Texas Law of Agency

The Texas Real Estate Commission was created in what year...? 1949 1963 1988 2001

1949

Statutory dual agency was revoked in what year...? 1949 1988 1993 1996

1996

In order to become a real estate broker in Texas, a real estate salesperson must be active for ...........out of the previous five years? 1 2 3 4

4

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 receives advice, or an opinion, from a real estate broker...? A principal A customer A neutral third party All of the above

A principal

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

This refers to the relationship between a 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..? Agency Brokerage Joint venture Partnership

Agency

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

A buyer's agent should not provide advice regarding which of the following...? Legal matters Tax matters Accounting matters All of the above

All of the above

According to a listing contract, a broker agrees to do which of the following...? Put the seller's interests above any others Market the property Represent the property and the seller All of the above

All of the above

Agency can be classified in which of the following ways...? General agency Special agency Universal agency All of the above

All of the above

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

David is operating as a buyer's agent. Which of the following services should David not provide to the buyer...? Legal services Financial services Appraisal services All of the above

All of the above

How does a broker benefit from an exclusive agency relationship with the seller...? An exclusive agency relationship prevents a conflict of loyalty The broker's liability is limited with the buyer's broker The broker is ensured a commission if they sell the property 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

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

A net listing is illegal in Texas...? T (True) F (False)

F (False)

A person in a position of trust and confidence is known as a/an...? Partner Associate Fiduciary Subordinate

Fiduciary

Real estate agents operate as a/an ................to their sponsoring broker? Partner Independent contractor Client Employer

Independent contractor

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

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

A buyer's agent is allowed to provide which of the following services to the principal...? Negotiating services Legal services Financial services All of the above

Negotiating services

This is a listing contract which provides that the agent may retain as compensation for agent's services, all sums received over and above a net price to the owner...? Exclusive Right to Sell Agreement Exclusive Agency Agreement Open Listing Net Listing

Net Listing

A customer is also known as a...? Client Non-client Principal Partner

Non-client

Which of the following is a listing contract given to one or more brokers in which the broker procuring a sale is entitled to the commission, but imposes no commission obligation on the owner when the owner sells the property...? Exclusive Right to Sell Agreement Exclusive Agency Agreement Open Listing Net Listing

Open Listing

Which of the following offers the least amount of protection to the buyer's broker...? Exclusive right to purchase agreement Exclusive agency agreement Open buyer agency agreement Net listing agreement

Open buyer agency agreement

A broker signed a buyer representation agreement with a buyer. What type of agency was created...? General agency Special agency Universal agency Specific agency

Special agency

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

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

A law that is written by a legislating body is known as...? Statutory law Real estate law Common law Civil law

Statutory law

A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agent's principal, is known as a/an...? Exclusive agent Sub-agent Intermediary Prime agent

Sub-agent

A buyer's broker can appoint sub-agents to help the buyer find a property...? T (True) F (False)

T (True)

A buyer's broker should NOT provide legal advice to their client...? T (True) F (False)

T (True)

An exclusive right to purchase agreement most favors which of the following parties...? The seller's broker The buyer's broker The seller The buyer

The buyer's broker

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

Which of the following orders the appraisal for a transaction...? The broker The lender The agent The seller

The lender

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

What is the standard broker commission rate for a real estate sales transaction...? 1 percent (%) of the sales price 3 percent (%) of the sales price 6 percent (%) of the sales price There is no standard commission rate

There is no standard commission rate

An agent that can serve the principal in any capacity is known as a...? General agent Special agent Specific agent Universal agent

Universal agent

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

A real estate salesperson must work under...? Another real estate salesperson A sponsoring broker An associate licensee Any of the above

A sponsoring broker

How does a seller benefit from an agency relationship...? The seller's property is broadly marketed The seller can receive advice from the broker The seller can receive assistance from the broker when negotiating with a prospective buyer All of the above

All of the above

Which of the following can serve as a principal...? Seller Buyer Lessor All of the above

All of the above

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

If a buyer and broker do not sign a buyer representation agreement, the buyer will serve as a ..........to the broker? Principal Client Customer Partner

Customer

What type of agency relationship is created through a listing contract...? Substantial agency Implied agency Partial agency Express agency

Express agency

According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions...? T (True) F (False)

F (False)

A person in a position of trust and confidence, as between a principal and broker is known as a...? Partner Fiduciary Associate Subordinate

Fiduciary

In a ..........., the buyer pays the purchase price of a property while the seller pays the buyer's brokers commission? Net purchase price Gross price Commission split Flat rate

Gross price

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

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 buyer representation agreement is signed by a buyer and a/an...? Real estate salesperson Real estate broker Associate licensee Seller

Real estate broker

A commission is typically calculated as a percentage of the...? Appraised value Assessed value Sales price Listing price

Sales price

A listing contract is signed by a broker and a/an...? Seller Buyer Agent Customer

Seller

When an agent represents both sides to a transaction, which of the following parties is responsible for the agency relationship...? The real estate salesperson The broker The seller The buyer

The broker

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

A seller's broker may be compensated by the seller in which of the following means...? Retainer fee Seller paid fee Commission Any of the above

Any of the above

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

Robert is looking to exclusively represent a buyer in a transaction. Which of the following document should Robert sign with the buyer...? Listing Contract Open Listing Exclusive Agency Agreement Buyer Representation Agreement

Buyer Representation Agreement

A law that is made by a judge's decision in a court case is known as...? Statutory law Real estate law Common law Civil law

Common law

According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property...? Confidentiality Full disclosure Obedience Accountability

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 brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is NOT owed to the buyer...? Honesty Fairness Confidentiality Full disclosure

Confidentiality

Which of the following offers the most protection to a buyer's broker...? Exclusive right to purchase agreement Exclusive agency agreement Open buyer agreement Net listing agreement

Exclusive right to purchase agreement

A buyer representation agreement creates what type of agency...? Express agency Implied agency Partial agency General agency

Express agency

A contract that has been put into words, either spoken or written, is known as a/an...? Express contract Implied contract Statutory contract Substantial contract

Express contract

A buyer's broker should diligently assist their client in obtaining the necessary financing to purchase a house...? T (True) F (False)

F (False)

An agency relationship must be created in order for a broker to show properties to a buyer...? 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)

If a broker brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is still owed to the buyer...? Confidentiality Loyalty Fairness All of the above

Fairness

A real estate salesperson serves as a ............to their sponsoring broker? Client Customer Fiduciary Principal

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

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

A broker who represents both the buyer and seller in the same transaction operates as a/an...? Intermediary Partner Associate Exclusive broker

Intermediary

What was created in place of statutory dual agency...? Cooperating brokerage Single agency Intermediary brokerage Subordinate agency

Intermediary brokerage

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

This is a contract in which a property owner employs a real estate broker to market the property described in the contract...? Independent contractor agreement Listing contract Purchase contract Sales contract

Listing contract

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

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

A false statement regarding a material fact is known as...? Misrepresentation Puffing Disclosure Reasonable care

Misrepresentation

The party that the listing contract is with is referred to as the...? Principal Partner Associate Subordinate

Principal

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

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 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

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

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

An agent's compensation for performing the duties of the agency is known as a/an...? Commission Salary Bonus Referral fee

Commission

An agent must provide customers with advice if asked by the customer...? T (True) F (False)

F (False)