Texas Principles of Real Estate 1 - Chapter 4

$25,000,000

5. 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

TRUE

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

Loyalty

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

Disclosure

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

Customer

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

An escrow account

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

Listing Contract

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....? Listing Contract Purchase Contract Exclusive Contract Agency Contract

Latent Defect

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

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

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

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...? Loyalty Disclosure Care Accounting

Information

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

Implied Agency

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

Express Agency

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

All of the above

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

General Agent

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

Special Agent

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

FALSE

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

Compensation

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

Consideration

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

Loyalty

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

Consumer

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

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

Assisting with counter offers

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

Seller

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

Sub-agent

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

Termination

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

Seller's Disclosure Notice

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

Availability

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

Deceptive Trade Practices Act

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

Customer

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

Indemnification

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

Caveat Emptor

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

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...? Buyer Representation Agreement Listing Agreement Purchase Agreement 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

Honesty

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

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