Texas Law of Agency - Chapter 2

Real estate broker

A listing contract is signed between a principal and a...? Associate licensee Any of the above Real estate broker Real estate salesperson

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

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

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

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

Special agent

An agent with limited authority to act on behalf of the principal is known as a...? Specific agent General agent Universal agent Special agent

Material fact

Any fact that would influence the decision of a reasonably prudent person is known as a/an...? Constructive fact Implied fact Impartial fact Material fact

F (False)

By signing a listing agreement with a principal, an agent can serve as a universal agent to the principal...? T (True) F (False)

Universal agent

David is serving as a power of attorney for Sarah. David is serving as what type of agent...? Universal agent Specific agent Special agent General agent

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

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

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

Loyalty

This is an agent's duty to place their client's interest above those of all others, including the agent's own self-interest...? Accountability Loyalty Confidentiality Obedience

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

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

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

Special agency

Which of the following is the most restrictive type of agency...? Specific agency Universal agency Special agency General agency

Full disclosure

What fiduciary duty does a seller's broker owe to a customer...? Obedience Loyalty Full disclosure Accountability

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

F (False)

According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions...? T (True) F (False)

Confidentiality

According to this fiduciary duty, an agent must keep confidential any information that may weaken the principal's bargaining position...? Loyalty Obedience Reasonable care Confidentiality

Reasonable care and diligence

According to this fiduciary duty, an agent must meet deadlines set by the principal and/or client...? Obedience Loyalty Reasonable care and diligence Confidentiality

All of the above

Agency can be classified in which of the following ways...? General agency Special agency Universal agency All of the above

Obedience

This is a fiduciary relationship that obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract? Obedience Loyalty Confidentiality Accountability

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