Texas Law of Agency 01

principal

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

Intermediary

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

Common law

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

Statutory law

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

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...?

TRUE

A real estate broker owes fiduciary duties to his/her principal...?

The principal

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

AListing contract

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

Fiduciary duties

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

AA sponsoring broker

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

AAgent

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

Client

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

Independent contractor

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

ALegislation

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

AProspective client

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

1963

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

Texas Real Estate License Act

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

ACustomer

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

Customer

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

TRELA

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

Agency

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 Brokerage Joint venture Partnership

AA real estate broker

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

All of the above

Which of the following can serve as a principal...? Seller Buyer Lessor All of the above

AReal estate broker

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

TREC

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

AAll of the above

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

AAll of the above

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

ASpecial agency

~ A buyer representation agreement between a buyer and broker creates what type of agency...?

AExclusive Right to Sell Agreement

~ A listing contract given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is known as a/an...?

AReal estate broker

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

AHonesty

~ Abraham was assigned to represent a buyer in an intermediary brokerage. What fiduciary duties does Abraham owe to the seller...?

AConfidentiality

~ According to this fiduciary duty, an agent must keep confidential any information that may weaken the principal's bargaining position...?

AReasonable care and diligence

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

AImplied agency

~ Agency that exists as a result of the actions of the parties is known as...?

AAgency by ratification

~ An agency 'after the fact' is also known as a...?

ASpecial agent

~ An agent with limited authority to act on behalf of the principal is known as a...?

AOpinion of title

~ An attorney provides which of the following, which is based on a property's abstract of title...?

ANon-exclusive listing contract

~ An open listing contract is an example of a/an...?

AMaterial fact

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

AUniversal agent

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

AFHA

~ 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?

AAgent Brandy should just ignore Seller Jair's statement and show the property to any individual that is interested even though Seller Jair said not to.

~ If Agent Brandy wishes to represent Seller Jair even though he made that statement, what should Agent Brandy do in order to protect herself?

AThe broker is always responsible for the actions of the licensees

~ If a broker acting as an intermediary assigns licensees to represent both the buyer and seller, who becomes responsible for the agency relationships...?

AIntermediary

~ If a broker represents both the seller and buyer, the broker is acting as a/an...?

AA ready, willing, and able buyer

~ In order to earn a commission, a broker must secure which of the following...?

AAll of the above

~ Joe entered into an agency agreement with a buyer. How may Joe's agreement be terminated...?

ASpecial provisions

~ Paragraph 17 of the Residential Buyer/Tenant Representation Agreement lists which of the following...?

AInformation About Brokerage Services

~ Prior to entering into an agency relationship, a buyer's broker must present the buyer with which of the following forms...?

AReview the advantages and disadvantages of each agency relationship

~ Residential Realty recently started to develop a new policies and procedures manual. What is the second step they need to take in developing the manual...?

AThe seller

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

AWritten consent from all parties

~ TRELA allows a broker to act as an intermediary if which of the following is provided...?

ASeller's Disclosure of Property Condition

~ The Texas Property Code requires which of the following in a residential transaction...?

ASurvey

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

AObedience

~ This is a fiduciary relationship that obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract?

AAncestry

~ This is a protected class under the Texas Fair Housing Act, which is not protected under the Federal Fair Housing Act...?

ALoyalty

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

AAgency by estoppel

~ This type of agency may exist before a listing contract is signed between a broker and seller...?

APunitive damages

~ Under the DTPA, an agent who is found guilty of misrepresentation may be required to pay which of the following...?

AOne-to-Four Family Residential Resale Contract

~ What document would Agent Brandy need to have Seller Jair sign in order to create a relationship so that Agent Brandy could sell the subject property?

AConduct in-house training sessions and monitor the effectiveness of the manual

~ What is the fifth step in developing a broker's company policies and procedures manual...?

AWrite the company policy manual

~ What is the fourth step in developing a broker's company policies and procedures manual...?

AThe law

~ What is the minimum standard of conduct for a real estate professional...?

AReview the size and experience of the broker's office staff

~ What is the third step in developing a broker's company policies and procedures manual...?

AMutual agreement between the parties

~ What is typically needed to create an agency relationship...?

AThe broker's agency relationship with the seller

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

AExpress agency

~ What type of agency is typically used in a real estate transaction...?

AIf representation agreements are signed with both the buyer and seller, which allows the broker to act as an intermediary

~ When is written consent not needed for a broker to act as an intermediary...?

AExclusive right to purchase agreement

~ Which of the following creates an exclusive agency relationship between a buyer and a broker...?

ATILA

~ Which of the following federal laws requires lenders to disclose to borrowers the actual cost of obtaining a loan...?

ANational origin

~ Which of the following is a protected class under the Federal Fair Housing Act...?

AThe broker can earn a higher commission

~ Which of the following is an advantage to working as an intermediary...?

AWritten consent from all parties

~ 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...?

ASpecial agency

~ Which of the following is the most restrictive type of agency...?

AFederal law

~ Which of the following laws takes precedent over all other laws...?

AExclusive Right to Sell Agreement

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

AOpen Listing

~ Which of the following listing contracts offers the least amount of protection to the broker...?

AEqual Credit Opportunity Act

~ Which of the following prohibits discrimination of protected classes in the lending process...?

ALead-based paint

~ Which of the following was prohibited from being used after 1978...?

AThe seller

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