Quiz Texas Law of Agency

If mediation is held, a person may tender settlement during the period beginning on the date that mediation ends and ending on the: 45th day after that date. 15th day after that date. 30th day after that date. 20th day after that date.

20th day after that date.

Who decides if a reasonable time has passed since the oral agreement began between a client and a licensee? The licensee The client The licensee's broker A judge

A judge

Which of these persons would be least likely to want to sign a buyer agency? A single person looking for his first home A real estate investor A married couple with children looking for a larger home A senior couple looking to downsize

A real estate investor

Which of these is the least common reason for ending an agency agreement? Contract expires Destruction of the listed property Transaction closes Mutual agreement of both licensee and client

Destruction of the listed property

Which statement is TRUE about marketing a property whose owner has AIDS? Moving into such a home could expose the new owners to AIDS. It's important to get the owner to sign a statement that the licensee can keep in the marketing file. Disclosing this information to a potential buyer would be a violation of the Fair Housing Act. The licensee should have copies of an AIDS brochure on hand to give to potential buyers.

Disclosing this information to a potential buyer would be a violation of the Fair Housing Act.

Which of these statements about an independent contractor is true? He or she gets a regular salary with bonuses. He or she is reimbursed for all business expenses. He or she is paid commission on all sales. He or she will get three weeks of paid vacation every year.

He or she is paid commission on all sales.

All of these questions could help you determine a prospect's capacity to make a purchase except which one? How much do you have in your savings account? How soon are you planning to buy? Do you need the equity from your current home for the new home purchase? Where do you and your spouse work?

How much do you have in your savings account?

Which of the following statements would be inappropriate for an appointed sales agent to make to a buyer? Let's make an offer on the property for $10,000 less than the listed price. I know that the seller will take $20,000 less than the listed price. I am aware that the seller is entertaining another offer. We should be able to negotiate a great deal on this property.

I know that the seller will take $20,000 less than the listed price.

Which of these items is not important to include on your weekly activity report? Buyer's comments about the property Agent comments about the property Number of phone calls requesting property information Number of hits on the company website

Number of hits on the company website

Which of the following is NOT a task a broker would have in a special agency agreement with a seller? Advertise the property. Negotiate offers presented. Facilitate the closing. Provide lease management services.

Provide lease management services.

What state law watches over business to make sure that fraud and misrepresentation do not take place as companies provide products and services? The Deceptive Trade Practices Act The Texas Real Estate Licensing Act The Fair Credit Reporting Act The Fair Housing Act

The Deceptive Trade Practices Act

Which act specifies the duties of licensees to disclose their agency relationships? The Civil Rights Act of 1968 The Fair Credit Reporting Act The Fair Housing Act The Texas Real Estate License Act

The Texas Real Estate License Act

Which of the following would not be a reason to choose to be an assistant? To gain self-confidence To learn more about the real estate business To have a stable, steady income To make more money than a real estate agent

To make more money than a real estate agent

How long after the event or the discovery of the event does a consumer have to file a lawsuit under DTPA? Six months One year Two years Three years

Two years

Buyer Ted makes an offer on a property but he needs to wait to see if his transfer to the area comes through before closing. Ted is not ready. willing. able. content.

Willing

According to property code, how many days does a purchaser have to terminate a contract if the purchaser was not provided a written Seller's Disclosure Notice and then receives one after the contract has been executed? Within 7 days Within 10 days Within 14 days Within 30 days

Within 7 days

Jim and Mary sign an exclusive right to sell agreement with Broker Sally. What kind of agency have they created? Implied Accidental Written Verbal

Written

Buyer's agents do not have a duty to advise sellers. disclose facts. be honest. be fair.

advise sellers.

Once an agent obtains a listing, a for-sale sign should be put up as soon as he or she leaves the house. when the listing goes in MLS. as soon as the broker approves the listing. within 3 days of the listing agreement.

as soon as he or she leaves the house.

Under the National Association of Realtors Code of Ethics and Standards, the buyer's agent must disclose the relationship to the listing agent: upon showing a listing. at first contact. when making an offer. at closing.

at first contact.

REALTORS may act as a dual agent only when: receiving compensation from both parties. when providing service to both parties. when verbally informing both parties. both parties receive full disclosure and provide written informed consent (except where state law prohibits this).

both parties receive full disclosure and provide written informed consent (except where state law prohibits this).

All agency relationships are created at the: agent level. client level. salesperson level. broker level.

broker level

Economic damages include: suffering. loss of consortium. cost of repair or replacement. disfigurement.

cost of repair or replacement.

The Handling Common Situations section of a company's agency policy would likely NOT include buying property in-house. how to properly complete each form.sub-agency representation. listing presentation requirements.

how to properly complete each form.

When there is a reasonable time clause through an oral agreement, the decision on what constitutes reasonable time is made by a broker. licensee. seller. judge.

judge.

Before entering into a buyer agency agreement the real estate licensee is required to provide the buyer with a written statement describing all of these except: seller agency. buyer agency. lender agency. intermediary brokerage.

lender agency.

Approved intermediary representation by all parties needs to happen: right before closing. after closing. long before closing. at the time of closing.

long before closing.

When a buyer is a customer there is representation. legal representation. limited representation. no representation.

no representation.

According to the Texas Administrative Code Rule §535.159, brokers are not required to maintain a trust account unless the broker undertakes to accept trust funds belonging to others. required to maintain a trust account. allowed to open only interest-bearing trust accounts. required to have a third party open and maintain a trust account.

not required to maintain a trust account unless the broker undertakes to accept trust funds belonging to others.

If a prospective buyer asks an agent if a former occupant has AIDS, HUD advises that the agent should: try to find the answer. respond to the best of their knowledge. tell the buyer they should perform an investigation. not respond.

not respond.

Brokers like to be buyer's agents because they will get higher commissions. the buyer will be loyal to the buyer's agent. there are better listing opportunities. the buyers can work with more than one agent.

the buyer will be loyal to the buyer's agent.

Under the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA,) if a defendant acted "intentionally," the court may award the consumer additional damages in an amount not exceeding three times the actual damages suffered by the consumer. two times the actual damages suffered by the consumer. $5,000.00 $7,000.00

three times the actual damages suffered by the consumer.

An agent is allowed to offer advice and counsel: to his or her customer. to clients of the cooperating broker. to his or her principal. to anyone making a real estate inquiry.

to his or her principal.

What should an agent do when more than one offer comes in on the same listing? The listing agent must present the offer which is worth the most first. The listing agent must return all offers, except the first one received. The listing agent must inform all buyers about the existence of the other offers. The listing agent must not inform all buyers about the existence of the other offers.

The listing agent must inform all buyers about the existence of the other offers.

How many Articles and related Standards of Practice make up the REALTOR® Code of Ethics? 10 12 17 6

17

What is the net result of a Brokerage supporting the Community? Brokerage will lose customers. Brokerage will alienate the Community. Brokerage will lose clients. A Brokerage's reputation will increase.

A Brokerage's reputation will increase.

What is NEVER covered by the brokerage Policies and Procedures manual? Open houses Subagency representation A designated area of town to show/sell members of a protected class Listing presentation requirements

A designated area of town to show/sell members of a protected class

f 3 The worst way to create agency is in writing. orally. accidentally. through email.

Accidentally

Which service is available to clients alone? Facts Advice Honesty Fairness

Advice

Anytime that anyone signs a document with a licensee, the person should be given a copy when a property is under contract. at closing. as soon as possible. within 1 week of obtaining signatures.

As soon as possible

TREC has a Code of Ethics. Canon of Professional Ethics. Code of Hammarabi. Cone of Silence.

Canon of Professional Ethics.

Which of the following is NOT a key task an agent performs when working exclusively with a buyer? Handles the negotiating process Coordinates inspections, if needed Schedules and coordinates the closing process Secures financing and performs title work

Secures financing and performs title work

Licensee Amy arrives at the home of Tim and Sue to do a listing presentation. What is the most important part of her presentation? Presenting the CMA Discussing her commission rate Describing her firm's success rate with prior sales in this neighborhood Showing them that she would be the right agent for them

Showing them that she would be the right agent for them

When the sales person shows another broker's listing to a customer what happens? Buyer agency has started. Subagency has started. Intermediary has started. No agency exists.

Subagency has started.

The term "as is" in real estate means what? The buyer cannot have a home inspection. The seller does not have to tell about the leaky roof. The seller can be silent about the condition of the property. The seller will make no repairs.

The seller will make no repairs.

Which is NOT a reason why understanding agency is important? There has been an increase in real estate litigations in recent years. There are too many "ready, willing, and able" buyers There are multiple brokers involved in a transaction. Public perception of real estate agents is often negative.

There are too many "ready, willing, and able" buyers

What can a broker require of his independent contractors? They must attend all sales meetings. They must have a signed a written work agreement. They must work at least 15 hours per week. They must perform all work at the office.

They must have a signed a written work agreement.

When working with buyers, which of the following is NOT a method of creating agency? In writing Through a third party Orally Through the actions of the salesperson

Through a third party