Texas Real Estate Agency 9E
agency classifications: by ratification
occurs when a principal benefits from a previously unauthorized act of an agent and accepts those benefits
agency classifications: implied
occurs when there is no express agreement that the broker will act for a party
There are both differences and similarities when client and customer services are compared. A service that is a client service but not a customer service is
opinions and advice
Attorney Eric Page received compensation from the sale of the White Ridge Ranch. In which of the following ways would the compensation to Page have been permissible?
paid directly by the seller
hourly rate
payable regardless of any title transfer
additional coverage (endorsements) to title insurance may NOT be purchased to include
property damage resulting from fire
Broker Brenda with Aloha Realty is working with George on a customer basis. She shows him numerous properties in the area and price range that George indicated he wished to see. George has decided to make an offer on a property. Which remark by Brenda would NOT be appropriate considering her subagency relationship with the seller?
"let me prepare a comparative market analysis for you to see if the list price is reasonable for this subdivision"
independent contractor
-assumes responsibility for social security taxes -cannot receive benefits such as health insurance from the broker -broker can control what the Individual does but not how the individual does it -assumes responsibility for income taxes
general agency
-authorizes an ongoing series of transactions -for example, a broker acting as a property manager for an owner
broker bob represents both buyer bill and seller sally as an intermediary. what information is bob prohibited from disclosing to sally about bill
-bill's going through a divorce -bill loves the place and is willing to pay $20,000 more than the listing price -bill has to sell the house he is currently living in before he can buy
employee
-broker can control what the individual does and how the individual does it -broker withholds social security and income taxes -broker is required to pay unemployment compensation taxes -broker has control over office hours and routine
Raymond has just received his broker's license and plans to open his own office, Homes Galore Realty. Agency options available for Raymond's new office would include
-buyer agency -intermediary -nonexclusive single agency
special agency
-for example, a broker representing a real estate buyer in purchase price negotiation -sometimes called a limited agency
duties owed to third parties
-honesty -disclosures -fairness
universal agency
-may include acquisition and disposal of assets -not common in real estate transactions
which of the following is regulated by TREC
-residential service companies -easement and right of way agent -home inspectors
Bill is a sales agent and represents Cindy under a listing agreement. The house was treated for termites five years ago, and Cindy painted the deck to cover any evidence of termite damage, which is quite extensive. Billy is aware of the work and the termites, but tells a potential buyer that the deck is in great shape and was recently repainted and inspected for wood rot and termites. The buyer purchases the home and later finds evidence of the termite damage. Which of the following is this an example of?
-statutory fraud -DTPA violation -common law fraud
texas fair housing law
-texas fair housing act: sex, familial status, disability, race, ancestry, religion, national origin, color -federal fair housing act: sex, familial status, disability, race, religion, national origin, color
For a broker to bring suit against a consumer to recover compensation, TRELA requires the broker to show proof
-that the consumer signed a written agreement to compensate -that a buyer was advised to check title prior to signing the sales contract -that the broker's license was active at the time services began
the fiduciary duty of confidentiality includes withholding information about all of the following
-the broker's price opinion -the seller's lowest acceptable price -the client's financial position
how does a license holder create implied agency by accident
-the license holder fails to make clear to the buyer that he is a subagent of the seller -the license holder leads a buyer to think that the license holder is the buyer's agent -the license holder fails to make clear to the buyer that he is the seller's agent
which of the following situations is a broker/seller required to provide a written disclosure regarding the broker's license status
-when the broker is selling property for the broker's daughter -when the broker is selling property for the broker's parent -when the broker is selling property for the broker's spouse
what is boycotting
An agreement among competitors to not do business with targeted individuals or businesses
How are nonexclusive agents paid?
By the client, the other party, or a commission spit. The nonexclusive seller agency broker may be paid directly by the broker's client, be it buyer, seller, tenant, or landlord; indirectly by the other party as a condition of the contract; or by an authorized commission split from the broker representing the other side in the transaction.
Jasmine, a sales associate with Oak Ridge Realty, is contacted by her college roommate, Chelsea, whom she has not seen or spoken to in 12 years. Chelsea's job has just relocated to town, and she wants to purchase a condominium. If Jasmine acts as a subagent of the seller, which statement is TRUE?
Jasmine may act as a subagent, but only with full disclosure and permission of the seller
which of the following is a true statement regarding equitable interests in real property
equitable title is different from legal title
Which of the following is a TRUE statement regarding a broker's agreement with other brokers?
TREC does not generally regulate contractual relationships with other brokers
retainer fee
TREC trust account rules apply to how this type of compensation must be handled
If an act is done knowingly under the DTPA, up to what amount of monetary damages can the consumer collect?
not more than three times economic damages
nearly every state requires
Written or oral disclosure of agency
fraud
____ is done with the intent to deceive
termination of agency: renunciation
a broker decided to no longer represent a seller
termination of agency: breach of the agent's duty
a broker does not act within his client's best interest throughout the course of a listing agreement
if a buyer is purchasing a property that will be financed by a department of veterans affairs (VA) loan,
a buyer's broker fee cannot be included in the loan amount
a broker is NOT required to provide a broker price opinion to which of the following
a customer
Incapacity of the broker or the principal will terminate an agency relationship. What paperwork is needed to prevent this incapacity from bringing about this result?
a durable power of attorney
Not more than three times economic damages are the maximum amount collectible by a consumer for what kind of action?
a false, misleading, or deceptive act done knowingly
termination of agency: expiration
a listing agreement was arranged for six months-during that time, the property didn't sell
fraud or misrepresentation
a material representation can be considered ____
termination of agency: accomplishment
a property sold a week after it was put on the market
termination of agency: revocation
a seller instructs her broker not to act on her behalf anymore and to stop showing the house
Binnacle Realty practices exclusive seller agency. When selling another broker's listings, sales associates with Binnacle Realty will always seek to act as
a subagent of the listing broker's client
which of the following is the best practice for license holders to establish a buyer/agency relationship
a written agreement signed and dated by all the parties to the agreement
which of the following is an example of an agreement not to compete
ace realty tells best realty, "I wont sell in north austin if you don't sell in south austin"
loyalty
acting within the best interests of the client
sales associate
acts an an agent of the sponsoring broker
intermediary
acts for both a buyer and a seller in the same transaction
Sam works at a brokerage firm. She is paid an hourly wage and must work from nine to five. Which of the following would Sam be considered?
an employee
which of the following is a protected class, discrimination of which is a violation of the texas real estate license act
ancetry
how do TREC commissioners get their positions
appointment by the governor
sponsoring broker
assumes responsibility for the activities of a salesperson
When is a person obligated to pay the broker's fee under the terms of the TAR buyer/tenant agreement?
at the closing of the contract where the buyer purchases the property
agency classifications: ostensible
based on a third party being led to believe that a licensee was acting on behalf of another party
why do sales agents sponsored by the broker not have privity of contract with the client
because the agreement for brokerage services is between the broker and the client
Customer Henry met Broker Judd when Henry called Judd's office to ask about a property listed on the internet. That property is not suitable, but Henry agreed to Judd's offer to look at another property. At what point must Judd clarify whether he is going to be working with Henry in a subagent capacity or in a buyer's agent capacity?
before looking at properties listed on the MLS
A license holder is working with an owner to sell the owner's farm. The owner wants to have the flexibility to sell the property on her own and not be required to pay the listing agent or other agent if that happens. She is willing to pay the sales agent if he finds a buyer. When should the license holder explain the pros and cons of the different types of listing agreements with the seller?
before the seller signs the listing agreement
Betsy is a broker who represents a buyer of a new home under a written buyer representation agreement. The builder has offered to pay Betsy a referral fee, and the buyer has agreed to pay Betsy's commission. What is Betsy required to tell the buyer about the referral fee?
betsy is required to disclose the fee and obtain the buyer's consent to receive it
Bonita is a sales agent who represents Chandra under a listing agreement to sell Chandra's home. Ralph, a buyer interested in purchasing the home, asks Bonita what's the lowest price Chandra will take. Chandra told Bonita during the listing negotiations that she was willing to take as low as $10,000 less than the listing price. How must Bonita respond to Ralph's question?
bonita must not disclose that chandra will take less than the listing price unless chandra has authorized the disclosure
agency classifications: gratuitous
brokerage services provided without a charging fee
confidentiality
certain types of information that must be kept between the agent and the client
which of the following parties to a real estate transaction is sometimes called the principal
client
for which of the following types of properties is protection against defects in the title for items of personal property particularly applicable
commercial real estate
which of the following conditions is MOST important when developing a company policy on disclosure
compliance with texas law
Which of the following topics is NOT required to be included in a brokerage firm's policy and procedure manual according to TREC Rule Section 535.2(i)?
conducting an open house
how can a license holder avoid creating an unintended dual agency when helping a buyer locate an appropriate home through a MLS service?
create an expressed buyer agency agreement with the buyer
agency classifications: express
created when a principal employs an agent to act for him
commission split
credits the buyer with a specified amount from the sales proceeds
between which of the following sets of groups must brokers be able to distinguish in order to decide their agency responsibilities?
customers and clients
Irma, a nonlicense holder, inherits a large sum of money. Her husband, Danny, is an associate broker with Honshu Realty. Irma agrees to finance her husband's dream of opening his own brokerage office under the condition that she be a co-owner of the business and that 75% of the monthly net income be deposited to her separate checking account. Which statement is TRUE?
danny could pay the fee as long as Irma does not perform any brokerage activities
which event would be an example of termination of agency by operation of law
death of the owner
David is a sales agent sponsored by Wurst Realty. Wurst, through David, is working with a buyer, Frank, in the purchase of a condominium. David is in the process of explaining the various agency relationships available to work with Frank. Which of the following is NOT an agency relationship David can enter into with Wurst?
dual agency
termination of agency: abandonment
during the term of a listing agreement, the broker was never available to show the property to prospective buyers
client
engages services that include the professional advice and advocacy of another
Broker A has a listing agreement with a seller, wherein the seller reserves the right to sell the property without paying Broker A a commission. If Broker B finds the buyer, what type of listing is this if the seller must pay Broker A the agreed-upon fee or commission?
exclusive agency listing
the type of listing that gives the broker the greatest amount of security is the
exclusive right to sell listing
Broker Ted manages owner Bob's 20-unit apartment complex. In case he wants to raise the rents, Bob instructs Ted to limit all leases to less than 90 days. In regard to providing the Information About Brokerage Services Notice to prospective tenants, Broker Ted is
exempt because the leases are under the statutory limit of 365 days
Bruce is buying his first home. He met with Linda, a license holder with an exclusive seller agency. After answering several general questions, Linda realized that Bruce needed a license holder who could provide him with advice about selecting a property and making an offer. To help Bruce, Linda should
explain that she represents the interests of sellers and encourage him to get a buyer's broker
what is imputed knowledge?
facts known by the agent are considered known by the client
obedience
following the lawful instructions of a client
Karen is a broker who represented a seller, Cory, under a listing agreement wherein Cory sold some property to a buyer, Frank. Frank is extremely unhappy with the outcome of the transaction because he discovers major defects in the property and suspects that Karen and Cory conspired to defraud him. After discovering several defects, Frank immediately files a lawsuit against Cory and Karen alleging, among other things, violations of the DTPA. What was Frank required to do before filing suit against them under the DTPA?
frank must send a demand letter to karen and cory advising them of the complaint and the amount of damages he has suffered
intentionally
fraud is a deceptive act practiced ___ by one person in an attempt to gain an advantage over someone else
which classification of agency applies to the agency relationship between a broker and the broker's sponsored sales agents
general agency
George is a sales agent sponsored by Jackson Realty, and he is working with a seller on the sale of the seller's duplex. The seller is not sure whether George is the right person to list the property. George, in order to convince the seller of his potential, lists the property on the MLS and puts pictures of the duplex on his website. Which of the following applies in this situation?
george could have his license revoked for listing the seller's property without her consent
Which of the following actions must a consumer take before filing a lawsuit under DPTA?
give the would-be defendant a 60-day notice
a license holder is prohibited from performing which of the following for a customer
handle the customer's money
Hans, a listing associate with Munchen Realty, is holding an open house at one of his new listings. The next door neighbor, Gretchen, arrives to tour the property along with friends who are relocating from another city. Hans introduces himself and explains that Munchen Realty represents the owner of the property. He does not provide the Information about Brokerage Services Notice; however, he does provide a general fact sheet about the property and mentions that the property is within FHA-insured loan limits for the area and that mortgage interest rates are the lowest they have been in years. In regard to agency disclosure and the statutory written statement, Hans
has fully complied with TRELA
a broker wishes to purchase property for his own account from a seller. what should the broker do
he is required to disclose that he is a license holder acting on his own behalf
Broker Nelson Forbes wants to sue a seller-client because he was not paid his commission. Which of the following must Forbes prove to bring suit?
he was a licensed broker at the time the brokerage services began
Under DTPA, "documentary material" would include all of the following EXCEPT
hearsay conversation
the fiduciary duties demand that a real estate broker, acting as an intermediary in a transaction, place
his personal interest below those of his two clients
the lead-based paint addendum must be provided in the sale of which of the following properties?
housing built before 1978
Which information should a broker who is acting as subagent to the seller obtain from the listing broker?
how earnest money deposits will be handled
exclusive-right-to-sell listing
if the property sells, the broker will get a commission
Fred Sanders is a sales associate working for American Home Real Estate. Fred receives a check on the 15th and 30th of each month, which eases his personal budgeting. To receive these regular draws on his share of commissions, Fred has signed a note with the broker, which helps maintain Fred's status as
independent contractor
Which of the following fiduciary duties apply when the client tells the broker to make an appointment to get a survey done?
obedience
Debbie is the designated broker for Shetland Realty. She counsels Jenny, a sales associate, that Jenny must stop wearing miniskirts to work, start attending all sales meetings, be at her desk Monday through Friday by 9:00 am, and sign up for two Saturday duties every month. Debbie is jeopardizing Jenny's
independent contractor status
what should an agent do if a client requests an unlawful action
inform the client that the request is illegal and refuse to comply
an abstract of title for a subject property contains a condensed version of
instruments filed into the property records
ace realty has a policy of charging a retainer or advance fee when representing buyers under a buyer representation agreement. what is act required to do with the retainer fee
it must be held in the broker's trust account
George is a sales agent who represents Janet under a listing agreement to sell her new construction, never-inhabited four-plex that she has owned for 11 months. Is Janet required to provide the Seller's Disclosure Notice (SDN) to potential purchasers? Why or why not?
janet is not required to provide the SDN because the four-plex has four dwelling units
Jonie is a sales agent for Best Realty representing Bar None, Inc. in the sale of a large ranch to XLT, Inc. Jonie's firm also represents XLT under a buyer representation agreement. Best represented Bar None when it first purchased the ranch. Both parties have agreed to Best acting as intermediary in the transaction, but there will be no appointments, and Jonie will work with both parties. What is Jonie's duty to Bar None regarding disclosure of information related to Bar None's original purchase of the ranch?
jonie may disclose bar none's confidential information only with bar none's consent
Jordan is a sales agent at Best Brokers, a brokerage firm that engages in exclusive seller agency. Finius has found two properties on the internet that he is interested in. Jordan has the listing on one and the other is listed by A-1 Realty. If Finius approaches Jordan about both properties, will Jordan be able to represent Finius as an agent in the purchase of either property?
jordan cannot serve as Finius' agent in the purchase of either property
which of the following statements BEST describes constructive notice?
knowledge of the agent is imputed to the principal, even if the information is never actually conveyed to the principal
While acting as a subagent, Harry shows a property to a customer and becomes aware that the current owner suffers from AIDS. Two weeks later, Harry is now acting as an agent of a prospective buyer who also happens to be Harry's cousin. Harry may
not reveal the information
Mary, a broker, is considering the practice of exclusive seller agency. She works in a wealthy market and has many long-term relationships with families that are frequently involved in both residential and investment real estate transactions. Which of the following statements accurately describes a disadvantage of exclusive seller agency that Mary should consider?
losing potential commission by limiting her practice to seller-only
what does texas law require the texas department of safety to do with information regarding high-risk sex offenders
mail notice to each residential address within three blocks in a subdivided area
which of the following is true regarding anonymity of a buyer principal
maintaining the anonymity of a famous buyer may keep the seller from increasing the asking price
ethics are enforced against which of the following
members of a professional organization
negligently or innocently
misrepresentation is a false statement made ____ that is a material fact in another's decision to contract
gross price
more recent method of payment that is slowly gaining acceptance
reasonable care and diligence
must be knowledgeable about the property, financing, laws, and level of client expertise
what is the correct name of the largest organization in the country for real estate professionals?
national association of realtors
which of the following is a true statement regarding net listings in texas
net listings are legal in Texas
accounting
no commingling of funds is acceptable
Indicate whether the following statement is true or false and why: Samson owns a brokerage firm, Strong Realty, LLC. He regularly gets paid profits from the brokerage activity conducted by the firm. Does he need a license to do so?
no, as long as Samson does not personally engage in brokerage activity, he can share in the businesses's income
must be a licensed broker be a business entity
no, but a business entity other than a sole proprietor that engages in brokerage in Texas must be licensed as a broker
Shelby is an associate broker with Ace Realty, and she is representing a buyer by oral agreement in the buyer's purchase of raw land. Shelby has advised the broker on several transactions in the past, so the buyer trusts her to provide him with good advice. Shelby tells the buyer that she thinks the purchase is a good investment for commercial development because she has analyzed recent raw land purchases in the area that are going for much more because a tollway will be going up near the location of the land. In fact, once the purchase has closed and funded, the buyer learns that the property will be condemned by the state because it needs the property for the tollway right of way, so the buyer sells the property to the state for a loss. If the buyer sues Shelby, is Shelby likely liable under the DTPA?
no, not if Shelby's statement is considered advice or opinion and not an express misrepresentation or unconscionable action
After prolonged negotiations, a seller has accepted the buyer's price offer. The buyer is eager to move ahead, but needs to change the closing date by one week. Can the seller's agent change the closing date without involving the seller?
no, the change cannot be made without the client's approval
Does the IABS Notice disclose to a buyer that the sales agent represents the seller?
no, the notice is information only; it does not disclose who represents who
Under the Real Estate License Act, is a seller liable for a subagent's misrepresentations or concealment of a material fact?
no, the seller is not liable unless the seller knew of the falsity of the misrepresentation or concealment and failed to disclose her knowledge of it
which of the following terms is synonymous with the term "client"?
none
noncontingent flat fee
rarely used unless the agent has a great deal of experience in representing buyers
Broker Judd is acting as a buyer's broker for Carlton. A broker across town with a listing for a property that would be suitable for Carlton offers Judd an attractive offer for subagency on the listing. What must Judd do?
reject the offer for subagency
the seller's disclosure notice is required to be provided in which of the following real estate transactions
residential real property comprising not more than one dwelling unit
disclosure
revealing all material facts in a timely manner
When working with a buyer on a transaction, a license holder who is subagent for the seller must act in the best interests of the
seller
Shannon is a sales agent who engages in residential property management that includes leasing of the properties. Her broker knows that Shannon is doing property management. Shannon has her own operating and trust accounts that she operates independent of her broker. Which of the following best describes the matter?
shannon cannot operate a trust account; all trust funds should be managed by her broker
sonya is a real estate agent. technically, sonya does not need a broker or sales agent license if
she is not compensated for providing real estate services for someone else
sally is a licensed sales agent. what is her status as a realtor
she must join the texas association of realtors to be a member of that organization
Bailey broker sponsors two sales agents: Jon and Jen. Horace has signed a buyer representation agreement with Bailey to have Bailey and his team help Horace find a new home. What kind of agents are Jon and Jen to Horace?
special agents
the agency relationship is established between the
sponsoring broker and the principal
George is a broker for company A representing a seller under a listing agreement. Sam is a broker for company B. If George and Sam have an arm around relationship in the same transaction, what type of agency relationship do they have?
subagency relationship
Describe the steps for creating a company policy for disclosure. Which of the following is one of the steps in creating a comprehensive brokerage firm policy?
submit the policy to legal advisers for review
according to its licensing law, which of the following items is required in a buyer-representation contract in texas
termination date
which of the following pieces of information is the listing agent on an office building required to disclose to a customer who is interested in the property
terms of leased held by current tenants
The DTPA provides that a consumer can sue if the consumer has suffered economic damages produced by unconscionable action by another. "Unconscionable" means
that a person has taken advantage of the lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree
which of the following is a true statement
the DTPA prohibits both misrepresentations and omissions to consumers that cause harm
Two siblings were bequeathed the family home in their father's will. The oldest brother wants to sell his portion to his younger sister. In which of the two transactions, from the father's estate to the siblings, and the brother's sale of his interest to his sister, is the seller required to provide the Seller's Disclosure Notice (SDN)?
the SDN does not need to be provided in either transaction
What can happen if an agent acts on behalf of an undisclosed principal?
the agent could be presumed to be acting on his own behalf
Which of the following is the BEST course of action for a seller's agent when there is a possibility that other offers will come in after the seller has entered into a contract to sell
the agent should first discuss with the seller whether the seller wishes to entertain back-up offers before the situation arises
In a multiple-offer situation, what should the seller's agent tell the buyer or buyer's agents about the other offers?
the agent should tell the offerrors the same thing, depending on what information the seller authorizes the agent to disclose
Indicate whether the following statement is true or false and the reason why: A sales agent can enforce a buyer representation agreement against the buyer.
the answer is false. only the broker can enforce the terms of the buyer representation agreement
In a real estate transaction where the broker is an intermediary between a buyer and a seller and no appointments have been made, which of the following statements BEST describes the broker's role in the transaction?
the broker must remain impartial and not give preferential treatment to the buyer or the seller
exclusive-agency listing
the broker will get a commission only if securing the offer from the buyer
which statement is true concerning exclusive seller agency
the broker will never work for the buyer and for the seller
open listing
the brokerage firm that secures a buyer will get a commission
what is the duty of a license holder regarding the disclosure of the fact that an occupant of the property died of AIDS
the canons of professional ethics and conduct prohibits its disclosure
what is the national association of realtors code of conduct named
the code of ethics
is the buyer's agent's fiduciary duty to a buyer different from a seller's agent's fiduciary duties
the fiduciaries duties are the same
Broker Joe is an intermediary in the sale of Christine's home to Della. What can Joe tell Della about Christine and/or the property absent Christine's consent?
the house has foundation problems
When acting as the listing agent for a seller, why is the license holder's prior relationship with a buyer important?
the license holder may possess information that cannot be disclosed to the seller
what may result from the license holder providing advice or opinions to a party in a real estate transaction
the license holder may unintentionally become the party's agent
According to TRELA, which of the following license holders is NOT required to make a disclosure?
the license holder who represented an unsuccessful bidder the last time the property was sold
what happens if a license holder does not explain, in writing, to a customer that the license holder represents the other party
the license holder's actions may accidentally create implied agency
what happens if a broker becomes ill and cannot continue to represent the seller during the term of a listing
the listing is terminated
which of the following is NOT an element of agency by ratisification
the principal denies the agent's authority to act
which of the following is an example of a purely psychological stigma of real property
the property is the location of a murder
prospective customers ask the listing agent "how long do you think this current roof will last?" which of the following responses is BEST for the agent?
the roof was put on 10 years ago, and the owners were given a 30-year warranty
what are the intermediary rules for commercial real estate transactions
the same intermediary rules and laws apply to commercial transactions and residential transactions
ABC Brokerage is careful to include all the proper language to permit intermediary relationships in their buyer-representation and listing contracts. They have trained their sales agents to carefully explain how this can happen in an in-house transaction. Under these circumstances, why might it be important to provide a "second consent" form when a represented buyer becomes interested in one of the brokerage's listings?
the second form helps to remind the buyer and the seller about intermediary brokerage and provides a way to meet the statutory requirement to identify the appointed license holders by name to all parties
indicate whether the following statement is true or false and why: a broker may negotiate the terms that the firm will take for the listing
the statement is true; for example, commissions are fully negotiable
a specific termination date is required in a buyer's representation agreement under which of the following laws or rules
the texas real estate license act
The Texas Fair Housing Act is enforced by which of the following state agencies?
the texas workforce commission
Jones Realty is a licensed brokerage firm that engages in commercial real estate leasing with intermediary agency. The firm has two brokers: the designated broker for the firm and an associated broker. There are two sales associates. Ace, LLC has engaged Jones to find commercial tenants for an office building. Smyth, LLP is a Jones client interested in leasing space for a law firm. Although both parties have legal counsel, they have consented to intermediary representation. If license holders are appointed to each of the parties, what can be expected of the license holders?
they must be available to provide advice and opinion to their designated principal
what is mortgagee title insurance
title coverage for the lender
why might a broker practicing exclusive seller agency treat a buyer as a customer
to take advantage of earning an undivided commission
which of the following is a clear breach of a license holder's fiduciary duties to the buyer and seller
undisclosed dual agency
Which topic should a license holder discuss with a consumer who needs to conduct a complex transaction even before offering to assist the consumer in a transaction?
what the license holder can and cannot do
when is it NOT necessary to provide the IABS notice
when the transaction is for a lease of less than one year and a sale is not being considered
Broker Becky is negotiating a listing agreement with seller Sue. Which of the following is NOT an example of items Becky is free to negotiate with Sue?
whether to disclose foundation problems to prospective buyers
in which of the following situations is unintended dual agency likely to occur?
working with a former client as a customer
Can a newly licensed sales agent engage in property management?
yes, a new sales agent may engage in property management if her sponsoring broker authorizes her to do so
Seller Vincent decided to let the listing agreement he had with broker Bob expire and sell the property himself. Prospective buyers who looked at Vincent's farm twice while Bob had the listing remained interested in the property, and they want to buy the farm from Vincent directly. Does Bob retain any interest in this transaction?
yes, if the buyer is registered under a protection clause
A recent buyer is making a claim of misrepresentation because the property taxes on his newly purchased home are far higher than was disclosed by the seller. Could the broker be liable on this claim?
yes, the broker cannot claim that she merely passed along information from the seller
is a broker liable for the acts of the broker's sponsored sales agents?
yes, the broker is vicariously liable for the acts of sponsored sales agents
Broker Bob has a buyer-representation contract with buyer Jay Sterling. Do the licensees who work in Bob's office have any relationship with Sterling?
yes, they automatically represent starling
Aiko, a broker, represents the seller, Kotori, under a listing agreement. Two competing buyers, Allen and Betty, are interested in submitting offers to the seller. Which of the following statements by Aiko would be considered unfair conduct?
you are going to have to beat betty's offer of $200,000 (to allen)
