Texas Law of Agency: Mini-Quizzes
Intermediary
A broker who represents both the buyer and seller in the same transaction operates as a/an...? Intermediary Partner Associate Exclusive broker
Express Agency
A buyer representation agreement creates what type of agency...? Express agency Implied agency Partial agency General agency
Real Estate Broker
A buyer representation agreement is signed by a buyer and a/an...? Real estate salesperson Real estate broker Associate licensee Seller
Negotiating Services
A buyer's agent is allowed to provide which of the following services to the principal...? Negotiating services Legal services Financial services All of the above
All of the Above
A buyer's agent should not provide advice regarding which of the following...? Legal matters Tax matters Accounting matters All of the above
True
A buyer's broker can appoint sub-agents to help the buyer find a property...? True False
True
A buyer's broker should NOT provide legal advice to their client...? True False
Statutory Law
A law that is written by a legislating body is known as...? Statutory law Real estate law Common law Civil law
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, is known as a/an...? Exclusive agent Sub-agent Intermediary Prime agent
All of the Above
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 All of the above
False
According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions...? True False
Lawful Instructions
According to the fiduciary duty of obedience, the agent must obey which of the following instructions from the principal...? Unlawful instructions Lawful instructions Any instructions from the principal Only the instructions the agent believes is relevant to the transaction
Confidentiality
According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property...? Confidentiality Full disclosure Obedience Accountability
True
An agent may not be held liable for innocent acts of misrepresentation...? True False
Misrepresenting Material Facts about the Property
An agent must avoid doing which of the following to a customer...? Operating in good faith towards the customer Being honest with the customer Misrepresenting material facts about the property Disclosing information about the property
Material Facts about the Property
An agent must disclose which of the following to a prospective buyer...? Material facts about the property The sellers motives for selling The lowest price the seller will accept All of the above
False
An agent must provide customers with advice if asked by the customer...? True False
All of the Above
An agent owes the fiduciary duty of reasonable care to which of the following parties in a transaction...? The customer The principal The client All of the above
Reasonable Care and Diligence
An agent owes which of the following fiduciary duties to their principal...? Legal council Accounting services Reasonable care and diligence All of the above
Universal Agent
An agent that can serve the principal in any capacity is known as a...? General agent Special agent Specific agent Universal agent
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...? Honesty Fairness Confidentiality Full disclosure
Fairness
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...? Confidentiality Loyalty Fairness All of the above
Disclosure of Material Facts
If a broker enters into a listing contract with a seller, what duties does the broker owe to prospective buyers...? Loyalty Obedience Disclosure of material facts Accountability
Customer
If a buyer and broker do not sign a buyer representation agreement, the buyer will serve as a ..........to the broker? Principal Client Customer Partner
Full Disclosure
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...? Obedience Reasonable care Full disclosure Accountability
Paragraph 5
In an Exclusive Right to Sell Agreement, the broker's fee is listed in which of the following paragraphs...? Paragraph 1 Paragraph 2 Paragraph 5 Paragraph 6
Paragraph 4
In an Exclusive Right to Sell Agreement, the contract term is described in which of the following paragraphs...? Paragraph 1 Paragraph 2 Paragraph 4 Paragraph 6
Paragraph 3
In an Exclusive Right to Sell Agreement, the listing price is listed in which of the following paragraphs...? Paragraph 1 Paragraph 2 Paragraph 3 Paragraph 4
Paragraph 6
In an Exclusive Right to Sell Agreement, the listing services are listed in which of the following paragraphs...? Paragraph 2 Paragraph 5 Paragraph 6 Paragraph 9
Paragraph 2
In an Exclusive Right to Sell Agreement, the property is listed in which of the following paragraphs...? Paragraph 1 Paragraph 2 Paragraph 3 Paragraph 4
Both the Principal and Agent
In order to establish an agency relationship, which of the following must agree to the terms of the agency...? The principal only The agent only Both the principal and agent Neither the agent or principal
Client's Obligations
Paragraph 6 of the Residential Buyer/Tenant Representation Agreement describes which of the following...? Definitions Client's obligations The parties The property
Independent Contractor
Real estate agents operate as a/an ................to their sponsoring broker? Partner Independent contractor Client Employer
Marketable Title
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...? Clouded title Unmarketable title Marketable title Partial title
Express Agency
What type of agency relationship is created through a listing contract...? Substantial agency Implied agency Partial agency Express agency
All of the Above
Which of the following can serve as a principal...? Seller Buyer Lessor All of the above
All of the Above
Which of the following contracts can establish an agency relationship...? Listing agreement Buyer representation agreement Property management agreement All of the above
Listing Agreement
Which of the following contracts establishes an agency relationship between the seller and broker...? Listing agreement Buyer representation agreement Purchase contract Sales contract
All of the Above
Which of the following duties are owed to a third party in a transaction...? Competency Good faith Fairness All of the above
Open 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...? Exclusive Right to Sell Agreement Exclusive Agency Agreement Open Listing Net Listing
Special Agency
A broker signed a buyer representation agreement with a buyer. What type of agency was created...? General agency Special agency Universal agency Specific agency
False
A buyer's broker should diligently assist their client in obtaining the necessary financing to purchase a house...? True False
Express Contract
A contract that has been put into words, either spoken or written, is known as a/an...? Express contract Implied contract Statutory contract Substantial contract
Non-Client
A customer is also known as a...? Client Non-client Principal Partner
Misrepresentation
A false statement regarding a material fact is known as...? Misrepresentation Puffing Disclosure Reasonable care
Common Law
A law that is made by a judge's decision in a court case is known as...? Statutory law Real estate law Common law Civil law
Associate Broker
A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is known as a/an...? Real estate salesperson Associate broker Trustee Broker partner
Seller
A listing contract is signed by a broker and a/an...? Seller Buyer Agent Customer
False
A net listing is illegal in Texas...? True False
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 Client Customer Attorney
Fiduciary
A person in a position of trust and confidence is known as a/an...? Partner Associate Fiduciary Subordinate
Fiduciary
A person in a position of trust and confidence, as between a principal and broker is known as a...? Partner Fiduciary Associate Subordinate
General Agent
A property manager is an example of a...? General agent Special agent Specific agent Universal agent
Special Agent
A real estate agent is an example of a...? General agent Specific agent Special agent Universal agent
True
A real estate broker owes fiduciary duties to his/her principal...? True False
Special Agent
Abby is a real estate broker who represents a seller in a transaction. Abby is serving as what type of agent...? General agent Special agent Specific agent Universal agent
Special Agency
Abby signs a buyer representation agreement with a buyer. What type of agency was created by the agreement...? General agency Special agency Specific agency Universal agency
All of the Above
Agency can be classified in which of the following ways...? General agency Special agency Universal agency All of the above
False
An agency relationship must be created in order for a broker to show properties to a buyer...? True False
All of the Above
An agent's duty of honesty and fairness applies to which parties...? The client The customer The principal All of the above
Confidentiality
An agent's duty to be honest with all parties may be compromised by which fiduciary duty owed to the principal...? Confidentiality Accountability Reasonable skill and diligence Obedience
The Buyer's Broker
An exclusive right to purchase agreement most favors which of the following parties...? The seller's broker The buyer's broker The seller The buyer
Puffing
An expression or exaggeration made by a salesperson that concerns the quality of real property offered for sale or lease is known as...? Selling Puffing Marketing Steering
False
By signing a listing agreement with a principal, an agent can serve as a universal agent to the principal...? True False
All of the Above
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 All of the above
Fiduciary Duties
Ely is a real estate broker who represents the seller in a transaction. Ely owes which of the following to the seller...? Intermediary duties Common duties Fiduciary duties All of the above
All of the Above
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 All of the above
All of the Above
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 All of the above
The Term of the Contract
Paragraph 4 of the Residential Buyer/Tenant Representation Agreement describes which of the following...? Definitions Confidential information The term of the contract Broker's fees
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 Partner Client Associate
Buyer Representation Agreement
Robert is looking to exclusively represent a buyer in a transaction. Which of the following document should Robert sign with the buyer...? Listing Contract Open Listing Exclusive Agency Agreement Buyer Representation Agreement
Honesty
Since an agent owes the duty of confidentiality to his/her principal, which of the following duties owed to a customer may be compromised...? Loyalty Obedience Honesty Reasonable skill and diligence
5.008
The Seller's Disclosure of Property Condition is discussed in what section of the Texas Property Code...? 12-A 5.008 14 1031
1949
The Texas Real Estate Commission was created in what year...? 1949 1963 1988 2001
Texas Real Estate License Act
The acronym TRELA stands for which of the following...? Texas Real Estate License Association Texas Real Estate License Act Texas Real Estate Legal Act Texas Real Estate Legislation Act
The Principal
The authority of an agent is provided by which of the following...? The customer The principal The lender Anyone involved in the transaction
Paragraph 5
The broker's obligations are described in which of the following paragraphs of the Residential Buyer/Tenant Representation Agreement...? Paragraph 1 Paragraph 2 Paragraph 5 Paragraph 10
Fiduciary Duty
The duty to not to obtain any advantage over a principal by the slightest misrepresentation, concealment, duress or pressure is known as a...? Common duty Fiduciary duty Statutory duty Professional duty
Paragraph 1
The parties to a Residential Buyer/Tenant Representation Agreement are listed in which of the following paragraphs of the contract...? Paragraph 1 Paragraph 2 Paragraph 3 Paragraph 4
Paragraph 1
The parties to an Exclusive Right to Sell Agreement are listed in which of the following paragraphs...? Paragraph 1 Paragraph 2 Paragraph 3 Paragraph 4
Principal
The party that the listing contract is with is referred to as the...? Principal Partner Associate Subordinate
False
The real estate broker is responsible for ordering the appraisal for a transaction...? True False
Texas Real Estate License Act
The rules and regulations regarding real estate licenses in Texas are described in which of the following...? Texas Real Estate License Act Texas Real Estate Law Texas Bureau of Real Estate Article 12-A of the State Real Estate Law
Listing Contract
This is a contract in which a property owner employs a real estate broker to market the property described in the contract...? Independent contractor agreement Listing contract Purchase contract Sales contract
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...? Exclusive Right to Sell Agreement Exclusive Agency Agreement Open Listing Net Listing
Abstract of Title
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...? Title insurance Summary of title Abstract of title Survey
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
Agency
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 Brokerage Joint venture Partnership
Full Disclosure
What fiduciary duty does a seller's broker owe to a customer...? Obedience Loyalty Full disclosure Accountability
The Existing Roof is 20 Years Old
Which of the following is an example of a material fact...? The house is the nicest house on the street The street is the best street in the city The existing roof is 20 years old All of the above
The Agent Must Present All Offers Received from Prospective Buyers
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 The agent must disclose the seller's reasons for selling The agent must disclose the lowest offer the seller will accept All of the above
All of the Above
Which of the following is considered a protected class under the fair housing laws...? National origin Handicap Color All of the above
A Customer
Which of the following is considered a third party to a listing contract...? A principal A real estate broker A customer All of the above
TREC
Which of the following is responsible for enforcing TRELA...? NAR TAR TREC Texas Attorney General
Independent Contractor Agreement
Which of the following is signed between an agent and their sponsoring broker...? Listing contract Purchase contract Independent contractor agreement Sales contract
Open Buyer Agency Agreement
Which of the following offers the least amount of protection to the buyer's broker...? Exclusive right to purchase agreement Exclusive agency agreement Open buyer agency agreement Net listing agreement
Exclusive Right to Purchase Agreement
Which of the following offers the most protection to a buyer's broker...? Exclusive right to purchase agreement Exclusive agency agreement Open buyer agreement Net listing agreement
The Lender
Which of the following orders the appraisal for a transaction...? The broker The lender The agent The seller
A Principal
Which of the following receives advice, or an opinion, from a real estate broker...? A principal A customer A neutral third party All of the above
All of the Above
Which of the following terms are defined in paragraph 3 of the Residential Buyer/Tenant Representation Agreement...? Acquire Closing Property All of the above