Texas Law of Agency Ch. 1 QUIZ

Real estate salesperson Associate broker Associate licensee

A real estate broker may sponsor which of the following...?

The principal

A real estate broker works for which of the following in a transaction...?

Listing contract

Agency between a broker and principal is created through a/an...?

A sponsoring broker

If an individual works as an associate broker, who must they work under...?

The broker should have appointed two associates and stayed out of the mix. When appointing associates to a transaction, the broker should never be involved within the intermediary situation. The broker should appoint neutral associates to each party and then manage each associate to ensure that the client's interests take precedent over everything else.

In this hypothetical, how should the process of making appointments be handled?

No. The listing associate may not negotiate because one of the parties would have been at an disadvantage. Nothing prevents a listing associate from negotiating a sale of that listing to a represented buyer. However, in this case, no appointments could be made and neither the seller nor the buyer should receive any advice or opinions that would act to the disadvantage of the other party.

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?

Agent

One who acts for and with authority from another, called the principal, is known as a/an...?

Legislation

Statutory law is derived from which of the following...?

Prospective client

The Information About Brokerage Services form is presented by the broker to the...?

Customer

The party the agent brings to the principal as a seller or buyer of the property is known as a/an...?

The broker violated his fiduciary duties to both clients and The broker violated the intermediary laws set forth by TRELA and The broker violated ethical and possibly legal rules and regulations. The broker in this situation broke numerous rules and regulations by acting as an intermediary in this transaction. The broker should have appointed two separate associates to represent each party rather than appointing himself. Thus, the broker was technically placing all parties at a disadvantage. It would have been best to not represent one of the parties rather than trying to represent them all.

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?

A real estate broker

Which of the following can legally employ a real estate salesperson to work on their behalf...?

Real estate broker

Which of the following has the highest authority in an agency relationship...?