Course Questions

outside the state of Texas

"Foreign broker" refers to any broker located: a) in Canada b) outside the continental U.S. c) inside the state of Texas d) ---outside the state of Texas

TRUE

"Rent-a-broker" is one of the common commission-based approaches to agent compensation. FALSE ---TRUE

written permission from the seller of the property

Don't share information about properties on your social media without ______ . a) written permission from your broker b) making sure you link to the seller's personal social media accounts c) posting only the best photos d) ---written permission from the seller of the property

FALSE

Disclosure can NEVER be provided orally. TRUE ---FALSE

Timely

Disclosure must be provided in a manner that is ____. a) ---Timely b) Casual c) Expensive d) Polite

written permission from the seller of the property

Don't share information about properties on your social media without ______ . a) ---written permission from the seller of the property b) written permission from your broker c) posting only the best photos d) making sure you link to the seller's personal social media accounts

FALSE

Earning a real estate license automatically makes someone a REALTOR®. ---FALSE TRUE

Yes

Ed, a potential buyer, has offered $15,000 over the listing price, and Sonia is putting in another offer. The seller's agent tells Sonia that Ed has offered a certain amount over the list price. Is this legal? a) Only if Sonia's offer is also over the list price b) Not enough information c) No d) ---Yes

FALSE

Even if your personal assistant is not licensed, you need to get your sponsoring broker to sponsor your assistant just as they do you. TRUE ---FALSE

the broker and all sponsored agents in the brokerage

An agent has obtained a buyer representation agreement with a new client. Who owes the client fiduciary duties? a) only the sponsored agent b) only the broker c) only the broker and the one, personally involved sponsored agent d) ---the broker and all sponsored agents in the brokerage

The agent may lose his license or have his license suspended and/or pay a fine

An agent representing a buyer was speaking with the seller of a property, but he never disclosed that he was the buyer's agent. During that conversation, the seller revealed that he was in a hurry to sell. If the seller later files a complaint with TREC, what may happen to the agent? a) The agent will not face any consequences because he did nothing wrong b) The agent may go to jail c) The agent's commission may be reduced d) ---The agent may lose his license or have his license suspended and/or pay a fine

Ostensible agency

At an open house, a license holder (without an agency agreement) greets a prospective buyer and shows them the house. The license holder never discloses who they do or do not represent, and the prospective buyer assumes the license holder represents the seller. What is this an example of? a) Actual authority b) Implied authority c) ---Ostensible agency d) Agency by estoppel

d) All answer choices are correct.

At the first substantive communication with a party relating to a proposed real property transaction, the license holder must provide the party with written notice. This notice includes: a) The basic duties and obligations a broker has to a party to a real estate transaction the broker represents. b) The ways in which a broker can represent a party to a real estate transaction. c) The license holder's name, license number, and contact information. d)---All answer choices are correct.

Seller

Brad has decided to sell his home at 1701 Seabrook Drive. His agent, Macy, posted 1701 Seabrook on the MLS and showed the home to several prospective buyers, including Tricia and Tricia's agent, Kristen. Eventually, Brad accepted Tricia's offer. Brad is best defined as a ____ a) Buyer's agent b) Buyer c) ---Seller d) Listing agent

Buyer's agent

Brad has decided to sell his home at 1701 Seabrook Drive. His agent, Macy, posted 1701 Seabrook on the MLS and showed the home to several prospective buyers, including Tricia and Tricia's agent, Kristen. Eventually, Brad accepted Tricia's offer. Which role best defines Kristen? a) Buyer b) Seller c) ---Buyer's agent d) Listing agent

Listing agent

Brad has decided to sell his home at 1701 Seabrook Drive. His agent, Macy, posted 1701 Seabrook on the MLS and showed the home to several prospective buyers, including Tricia and Tricia's agent, Kristen. Eventually, Brad accepted Tricia's offer. Which role best defines Macy? a) Buyer b) Buyer's agent c) Seller d) ---Listing agent

Buyer

Brad has decided to sell his home at 1701 Seabrook Drive. His agent, Macy, posted 1701 Seabrook on the MLS and showed the home to several prospective buyers, including Tricia and Tricia's agent, Kristen. Eventually, Brad accepted Tricia's offer. Which role best defines Tricia? a) Seller b) ---Buyer c) Buyer's agent d) Listing agent

Agency coupled with an interest

Michelle is representing her mother in the selling of her mom's house, and she knows she must legally disclose this interest to potential buyers. What is this an example of? a) ---Agency coupled with an interest b) Ostensible agency c) Agency by ratificaiton d) Agency by estoppel

Exclusive Right-to-Sell Listing

Which type of listing agreement gives the broker the protection and motivation to do their very best in getting top dollar for the seller? a) ---Exclusive Right-to-Sell Listing b) Net Listing c) Exclusive Agency Listing d) Open Listing

a seller and a broker

Who does a listing agreement create an agency relationship between? a) a broker and a buyer b) an agent and their broker c) a buyer and a seller d) ---a seller and a broker

The sales agent's sponsoring broker

Who is held responsible for the acts of a sales agent? a) ---The sales agent's sponsoring broker b) The Texas Association of REALTORS® c) Just the sales agent d) The sales agent's principal

b) The sales agent's broker

Who is ultimately liable for the acts of a sales agent? a) The sales agent's client b) ---The sales agent's broker c) The sales agent d) TREC

the seller

Who must fill out the Seller's Disclosure Notice? a) the buyer b) the listing agent c) ---the seller d) the buyer's agent

The listing broker and seller

Who or what determines the commission earned by a listing broker? a) The seller and the buyer b) The listing broker and buyer's broker c) ---The listing broker and seller d) The Multiple Listing Service

They are your competition for buyers

Why do active listings matter? a) Most active listings sell for a lot more than the offered sales prices. b) They are homes that will soon go on sale. c) ---They are your competition for buyers. d) They are a good indicator of market value.

problem

A prospective buyer asking about the cultural makeup of a neighborhood would be considered a ___ question. a) fair b) insightful c) confusing d) ---problem

FALSE

A broker may appoint themselves as the appointed license holder in an intermediary relationship. TRUE ---FALSE

d) fiduciary

A broker who enters into a Listing Agreement with a seller is considered a: a) principal b) trustee c) client d) fiduciary

the buyer and the seller

A broker who represents __________ in the same transaction must act as an intermediary. a) other brokers b) ---the buyer and the seller c) the seller and the seller's agent d) the buyer and the buyer's agent

dual agent

A broker who represents two parties at the same time, acts according to common law obligations and duties, and cannot act against the interests of either party is a(n) ___________. a) ---dual agent b) double agent c) dual broker d) intermediary agent

TRUE

A buyer can compensate their agent by requiring them to get compensation from the seller first, and if unsuccessful, the agent can request that the buyer pays the commission. ---TRUE FALSE

FALSE

A buyer who signs a buyer rep agreement will NEVER be held liable for payment of a commission if the license holder performs all the duties to which they were obligated, but the buyer defaults on their contractual duties. ---FALSE TRUE

FALSE

A claimed filed under the DTPA has no statute of limitations. ---FALSE TRUE

principal

A client is also called a ______. a) buyer b) broker c) customer d) ---principal

60 days

A consumer wishing to pursue a DTPA claim must provide _________ written notice before filing suit. This is how long the agent has to respond to the complaint. a) ---60 days b) 1 month c) 3 months d) 30 days

TRUE

A customer's signature on the IABS Notice does NOT constitute written agency. ---TRUE FALSE

Syndicate

A financial services group formed to handle large transactions that would be too hard or impossible for an individual person or entity to handle is called a ___. a) Loan team b) Servicer c) ---Syndicate d) Banking club

market area

A geographic region in which similar homes compete for buyers is known as a _______. a) ---market area b) blockbuster c) property zone d) real estate area

TRUE

A license is required if an assistant is executing a task that is considered real estate and they earn anything of value for doing it. ---TRUE FALSE

use a random set of numbers unrelated to the property for the combination

A lockbox on a vacant property should ______ . a) use the same combination chosen by every agent in your brokerage, so it is standardized b) be left unlocked c) ---use a random set of numbers unrelated to the property for the combination d) never have a key inside it

FALSE

A seller is obligated to disclose prior water penetration - even if the defect has been cured - due to possible residual damage. ---FALSE TRUE

"The public can find that info online, but you are not required by Texas law to disclose that."

A seller listed his property with an agent. He shared with the agent that a registered sex offender lives two doors away, and he does not want to disclose that. How should the agent respond if she plans to take the listing? a) "Don't worry, there's no way buyers will find out about that." b) "I'm sorry, but you will have to disclose that." c) "You do not have to disclose that, but I am going to." d) ---"The public can find that info online, but you are not required by Texas law to disclose that."

No, it was the seller who made the false claim, and the agent had no reason to doubt him

A seller tells his agent that his house had never flooded. The agent checks the flood zone map and finds the property is not within the limits. After the house is sold, it is discovered that the property has flooded many times before and the buyer is furious. Could the agent be in violation of the DTPA? a) No, the DTPA does not deal with these types of issues. b) Yes, the agent should have checked everything themselves in order to be sure. c) Yes, the agent could be found guilty of fraud. d) ---No, it was the seller who made the false claim, and the agent had no reason to doubt him.

obtaining financing

A seller's agent might be able to help a third party buyer with ___ . a) recommendations b) inspecting a home c) selling their home d) ---obtaining financing

a specific property

A substantive dialogue is one wherein the agent and buyer discuss ____. a) the agent's work history b) market conditions c) the buyer's living accommodations d) ---a specific property

The broker has listed the individual by name as an "excluded prospect"

According to Section A2, which of the following is NOT a reason that a buyer might be considered an "excluded prospect?" a) Buyer had direct communication or negotiations with the owner b) ---The broker has listed the individual by name as an "excluded prospect" c) Buyer was procured through the owner's side efforts (social media, for example) d) The seller has listed the individual by name as an "excluded prospect"

Get a title insurance policy

According to TRELA, license holders MUST advise buyers that they should: a) Get a written copy of homeowners association rules b) Have a new survey ordered on the property c) ---Get a title insurance policy d) Test all smoke detectors in the home

71%

According to The Residential Real Estate Brokerage Industry, ______ of buyers who dealt with a cooperating broker were under the (false) impression that "their" broker was representing them in a sales transaction. a) 99% b) 50% c) 10% d) ---71%

the interests of their client

According to the Canons of Professional Ethics, the primary duty of a real estate agent is to represent: a) the interest of their broker b) their own interests c) the shared interest of the buyer and seller d) ---the interests of their client

At the first substantive dialogue

According to the broker's agency policy, when should the IABS Notice be handed out to all unrepresented customers? a) ---At the first substantive dialogue b) There is no requirement to hand out the IABS c) A week after the first contact d) It depends on the agent relationship

second business day

After a contract is signed, an agent must deposit escrow funds no later than the close of the: a) second calendar day b) first Monday c) third business day d) ---second business day

all of her customers and clients

Agent Alexandra knows that a property is being considered as part of a coming highway. She needs to disclose this information to _____. a) no one b) ---all of her customers and clients c) clients only d) her broker only

Haberdasher

All of the following are examples of real estate professionals with whom license holders may interact on a real estate transaction EXCEPT: a) ---Haberdasher b) Appraiser c) Loan officer d) Escrow agent

The broker may not appoint in-house agents to communicate with the parties

All of the following are true of intermediary relationships EXCEPT: a) Intermediary relationships require written consent b) ---The broker may not appoint in-house agents to communicate with the parties c) The broker-intermediary must comply with TRELA d) Appointees may offer advice and opinions to their party, but must maintain confidentiality regarding the other

It is NOT enforceable against the broker

All of the following statements are valid reasons to avoid agency relationships formed through oral agreements EXCEPT: a) It does not allow a listing agent to use the MLS. b) It is more likely to lead to complaints and/or lawsuits (than is written agency). c) ---It is NOT enforceable against the broker. d) It is NOT enforceable against the client.

broker's

All real estate advertising (use of business stationary, newsletters, billboards, etc.) must be done only with the ____________ knowledge and consent. a) ---broker's b) seller's agent's c) buyer's agent's d) associate's

can terminate the listing contract without getting permission from the client

An agent lists a property. After each showing, the client calls the agent with a list of unlawful restrictions they want when showing the property. The agent decides not to continue the listing. In this situation, the agent: a) ---can terminate the listing contract without getting permission from the client b) has to work with the client until their house is sold c) has to get the client to agree to terminating the contract d) has to give 7 days notice to the client if they want to stop working with them

Loyalty

An agent must give the broker their full ____ a) ---Loyalty b) Commission c) Attention d) Lunch money

False

An agent owes a client different fiduciary duties when their agency relationship is formed through an oral agreement. True ---False

puffing

An agent says, "This house has major curb appeal!" This is an example of ____. a) disclosure b) fraud c) innocent misrepresentation d) ---puffing

the client explicitly instructs the agent not to present any offers below a certain amount in writing

An agent should present all offers to their client UNLESS: a) there are multiple offers b) ---the client explicitly instructs the agent not to present any offers below a certain amount in writing c) the agent doesn't feel like it is a worthwhile offer d) the client is unavailable or out of town

TRUE

An example of a good question is, "Does the agent represent both buyers and sellers?" ---TRUE FALSE

either verbal or written

An express authority agreement can be _______. a ) implied b) ---either verbal or written c) verbal d) written

Make calls to determine whether persons are interested in buying or selling property

An unlicensed persons may legally do all of the following EXCEPT: a) Set appointments to show a listing b) Accompany inspectors c) ---Make calls to determine whether persons are interested in buying or selling property. d) Place "For Sale" signs

FALSE

Appraisers are regulated by TREC. ---FALSE TRUE

FALSE

As an agent, it is unethical and not advised to show the same property for sale to more than one client. ---FALSE TRUE

Being the buyer's advocate

As an agent, your job is BEST described as ___________. a) Showing buyers options that they have seen before. b) ---Being the buyer's advocate. c) Selling a house. d) Sharing as much information as you can with the buyer.

FALSE

At the first substantive communication with a party, an agent may just refer the party to their business website for the IABS Notice. TRUE ---FALSE

broker

Brokerage fees must be paid to the ___. a) ---broker b) subagent c) sales agent d) broker OR sales agent

Neither, unless there was an outside agreement. The seller maintained the right to sell and pay no one a commission with an exclusive agency listing

Broker B agreed to take an exclusive agency agreement with a seller. Three weeks after Broker B entered the property into MLS and began a marketing program, the seller sold the property himself to a neighbor. Does Broker B get paid a commission or get reimbursed for his expenses? a) ---Neither, unless there was an outside agreement. The seller maintained the right to sell and pay no one a commission with an exclusive agency listing. b) There is no such thing as an exclusive agency listing. c) He will be paid a commission only. d) He will be reimbursed for expenses only.

5 - 7%

In most cases, broker compensation, as a percentage of home price, falls somewhere between: a) 10 - 12% b) 2 - 3% c) 7 - 9% d) ---5 - 7%

comply with the more stringent state or local laws

Concerning requirements for new buildings, if state or local laws demand more than the requirements of the federal law, people must: a) ---comply with the more stringent state or local laws b) comply with the less stringent state or local laws c) comply with only the local laws d) comply with only the federal laws

TRUE

Federal laws apply to all 50 states. ---TRUE FALSE

Cannons of Professional Ethics

Fidelity, Integrity, Competency, Consumer Information and Discriminatory Practices are all part of the ____. a) TRELA b) ---Cannons of Professional Ethics c) TAR Rules d) NAR Code of Ethics

$20,000

For a DTPA violation, the Consumer Protection Division may request a civil penalty to be paid to the state in an amount of up to ________ per violation. a) $50,000 b) $10,000 c) $30,000 d) ---$20,000

c) client

For real estate license holders, who is considered "your principal"? a) customer b) third party c) ---client d) broker

A license holder's personal Twitter account

For which of the following websites does a license holder NOT need to post a link to the IABS Notice? a) ---A license holder's personal Twitter account b) The homepage of a real estate sales agent c) A Facebook page that posts house listings d) A website that people are directed to from a real estate advertisement

The consumer

Historically, when presented with a lawsuit where the evidence is just the agent's word against the consumer, whom have the courts overwhelmingly sided with? a) Cases of this nature are usually thrown out for lack of evidence. b) The agent c) Equally the consumer and the agent d) ---The consumer

1978

Homes constructed before _________ run the risk of containing lead-based paint. a) 1970 b) 1960 c) ---1978 d) 1968

All answer choices are correct

How can buyer's agent fees be paid? a) A credit from seller to buyer upon closing b) Broken retainer fees c) Commission from the home sale proceeds d) ---All answer choices are correct

through writing only

How can intermediary brokerage be created? a) ---through writing only b) through either writing and oral agreement c) through oral agreement d) only by implication

four: degree of instruction, training, evaluation systems, type of instructions given

How many categories can behavioral control factors fall into? a) two: evaluation systems and type of instructions given b) five: evaluation systems, type of training given, instructions given, type of work, degree of instruction c) three: degree of training, evaluation systems, type of evaluation system d) ---four: degree of instruction, training, evaluation systems, type of instructions given

TRUE

IRS Code Section 3508(b) says that sales agents must be licensed to be considered independent contractors. FALSE ---TRUE

FALSE

If a broker is acting as an intermediary, they do not need to provide their clients with the IABS. TRUE ---FALSE

TRUE

If a buyer makes an offer that meets all parameters (such as the listing price), and the seller rejects your offer, your commission is now payable. ---TRUE FALSE

intentionally, three

If a court finds the conduct of the seller or the agent was committed ____________, a court may award no more than ___________ times the amount of damages for mental anguish AND economic damages. a) knowingly, two b) on purpose, five c) ---intentionally, three d) accidentally, three

it is illegal

If a listing agreement does NOT state an end date, ______ . a) it is up to the broker to decide an end date b) the sellers agree that the process could take several years c) ---it is illegal d) it can continue indefinitely

Tell the seller that they are obligated by statute to make the disclosure

If a seller doesn't want to disclose a defect, what should the agent do? a) Advise against hiding the defect, but ultimately allow seller to make the decision. b) ---Tell the seller that they are obligated by statute to make the disclosure. c) Get the seller to fill out a non-disclosure agreement, absolving the agent from any wrongdoing. d) Follow the instruction of the seller to not disclose the defect.

The agent cannot be held liable for the misrepresentation

If a seller gives false information about his property to the agent and the agent passes this information on to the buyer, telling the buyer the source of the information, which of the following statements is most likely TRUE about the agent's liability? a) ---The agent cannot be held liable for the misrepresentation. b) The agent can be held liable for this misrepresentation. c) The agent can held liable both civilly and criminally. d) The agent can only be held civilly liable for the misrepresentation.

Both reports should be made available to the buyers

If a seller has had two wood infestation reports performed on their property, which report should they show to the buyer? a) Only the first report should be made available. b) Both reports should be made available, unless they are more than six months old. c) Only the second report should be made available. d) ---Both reports should be made available to the buyers.

an unconscionable action

If an agent has taken unfair advantage of another person because of their lack of knowledge and experience to a grossly unfair degree, the court will say the agent is guilty of _____. a) an inappropriate action b) ---an unconscionable action c) an unfair action d) an inexcusable action

"I'm here representing the seller. Can I answer any questions?"

If an agent is holding an open house for their client, the BEST way for them to introduce themselves to customers would be: a) ---"I'm here representing the seller. Can I answer any questions?" b) "I work for Broker Bill, and am happy to answer any questions" c) "I work for ABC Realty and we are always interested in taking on new clients." d) "If you're interested in the property, I know the seller is willing to negotiate on the price."

intermediary

If appointments are made, there must be a written authorization from both parties for the broker to act as a(n): a) authorized seller b) ---intermediary c) appointee d) principal

True

Implied agency is a form of accidental agency. ---True False

allowing dual representation to only be offered by brokers via intermediary process

In 2005, Texas made changes to policies regarding dual representation by: a) ---allowing dual representation to only be offered by brokers via intermediary process b) stating preference for intermediary brokerage but allowing dual agency c) outlawing both the intermediary process and dual agency d) allowing both dual agency and intermediary brokerage

The client's interests

In a fiduciary relationship, whose interests come first? a) The third party's interests b) The agent's interests c) ---The client's interests d) The customer's interests

FALSE

In dual agency, agents owe additional fiduciary duties to their clients. ---FALSE TRUE

under no circumstances (unless they were also a licensed attorney)

In which of the following situations would a real estate agent be authorized to practice law? a) in drafting an instrument other than a form prepared by the Texas Real Estate Broker-Lawyer Committee b) in giving legal advice regarding a contract c) ---under no circumstances (unless they were also a licensed attorney) d) in advising a person regarding the validity of title to real property

TRUE

Intermediaries may appoint different associated license holders to communicate with and carry out instructions of the respective parties as long as there is written consent. ---TRUE FALSE

No, a homebuyer may waive the inspection opportunity

Is a paint inspection or risk assessment for lead-based paint/hazards mandatory? a) Only if it is in writing b) Yes c) No, the seller may waive the inspection opportunity d) ---No, a homebuyer may waive the inspection opportunity

Jane and Jane's broker

Jane just signed a listing agreement. Who determined the commission earned by the listing brokerage? a) the local board of REALTORS® b) the standard, government-mandated municipal fee c) The National Association of REALTORS® d) ---Jane and Jane's broker

Exclusive right-to-sell listing

Krista has agreed to pay Broker Kelly 3% in commission, no matter who purchases the home. Which of the terms below best describes this listing agreement type? a) Open listing b) Net listing c) Exclusive agency listing d) ---Exclusive right-to-sell listing

No, due to the buyer's agent's fiduciary duty of confidentiality

Legally, can a buyer's agent disclose information about their client's new baby? a) Yes, the buyer's agent is under no obligation to hide family information. b) ---No, due to the buyer's agent's fiduciary duty of confidentiality. c) Yes, it is explicitly stated in the contract. d) None of these

Actual authority

Michael has given Desiree permission to show his home to prospective buyers. What is this an example of? a) ---Actual authority b) Ostensible agency c) Agency by estoppel d) Agency by ratification

Texas Deceptive Trade Practices Act

Most lawsuits brought against Texas real estate professionals are under the: a) Sherman Antitrust Act b) Texas Real Estate License Act c) ---Texas Deceptive Trade Practices Act d) Rules of the Texas Real Estate Commission

reasonable care

Negligent misrepresentation violates the fiduciary duty of: a) ---reasonable care b) fact checking c) loyalty d) representation

that the brokerage representing the buyer will receive 3% of the commission

On a listing sheet, what would a field stating "BC: 3" mean? a) ---that the brokerage representing the buyer will receive 3% of the commission b) that the brokerage representing the seller will receive 3% of the commission c) that any subagent to the seller's broker will receive 3% commission d) that the brokerage representing the buyer and the brokerage representing the seller will split 3% commission

known.

On the Seller's Disclosure Notice, sellers are only responsible for sharing all information that is: a) important. b) recorded. c) ---known. d) unknown.

a third party

Ostensible agency or agency by estoppel is created when WHO is misled about the agency relationship? a) a client b) an agent c) a buyer d) ---a third party

independent contractor

Paragraph 8 identifies the agent as a(n): a) a partner of the broker b) an employee c) ---independent contractor d) an organization member

consumers

Private remedies are lawsuits brought by _____. a) the Consumer Protection Bureau b) ---consumers c) the Texas Attorney General's Office d) brokers

FFHA

Race, color, national origin, religion, sex, familial status or handicap are all protected classes under the: a) CAN-SPAM b) ---FFHA c) MOI d) TILA

Safe Harbor

Section 530 of the Revenue Act of 1978 is known as: a) Safety Act b) Safe House c) Harbor Act d) ---Safe Harbor

reimbursement

The duty a principal has to compensate the broker for expenses incurred on the principal's behalf is called ____. a) ---reimbursement b) recompensate c) repayment d) compensation management

The agent should disclose the information, as it is a material fact about the property

Seller Simone told her agent she received an insurance check for water damage but spent the money on a new car. The damage was never repaired. What should Simone's agent do? a) The agent should NOT disclose the information, but rather suggest Simone get the water damage checked before selling. b) ---The agent should disclose the information, as it is a material fact about the property. c) The agent should disclose the information, but only if they are asked to do so. d) The agent should keep the information confidential.

known

Sellers are required to disclose conditions that are ____. a) ---known b) less than three years old c) existing d) structural

Third party - Agent

Shane is a loan officer helping Melissa (a buyer) go through the loan application process. Krista is representing Melissa as her sales agent. How would one define Shane's relationship to Krista? a) ---Third party - Agent b) Customer - Agent c) Client - Agent d) Agent - Agent

Financial Control

Some of the 20 factors provided by the IRS can be placed into which of the following categories or buckets? a) ---Financial Control b) Type of Ownership c) Ownership Control d) Type of Behavior

Title X

The Residential Lead-Based Paint Hazard Reduction Act of 1992, also known as ______________, was meant to protect families from exposure to lead from paint, dust, and soil. a) ---Title X b) Title Y c) Title 1018 d) Act X

TRUE

The Texas Workforce Commission is the primary resource regarding state and federal labor laws, rules, and regulations governing employment in Texas. FALSE ---TRUE

fiduciary duties

The duties owed by agents to their clients are known as: a) agency duties b) ---fiduciary duties c) disclosure duties d) perpetual duties

TRUE

The buyer can use the listing agent as their agent. ---TRUE FALSE

FALSE

The buyer is a client of the subagent. ---FALSE TRUE

both mental and physical medical conditions

The disabilities under the Americans with Disabilities Act include: a) only mental medical conditions b) neither mental nor physical medical conditions c) only physical medical conditions d) ---both mental and physical medical conditions

financial control

The factors of significant investment, unreimbursed expenses, and opportunity for profit or loss are all part of what's known as: a) opportunity costs b) loss vs. gain c) investment costs d) ---financial control

FALSE

The homebuying process is typically easier when a buyer does NOT use an agent. TRUE ---FALSE

The broker and the seller

The listing agreement usually creates an agency relationship between: a) The broker and the buyer b) The buyer and the seller c) The broker and the salesperson d) ---The broker and the seller

TRUE

The pre-license course you're currently taking is regulated by TREC. FALSE ---TRUE

the buyer agent's commission

The protection period in a buyer's representation agreement protects _____ if the buyer later purchases a property that was introduced to them by the agent during the term of the agreement. a) the financial institution b) ---the buyer agent's commission c) the buyer's offer d) the listing broker's commission

general agency

The relationship between a broker and a sponsored sales agent is one of ____. a) special agency b) brokerage agency c) restrictive agency d) ---general agency

In writing

The safest way to establish an agency relationship with a seller is to do so: a) In court b) In person c) Over the phone d) ---In writing

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care

The six fiduciary duties of OLDCAR stand for: a) ---Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care b) Obedience, Loyalty, Determination, Confidence, Assistance, and Reasonable Care c) Obedience, Lifetime service, Disclosure, Confidence, Accounting, and Reasonable Care d) Obedience, Loyalty, Disclosure, Confidence, Accounting, and Readiness

TRUE

The subagent's interests and loyalties are aligned with that of the unaffiliated broker. ---TRUE FALSE

d) third party

Timothy has an agency relationship with Sarah, the purchaser of 4412 Castle Drive. Sarah has also agreed to a contract with Melissa, a licensed real estate inspector, to inspect 4412 Castle Drive. What is the relation of Melissa to Timothy? a) principal b) customer c) client d) ---third party

in writing

To ensure the broker gets their commission, the commission agreement should always be ___. a) agreed upon orally b) decided the first day of the homebuying process c) ---in writing d) decided upon closing

TRUE

To solve for the part, you need to multiply the total by the percentage. FALSE ---TRUE

60-90%

Typically, brokerages pay their agents _________ of the commission left after they receive their percentage of the commission. a) 30-40% b) ---60-90% c) 40-60% d) 80-90%

No opinions or advice can be given to either party to the transaction

Under a scenario where appointments are not made: a) The principals' consent is not required to go forth with the transaction. b) ---No opinions or advice can be given to either party to the transaction. c) One of the parties is represented by the license holder. d) Both parties are represented by the license holder.

Introduce intermediary practice as an option

What did Senate Bill 489 do? a) ---Introduce intermediary practice as an option b) Introduce statutory dual agency c) Remove intermediary practice as an option d) Make dual agency illegal

misrepresentation

What does the integrity portion of the Canons of Professional Ethics charge license holders with avoiding? a) dual agency b) ---misrepresentation c) commingling d) mortgage fraud

Consumer Protection Notice 1-2

What form does the Canons of Professional Ethics and Conduct say must be on display in a readily noticeable location in each of the real estate brokers places of business? a) Seller Disclosure Notice b) ---Consumer Protection Notice 1-2 c) Notice to Purchaser d) IABS

Dependent authority

What is NOT one of the ways buyer agency can be created? a) Actual authority b) Apparent or ostensible authority c) ---Dependent authority d) Ratification

When a party assumes an agency relationship based upon inferences

What is an implied agency relationship? a) When one member of the relationship is misinformed b) When a court cannot cannot hold a license holder to the duties of an agency relationship c) ---When a party assumes an agency relationship based upon inferences d) When the terms of the relationship have been clearly communicated verbally

when both parties mutually agree to end the agency relationship

What is mutual rescission? a) when a governing board (such as TREC) decides to end the agency relationship b) when the agent decides to end the agency relationship c) ---when both parties mutually agree to end the agency relationship d) when the client decides to end the agency relationship

Ethics are determined by an external group and are standardized. Morals are held internally and vary by the individual

What is the difference between ethics and morals? a) Ethics are temporary, while morals are instilled in an individual for life. b) There is no difference. c) ---Ethics are determined by an external group and are standardized. Morals are held internally and vary by the individual. d) Morals are standardized, but ethics vary from person to person.

To give the buyer and the seller notice and for the buyer and the seller to accept the appointments

What is the purpose of the Intermediary Relationship Notice? a) ---To give the buyer and the seller notice and for the buyer and the seller to accept the appointments b) To cancel appointments for the buyer and the seller c) To clarify the relationship between the buyer, the seller, and TAR d) To give the buyer and seller notice ONLY if neither is a member of TAR

To disclose whether or not the property is in a Municipal Utility District

What is the purpose of the MUD Disclosure? a) To disclose whether additional Municipal Utility District paperwork is needed b) To convey an agreement with the Municipal Utility District c) ---To disclose whether or not the property is in a Municipal Utility District d) To convey any mineral rights

Frequent compromise

What should a buyer NOT expect of their agent? a) Resource consulting b) Valuation/negotiating assistance c) Contingency management d) ---Frequent compromise

A general statement of agency philosophy

What should come first in an agency policy outline for a brokerage company manual? a) A section about form usage b) A section to address typical business concerns and situations c) ---A general statement of agency philosophy d) A section about interactions that sponsored agents will have with customers, clients, and third parties

Undisclosed dual agency

What type of agency is illegal under all circumstances? a) Special agency b) ---Undisclosed dual agency c) Universal agency d) Intermediary

The buyer should be viewed as a client if you expect to be compensated for your efforts and/or if you're acting on the buyer's behalf.

What's a good rule of thumb in determining whether you should view the buyer as a customer or client? a) The buyer should be viewed as a customer if the relationship is not in writing. b) The buyer should be viewed as a client in all cases. c) ---The buyer should be viewed as a client if you expect to be compensated for your efforts and/or if you're acting on the buyer's behalf. d) The buyer should be viewed as a customer in all cases.

FALSE

When a broker acts as an intermediary, they owe full fiduciary duties to whichever client they signed first. TRUE ---FALSE

Revocation

When a client decides to end an agency relationship, it is called ____. a) Renunciation b) Mutual Rescission c) ---Revocation d) Relief

TRUE

When a worker lacks benefits such as pension plans and paid vacation, this does not necessarily mean the worker is an independent contractor. FALSE ---TRUE

renunciation

When an agent decides to end an agency relationship, this is called: a) revocation b) deuces c) mutual rescission d) ---renunciation

FALSE

When completing the Seller's Disclosure Notice, the seller only needs to disclose malfunctions, not defects. TRUE ---FALSE

look at the entire relationship

When considering if a worker is an employee or an independent contractor, it's important to: a) look at the relationships from a profit-based viewpoint only b) know the five specific factors that make a worker an employee c) only consider independent contractor factors d) ---look at the entire relationship

after the actions of the agent have already occurred

When is agency by estoppel typically created? a) before the actions of the agent have already occurred b) after the actions of the principal have already occurred c) ---after the actions of the agent have already occurred d) before the actions of a third party have already occurred

Upon first contact

When is the appropriate time for agents to disclose who they represent? a) ---Upon first contact b) Within the first three contacts c) After the IABS is signed d) At an open house

FALSE

Whether or not an agent discloses identified hazards on the property is purely optional. ---FALSE TRUE

Listing Agreement

Which agreement is used to form an agency relationship between a seller and a listing agent? a) Property Management Agreement b) Buyer Tenant Representation Agreement c) Proper Seller's Agreement d) ---Listing Agreement

Buyer Representation Agreement

Which document allows you to discuss with your buyer-client all of the duties and parameters that make your relationship work? a) ---Buyer Representation Agreement b) Buyer Representation Alliance c) Borrower Representation Alliance d) Borrower Representation Agreement

Not giving a definite expiration date on a listing agreement contract or a buyer/tenant representation contract

Which of the following acts ARE a violation of TRELA? a) Giving a definite expiration date on a listing agreement contract b) ---Not giving a definite expiration date on a listing agreement contract or a buyer/tenant representation contract c) Not giving a definite expiration date on a property management contract d) Giving a definite expiration date on a buyer/tenant representation contract

Honesty, accounting, fairness and reasonable skill and care

Which of the following are considered ministerial duties? a) Loyalty, obedience, and honesty b) Disclosure of material facts and obedience c) ---Honesty, accounting, fairness and reasonable skill and care d) Loyalty, fairness and reasonable care, and diligence

A Texas license holder must conduct negotiations within Texas

Which of the following describes a condition that must exist in order for a licensed broker to share earned commissions with a foreign broker? a) The foreign broker must obtain a temporary single-transaction license from the state of Texas. b) The foreign broker must be licensed to practice real estate in their country. c) The foreign broker must operate as a sponsored sales agent of a Texas licensed broker. d) ---A Texas license holder must conduct negotiations within Texas.

death of the sales agent

Which of the following events would NOT invalidate a listing agreement? a) death of the seller b) ---death of the sales agent c) death of the listing broker d) the listing broker declares bankruptcy

Attorneys have increased their advertising to the public

Which of the following factors has been a major contributor to the increasingly litigious environment in real estate? a) Some lenders are willing to modify the consumers' loans. b) There is greater regulation of loan officers. c) There are fewer real estate agents in the business now. d) ---Attorneys have increased their advertising to the public.

duty of confidentiality

Which of the following fiduciary duties NEVER terminates? a) ---duty of confidentiality b) duty of obedience c) duty of reasonable care d) duty of loyalty

accounting and confidentiality

Which of the following fiduciary duties survive agency termination? a) reasonable care and loyalty b) confidentiality and obedience c) accounting and reasonable care d) ---accounting and confidentiality

Having phone privileges suspended

Which of the following is NOT a likely punishment for failure to disclose? a) Disciplinary action against the broker-in charge b) ---Having phone privileges suspended c) Civil liability d) Monetary damages

Holding the broker responsible for outstanding financial obligations

Which of the following is NOT included in sections D, E, F, and H: a) Confirmation that the seller is not aware of any outstanding liens against the property b) Making sure that the mortgage is up to date c) ---Holding the broker responsible for outstanding financial obligations d) Confirmation that there are no other contracts in place

Compromise

Which of the following is NOT one of the duties a principal owes a broker in an employment agreement? a) ---Compromise b) Reimbursement c) Performance d) Indemnification

Cases of fraud are prosecuted more often than cases of misrepresentation

Which of the following is NOT true about fraud? a) ---Cases of fraud are prosecuted more often than cases of misrepresentation. b) Agents are likely to be punished if they are found guilty of committing fraud. c) Fraud involves more severe legal penalties than misrepresentation. d) Fraud is an intentional act of misrepresentation.

Mediators decide who is correct and who is wrong

Which of the following is NOT true about mediation? a) Many Texas judges require court-ordered mediation before hearing a case. b) The goal of mediation is for the parties to agree on a settlement in writing that becomes binding on both parties. c) ---Mediators decide who is correct and who is wrong. d) A mediator facilitates communication between parties and to promote reconciliation, settlement, or understanding.

The buyer can orally terminate the agreement

Which of the following is NOT true if the a buyer representation agreement contains a termination clause? a) ---The buyer can orally terminate the agreement. b) Without a termination clause, the buyer might not be able to terminate the agreement. c) The buyer must terminate the agreement in writing. d) If the buyer terminates the agreement, the agent may still be eligible for compensation.

Coverage and exclusions may differ from one company to another

Which of the following is TRUE about home warranties? a) Home warranty policies are non-transferrable between sellers and buyers. b) ---Coverage and exclusions may differ from one company to another. c) In Texas, coverage for home warranties is uniform across all service providers, as required by law. d) Home warranty coverage protects against theft or vandalism of the property.

An agency relationship between a buyer and an agent can be expressly stated or implied

Which of the following is TRUE of a relationship created between a buyer and an agent? a) An agency relationship between a buyer and an agent MUST be expressly stated. b) ---An agency relationship between a buyer and an agent can be expressly stated or implied. c) An agency relationship between a buyer and an agent must be made through the use of a contract. d) An agency relationship between a buyer and an agent can only be implied.

All answer choices are correct

Which of the following is a key task that supports the overriding objective of a listing agreement? a) Constant review of MLS activity b) Helping the principal stage their home c) ---All answer choices are correct d) Creating CMAs (comparative market analysis)

Puffing is simply marketing

Which of the following is a true statement about puffing? a) Puffing is considered a legally binding promise. b) ---Puffing is simply marketing. c) Puffing is purely factual. d) Puffing is considered misrepresentation.

All answer choices are correct

Why might an agent attach a document as an addendum? a) ---All answer choices are correct. b) To spell out who the agent is ethically responsible for. c) To ensure the agent is compensated for their efforts. d) To specify who is purchasing the property.

A broker representing both the buyer and a seller in a real estate transaction

Which of the following is an example of an in-house sale? a) A broker who has sales agents who represent both sellers and buyers. b) ---A broker representing both the buyer and a seller in a real estate transaction. c) A broker who represents both buyers and sellers. d) A broker who represents a seller at an open house.

There is a leak in the roof

Which of the following needs to be disclosed to potential buyers? a) A person died of an accidental drug overdose on the property. b) ---There is a leak in the roof. c) There was a suicide on the property 3 years ago. d) The previous owner of the home had a terminal illness.

when an agent takes an action outside of what they were explicitly authorized to do but which was accepted AFTER the fact by the client

Which of the following statements BEST describes agency by ratification? a) when an agent takes an action which they were explicitly AUTHORIZED to do b) when an agent takes an action outside of what they were explicitly authorized to do and it is NOT accepted after the fact by the client c) when an agent takes an action which they were explicitly NOT authorized to do d) ---when an agent takes an action outside of what they were explicitly authorized to do but which was accepted AFTER the fact by the client

Pre-qualification involves figuring out appropriate home prices for the buyer, and pre-approval involves determining if a buyer is credit-worthy.

Which of the following statements about pre-qualification and pre-approval is TRUE? a) ---Pre-qualification involves figuring out appropriate home prices for the buyer, and pre-approval involves determining if a buyer is credit-worthy. b) A buyer goes through pre-qualification after pre-approval. c) For pre-approval, the buyer's income, level of debt, and savings are needed. d) For pre-qualification, the buyer's income to debt ratio, bank statements, W-2s, and tax returns are needed.

reasonable caution

Which of these is NOT one of the fiduciary duties? a) loyalty b) ---reasonable caution c) disclosure d) obedience

malicious misrepresentation

Which of these is NOT one of the three types of misrepresentation? a) ---malicious misrepresentation b) fraudulent misrepresentation c) innocent misrepresentation d) negligent misrepresentation

Do

Which of these is one of the four D's of disclosure? a) Discreet b) Don't c) ---Do d) Depend

Single agency

Which type of agency is legal in Texas? a) ---Single agency b) Dual agency c) Triple agency d) Limited agency

Selecting the image for each question

While filling out the contracts in a contract workshop, how can you access the story scenario? a) ---Selecting the image for each question b) Crying out for help c) Asking Ace nicely d) Calling mom

Both the seller and the agent

Who can make real estate disclosures through verbal statements? a) The agent, not the seller b) ---Both the seller and the agent c) The seller, not the agent d) Neither the seller nor the agent

an attorney

Who can provide legal advice? a) ---an attorney b) an inspector c) a broker d) a surveyor

The agent or the buyer

Who can terminate the buyer-agent relationship? a) The agent ONLY b) No one c) The buyer ONLY d) ---The agent or the buyer

The principal and the broker

Who determines the brokerage fee charged by a listing broker? a) The listing broker b) ---The principal and the broker c) The seller d) The listing agency

More than one answer choice is correct

Who does TRELA §1101.005 provide licensing exemptions for? a) ---More than one answer choice is correct b) On-site managers of an apartment complex c) Licensed Auctioneers d) Persons operating under a court order

agrees to restore the property to its original condition when they move

With reasonable modifications, the landlord may permit changes on the condition that a tenant: a) agrees to pay an increased rent cost b) files a small claims court suit c) files a mechanic's lien on the changes when they move d) ---agrees to restore the property to its original condition when they move

they bring their expertise to the situation

Working with an agent in the homebuying process is ideal because ___. a) the client will save money b) ---they bring their expertise to the situation c) they will tell the client exactly which house to buy d) a client can't find a house without one

FALSE

Your broker does not have to be a member of the Texas Association of REALTORS® (TAR) to use the Independent Contractor Agreement for Sales Associate. ---FALSE TRUE

Ethics

____________ dictate what is considered acceptable at a higher level. a) ---Ethics b) Individual opinions c) Laws d) Industry standards

TRUE

Including the IABS Form as a link in the body of all emails is a good business practice. ---TRUE FALSE

License holders may only show a house to a third party if the third party's agent is present.

A license holder must do the following EXCEPT: a) License holders must advise buyers to get a title insurance policy. b) ---License holders may only show a house to a third party if the third party's agent is present. c) License holders must advise buyers to have the abstract examined by an attorney. d) License holders must give document copies to any party who signs a document (and requests a copy).

the broker and the seller

A listing agreement is a contract establishing an agency relationship between: a) the sales agent and the seller b) ---the broker and the seller c) the broker and the sales agent d) the seller and the buyer

All choices are correct.

A mutual agreement can be made: a) ---All choices are correct. b) in writing c) by action d) verbally

Yes, the SDN needs to list any repairs in place.

A seller had a roof repaired years ago. The roof shows no current problems. Does the seller still need to disclose the repairs? a) It depends on how bad the initial roof problems were. b) ---Yes, the SDN needs to list any repairs in place. c) It depends on how long ago the roof repairs were done. d) No, if the roof is currently fine, the SDN does not need to list past repairs.

a) Only a salesperson's sponsoring broker can compensate a salesperson for activities related to a real estate transaction

A seller recently sold his home with the help of his listing broker and his sponsored sales agent. Who can pay the sponsored sales agent for her activities in helping sell the home? a) ---Only a salesperson's sponsoring broker can compensate a salesperson for activities related to a real estate transaction. b) Only title companies are legally allowed to compensate salespersons for real estate transactions. c) A salesperson can receive compensation from any party in a real estate transaction. d) Only the seller is legally able to compensate a salesperson for helping sell their home.

Have the abstract examined by an attorney

According to TRELA, license holders MUST advise buyers that they should: a) Obtain warranty information for all major appliances from the seller b) Have a lead-based paint inspection performed, regardless of what year the home was constructed c) Seek pre-qualification from at least three different lenders d) ---Have the abstract examined by an attorney

have the abstract examined by a lawyer and to obtain a title insurance policy.

According to Texas law, license holders must advise all parties to: a) ---have the abstract examined by a lawyer and to obtain a title insurance policy. b) have the abstract examined by the title company. c) have the home painted with a fresh coat of paint before moving in. d) consult their lender for all legal advice.

Someone infected with HIV lived at the dwelling

All of the following can be disclosed EXCEPT: a) ---Someone infected with HIV lived at the dwelling b) The seller replaced the roof shingles three years ago c) The A/C unit was installed in 2017 d) A foundation expert says the foundation is off-center by four inches

Agent - Customer

Angie has an agency relationship with a seller on behalf of their listing. Anna, a potential buyer, called Angie to see her seller's house. How could we define Angie and Anna's relationship? a) Agent - Principal b) Agent - Client c) Agent - Third Party d) ---Agent - Customer

A license holder who represents a principal through cooperation with the principal's broker

As defined in the Texas Real Estate License Act, what is a subagent? a) ---A license holder who represents a principal through cooperation with the principal's broker. b) A license holder who procures a buyer for a property through a multiple listing service and cooperates with the listing agent. c) An associated license holder who is appointed by the supervising broker to represent the supervising broker's principal. d) A license holder who represents both the buyer and the seller in the transaction.

Seller Medha maintained the right to sell and does not need to pay Broker Alec a commission

Broker Alec agreed to take an Exclusive Agency Agreement with Seller Medha. Three weeks after Broker Alec entered the property into the MLS and began marketing, Medha sold the property herself to a neighbor. Which of the following is true? a) Broker Alec is still entitled to whatever commission rate was first agreed upon, regardless of who sold the property. b) Broker Alec will receive a percentage of any amount paid over the original listing price. c) ---Seller Medha maintained the right to sell and does not need to pay Broker Alec a commission. d) Seller Medha will need to reimburse Broker Alec for any expenses.

Yes, brokerages can charge whatever commission they choose. Commissions are negotiable

Brokerage A charges clients a 6% commission, while Brokerage B charges only 5%. Is this legal? Why or why not? a) Yes, but only if the supervising brokers at the two agencies discussed it beforehand and agreed that it was appropriate. b) No, commissions for each county are set by TREC and cannot be negotiated or changed. c) ---Yes, brokerages can charge whatever commission they choose. Commissions are negotiable. d) No, 6% is standard across the industry. Undercharging clients creates illegal competition.

Geni (the broker)

If Geni (a broker) is Andie's (an agent) supervising broker, who is the principal in their general agency relationship? a) Both Geni (broker) and Andie (sponsored agent) b) Andie (the sponsored agent) c) ---Geni (the broker) d) Neither Geni (broker) nor Andie (sponsored agent)

terminate the contract within seven days of receiving the notice

If the seller does not provide the buyer with a completed Seller's Disclosure Notice before signing the contract, the buyer has a legal right to: a) have their closing costs paid by the seller b) sue the seller for damages c) receive a price reduction on the home d) ---terminate the contract within seven days of receiving the notice

The seller

In a seller subagency, who does the subagent represent? a) Both the seller and the buyer b) The buyer c) ---The seller d) No one

c) demonstrate competence by passing the licensing exam

In order to get their license, a TREC real estate license applicant MUST: a) satisfy the Commission as to the individual's mental toughness b) be at least 21 years of age c) ---demonstrate competence by passing the licensing exam d) prove residency in either Texas or Oklahoma

A client

In real estate, the word agent may refer to all of the following EXCEPT: a) ---A client b) A broker c) A license holder d) A sales agent

listed in the listing agreement.

In stating a seller's desired price to a prospective buyer, the listing broker may only state the price that is: a) ---listed in the listing agreement. b) determined by the buyer's broker to be best for the seller. c) determined by the listing broker to be best for the seller. d) closest to the area's median range of prices.

Their supervising broker

On whose behalf do sales agents sign written agency contracts? a) TREC b) ---Their supervising broker c) The principal d) Themselves

All choices are correct

The Information About Brokerage Services Form informs clients of: a) ---All choices are correct b) A broker's minimum duties required by law c) The types of real estate license holders d) How a license holder can represent a party in a real estate transaction

Honesty and fairness

What are two things customers expect from their sales agents? a) Honesty and fiduciary responsibility b) ---Honesty and fairness c) Fairness and obedience d) Honesty and obedience

special agent

To a client, what is a broker considered to be? a) general agent b) supervisory agent c) universal agent d) ---special agent

All customers are third parties

To a license holder, which of the following statements are true? a) All parties to a transaction are third parties. b) ---All customers are third parties. c) All parties to a transaction are customers. d) All third parties are customers.

A fact that could possibly persuade a buyer or seller to change their decision if they knew about it.

What is a "material fact"? a) ---A fact that could possibly persuade a buyer or seller to change their decision if they knew about it. b) A fact about Madonna's 1984 hit "Material Girl." c) A fact about the matter of which things are composed. d) Any fact that is told to a license holder by a customer or client.

b) consent of an A & the principal

What is required for an agency relationship to form? a) consent of the principal b) consent of an agent and the principal c) consent of a lawyer d) consent of the agent

confidentiality

When Avery informed the prospective tenant that the rental price would be negotiable after a month, which fiduciary duty did she violate? a) accounting b) disclosure c) reasonable care d) ---confidentiality

at their initial meeting

When MUST a listing broker explain their agency relationship to a prospective buyer? a) at an open house b) at closing c) at the first substantive discussion d) ---at their initial meeting

obedience

When Michelle followed Tamina's advice and accepted the offer, which fiduciary duty was Michelle demonstrating? a) ---obedience b) accounting c) disclosure d) reasonable care

listed by the seller in the listing agreement.

When addressing a prospective buyer, a listing agent is required to only state the seller's price that is: a) ---listed by the seller in the listing agreement. b) the agent's preferred price. c) the best price for prospective buyers as determined by the agent. d) the market price for a similar property.

cite the source of the information

When disclosing property information to a party, you should always ____. a) do it in the presence of another license holder b) share any opinion you might have on the property c) withhold material facts if your client has requested you not to d) ---cite the source of the information

After substantive communication about a specific, real property

When does TRELA require that an IABS Notice be given? a) At first contact with a party b) At closing c) ---After substantive communication about a specific, real property. d) After a buyer's offer is accepted

when a mutual agreement is reached between the principal and the agent

When does an agency relationship start? a) when an agent and principal talk over the phone b) when the agent first meets the principal c) ---when a mutual agreement is reached between the principal and the agent d) when an agent passes the licensing exam

at first contact

When should agency relationships be disclosed? a) after substantive communication b) at closing c) after a buyer makes their offer d) ---at first contact

Seller sets a minimum price — broker's commission is any amount over the minimum price

Which description below best describes "net listing" a) Listing broker has exclusive agency to sell the property and will earn a commission if the property is sold, even if the seller finds the buyer. b) Listing broker has exclusive agency to sell the property and will earn an agreed-upon commission unless the seller finds the buyer themselves. c) ---Seller sets a minimum price — broker's commission is any amount over the minimum price. d) Seller will give commission to any listing broker who brings a buyer.

disclosure

Which fiduciary duty did Michelle demonstrate when she informed Tamina about the buyer's first offer? a) obedience b) accounting c) ---disclosure d) loyalty

a) Texas Real Estate Commission

Which government agency is responsible for enforcing the Texas Real Estate License Act? a) ---Texas Real Estate Commission b) Department of Public Safety c) National Association of Realtors d) Texas Association of Realtors

earnest intent

Which is NOT one of the required components to form an agency relationship? a) a principal b) ---earnest intent c) mutual agreement d) fiduciary obligation

b) A fiduciary relationship is formed

Which of the following BEST describes what happens when Broker Bob signs a listing agreement with Seller Sally? a) A confidential relationship is formed. b) ---A fiduciary relationship is formed. c) An employer-employee relationship is formed. d) An accountability relationship is formed.

Subagency presents listing brokers with the liability of sales agents they have not trained

Which of the following IS a major reason why many listing brokers prefer to collaborate with buyer's agents more than subagents? a) Most listing brokers don't have the necessary paperwork for a subagent. b) Subagents typically earn more commission than buyer's agents. c) Most listing brokers do not understand subagency. d) ---Subagency presents listing brokers with the liability of sales agents they have not trained.

honesty and fairness

Which of the following are non-fiduciary duties? a) obedience and honesty b) accounting and reasonable care c) fairness and reasonable care d) ---honesty and fairness

The property is rumored to be haunted

Which of the following is NOT an example of a material fact? a) The property has an easement or setback line. b) The property has a foundation crack in the floor, hidden by a carpet. c) ---The property is rumored to be haunted. d) The property is partially located on a government protected wetland.

an agent accepting a buyer's offer without the seller's permission

Which of the following is NOT an example of special agency? a) an agent and a client signing a listing agreement b) an agent discussing a potential offer to a seller c) ---an agent accepting a buyer's offer without the seller's permission d) an agent showing a house to a prospective buyer

oversharing

Which of the following is NOT one of the three most common types of misrepresentation? a) ---oversharing b) negligence c) fraudulence d) innocence

Seller Sally agrees to give Broker Bob 3% as commission unless her neighbor Sam purchases — She'll only owe him 1% then

Which of the following is an example of an exclusive agency listing? a) Seller Sally agrees to give any broker who is the procuring cause of a sale 3% commission. b) Seller Sally agrees to give Broker Bob as commission any amount that is over her $200,000 minimum price. c) Seller Sally agrees to give Broker Bob 3% as commission no matter what. d) ---Seller Sally agrees to give Broker Bob 3% as commission unless her neighbor Sam purchases — She'll only owe him 1% then.

An agent storing a principal's title fee funds in the agent's personal bank account

Which of the following is an example of commingling? a) ---An agent storing a principal's title fee funds in the agent's personal bank account. b) A license holder using a principal's funds for an approved marketing decision. c) A broker collecting a commission upon completion of a sale. d) A license holder interacting with third parties without disclosing representation.

Seller will pay commission to any broker who was the procuring cause for the sale

Which of the following is the best description of an "open listing"? a) ---Seller will pay commission to any broker who was the procuring cause for the sale. b) Seller sets the minimum price for the property and agrees to give the listing broker, as commission, any amount the buyer pays over the minimum price. c) Seller agrees to broker being the exclusive agent for the listing. d) Seller agrees to broker being the exclusive agent for the listing but also has the right to naming excluded buyer prospects.

Agency by estoppel occurs in an environment of ostensible agency

Which of the following is true about agency by estoppel? a) Agency by estoppel is an example of actual authority. b) ---Agency by estoppel occurs in an environment of ostensible agency. c) Agency by estoppel is NOT created as a matter of law. d) Agency by estoppel absolves a principal from any responsibility.

d) Brokers work for clients and with customers.

Which of the following is true about clients and customers? a) Brokers work with clients and they work with customers. b) Brokers work with clients and for customers. c) Brokers work for clients and they work for customers. d) ---Brokers work for clients and with customers.

"What is the racial makeup of this neighborhood?"

Which of the following potential questions may be illegal to answer? a) "Is this property in a floodplain?" b) ---"What is the racial makeup of this neighborhood?" c) "Are there any running trails nearby?" d) "Is the area prone to bad traffic?"

Guessing an answer

Which of the following practices could easily lead to misrepresentation? a) Citing the source of information b) Find the answer c) ---Guessing an answer d) Ask an expert

License holders are legally required to disclose if a murder happened on a property.

Which of the following statements is TRUE? a) License holders are legally required to disclose if a suicide happened on a property. b) License holders are legally required to disclose if a sex offender lives near a property. c) License holders are legally required to disclose if someone died of natural causes on a property. d) ---License holders are legally required to disclose if a murder happened on a property.

a ) broker, sales agent

Which of the options below BEST describes "license holder"? a) ---broker, sales agent b) broker, client c) broker, agent d) sales agent, client

a) third party

Which of the roles below BEST describes the following terms: real estate inspector, loan officer, or the "other principal." a) ---third party b) customer c) client d) principal

All choices are correct

Which of these forms satisfies the written property disclosure requirement? a) TREC's Seller's Disclosure Notice b) ---All choices are correct. c) TAR's Seller's Disclosure Notice d) seller's disclosure forms provided by brokerages and associations that contain all of the disclosures required by law

broker and sponsored agent

Which of these is an example of a general agency relationship? a) agent and seller b) broker and buyer c) ---broker and sponsored agent d) broker and seller

All choices are correct

Which parties need to be told if an agent is representing anyone? a) ---All choices are correct b) Sellers that are at home when the agent is showing the property c) An agent they call to get information or set up an appointment d) Visitors at an open house

The buyer and the seller

Which two parties determined the sales price of the home at 6600 Krollton Drive? a) The seller and the seller's broker b) The buyer and the buyer's broker c) ---The buyer and the seller d) The buyer's broker and the seller's broker