Session 1 - Chapter 4 The Law of Agency Quiz

According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding .............. are not considered consumers? $1,000,000 $5,000,000 $10,000,000 $25,000,000

$25,000,000

An agency relationship may be terminated by which of the following...? a. Destruction of the property b. Expiration of the term of an agency c. Mutual agreement of the parties d. All of the above

All of the above

Which of the following is considered misleading under the Texas Deceptive Trade Practices Act...? Representing that something is new when in fact it is not Advertising a property when the agent has no intention of actually selling the property Making false statements about reasons for a sale All of the above

All of the above

Which of the following is owed to a customer by an agent...? Reasonable care and skill Honesty Disclosure of any known material facts All of the above

All of the above

A buyer's earnest money should be deposited in which of the following...? a. The broker's account b. The seller's account c. An escrow account d. Any of the above

An escrow account

The fiduciary duty of care when representing a buyer includes which of the following services...? a. Assisting with counter offers b. Evaluating terms and conditions from any offers on the property c. Disclosing information learned from the seller's broker d. All of the above

Assisting with counter offers

The seller must allow their agent to show the property to prospective buyers. This is an example of what responsibility owed by the seller to the agent...? Availability Care Disclosure Accounting

Availability

When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts...? A. Buyer Representation Agreement B. Listing Agreement C. Purchase Agreement D. All of the above

Buyer Representation Agreement

When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts...? a. Buyer Representation Agreement d. All of the above c. Listing Agreement d. Purchase Agreement

Buyer Representation Agreement

Which of the following acronyms summarizes the fiduciary duties a broker owes to his/her principal...? A. C.O.A.L.D. B. O.L.D.C.A C. W.B.V.A. D. C.A.T.T.L.

C.O.A.L.D

The 'C' in the acronym C.O.A.L.D. stands for which fiduciary duty...? a. Consideration b. Co-sign c. Care d. Conditional

Care

When a buyer is required to examine the property and buy at his/her own risk, it is referred to as...? Caveat Emptor Indemnification Fraud Calculated Risk

Caveat Emptor

The 'C' in the acronym C.I.I.A. stands for...? Care Consideration Confidentiality Compensation

Compensation

The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services...? Agent Principal Client Consumer

Consumer

A broker will work for a client and with a...? a. Principal b. Customer c. Agent d. None of the above

Customer

This refers to the party the agent brings to the principal as seller or buyer of the property...? a. Client b. Customer c. Partner d. Principle

Customer

This Act protects consumers against false, misleading, or deceptive acts...? Deceptive Trade Practices Act Consumer Protection Act Fair Trade Act Texas Consumer Act

Deceptive Trade Practices Act

A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty...? a. Disclosure b. Loyalty c. Care d. Accounting

Disclosure

A seller's broker is required to tell their client any relationship they may have with the buyer. This is an example of which fiduciary duty...? a. Loyalty b. Disclosure c. Care d. Accounting

Disclosure

An agency relationship created by oral or written agreement between the principal and the agent is known as...? A. Express Agency B. Implied Agency C. Brokerage D. General Agency

Express Agency

An agency relationship created by oral or written agreement between the principal and the agent is known as...? a. General Agency b. Express Agency c. Implied Agency d. Brokerage

Express Agency

Real estate agents cannot be held liable for any false or misleading information about a property...? True False

False

Real estate brokers have a ................... relationship with the principal? a. Special b. Universal c. Fiduciary d. General

Fiducary

An agent with full authority over one property of the principal is known as a...? a. General Agent b. Special Agent c. Specific Agent d. Real Estate Agent

General Agent

Which of the following is owed to a customer by an agent...? Honesty Accounting Availability Indemnification

Honesty

Agency that exists as a result of actions of the parties is known as...? a. Implied Agency b. Express Agency c. General Agency d. Special Agency

Implied Agency

This reimbursement or compensation paid to someone for a loss already suffered is known as...? Indemnification Consideration Arbitration Conversion

Indemnification

According to this responsibility, the seller must always provide any known material facts about the property...? Care Information Loyalty Accounting

Information

A defect known to the seller but not to the buyer, and is not discoverable by ordinary inspections is referred to as a/an...? Latent Defect Non-structural Defect Structural Defect Insignificant Defect

Latent Defect

A contract in which a property owner employs a real estate broker to market the property described in the contract is referred to as the....? a. Agency Contract b. Purchase Contract c. Listing Contract d. Exclusive Contract

Listing Contract

A broker must always place his/her client's interests above their own. This is an example of what fiduciary duty...? a. Disclosure b. Loyalty c. Care d. Accounting

Loyalty

The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty...? a. Litigation b. Loyalty c. Listing d. License

Loyalty

Can Salesperson Jane provide any of the information she obtained from Seller Jim to Buyer John if Salesperson Jane has no representation agreements with Buyer John? A/ No. Buyer John is not entitled to this information since he is only a customer B/ No. Buyer John is not entitled to this information because Salesperson Jane must provide Buyer John with the Information About Brokerage Services before this information can be relayed to him C/ Yes. Buyer John does not have to be a client to be entitled to this information D/ Yes. Buyer John is entitled to this information because he is a customer of Salesperson Jane

No. Buyer John is not entitled to this information since he is only a customer

The employer of an agent is referred to as the...? a. Fiduciary b. Partner c. Principal d. Customer

Principle

The Deceptive Trade Practices Act discourages agent from which of the following acts...? A. Puffing B. Exclusive agency C. Indemnification D. All of the above

Puffing

The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth is known as...? Redlining Novation Puffing Steering

Puffing

The listing agreement is a contract between the real estate broker and the...? A. Seller B. Buyer C. Agent D. Customer

Seller

The seller is required to provide buyers with which of the following documents...? Survey Property Inspection Report Seller's Disclosure Notice Property Condition Report

Seller's Disclosure Notice

An agent with limited authority to act on behalf of the principal is referred to as a...? a. General Agent b. Universal Agent c. Special Agent d. Specific Agent

Special Agent

The sale of the property results in the ............................ of the agency relationship? a. Beginning b. Creation c. Termination d. The agency relationship is not contingent on the sale of the property

Termination

A seller's agent is entitled to a commission after...? a. The agent finds a buyer who is ready, willing, and able to purchase the property b. The buyer closes on the transaction c. The seller agrees to pay the commission d. All of the above

The agent finds a buyer who is ready, willing, and able to purchase the property

A broker as a fiduciary owes certain loyalty, which cannot be breached under the rules of agency...? True/False

True

Can Salesperson Jane provide any of the information she obtained from Seller Jim to Buyer John if Salesperson Jane represents Buyer John as a buyer's agent? A/ Yes. Buyer John is entitled to this information because he is a customer of Salesperson Jane B/ Yes. Buyer John is entitled to this information since he is only a customer C/ Yes. Buyer John is allowed this information because he is Salesperson Jane's client. D/ No. Buyer John is not entitled to this information because Salesperson Jane must provide Buyer John with the Information About Brokerage Services before this information can be relayed to him

Yes. Buyer John is allowed this information because he is Salesperson Jane's client.

Could Salesperson Jane get into trouble for speaking with Seller Jim and trying to negotiate a deal without Seller Jim's agent not being present? A/ No. Salesperson Jane was simply trying to get her client the best deal and thus she is able to do whatever it takes to get the price down for Buyer John B/ No. Salesperson Jane has broken no laws because its common practice for agents to talk to other agent's clients. C/ Yes. Salesperson Jane is not supposed to speak with another agent's client without first obtaining permission from that agent. D/ Yes. Salesperson Jane will most likely face criminal charges because her client was not present during the negotiations.

Yes. Salesperson Jane is not supposed to speak with another agent's client without first obtaining permission from that agent.

As a seller's agent in a transaction, the agent is required to do which of the following...? a. Present all offers to the seller b. All of the above c. Inform the seller of any material information d. Answer to the seller

all of above

The real estate agent in a transaction is considered a ............ to his/her broker? a. Principal b. Client c. Customer d. Sub-agent

sub - agent