(Ch. 4) Texas Principles of Real Estate - Part 1

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

$25,000,000

Listing Contract

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

Agent

A person authorized to act on behalf of another.

Real Estate Broker

A person who is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services.

Implied Agency

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

An agency relationship may be terminated by which of the following...? Destruction of the property Expiration of the term of an agency Mutual agreement of the parties All of the above

All of the above

As a seller's agent in a transaction, the agent is required to do which of the following...? All of the above Inform the seller of any material information Present all offers to the seller Answer to the seller

All of the above

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

All of the above

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

All of the above

Express Agency

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

General Agent

An agent with full authority over one property of the principal, such as a property manager.

Special Agent

An agent with limited authority to act on behalf of the principal, such as created by a listing.

A buyer's earnest money should be deposited in which of the following...?

An escrow account

The fiduciary duty of care when representing a buyer includes which of the following services...?

Assisting with counter offers

The seller must allow their agent to show the property to prospective buyers. This is an example of what responsibility owed by the seller to the agent...?

Availability

When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts...?

Buyer Representation Agreement

Which of the following acronyms summarizes the fiduciary duties a broker owes to his/her principal...? C.O.A.L.D. O.L.D.C.A W.B.V.A. C.A.T.T.L.

C.O.A.L.D.

The 'C' in the acronym C.O.A.L.D. stands for which fiduciary duty...?

Care

When a buyer is required to examine the property and buy at his/her own risk, it is referred to as...?

Caveat Emptor

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

Compensation

The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services...?

Consumer

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

Customer

This refers to the party the agent brings to the principal as seller or buyer of the property...?

Customer

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

Deceptive Trade Practices Act

A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty...?

Disclosure

A seller's broker is required to tell their client any relationship they may have with the buyer. This is an example of which fiduciary duty...?

Disclosure

An agency relationship created by oral or written agreement between the principal and the agent is known as...?

Express Agency

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

False

Real estate brokers have a ................... relationship with the principal?

Fiduciary

An agent with full authority over one property of the principal is known as a...?

General Agent

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

Honesty

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

Implied Agency

This reimbursement or compensation paid to someone for a loss already suffered is known as...?

Indemnification

According to this responsibility, the seller must always provide any known material facts about the property...?

Information

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 broker must always place his/her client's interests above their own. This is an example of what fiduciary duty...?

Loyalty

The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty...?

Loyalty

The employer of an agent is referred to as the...?

Principal

The Deceptive Trade Practices Act discourages agent from which of the following acts...?

Puffing

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

Puffing

Indemnification

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

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

Seller

The seller is required to provide buyers with which of the following documents...?

Seller's Disclosure Notice

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

Special Agent

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

Brokerage

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.

Principal

The employer of an agent.

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.

Customer

The party the agent brings to the principal as seller or buyer of the property.

Agency

The 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.

True or False: A broker as a fiduciary owes certain loyalty, which cannot be breached under the rules of agency...?

True