filing a DTP a suit, the consumer must provide a written notice to the person against whom the suit is to be filed.)

Which of the following is true about radon testing?

Test kits are available for purchase. (Test kits are available for purchase but must be sent to a laboratory for analysis. Licensee should advise all buyers to have Homes tested for radon regardless of location.)

What was the name of the first law regulating real estate brokerage in Texas, which was originally passed in 1939?

Texas real estate dealers act (The first loss tablets to regulate real estate brokerage in Texas was the real estate dealers act. TRELA came along 16 years later.)

Putting clients interest ahead of all of those describes which fiduciary duty?

Loyalty

Lisa is a licensee with Hometown Realty, is accompanying her buyer. Frances. To an open house. Travis, the seller's agent, approaches Lisa and asks what brings them to the open house today. In order to properly disclose her agency status, how should Lisa respond?

"Hi, I am Lisa. I'm an agent for Hometown Realty. This is Frances, who is my buyer client." (Lisa should disclose that she is an agent and represents Frances.)

Which one of Jerry's statements to a client crosses the line into unauthorized practice of law?

"Most couples take ownership of property as joint tenants, so that's what I advise". (Jerry cross the line when he tried to interpret the impact of his clients decision about how to take ownership.)

According to the terms defined in subchapter A of TRELA known as the general provisions, what is the definition of a broker?

A person who, for a commission or other valuable consideration, performs specific real estate related tasks for another person. (Under the general provisions of TRELA, a broker performs real estate related activities, for others and for a fee. These real estate related activities could include helping someone to buy, sell, lease, auction, or list at home.)

John, a personal assistant, advice Shelley, who is a client of John supervisor, Bill, about a negotiation strategy. John is_____.

Acting legally, provided he has a real estate license (Negotiating offers, discussing terms, and counseling clients on strategies are activities requiring licensure)

Why is it important that a broker actively enforce the policies and procedures document it in the firm's policies and procedures manual?

Active enforcement helps to ensure compliance from members of the firm and helps protect the broker against claims that there was no expectation of adherence. (It's important for a broker to actively enforce the policies and procedures documented in the firms ppm because enforcement helps to ensure compliance and helps protect the broker against claims that there was no expectations of adherence.)

How can Time terminate agency?

Agency terminates win the time specified in the agreement elapses. ( Representation agreements must include a definite expiration date at which time the agency expires if the objective of the agreement hasn't been accomplished before then.)

What's a quiet title action?

An action to locate and notify all who may have some claim on the title, and determine the validity of all claims. (A quiet title action involves locating a person who may have some claim on the title and determining the validity of any claims on the title)

Amelia is a broker who is employed to negotiate a transaction between both parties to the transaction, and with the parties written consent, may act as the agent of the two parties. In what capacity is Amelia acting?

An intermediary. (A broker who is acting as the agent to both parties to a transaction such as the buyer and the seller is known as an intermediary. The broker must have the signed, written permission of both parties to act in this capacity. When acting as an intermediary, the broker is prohibited from favoring one party over the other.)

Which of the following statements about buyer representation is true?

An open agency relationship gives the buyer flexibility, but limits the amount of representation received by any one professional. (Open agency offers buyers with the most flexibility to work with multiple agents but limits the level of a representation.)

Andrew just received a compensation check from his brokerage firm. Since Andrew is an independent contractor, what determines how he's paid?

Andrew sales (sales volume and closed transactions determine how much an independent contractor can make in real estate.)

When you're involved in the transaction as a licensee, who is the third parties?

Anyone involved in the transaction who isn't your client (Any person who is a party to the transaction in which you are involved and who is not your client is a third-party to you.)

In what way (S) do consumers compensate brokers for their services?

As a flat fee, fee for service, and/or percentage of sale. (Consumers generally compensate brokers for their services in the form of a percentage of the sales price of the property, but other options include a flat fee or fee for service.)

Which of the following would make the "choose your neighbor" flyer and allowable strategy for finding perspective buyers?

As part of a comprehensive marketing strategy that doesn't limit or restrict potential buyers (The choose your neighbor flyer would be allowable only in conjunction with other marketing strategies that make the property available to all types of buyers)

In Texas, when is a licensee required to provide an agency disclosure?

At the time that the licensee is having the first substantiative dialogue about a specific property with the party whom they are not representing in the transaction (You must disclose whatever agency, or broker, relationship you have at the time of the first substantiative dialogue with the party you are not representing in the transaction. Substantive dialogue includes conversations held in face-to-face meetings. Or via email, phone or text.)

Which fiduciary duty is missing in the following string: Loyalty, Care, obedience, confidentiality, accounting, and?

Disclosure (skill is a part of care lawfulness is required, but it's not one of the duties. The one that is missing is disclosure of all the pertinent facts.)

Candy wants out of her contract, because she doesn't believe her agent has estimated the property value correctly. She thinks her property is worth more. What must happen before the listing agreement can be terminated?

Candy and her agent must mutually agree in writing to terminate their agreement. (A listing agreement can be terminated when the seller and broker mutually agreed to terminate their agency relationship.)

Dizziness and nausea are the first signs of what?

Carbon monoxide poisoning (dizziness and nausea are the first signs of carbon monoxide poisoning.)

In addition to providing a disclosure of any lead-based hazards in a home built before 1978, what my sellers provide to perspective buyers?

EPA lead safety pamphlet (sellers must also provide a lead safety pamphlet, available from the environmental protection agency, to perspective buyers.)

Sally knows that a recent storm has caused severe wind damage to a listing which is the reason for many updates. She does not disclose this to potential buyers. Chris and Jeff by the property and later find out from a neighbor. They decide to sue Sally for Friday. Which of the following is true?

Chris and Jeff must prove that she intended to deceive them. (Fraud is an intentional deceptive act. In a fraud related lawsuit, the plaintiff must prove that the other party intended to deceive them.)

Which of these is an example of listing agreement termination by completion/performance?

Dean list his property on August 1. After just a few showings, he excepts an offer on August 12. The closing takes place on September 22. (The agency agreement automatically terminates when a transaction closes.)

Natalie is a single mother of twins and receive government assistance to help make ends meet. She's been living with her mother for the past few years but really wants to buy her own home to gain some independence. She's got a little in savings and has good credit, but when the lender turns her away because she receives public assistance she worries that she'll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie?

Equal credit opportunity act (The equal credit opportunity act prohibits lenders from discriminating on the basis of an applicant protected class status, such as dependents on public assistance. It's intent is to make Credit equally available to all credit worthy applicants.)

Which of the following would cause a property to be psychologically stigmatized?

Ghosts or paranormal activity (psychological stigmas result when events occur that can affect the psychological well-being of the properties occupants like ghosts or paranormal activity.)

Rachel is a broker with a listing that a former client, Gary, is interested in purchasing. Gary would like Rachel to represent him as the buyer in the transaction. Which is the only legal option in Texas for Rachel to represent both Gary and the seller?

Intermediary (Rachel can act as an intermediary in this transaction to represent her seller and the buyer, Gary, provided she gets the signed, written consent of both parties. Don't agency is illegal in Texas.)

What makes urea for formaldehyde foam insulation a health hazard?

It contains formaldehyde. (Urea formaldehyde foam insulation contains formaldehyde which can be a health hazard.)

Why are proper implementation and presentation of agency important?

It helps protect brokers by clarifying and documenting agency roles and responsibilities. (Proper implementation and presentation of agency are ways that brokers can clarify and document agency roles and responsibilities.)

Which of the following is true about asbestos?

It is not safe at any level (Asbestos is harmful mostly when it is distributed because the fibers are released into the air. No level of asbestos is considered safe, and only qualified professional should remove it.)

According to NAR's Code of ethics, what responsibility do licensees have related to material facts?

Make a reasonable effort to ascertain all material facts concerning each property for which an agency is accepted (Licensee should make reasonable efforts to ensure material facts related to the property or accurate. This may include but is not necessarily limited to asking the client questions about the property and its condition or inspecting the property.)

Following all of the clients lawful instructions describes which fiduciary duty?

Obedience (Obedience doesn't include failing to disclose material facts, even if disclosure would harm your clients best interest.)

What type of ownership interest needs to be disclosed in writing to all parties?

Property held directly or indirectly by the licensee, the licensees immediate family member, the licensees firm, or a member of the licenses from. (The code of ethics states, "a licensee shall disclose in writing to all parties to a real estate transaction any ownership interest in the property that is the subject of the real estate transaction held directly or indirectly by the licensee, an immediate family member of the licensee, or the licenses firm, or a member of the licenses firm.")

After a few meetings, the Stinson sign a listing agreement with broker Vera so she can sell their house. The house is already generated interest from a potential buyer named Sergio, who has spoken with Vera about the house square footage and potential as an investment. Which of the following is true about this situation?

The Stinsons and Vera have an agency agreement. (The Stinson's and Vera now have an express agency agreement since they signed a listing agreement. By talking to Sergio, Vera's filling her duty of helping to find a buyer.)

Trinas property is listed with Avalon homes. The market is a little slow, and Trina's listing is a high end home, where sales are even slower. She's had several showings, but no offers. The term of the listing agreement is nearly over. What happens when the termination date is reached?

The listing expires and is automatically terminated. (A listing agreement automatically terminates on the end date noted in the agreement unless the seller agrees to extend it. It's generally not legal to include an automatic extension clause in a representation agreement.)

In Texas, the commission is responsible for preparing information outlined in its purpose and duties. It must then make this information available to him?

The public. (Under TRELA, the commission has a responsibility to prepare information outlined in his duties and powers for the public interest, and then make this information available to the public.)

Who does the agent assisting the buyer in a transaction represent if there is no buyer agency agreement?

The seller ( Without a buyer agency agreement in place, the agent assisting the buyer actually represents an old fiduciary loyalty to the seller.)

Without a buyer agency agreement in place, who does the agent assisting the buyer represent an old loyalty to?

The seller (if there is no agency agreement in place, the agent assisting the buyer represents the seller.)

Your client, Ray, is worried about the title issues that may arise after closing. Remind Ray of his secret protection:

Title insurance (Title insurance protects the buyer from title defects covered by the policy. If a defect is found, and it's covered, the insurance policy will reimburse the buyer for losses, up to the amount specified in the policy. )

What's the purpose of a buyer presentation?

To build rapport with the buyer (a sit down meeting helps the buyer invest in you as a professional and helps to establish rapport.)

Licensee Janice has found a way to work with prospective buyers without ever leaving her desk: She sets them up with an automated email messages for listings that meet their criteria, and answer any questions they have when they call. Is Janice doing anything wrong?

Yes, because she should meet with them in person before working with them. (Janice should meet buyers in person before she works with them. This demonstrates her professionalism and set a solid foundation for an agent/client relationship.)

Barbara, a Texas sponsoring broker for Longhorn realty, paid Gwendolyn, a buyer, a portion of the commission Longhorn received from the sales transaction. This is known as_____

A Rebate (A broker may legally rebate a portion of their commission to a principal to the transaction, as long as the payment is strictly a rebate. Although this option is illegal in some other states, it is legal in Texas.) Yeah

Which of the following statements is true of independent contractor licenses?

They are paid by the job. (Unlike employees who tend to be paid by the hour, independent contractors are paid by the job.)

Alex, and agent, is representing Tina's, the seller. Tina tells Aleks that she does not want to sell to anyone who is Hispanic. Which of the following describes Alex his responsibilities?

Aleks should take the time to educate Tina about fair housing laws. (Real estate professionals are required to uphold fair housing laws, even when the client asked them to discriminate.)

A licensee has several tasks to perform for seller clients. One of these tasks is to _______

Communicate all offers and counter offers to the seller (One of the licensee's task is to communicate all offers and counter offers to the seller. This goes to the duties of disclosure, accounting, and reasonable Skill and Care.)

The neighbors in South Mountain Village got tired of all the drug dealing and criminal activity surrounding a shot, the mystery market. The community boycotted the store, which eventually closed, and with the help of local financial institutions, a social service center was added to the area. What act is this an example of?

Community reinvestment act (it requires financial institutions to invest in community development and rehabilitation efforts.)

Which one of the following is an OT and example of how agency terminates by operation of law?

Completion of sale (Agency agreements can be terminated by operation of law (meaning that the parties don't initiate the termination.) In several ways, including when either the client or the agent files for bankruptcy, the transaction is completed, or the contract expires.)

It's usually in the best interest of the client for licenses to do what?

Cooperate. (Listing agents must not refuse to work or cooperate with other licenses. It's almost always in the best interest of the client for licenses to cooperate with each other.)

You mean Eileen were hosting an open house for your seller, Nathan. Eileen is moving to town for work and needs to very quickly find housing. She liked the house and asked if you would help her put offer paperwork together. You told her that you'd be happy to. Eileen is your________.

Customer (Eileen isn't your client because you Already represent Nathan in your transaction. Helping Eileen with paperwork is a ministerial act, and Eileen is your customer.)

What can be defined as the principles that govern the group's behavior?

Ethics (Ethics are the principles that govern group behavior; morals tend to be individual cultural or religious beliefs.)

In general, a person in a position of loyalty interest is a (n).

Fiduciary (A fiduciary is someone who has been placed in a position of loyalty and trust. A real estate licensee working with a client is a fiduciary; mortgage lenders, and attorneys in fact are also fiduciaries.)

Fred is buying Gary's property, which is listed with a broker Sara. Who are the parties to the listing agreement?

Gary and Sara (The parties to the listing agreement are the listing broker and the seller.)

What is the code of ethics?

Guidelines for conduct (The code of ethics is a defined set of guidelines for ethical conduct rules to prohibit or require certain behavior)

Which statement describes a code of ethics?

Guidelines for conduct (a code of ethics is a defied set of guidelines for ethical conduct.)

Not wanting to cause the sellers or mortgage lenders unnecessary concern, Gwen, the buyers agent, wasn't exactly forthcoming about the slight change in her clients financial status that her client had shared with her in confidence. Which fiduciary duty to the customer is Gwen violating?

Honesty and fair dealing (Gwen is not being honest or dealing fairly with the seller or the lender.)

Which of the following is an example of sub-agency?

Kaila is a licensee with ABC Realty and list a property for seller Devon. Maurice Is a sales person with XYZ Realty group and brings a buyer to the table, but owes fiduciary duties to the seller. (Only the agent working with a buyer customer on behalf of another firm's listing is an example of the Sub-agency situation. In this case, that would be Maurice.)

When agents put their clients interest ahead of their own, this describes the duty of?

Loyalty (loyalty means putting the clients interest first ... Ahead of customers interests and ahead of your own.)

Which fiduciary duty requires agents to put their clients interests ahead of all others?

Loyalty (this is a description of the fiduciary duty of loyalty.)

Radon is an important environmental issue because it causes what?

Lung cancer (Radon causes lung cancer, and the EPA estimates that more people die each year from lung cancer related to radon exposure than drunk driving, drowning or fires.)

Which of the following scenarios best describes a net listing?

Maeve Wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount. (A net listing commission involves commission of an intermediate amount and depends on the sales price. Net listings are illegal in several states.)

Marsha's title insurance policy was issued on closing day, June 18. The policy list the standard exclusions as well as requirements for the company to issue the policy, such as pay not existing recorded lines. Which of these will not be addressed in the schedule of exceptions?

Marsha's second mortgage on the property, which was properly recorded in January. (Title insurance typically covers events or claims filed on the public record before the title insurance policies effective date but excludes disclosed an undisclosed easements.)

Which of the following would be a violation of the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA)?

Misrepresenting the facts about the reasons for a price decrease (Misrepresenting the facts about the reasons for a price decrease is a violation of the Texas DTPA.)

Personal beliefs, such as religious ones, have the greatest effect on what?

Morals (morals tend to be specific to the individual and are shaped by personal believes.)

Jose forgot to measure the homes interior to verify the square footage. After the bar moved in, she found that he had made an error and that her home was 200 ft.² smaller than what she thought. What crime has Jose committed?

Negligent misrepresentation (Jose has been negligent in his duties and committed misrepresentation.)

What acronym can licensees used to recall the fiduciary duties an agent owes to a client?

OLD CAR (Remember the acronym OLD CAR. It stands for the duties of obedience, loyalty, disclosure, confidentiality, accounting, and reasonable skill and care.)

You represent April, the seller, who is your uncle Clyde's girlfriend. You receive an order from Barry on behalf of a prospective buyer. Who's interest you represent, and in what order?

Only April's (You must put your clients interest ahead of all the others in this case that is April.)

Brady and Tonya have enlisted the help of several real estate professionals to sell their home. They signed a listing agreement with each other that specifies that if Brady and Tonya sell the property on their own, they won't owe any wanna commission. What type of listing agreement is this?

Open listing agreement (With An Open listing agreement , Sellers contract with multiple agents, and only the agent who brings the buyer to the property is owed a commission. The sellers can also sell the property on their own and owe no one a commission.)

Which of the following duties is Marie, Texas broker Dylans unlicensed assistant, prohibited from performing?

Providing advice to Dylan's client, Shirley, about how much she should pay for the house she's buying. (Unlicensed assistance may handle ministerial duties like answering calls, obtaining public information, and even submitting listings and changes to listings to the MLS. However, any task that requires a Texas real estate license is to perform like offering real estate pricing advice is prohibited.)

What does the R in the acronym for fiduciary duties (Old Car) stand for?

Reasonable skill and care (The R stands for reasonable skill and care, which is a higher level of care that would be expected from a non-licensee.)

A homeowner has converted to rooms in his home to a rental unit. What does the "Mrs Murphy" Exemption permit him to do?

Refuse to rent to a female tenant. (The "Mrs Murphy "exemption applies to owner occupied buildings with no more than four units. The owner may choose to rent only to a like sex tenant but may not discriminate on any other basis.)

What actor require sellers, landlords, and their agents to disclose any known lead hazards in the home?

Residential Lead Based Paint Hazard Reduction Act. (The residential lead-based paint hazards production act requires this disclosure. It also requires them to provide a lead safety pamphlet and any records they have of lead assessments or testing to perspective buyers.)

Samuel is creating a new advertising campaign for his brokerage firm. He's pretty sure TREC has some authority over advertising practices, but he can't remember exactly what those are. Which of the following actions falls outside of TREC's powers.

Restricting the appearance of the actors within Samuels ad campaign (TREC is unable to dictate the appearances of the people appearing in an ad. It will however, enforce rules prohibiting false, misleading, or deceptive practices by a licensee.)

Which of these statements best describes a listing that terminates by performance?

Roberto list a property for Terrence. After two failed offers, the property makes it to a successful closing. (No matter how well a licensee performs his tasks, A listing agreement is considered terminated by completion/performance only if it successfully closes.)

With seller agency, who has an incentive to market the property?

Seller's agent (With seller agency, the seller's agent will invest in marketing because of the reasonable expectation of earning a commission on the sale.)

Who must protect the seller's best interest during the negotiation of a sales contract for the property?

Seller's agent (once the agency relationship is established, the seller's agent must put the sellers interest above all others.)

Microscopic pieces of mold that float around in the air are called what?

Spores (Mold spores float around in the air.)

Angela is the buyer customer for real estate broker Rene. What can Rene do for Angela?

Submit Angela's offer to the seller. (Renee can only submit Angela's offer to the seller. Renee can't perform any of these other duties because she technically represents the seller until Angela signs a buyer representation agreement and becomes her client.)

A Buyer who discovers after closing that a seller wasn't honest about the property condition on the required disclosures can?

Sue the seller (Once closing has occurred, the buyer can sue the seller if the buyer discovers the seller wasn't honest about the properties condition.)

You are the Texas agent for the buyers, the Jansons. The Yothers are the sellers, and their mortgage holder is Richard Steel. To which of these parties must you disclose your agency status?

The Yothers only (You are required to make an agency disclosure to the parties involved in the transaction whom you do not represent. In this scenario, that's the Yothers, Mr. Steele is not part of the transaction.)

An agent, Alice has listed a three bedroom home for her client. Before she finds a buyer, the home burns to the ground. What happened to the agency agreement that Alice has with her client?

The agency agreement is terminated upon destruction of the property. (One of the ways that an agency agreement can be terminated is through destruction of property.)

If a buyers agent gives the buyer miss information about the property, who is responsible?

The buyers agent (When buyers have their own agent, the seller's agent is not responsible for the actions of the buyers agent.)

In Texas whose responsibility is it to supervise associated licensees and review transactional paperwork and advertising?

The brokers (it's a broker's responsibility to review transactional paperwork and advertising. Each broker is also responsible for the acts of their affiliated licensees.)

Who is required to sign and date the TAR Sellers Disclosure Notice?

The buyer and seller only (The seller is verifying that the form is complete and accurate as of the date it is signed. The buyer is acknowledging that they've received the disclosure)

Antje's Clients closed on their property yesterday, but he still has some paperwork that he needs to deliver to them as soon as possible. Under which fiduciary duty is he acting?

The duty of accounting (the duty of accounting may continue even after the transaction closes. The agent must account for any documents or money belonging to the client until it is delivered to the appropriate party.)

A prospective buyer is curious why a previous owner is selling such a perfect home. The license he knows that the previous owner recently died due to complications from AIDS, How should the licensee respond to the perspective buyers inquiry?

The license he can't disclose that a previous owner had HIV or AIDS. (HIV or AIDS status can't be disclosed under any circumstances. This is a fair housing law violation. Buyers can ask why sellers are selling, but sellers don't have to disclose the reasons.)

In a buyer agency relationship, what relationship does the seller have to the licensing?

The seller is the licensees customer. (When a license he represents the buyer in a single agency relationship, the seller is a licensed customer. Only clients receive representation.)

Which of the following best describes a net listing?

The seller specifies a price desired for the property and agrees to pay the broker any amount received that's more than that price. (A net listing means that the seller is holding out for a specific price; the amount of the commission to be paid to the listing agent depends on the price the seller receives.)

Which of these is an example of a material fact?

The seller would not have accepted an offer had he or she known about the fact. (A material fact would cause a reasonable person to not take an action that would otherwise be taken, or take an action that would otherwise not be taken. So, the seller may not have excepted an offer had he or she known about the fact.)

In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer?

The sellers existing mortgage (Most property transactions include an existing mortgage that creates a title defect, but the defect will be cleared at closing when the seller's proceeds are used to pay off the loan.)

What happens if an independent contractor earns $600 or more during the tax year?

The workers brokerage firm must prepare and submit forms 1096 and 1099 to the IRS and distribute form 1099the worker. (If an independent contractor earns $600 or more, the workers firm must prepare forms 1096 and 1099, distribute form 1099 to the worker, and submit both forms to the IRS. The independent contractor must still pay self-employment taxes.)

In a real estate transaction in which you represent the seller, your duty to other parties is to?

Treat them honestly and fairly (You must treat other parties in the transaction honestly and fairly, and you must disclose all material facts.)

In Texas, when a buyer is under contract with the buyers agent, the potential for dispute over procuring cause is_____.

Unlikely (Creating an agency relationship with a written buyers representation agreement makes a procuring cause dispute rare if not nonexistent.)

Which of the following is a true statement regarding working with buyers?

You should pre-qualified buyers before deciding to work with them. (Working with buyers can be time-consuming and, without an agency agreement in place, they may not be loyal. They also may not be prepared to buy. Asking questions upfront can help determine whether a buyer is worth your time.)