Texas Law of Agency Quiz

The principal

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

Implied agency

Agency that exists as a result of the actions of the parties is known as...?

Fairness

Jill works as a seller's agent. What duties does Jill owe to a prospective buyer...?

Legisation

Statutory law is derived from which of the following?

Loyalty

This is an agent's duty to place their client's interest above those of all others, including the agent's own self-interest...?

Exclusive Right to Sell Agreement

Which of the following listing agreements offers the most amount of protection for the broker...?

The broker's opinion of value How the commission is being split with other brokers If the broker is receiving an additional commission from another party

A broker must disclose which of the following to their principal...?

Unconscionable actions

A broker who takes advantage of a consumer to a grossly unfair degree may be guilty of...?

In writing

A buyer representation agreement needs to be ............in order for the broker to earn a commission?

Legal services Financial services Appraisal services

A buyer's agent should not provide which of the following services to the principal...?

Mediation

A dispute that arises out of a buyer representation agreement must be resolved first through...?

In writing

A listing contract between a seller and broker must be...?

Special agency

A listing contract creates what type of agency...?

Exclusive Right to Sell Agreement

A listing contract given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is known as a/an...?

Real estate broker

A listing contract is signed between a principal and a...?

Real Estate Salesperson Associate broker Associate licensee

A real estate broker may sponsor which of the following?

The principal

A real estate broker should only provide advice and opinions to which of the following parties...?

Texas Association of Realtors

According to the Independent Contractor Agreement For Sales Associate, the salesperson is a member of which associations...?

Confidentiality

According to this fiduciary duty, an agent must keep confidential any information that may weaken the principal's bargaining position...?

An automatic renewal clause

Agency agreements may not have which of the following...?

Listing Contract

Agency between a broker and principal is created through a\an?

Agency by ratification

An agency 'after the fact' is also known as a...?

Reasonable care

An agent owes which of the following fiduciary duties to a customer...?

Fiduciary duties

An agent who represents a client owes ..........to that client?

Special agent

An agent with limited authority to act on behalf of the principal is known as a...?

Non-exclusive listing contract

An open listing contract is an example of a/an...?

Material fact

Any fact that would influence the decision of a reasonably prudent person is known as a/an...?

Disclosing to the buyer that the seller will accept an offer below the asking price Disclosing to the seller that the buyer is willing to pay more than the asking price Disclosing confidential information about either party

Bob is a broker serving as an intermediary in a transaction. He decides to appoint two of his associate licensees to represent the seller and buyer. The associate licensees are prohibited from which of the following actions...?

Business and Commerce Code

Fraud in the real estate industry is covered in which of the following statutes...?

The broker is always responsible for the actions of the licensees

If a broker acting as an intermediary assigns licensees to represent both the buyer and seller, who becomes responsible for the agency relationships...?

Intermediary

If a broker represents both the seller and buyer, the broker is acting as a/an...?

Loyalty Confidentiality Reasonable skill and diligence

If an associate licensee is assigned to represent the seller in an intermediary agency transaction, what fiduciary duties does the licensee owe to the seller...?

A Sponsoring broker

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

A ready, willing, and able buyer

In order to earn a commission, a broker must secure which of the following...?

Expiration of the contract Fulfillment of the duties by both parties The buyer rescinds the contract

Joe entered into an agency agreement with a buyer. How may Joe's agreement be terminated...?

Punitive damages

Lisa is a real estate broker who knowingly committed a violation under the DTPA. Lisa may be held responsible for paying...?

There is no standard term

Matthew signed an independent contractor agreement with his broker. What is the standard term used in the agreement...?

Agent

One who acts for and with authority from another, called the principal, is know as a\an?

Special provisions

Paragraph 17 of the Residential Buyer/Tenant Representation Agreement lists which of the following...?

Information About Brokerage Services

Prior to entering into an agency relationship, a buyer's broker must present the buyer with which of the following forms...?

Errors and omissions insurance

Real estate brokers typically obtain what type of insurance...?

Review the advantages and disadvantages of each agency relationship

Residential Realty recently started to develop a new policies and procedures manual. What is the second step they need to take in developing the manual...?

Sub-agent

Sam is a real estate broker who is bringing a buyer to a transaction. If Sam did not sign a buyer representation agreement with the buyer, he will serve as a .............to the seller's broker?

The seller

Sam recently entered into a buyer representation agreement with a buyer. Which of the following is a third party to the agreement...?

DTPA

The ............is designed to protect the consumers against any false, misleading, or deceptive business practices?

Seller's Disclosure of Property Condition

The Texas Property Code requires which of the following in a residential transaction...?

Deceptive Trade Practices Act

The acronym DTPA stands for 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 principle as a seller or buyer of the property is known as a\an?12

The Information About Brokerage Services

This document explains to the customer the services offered by the brokerage...?

Survey

This is a document which precisely shows the property lines, and size and location of improvements on a particular property...?

Agency by estoppel

This type of agency may exist before a listing contract is signed between a broker and seller...?

Policy holder

Title insurance consists of a contract between an insurance company and a/an...?

Matters regarding the competency of agents Matters regarding advertising rules Matters regarding continuing education

Town Brokers are developing a company policies and procedures manual. What should be included in the manual...?

Punitive damages

Under the DTPA, an agent who is found guilty of misrepresentation may be required to pay which of the following...?

15,000 dollars ($)

Under the DTPA, if a consumer suffered $5,000 in loses, how much may they recover in punitive damages...?

Conduct in-house training sessions and monitor the effectiveness of the manual

What is the fifth step in developing a broker's company policies and procedures manual...?

Write the company policy manual

What is the fourth step in developing a broker's company policies and procedures manual...?

The law

What is the minimum standard of conduct for a real estate professional...?

Review the advantages and disadvantages of each agency relationship

What is the second step in developing a broker's company policies and procedures manual...?

Review the size and experience of the broker's office staff

What is the third step in developing a broker's company policies and procedures manual...?

Mutual agreement between the parties

What is typically needed to create an agency relationship...?

The broker's agency relationship with the seller

What must a listing broker disclose at their first substantial dialogue with a prospective buyer...?

Express agency

What type of agency is typically used in a real estate transaction...?

If representation agreements are signed with both the buyer and seller, which allows the broker to act as an intermediary

When is written consent not needed for a broker to act as an intermediary...?

A Real Estate Broker

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

Exclusive right to purchase agreement

Which of the following creates an exclusive agency relationship between a buyer and a broker...?

Confidentiality

Which of the following duties does an agent owe to the principal after the agency agreement is terminated...?

TILA

Which of the following federal laws requires lenders to disclose to borrowers the actual cost of obtaining a loan...?

Real Estate Broker

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

The seller refuses to disclose certain information on the Sellers Disclosure form

Which of the following is a possible red flag from a seller...?

National origin

Which of the following is a protected class under the Federal Fair Housing Act...?

A breach of contract by the agent or principal

Which of the following is an example of a termination of agency by the actions of the parties...?

Building a ramp at the entrance of a building

Which of the following is considered a reasonable accommodation under the ADA...?

Written consent from all parties

Which of the following is needed in order to allow a broker to appoint associate licensees to represent the seller and buyer in an intermediary brokerage...?

The law

Which of the following laws takes precedent over all other laws...?

The agent must have held a valid real estate license prior to the start of the transaction

Which of the following must be satisfied in order for an agent to receive a commission from a transaction...?

Seller Buyer Landlord

Which of the following parties may serve as the principal in a transaction...?

Both the buyer and seller

Which of the following parties must provide written consent to an intermediary brokerage...?

The customer

Which of the following parties primarily benefits from an agency by estoppel...?

CMA

Which of the following should a broker provide to justify the listing price on a listing agreement...?

Lead-based paint

Which of the following was prohibited from being used after 1978...?

The seller

Who is responsible for completing the Seller's Disclosure of Property Condition form...?

The salesperson's sponsoring broker

Who pays a real estate salesperson their commission for a transaction...?