Real Estate U Texas Law of Agency(5)
The Texas Real Estate Commission was created in what year...? 1949 1963 1988 2001
1949
The Seller's Disclosure of Property Condition is discussed in what section of the Texas Property Code...? 12-A 5.008 14 1031
5.008
Which of the following is considered a third party to a listing contract...? A principal A real estate broker A customer All of the above
A customer
Survey -
A document which precisely shows the property lines, and size and location of improvements on a particular property.
Associate Broker -
A licensed real estate broker who chooses to work under the name and supervision of another licensed broker.
Associate Licensee -
A licensee who is licensed under a broker, or who has entered into a written contract with the broker to act as the broker's agent in a real estate transaction.
Fiduciary -
A person in a position of trust and confidence, as between principal and broker; broker as a fiduciary owes certain loyalty which cannot be breached under the rules of agency.
Real Estate Broker -
A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee.
Real Estate Salesperson -
A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker.
Which of the following receives advice, or an opinion, from a real estate broker...? A principal A customer A neutral third party All of the above
A principal
If an individual works as an associate broker, who must they work under...? AA sponsoring broker BA real estate salesperson CAn associate licensee DAn associate broker does not work under anyone
A sponsoring broker
Abstract of Title -
A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title.
An agent with limited authority to act on behalf of the principal is known as a...? ASpecial agent BSpecific agent CUniversal agent DGeneral agent
ASpecial agent
This refers to the relationship between a principal and the principal's agent, which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a third party...? Agency Brokerage Joint venture Partnership
Agency
Agency can be classified in which of the following ways...? General agency Special agency Universal agency All of the above
All of the above
Which of the following contracts can establish an agency relationship...? Listing agreement Buyer representation agreement Property management agreement All of the above
All of the above
Universal Agent -
An agent that can serve the principal in any capacity.
Special Agent -
An agent with limited authority to act on behalf of the principal, such as created by a listing contract.
Loyalty -
An agent's duty to place the client's interest above those of all others, including the agent's own self-interest.
Material Fact -
Any fact that would influence the decision of a reasonably prudent person.
A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is known as a/an...? Real estate salesperson Associate broker Trustee Broker partner
Associate broker
In order to establish an agency relationship, which of the following must agree to the terms of the agency...? The principal only The agent only Both the principal and agent Neither the agent or principal
Both the principal and agent
Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent is known as a/an...? Independent contractor Partner Client Associate
Client
According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property...? Confidentiality Full disclosure Obedience Accountability
Confidentiality
According to this fiduciary duty, an agent must keep confidential any information that may weaken the principal's bargaining position...? AConfidentiality BObedience CReasonable care DLoyalty
Confidentiality
An agent's duty to be honest with all parties may be compromised by which fiduciary duty owed to the principal...? Confidentiality Accountability Reasonable skill and diligence Obedience
Confidentiality
If a broker enters into a listing contract with a seller, what duties does the broker owe to prospective buyers...? Loyalty Obedience Disclosure of material facts Accountability
Disclosure of material facts
According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions...? T (True) F (False)
F (False)
An agent must provide customers with advice if asked by the customer...? T (True) F (False)
F (False)
By signing a listing agreement with a principal, an agent can serve as a universal agent to the principal...? T (True) F (False)
F (False)
The real estate broker is responsible for ordering the appraisal for a transaction...? T (True) F (False)
F (False)
CS/CH2 If Agent Brandy were to take Seller Jair's listing and agree to discriminate against any minority group, what law would Agent Brandy be breaking? AFHA BCMA CBPO DAll of the above
FHA
A person in a position of trust and confidence is known as a/an...? Partner Associate Fiduciary Subordinate
Fiduciary
A person in a position of trust and confidence, as between a principal and broker is known as a...? Partner Fiduciary Associate Subordinate
Fiduciary
Ely is a real estate broker who represents that seller in a transaction. Ely owes which of the following to the seller...? Intermediary duties Common duties Fiduciary duties All of the above
Fiduciary duties
The duty to not to obtain any advantage over a principal by the slightest misrepresentation, concealment, duress or pressure is known as a...? Common duty Fiduciary duty Statutory duty Professional duty
Fiduciary duty
If an agent learns of something that is beneficial to their principal, the agent must reveal the information to the principal as per this fiduciary duty...? Obedience Reasonable care Full disclosure Accountability
Full disclosure
What fiduciary duty does a seller's broker owe to a customer...? Obedience Loyalty Full disclosure Accountability
Full disclosure
A property manager is an example of a...? General agent Special agent Specific agent Universal agent
General agent
Which of the following is signed between an agent and their sponsoring broker...? Listing contract Purchase contract Independent contractor agreement Sales contract
Independent contractor agreement
A broker who represents both the buyer and seller in the same transaction operates as a/an...? Intermediary Partner Associate Exclusive broker
Intermediary
According to the fiduciary duty of obedience, the agent must obey which of the following instructions from the principal...? Unlawful instructions Lawful instructions Any instructions from the principal Only the instructions the agent believes is relevant to the transaction
Lawful instructions
Which of the following contracts establishes an agency relationship between the seller and broker...? Listing agreement Buyer representation agreement Purchase contract Sales contract
Listing agreement
This is an agent's duty to place their client's interest above those of all others, including the agent's own self-interest...? ALoyalty BAccountability CConfidentiality DObedience
Loyalty
This refers to title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept...? Clouded title Unmarketable title Marketable title Partial title
Marketable title
Any fact that would influence the decision of a reasonably prudent person is known as a/an...? AMaterial fact BConstructive fact CImpartial fact DImplied fact
Material fact
An agent must disclose which of the following to a prospective buyer...? Material facts about the property The sellers motives for selling The lowest price the seller will accept All of the above
Material facts about the property
The party that the listing contract is with is referred to as the...? Principal Partner Associate Subordinate
Principal
Client -
Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent.
The Information About Brokerage Services form is presented by the broker to the...? AProspective client BAgent CAssociate agent DEscrow agent
Prospective client
An expression or exaggeration made by a salesperson that concerns the quality of real property offered for sale or lease is known as...? Selling Puffing Marketing Steering
Puffing
A person acting as the agent for others in negotiating the purchase and sale of real property for a fee is known as a/an...? Real estate broker Client Customer Attorney
Real estate broker
Which of the following has the highest authority in an agency relationship...? AReal estate broker BReal estate salesperson CAssociate broker DAssociate licensee
Real estate broker
CS/CH2 What document would Agent Brandy need to have Seller Jair sign in order to create a relationship so that Agent Brandy could sell the subject property? AOne-to-Four Family Residential Resale Contract BResidential Listing Agreement CBuyer Representation Agreement DInformation About Brokerage Services
Residential Listing Agreement
Abby signs a buyer representation agreement with a buyer. What type of agency was created by the agreement...? General agency Special agency Specific agency Universal agency
Special agency
A real estate agent is an example of a...? General agent Specific agent Special agent Universal agent
Special agent
A real estate broker owes fiduciary duties to his/her principal...? T (True) F (False)
T (True)
An agent may not be held liable for innocent acts of misrepresentation...? T (True) F (False)
T (True)
Which of the following is responsible for enforcing TRELA...? NAR TAR TREC Texas Attorney General
TREC
The acronym TRELA stands for which of the following...? Texas Real Estate License Association Texas Real Estate License Act Texas Real Estate Legal Act Texas Real Estate Legislation Act
Texas Real Estate License Act
Fiduciary Duty -
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.
Which of the following is an example of fairness owed by a seller's agent to a customer...? The agent must present all offers received from prospective buyers The agent must disclose the seller's reasons for selling The agent must disclose the lowest offer the seller will accept All of the above
The agent must present all offers received from prospective buyers
Reasonable Skill and Care -
The degree of care and skill ordinarily used by others competently engaged in the same business.
Which of the following is an example of a material fact...? The house is the nicest house on the street The street is the best street in the city The existing roof is 20 years old All of the above
The existing roof is 20 years old
Obedience -
The fiduciary relationship that obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract.
Which of the following orders the appraisal for a transaction...? The broker The lender The agent The seller
The lender
Customer -
The party the agent brings to the principal as seller or buyer of the property.
A real estate broker works for which of the following in a transaction...? AThe principal BThe customer CThe lender DAll of the above
The principal
The authority of an agent is provided by which of the following...? The customer The principal The lender Anyone involved in the transaction
The principal
Marketable Title -
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept.
An agent that can serve the principal in any capacity is known as a...? General agent Special agent Specific agent Universal agent
Universal agent
David is serving as a power of attorney for Sarah. David is serving as what type of agent...? AUniversal agent BGeneral agent CSpecial agent DSpecific agent
Universal agent
Since an agent owes the duty of confidentiality to his/her principal, which of the following duties owed to a customer may be compromised...? Loyalty Obedience Honesty Reasonable skill and diligence
Honesty
Title Insurance -
Insurance to protect a real property owner or lender up to a specified amount against certain types of loss (ex: defective or unmarketable title).
This refers to a summary of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title...? Title insurance Summary of title Abstract of title Survey
Abstract of title
CS/CH2 If Agent Brandy wishes to represent Seller Jair even though he made that statement, what should Agent Brandy do in order to protect herself? AAgent Brandy should just ignore Seller Jair's statement and show the property to any individual that is interested even though Seller Jair said not to. BAgent Brandy must abide by Seller Jair's statement and only show the property to individuals that are not minorities. CAgent Brandy must explain to Seller Jair that she cannot discriminate against anyone and if she does represent him, she has to show the property to everyone and that is the only way she will represent him. DAgent Brandy must have Seller Jair sign an Exclusive Agency Agreement and then she can discriminate against the people that Seller Jair has requested.
Agent Brandy must explain to Seller Jair that she cannot discriminate against anyone and if she does represent him, she has to show the property to everyone and that is the only way she will represent him.
An agent owes the fiduciary duty of reasonable care to which of the following parties in a transaction...? The customer The principal The client All of the above
All of the above
An agent's duty of honesty and fairness applies to which parties...? The client The customer The principal All of the above
All of the above
Which of the following duties are owed to a third party in a transaction...? Competency Good faith Fairness All of the above
All of the above
Which of the following is considered a protected class under the fair housing laws...? National origin Handicap Color All of the above
All of the above
CS/CH1 What issues arose when the broker, in effect, appointed the listing agent to the seller and told the buyer that he would represent her interests rather than the seller's interest? AThe broker violated his fiduciary duties to both clients. BThe broker violated the intermediary laws set forth by TRELA. CThe broker violated ethical and possibly legal rules and regulations. DAll of the above.
All of the above.
Confidentiality -
An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker who represents a seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price. Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer can, or will, pay more than what has been offered for a property.The duty of confidentiality does not include an obligation by a broker who represents a seller to withhold known material facts about the condition of the seller's property from the buyer, or to misrepresent the property's condition. To do so constitutes misrepresentation and may impose liability on both the broker and/or the seller.
General Agent -
An agent with full authority over one property of the principal, such as a property manager.
Puffing -
An expression or exaggeration made by a salesperson that concerns the quality of real property offered for sale or lease. It presents opinions rather than facts about real property.
A false statement regarding a material fact is known as...? Misrepresentation Puffing Disclosure Reasonable care
Misrepresentation
An agent must avoid doing which of the following to a customer...? Operating in good faith towards the customer Being honest with the customer Misrepresenting material facts about the property Disclosing information about the property
Misrepresenting material facts about the property
CS/CH 1 In this hypothetical, is it permissible for a listing associate to negotiate the sale of her own listing to a buyer whom she also represents through her broker? ANo. The listing associate may never negotiate any sale for their own listing. BNo. The listing associate may not negotiate because one of the parties would have been at an disadvantage. CYes. The listing associate may negotiate any sale with anyone they wish to get the property sold. DYes. The listing associate may negotiate any sale so long as there are two brokers involved.
No. The listing associate may not negotiate because one of the parties would have been at an disadvantage.
A customer is also known as a...? Client Non-client Principal Partner
Non-client
According to this fiduciary duty, an agent must meet deadlines set by the principal and/or client...? AReasonable care and diligence BLoyalty CObedience DConfidentiality
Reasonable care and diligence
An agent owes which of the following fiduciary duties to their principal...? Legal council Accounting services Reasonable care and diligence All of the above
Reasonable care and diligence
A buyer representation agreement between a buyer and broker creates what type of agency...? ASpecial agency BGeneral agency CUniversal agency DSpecific agency
Special agency
Which of the following is the most restrictive type of agency...? ASpecial agency BGeneral agency CUniversal agency DSpecific agency
Special agency
Abby is a real estate broker who represents a seller in a transaction. Abby is serving as what type of agent...? General agent Special agent Specific agent Universal agent
Special agent
The rules and regulations regarding real estate licenses in Texas are described in which of the following...? Texas Real Estate License Act Texas Real Estate Law Texas Bureau of Real Estate Article 12-A of the State Real Estate Law
Texas Real Estate License Act
CS/CH1 In this hypothetical, how should the process of making appointments be handled? AThe broker did the right thing in this case and appointed one associate to the seller and he represented the other party. BThe broker should have appointed two associates and stayed out of the mix. CThe broker did everything right, except that he should of stayed in contact with the buyer. DNone of the above are correct.
The broker should have appointed two associates and stayed out of the mix.
Agency -
The relationship between principal and the principal's agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.
Disclosure -
The release of relevant information about a property that may influence the final sale, especially if it represents defects of problems.
Which of the following is a possible red flag from a seller...? AThe seller refuses to disclose certain information on the Sellers Disclosure form BThe seller refuses to let buyers know their reason for seller CThe seller refuses to reveal the lowest offer they are willing to accept DAll of the above
The seller refuses to disclose certain information on the Sellers Disclosure form
