Ch. 4 - Real Estate Brokerage and Law of Agency

According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding ______ are not considered consumers.

$25,000,000

The fiduciary duty of care when representing a buyer includes which of the following services? A. Assisting with counter offers B. Evaluating terms and conditions from any offers on the property C. Disclosing information learned from the seller's broker D. All of the above

A. Assisting with counter offers

Which of the following is owed to a customer by an agent? A. Honesty B. Accounting C. Availability D. Indemnification

A. Honesty

Implied Agency

Agency that exists as a result of actions of the parties.

Express Agency

An agency relationship created by oral or written agreement between principal and the agent.

A buyer's earnest money should be deposited in which of the following? A. The broker's account B. The seller's account C. An escrow account D. Any of the above

C. An escrow account

The seller is required to provide buyers with which of the following documents? A. Survey B. Property Inspection Report C. Seller's Disclosure Notice D. Property Condition Report

C. Seller's Disclosure Notice

Which acronym summarizes the fiduciary duties a broker owes to his/her principal?

C.O.A.L.D.

The "C" is the acronym C.O.A.L.D. stands for which fiduciary duty?

Care

The 'C' in the acronym C.I.I.A. stands for?

Compensation

A broker will work for a client and with a _______.

Customer

Which of the following is considered misleading under the Texas Deceptive Trade Practices Act? A. Representing that something is new when in fact it is not. B. Advertising a property when the agent has no intention of actually selling the property. C. Making false statements about reasons for a sale D. All of the above

D. All of the above

Which of the following is owed to a customer by an agent? A. Reasonable care and skill B. Honesty C. Disclosure of any known material facts D. All of the above

D. All of the above

This Act protects consumers against false, misleading, or deceptive acts.

Deceptive Trade Practices Act

True or False: Real Estate agents cannot be held liable for any false or misleading information about a property.

False

A defect known to the seller but not to the buyer, and is not discoverable by ordinary inspections is referred to as a/an:

Latent Defect

A contract in which a property owner employs a real estate broker to market the property described in the contract is referred to as the ________.

Listing Contract

Indemnification

Reimbursement or compensation paid to someone for a loss already suffered.

Agency

Relationship between the 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.

The listing agreement is a contract between the real estate broker and the _______.

Seller

The real estate agent in a transaction is considered a ________ to his/her broker?

Sub-agent

The sale of the property results in the _______ of the agency relationship.

Termination

A seller's agent is entitled to a commission after?

The agent finds a buyer who is ready, willing, and able to purchase the property.

Puffing

The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth.

Fraud

The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury.