Texas Law of Agency - Chapter 5
Special agency
A broker signed a buyer representation agreement with a buyer. What type of agency was created...? General agency Special agency Universal agency Specific agency
Express agency
A buyer representation agreement creates what type of agency...? Express agency Implied agency Partial agency General agency
Real estate broker
A buyer representation agreement is signed by a buyer and a/an...? Real estate salesperson Real estate broker Associate licensee Seller
In writing
A buyer representation agreement needs to be ............in order for the broker to earn a commission? Orally created In writing Implied Recorded
Negotiating services
A buyer's agent is allowed to provide which of the following services to the principal...? Negotiating services Legal services Financial services All of the above
All of the above
A buyer's agent should not provide advice regarding which of the following...? Legal matters Tax matters Accounting matters All of the above
All of the above
A buyer's agent should not provide which of the following services to the principal...? Legal services All of the above Financial services Appraisal services
T (True)
A buyer's broker can appoint sub-agents to help the buyer find a property...? T (True) F (False)
T (True)
A buyer's broker should NOT provide legal advice to their client...? T (True) F (False)
F (False)
A buyer's broker should diligently assist their client in obtaining the necessary financing to purchase a house...? T (True) F (False)
Sales price
A commission is typically calculated as a percentage of the...? Appraised value Assessed value Sales price Listing price
Mediation
A dispute that arises out of a buyer representation agreement must be resolved first through...? Mediation Civil lawsuit Arbitration Litigation
Any of the above
A seller's broker may be compensated by the seller in which of the following means...? Retainer fee Seller paid fee Commission Any of the above
F (False)
An agency relationship must be created in order for a broker to show properties to a buyer...? T (True) F (False)
Commission
An agent's compensation for performing the duties of the agency is known as a/an...? Commission Salary Bonus Referral fee
The buyer's broker
An exclusive right to purchase agreement most favors which of the following parties...? The seller's broker The buyer's broker The seller The buyer
All of the above
David is operating as a buyer's agent. Which of the following services should David not provide to the buyer...? Legal services Financial services Appraisal services All of the above
Customer
If a buyer and broker do not sign a buyer representation agreement, the buyer will serve as a ..........to the broker? Principal Client Customer Partner
Gross price
In a ..........., the buyer pays the purchase price of a property while the seller pays the buyer's brokers commission? Net purchase price Gross price Commission split Flat rate
Special provisions
Paragraph 17 of the Residential Buyer/Tenant Representation Agreement lists which of the following...? Attorney's fees Broker's fees Special provisions Confidential information
The term of the contract
Paragraph 4 of the Residential Buyer/Tenant Representation Agreement describes which of the following...? Definitions Confidential information The term of the contract Broker's fees
Client's obligations
Paragraph 6 of the Residential Buyer/Tenant Representation Agreement describes which of the following...? Definitions Client's obligations The parties The property
Customer
Prior to signing a buyer representation agreement, the buyer operates as a/an .............to the broker? Client Principal Employer Customer
Buyer Representation Agreement
Robert is looking to exclusively represent a buyer in a transaction. Which of the following document should Robert sign with the buyer...? Listing Contract Open Listing Exclusive Agency Agreement Buyer Representation Agreement
Sub-agent
Sam is a real estate broker who is bringing a buyer to a transaction. If Sam did not sign a buyer representation agreement with the buyer, he will serve as a .............to the seller's broker? Sub-agent Broker Customer Client
Paragraph 5
The broker's obligations are described in which of the following paragraphs of the Residential Buyer/Tenant Representation Agreement...? Paragraph 1 Paragraph 2 Paragraph 5 Paragraph 10
Paragraph 1
The parties to a Residential Buyer/Tenant Representation Agreement are listed in which of the following paragraphs of the contract...? Paragraph 1 Paragraph 2 Paragraph 3 Paragraph 4
There is no standard commission rate
What is the standard broker commission rate for a real estate sales transaction...? 1 percent (%) of the sales price 3 percent (%) of the sales price 6 percent (%) of the sales price There is no standard commission rate
All of the above
Which of the following fiduciary duties are owed by a broker to a buyer after signing an exclusive buyer representation agreement...? All of the above Confidentiality Loyalty Full disclosure
Open buyer agency agreement
Which of the following offers the least amount of protection to the buyer's broker...? Exclusive right to purchase agreement Exclusive agency agreement Open buyer agency agreement Net listing agreement
Exclusive right to purchase agreement
Which of the following offers the most protection to a buyer's broker...? Exclusive right to purchase agreement Exclusive agency agreement Open buyer agreement Net listing agreement
All of the above
Which of the following terms are defined in paragraph 3 of the Residential Buyer/Tenant Representation Agreement...? Acquire Closing Property All of the above
