Section 5 Unit 2 cont...

A few years ago, you helped Renee buy a new home. Her parents have decided they'd like to downsize now that the kids have moved out. You meet with them to tour the property, but they were so pleased with how you worked with Renee, they signed an agency agreement before you left. IMPLIED OR EXPRESS

EXPRESS

Fresh out of college, a young man walks into the brokerage office. He'd like some help finding a new apartment. After chatting about what he's looking for and how he'd like to work together, he signs an agency agreement, then heads out to meet some buddies for lunch. IMPLIED OR EXPRESS

EXPRESS

You receive a call from a friend of a friend. He'd like you to show him some condos this weekend. After looking at a few options, he decides to make an offer, which you help present to the seller. IMPLIED OR EXPRESS

IMPLIED

Ratified

It's accepted after the fact, sometimes in contrast to a prior agreement *usually occurs when a customer becomes a client after the agent has provided services without having an express agreement in place (Texas permits this)

While Texas law does not require that the Information About Brokerage Services form be signed, your brokerage may require that customers sign the form. TRUE OR FALSE

TRUE

When does express agency exist? -Only when a written agreement is in place -When a written or oral agreement is in place -When the parties act as if they are in a agency relationship -When the parties are in a hurry

When a written or oral agreement is in place

When does express agency exist? -Only when a written agreement is in place -When a written or oral agreement is in place -When the parties act as if they are in an agency relationship -When the parties are in a hurry

When a written or oral agreement is in place

Which of the following statement about agency by ratification in Texas is true? -Agency by ratification is illegal in Texas, and carries with it severe penalties. -Agency by ratification is not permitted in Texas under any circumstances. -Agency by ratification is permitted in Texas. -Agency by ratification is permitted in Texas under certain circumstances.

Agency by ratification is permitted in Texas.

Express Agency

Agreement between parties means that they agree to and understand the arrangement via written or oral communication between parties

Implied Agency

Agreement between parties that is based on the action of the parties...illegal in some states

How can you avoid the risk of entering into an implied agency or undisclosed dual agency?

-The firms policies on agency are intermediary brokerage are clear, including the disclosure requirements -Sales agents clearly understand and communicate fiduciary duties, both for the buyers and for the seller -Sales agents know that they must secure express agency agreement before providing services -Agents who engage in the intermediary brokerage have the written consent of all parties

Texas Real Estate License Act (TRELA)

Every real estate licensee who represents a party in a proposed real estate transaction must disclose- either orally or in writing-that the representation agreement exists

The Information About Brokerage Service form must be provided in all residential lease transactions. TRUE OR FALSE

FALSE

Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? -A potential bonus from the buyer -Implied agency and undisclosed dual agency -Implied friendship -Undisclosed single agency

Implied agency and undisclosed dual agency

In Texas, the info about brokerage service form ________. -Creates a brokerage relationship once it is signed and dates -Is a contract -Is required by law -Must be taped

Is required by law

Carmen, a potential client, meets with Lydia to discuss listing Carmen's home. Carmen and Lydia discuss agency relationships, and then review the listing agreement. After some deliberation, Carmen decides she is not ready to sell her home and leaves without signing the listing agreement. The two have no further contact. Is this an example of ratification? YES OR NO

NO

Harris is meeting with a potential buyer client, Megan, for the first time. They discuss the types of agency first, and then Megan signs a buyer agency agreement with the brokerage where Harris works. Is this an example of ratification? YES OR NO

NO

In Texas, the info about brokerage services form______. -Creates a brokerage relationship once its signed and dated -Is a contract -Required by law -Must be videotaped

Required by law

When must the disclosure be made?

The TRELA must be provided to all customers at the time of the "first substantive dialogue with the party". Substantive dialogue includes any written or verbal communication in which a discussion about a specific real property occurs (face to face, email, phone, or text)

You are the Texas agent for the buyers, the Jansens. The Yothers are the sellers, and their mortgage holder is Richard Steele. To which of these parties must you disclose your agency status? -All parties to the transaction, including your clients -Richard Steele only -The Jansens only -The Yothers only

The Yothers only *You are required to make an agency disclosure to the parties involved in the transaction whom you do not represent. In this scenario, that's the Yothers. Mr. Steele is not part of the transaction.

How do licensees create implied agency? -Through agency disclosure -Through express written agreement -Through oral agreement -Through the parties actions

Through the the parties actions

In Texas, when is a licensee required to provide an agency disclosure to the party they are not representing in a transaction? -When delivering an offer for a specific property -When determining a listing price for a specific property -When engaging in substantive dialogue about a specific property -When entering into an agency agreement

When engaging in substantive dialogue about a specific property *You must disclose whatever agency, or broker, relationship you have at the time of the first substantive dialogue with the party you are not representing in the transaction. Substantive dialogue includes conversations held face to face meetings, email, phone, or text

Andy, a potential buyer, contacted Paula, a real estate licensee, and asked her to show him a particular house. Although Andy had not signed an agency agreement with Paula, she agreed to schedule a showing for him. After asking Paula to show him two more homes, Andy eventually agreed to sign a buyer agency agreement Paula. Is this an example of ratification? YES OR NO

YES