Texas Real Estate Agency 9E

agency classifications: by ratification

occurs when a principal benefits from a previously unauthorized act of an agent and accepts those benefits

agency classifications: implied

occurs when there is no express agreement that the broker will act for a party

There are both differences and similarities when client and customer services are compared. A service that is a client service but not a customer service is

opinions and advice

Attorney Eric Page received compensation from the sale of the White Ridge Ranch. In which of the following ways would the compensation to Page have been permissible?

paid directly by the seller

hourly rate

payable regardless of any title transfer

additional coverage (endorsements) to title insurance may NOT be purchased to include

property damage resulting from fire

Broker Brenda with Aloha Realty is working with George on a customer basis. She shows him numerous properties in the area and price range that George indicated he wished to see. George has decided to make an offer on a property. Which remark by Brenda would NOT be appropriate considering her subagency relationship with the seller?

"let me prepare a comparative market analysis for you to see if the list price is reasonable for this subdivision"

independent contractor

-assumes responsibility for social security taxes -cannot receive benefits such as health insurance from the broker -broker can control what the Individual does but not how the individual does it -assumes responsibility for income taxes

general agency

-authorizes an ongoing series of transactions -for example, a broker acting as a property manager for an owner

broker bob represents both buyer bill and seller sally as an intermediary. what information is bob prohibited from disclosing to sally about bill

-bill's going through a divorce -bill loves the place and is willing to pay $20,000 more than the listing price -bill has to sell the house he is currently living in before he can buy

employee

-broker can control what the individual does and how the individual does it -broker withholds social security and income taxes -broker is required to pay unemployment compensation taxes -broker has control over office hours and routine

Raymond has just received his broker's license and plans to open his own office, Homes Galore Realty. Agency options available for Raymond's new office would include

-buyer agency -intermediary -nonexclusive single agency

special agency

-for example, a broker representing a real estate buyer in purchase price negotiation -sometimes called a limited agency

duties owed to third parties

-honesty -disclosures -fairness

universal agency

-may include acquisition and disposal of assets -not common in real estate transactions

which of the following is regulated by TREC

-residential service companies -easement and right of way agent -home inspectors

Bill is a sales agent and represents Cindy under a listing agreement. The house was treated for termites five years ago, and Cindy painted the deck to cover any evidence of termite damage, which is quite extensive. Billy is aware of the work and the termites, but tells a potential buyer that the deck is in great shape and was recently repainted and inspected for wood rot and termites. The buyer purchases the home and later finds evidence of the termite damage. Which of the following is this an example of?

-statutory fraud -DTPA violation -common law fraud

texas fair housing law

-texas fair housing act: sex, familial status, disability, race, ancestry, religion, national origin, color -federal fair housing act: sex, familial status, disability, race, religion, national origin, color

For a broker to bring suit against a consumer to recover compensation, TRELA requires the broker to show proof

-that the consumer signed a written agreement to compensate -that a buyer was advised to check title prior to signing the sales contract -that the broker's license was active at the time services began

the fiduciary duty of confidentiality includes withholding information about all of the following

-the broker's price opinion -the seller's lowest acceptable price -the client's financial position

how does a license holder create implied agency by accident

-the license holder fails to make clear to the buyer that he is a subagent of the seller -the license holder leads a buyer to think that the license holder is the buyer's agent -the license holder fails to make clear to the buyer that he is the seller's agent

which of the following situations is a broker/seller required to provide a written disclosure regarding the broker's license status

-when the broker is selling property for the broker's daughter -when the broker is selling property for the broker's parent -when the broker is selling property for the broker's spouse

what is boycotting

An agreement among competitors to not do business with targeted individuals or businesses

How are nonexclusive agents paid?

By the client, the other party, or a commission spit. The nonexclusive seller agency broker may be paid directly by the broker's client, be it buyer, seller, tenant, or landlord; indirectly by the other party as a condition of the contract; or by an authorized commission split from the broker representing the other side in the transaction.

Jasmine, a sales associate with Oak Ridge Realty, is contacted by her college roommate, Chelsea, whom she has not seen or spoken to in 12 years. Chelsea's job has just relocated to town, and she wants to purchase a condominium. If Jasmine acts as a subagent of the seller, which statement is TRUE?

Jasmine may act as a subagent, but only with full disclosure and permission of the seller

which of the following is a true statement regarding equitable interests in real property

equitable title is different from legal title

Which of the following is a TRUE statement regarding a broker's agreement with other brokers?

TREC does not generally regulate contractual relationships with other brokers

retainer fee

TREC trust account rules apply to how this type of compensation must be handled

If an act is done knowingly under the DTPA, up to what amount of monetary damages can the consumer collect?

not more than three times economic damages

nearly every state requires

Written or oral disclosure of agency

fraud

____ is done with the intent to deceive

termination of agency: renunciation

a broker decided to no longer represent a seller

termination of agency: breach of the agent's duty

a broker does not act within his client's best interest throughout the course of a listing agreement

if a buyer is purchasing a property that will be financed by a department of veterans affairs (VA) loan,

a buyer's broker fee cannot be included in the loan amount

a broker is NOT required to provide a broker price opinion to which of the following

a customer

Incapacity of the broker or the principal will terminate an agency relationship. What paperwork is needed to prevent this incapacity from bringing about this result?

a durable power of attorney

Not more than three times economic damages are the maximum amount collectible by a consumer for what kind of action?

a false, misleading, or deceptive act done knowingly

termination of agency: expiration

a listing agreement was arranged for six months-during that time, the property didn't sell

fraud or misrepresentation

a material representation can be considered ____

termination of agency: accomplishment

a property sold a week after it was put on the market

termination of agency: revocation

a seller instructs her broker not to act on her behalf anymore and to stop showing the house

Binnacle Realty practices exclusive seller agency. When selling another broker's listings, sales associates with Binnacle Realty will always seek to act as

a subagent of the listing broker's client

which of the following is the best practice for license holders to establish a buyer/agency relationship

a written agreement signed and dated by all the parties to the agreement

which of the following is an example of an agreement not to compete

ace realty tells best realty, "I wont sell in north austin if you don't sell in south austin"

loyalty

acting within the best interests of the client

sales associate

acts an an agent of the sponsoring broker

intermediary

acts for both a buyer and a seller in the same transaction

Sam works at a brokerage firm. She is paid an hourly wage and must work from nine to five. Which of the following would Sam be considered?

an employee

which of the following is a protected class, discrimination of which is a violation of the texas real estate license act

ancetry

how do TREC commissioners get their positions

appointment by the governor

sponsoring broker

assumes responsibility for the activities of a salesperson

When is a person obligated to pay the broker's fee under the terms of the TAR buyer/tenant agreement?

at the closing of the contract where the buyer purchases the property

agency classifications: ostensible

based on a third party being led to believe that a licensee was acting on behalf of another party

why do sales agents sponsored by the broker not have privity of contract with the client

because the agreement for brokerage services is between the broker and the client

Customer Henry met Broker Judd when Henry called Judd's office to ask about a property listed on the internet. That property is not suitable, but Henry agreed to Judd's offer to look at another property. At what point must Judd clarify whether he is going to be working with Henry in a subagent capacity or in a buyer's agent capacity?

before looking at properties listed on the MLS

A license holder is working with an owner to sell the owner's farm. The owner wants to have the flexibility to sell the property on her own and not be required to pay the listing agent or other agent if that happens. She is willing to pay the sales agent if he finds a buyer. When should the license holder explain the pros and cons of the different types of listing agreements with the seller?

before the seller signs the listing agreement

Betsy is a broker who represents a buyer of a new home under a written buyer representation agreement. The builder has offered to pay Betsy a referral fee, and the buyer has agreed to pay Betsy's commission. What is Betsy required to tell the buyer about the referral fee?

betsy is required to disclose the fee and obtain the buyer's consent to receive it

Bonita is a sales agent who represents Chandra under a listing agreement to sell Chandra's home. Ralph, a buyer interested in purchasing the home, asks Bonita what's the lowest price Chandra will take. Chandra told Bonita during the listing negotiations that she was willing to take as low as $10,000 less than the listing price. How must Bonita respond to Ralph's question?

bonita must not disclose that chandra will take less than the listing price unless chandra has authorized the disclosure

agency classifications: gratuitous

brokerage services provided without a charging fee

confidentiality

certain types of information that must be kept between the agent and the client

which of the following parties to a real estate transaction is sometimes called the principal

client

for which of the following types of properties is protection against defects in the title for items of personal property particularly applicable

commercial real estate

which of the following conditions is MOST important when developing a company policy on disclosure

compliance with texas law

Which of the following topics is NOT required to be included in a brokerage firm's policy and procedure manual according to TREC Rule Section 535.2(i)?

conducting an open house

how can a license holder avoid creating an unintended dual agency when helping a buyer locate an appropriate home through a MLS service?

create an expressed buyer agency agreement with the buyer

agency classifications: express

created when a principal employs an agent to act for him

commission split

credits the buyer with a specified amount from the sales proceeds

between which of the following sets of groups must brokers be able to distinguish in order to decide their agency responsibilities?

customers and clients

Irma, a nonlicense holder, inherits a large sum of money. Her husband, Danny, is an associate broker with Honshu Realty. Irma agrees to finance her husband's dream of opening his own brokerage office under the condition that she be a co-owner of the business and that 75% of the monthly net income be deposited to her separate checking account. Which statement is TRUE?

danny could pay the fee as long as Irma does not perform any brokerage activities

which event would be an example of termination of agency by operation of law

death of the owner

David is a sales agent sponsored by Wurst Realty. Wurst, through David, is working with a buyer, Frank, in the purchase of a condominium. David is in the process of explaining the various agency relationships available to work with Frank. Which of the following is NOT an agency relationship David can enter into with Wurst?

dual agency

termination of agency: abandonment

during the term of a listing agreement, the broker was never available to show the property to prospective buyers

client

engages services that include the professional advice and advocacy of another

Broker A has a listing agreement with a seller, wherein the seller reserves the right to sell the property without paying Broker A a commission. If Broker B finds the buyer, what type of listing is this if the seller must pay Broker A the agreed-upon fee or commission?

exclusive agency listing

the type of listing that gives the broker the greatest amount of security is the

exclusive right to sell listing

Broker Ted manages owner Bob's 20-unit apartment complex. In case he wants to raise the rents, Bob instructs Ted to limit all leases to less than 90 days. In regard to providing the Information About Brokerage Services Notice to prospective tenants, Broker Ted is

exempt because the leases are under the statutory limit of 365 days

Bruce is buying his first home. He met with Linda, a license holder with an exclusive seller agency. After answering several general questions, Linda realized that Bruce needed a license holder who could provide him with advice about selecting a property and making an offer. To help Bruce, Linda should

explain that she represents the interests of sellers and encourage him to get a buyer's broker

what is imputed knowledge?

facts known by the agent are considered known by the client

obedience

following the lawful instructions of a client

Karen is a broker who represented a seller, Cory, under a listing agreement wherein Cory sold some property to a buyer, Frank. Frank is extremely unhappy with the outcome of the transaction because he discovers major defects in the property and suspects that Karen and Cory conspired to defraud him. After discovering several defects, Frank immediately files a lawsuit against Cory and Karen alleging, among other things, violations of the DTPA. What was Frank required to do before filing suit against them under the DTPA?

frank must send a demand letter to karen and cory advising them of the complaint and the amount of damages he has suffered

intentionally

fraud is a deceptive act practiced ___ by one person in an attempt to gain an advantage over someone else

which classification of agency applies to the agency relationship between a broker and the broker's sponsored sales agents

general agency

George is a sales agent sponsored by Jackson Realty, and he is working with a seller on the sale of the seller's duplex. The seller is not sure whether George is the right person to list the property. George, in order to convince the seller of his potential, lists the property on the MLS and puts pictures of the duplex on his website. Which of the following applies in this situation?

george could have his license revoked for listing the seller's property without her consent

Which of the following actions must a consumer take before filing a lawsuit under DPTA?

give the would-be defendant a 60-day notice

a license holder is prohibited from performing which of the following for a customer

handle the customer's money

Hans, a listing associate with Munchen Realty, is holding an open house at one of his new listings. The next door neighbor, Gretchen, arrives to tour the property along with friends who are relocating from another city. Hans introduces himself and explains that Munchen Realty represents the owner of the property. He does not provide the Information about Brokerage Services Notice; however, he does provide a general fact sheet about the property and mentions that the property is within FHA-insured loan limits for the area and that mortgage interest rates are the lowest they have been in years. In regard to agency disclosure and the statutory written statement, Hans

has fully complied with TRELA

a broker wishes to purchase property for his own account from a seller. what should the broker do

he is required to disclose that he is a license holder acting on his own behalf

Broker Nelson Forbes wants to sue a seller-client because he was not paid his commission. Which of the following must Forbes prove to bring suit?

he was a licensed broker at the time the brokerage services began

Under DTPA, "documentary material" would include all of the following EXCEPT

hearsay conversation

the fiduciary duties demand that a real estate broker, acting as an intermediary in a transaction, place

his personal interest below those of his two clients

the lead-based paint addendum must be provided in the sale of which of the following properties?

housing built before 1978

Which information should a broker who is acting as subagent to the seller obtain from the listing broker?

how earnest money deposits will be handled

exclusive-right-to-sell listing

if the property sells, the broker will get a commission

Fred Sanders is a sales associate working for American Home Real Estate. Fred receives a check on the 15th and 30th of each month, which eases his personal budgeting. To receive these regular draws on his share of commissions, Fred has signed a note with the broker, which helps maintain Fred's status as

independent contractor

Which of the following fiduciary duties apply when the client tells the broker to make an appointment to get a survey done?

obedience

Debbie is the designated broker for Shetland Realty. She counsels Jenny, a sales associate, that Jenny must stop wearing miniskirts to work, start attending all sales meetings, be at her desk Monday through Friday by 9:00 am, and sign up for two Saturday duties every month. Debbie is jeopardizing Jenny's

independent contractor status

what should an agent do if a client requests an unlawful action

inform the client that the request is illegal and refuse to comply

an abstract of title for a subject property contains a condensed version of

instruments filed into the property records

ace realty has a policy of charging a retainer or advance fee when representing buyers under a buyer representation agreement. what is act required to do with the retainer fee

it must be held in the broker's trust account

George is a sales agent who represents Janet under a listing agreement to sell her new construction, never-inhabited four-plex that she has owned for 11 months. Is Janet required to provide the Seller's Disclosure Notice (SDN) to potential purchasers? Why or why not?

janet is not required to provide the SDN because the four-plex has four dwelling units

Jonie is a sales agent for Best Realty representing Bar None, Inc. in the sale of a large ranch to XLT, Inc. Jonie's firm also represents XLT under a buyer representation agreement. Best represented Bar None when it first purchased the ranch. Both parties have agreed to Best acting as intermediary in the transaction, but there will be no appointments, and Jonie will work with both parties. What is Jonie's duty to Bar None regarding disclosure of information related to Bar None's original purchase of the ranch?

jonie may disclose bar none's confidential information only with bar none's consent

Jordan is a sales agent at Best Brokers, a brokerage firm that engages in exclusive seller agency. Finius has found two properties on the internet that he is interested in. Jordan has the listing on one and the other is listed by A-1 Realty. If Finius approaches Jordan about both properties, will Jordan be able to represent Finius as an agent in the purchase of either property?

jordan cannot serve as Finius' agent in the purchase of either property

which of the following statements BEST describes constructive notice?

knowledge of the agent is imputed to the principal, even if the information is never actually conveyed to the principal

While acting as a subagent, Harry shows a property to a customer and becomes aware that the current owner suffers from AIDS. Two weeks later, Harry is now acting as an agent of a prospective buyer who also happens to be Harry's cousin. Harry may

not reveal the information

Mary, a broker, is considering the practice of exclusive seller agency. She works in a wealthy market and has many long-term relationships with families that are frequently involved in both residential and investment real estate transactions. Which of the following statements accurately describes a disadvantage of exclusive seller agency that Mary should consider?

losing potential commission by limiting her practice to seller-only

what does texas law require the texas department of safety to do with information regarding high-risk sex offenders

mail notice to each residential address within three blocks in a subdivided area

which of the following is true regarding anonymity of a buyer principal

maintaining the anonymity of a famous buyer may keep the seller from increasing the asking price

ethics are enforced against which of the following

members of a professional organization

negligently or innocently

misrepresentation is a false statement made ____ that is a material fact in another's decision to contract

gross price

more recent method of payment that is slowly gaining acceptance

reasonable care and diligence

must be knowledgeable about the property, financing, laws, and level of client expertise

what is the correct name of the largest organization in the country for real estate professionals?

national association of realtors

which of the following is a true statement regarding net listings in texas

net listings are legal in Texas

accounting

no commingling of funds is acceptable

Indicate whether the following statement is true or false and why: Samson owns a brokerage firm, Strong Realty, LLC. He regularly gets paid profits from the brokerage activity conducted by the firm. Does he need a license to do so?

no, as long as Samson does not personally engage in brokerage activity, he can share in the businesses's income

must be a licensed broker be a business entity

no, but a business entity other than a sole proprietor that engages in brokerage in Texas must be licensed as a broker

Shelby is an associate broker with Ace Realty, and she is representing a buyer by oral agreement in the buyer's purchase of raw land. Shelby has advised the broker on several transactions in the past, so the buyer trusts her to provide him with good advice. Shelby tells the buyer that she thinks the purchase is a good investment for commercial development because she has analyzed recent raw land purchases in the area that are going for much more because a tollway will be going up near the location of the land. In fact, once the purchase has closed and funded, the buyer learns that the property will be condemned by the state because it needs the property for the tollway right of way, so the buyer sells the property to the state for a loss. If the buyer sues Shelby, is Shelby likely liable under the DTPA?

no, not if Shelby's statement is considered advice or opinion and not an express misrepresentation or unconscionable action

After prolonged negotiations, a seller has accepted the buyer's price offer. The buyer is eager to move ahead, but needs to change the closing date by one week. Can the seller's agent change the closing date without involving the seller?

no, the change cannot be made without the client's approval

Does the IABS Notice disclose to a buyer that the sales agent represents the seller?

no, the notice is information only; it does not disclose who represents who

Under the Real Estate License Act, is a seller liable for a subagent's misrepresentations or concealment of a material fact?

no, the seller is not liable unless the seller knew of the falsity of the misrepresentation or concealment and failed to disclose her knowledge of it

which of the following terms is synonymous with the term "client"?

none

noncontingent flat fee

rarely used unless the agent has a great deal of experience in representing buyers

Broker Judd is acting as a buyer's broker for Carlton. A broker across town with a listing for a property that would be suitable for Carlton offers Judd an attractive offer for subagency on the listing. What must Judd do?

reject the offer for subagency

the seller's disclosure notice is required to be provided in which of the following real estate transactions

residential real property comprising not more than one dwelling unit

disclosure

revealing all material facts in a timely manner

When working with a buyer on a transaction, a license holder who is subagent for the seller must act in the best interests of the

seller

Shannon is a sales agent who engages in residential property management that includes leasing of the properties. Her broker knows that Shannon is doing property management. Shannon has her own operating and trust accounts that she operates independent of her broker. Which of the following best describes the matter?

shannon cannot operate a trust account; all trust funds should be managed by her broker

sonya is a real estate agent. technically, sonya does not need a broker or sales agent license if

she is not compensated for providing real estate services for someone else

sally is a licensed sales agent. what is her status as a realtor

she must join the texas association of realtors to be a member of that organization

Bailey broker sponsors two sales agents: Jon and Jen. Horace has signed a buyer representation agreement with Bailey to have Bailey and his team help Horace find a new home. What kind of agents are Jon and Jen to Horace?

special agents

the agency relationship is established between the

sponsoring broker and the principal

George is a broker for company A representing a seller under a listing agreement. Sam is a broker for company B. If George and Sam have an arm around relationship in the same transaction, what type of agency relationship do they have?

subagency relationship

Describe the steps for creating a company policy for disclosure. Which of the following is one of the steps in creating a comprehensive brokerage firm policy?

submit the policy to legal advisers for review

according to its licensing law, which of the following items is required in a buyer-representation contract in texas

termination date

which of the following pieces of information is the listing agent on an office building required to disclose to a customer who is interested in the property

terms of leased held by current tenants

The DTPA provides that a consumer can sue if the consumer has suffered economic damages produced by unconscionable action by another. "Unconscionable" means

that a person has taken advantage of the lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree

which of the following is a true statement

the DTPA prohibits both misrepresentations and omissions to consumers that cause harm

Two siblings were bequeathed the family home in their father's will. The oldest brother wants to sell his portion to his younger sister. In which of the two transactions, from the father's estate to the siblings, and the brother's sale of his interest to his sister, is the seller required to provide the Seller's Disclosure Notice (SDN)?

the SDN does not need to be provided in either transaction

What can happen if an agent acts on behalf of an undisclosed principal?

the agent could be presumed to be acting on his own behalf

Which of the following is the BEST course of action for a seller's agent when there is a possibility that other offers will come in after the seller has entered into a contract to sell

the agent should first discuss with the seller whether the seller wishes to entertain back-up offers before the situation arises

In a multiple-offer situation, what should the seller's agent tell the buyer or buyer's agents about the other offers?

the agent should tell the offerrors the same thing, depending on what information the seller authorizes the agent to disclose

Indicate whether the following statement is true or false and the reason why: A sales agent can enforce a buyer representation agreement against the buyer.

the answer is false. only the broker can enforce the terms of the buyer representation agreement

In a real estate transaction where the broker is an intermediary between a buyer and a seller and no appointments have been made, which of the following statements BEST describes the broker's role in the transaction?

the broker must remain impartial and not give preferential treatment to the buyer or the seller

exclusive-agency listing

the broker will get a commission only if securing the offer from the buyer

which statement is true concerning exclusive seller agency

the broker will never work for the buyer and for the seller

open listing

the brokerage firm that secures a buyer will get a commission

what is the duty of a license holder regarding the disclosure of the fact that an occupant of the property died of AIDS

the canons of professional ethics and conduct prohibits its disclosure

what is the national association of realtors code of conduct named

the code of ethics

is the buyer's agent's fiduciary duty to a buyer different from a seller's agent's fiduciary duties

the fiduciaries duties are the same

Broker Joe is an intermediary in the sale of Christine's home to Della. What can Joe tell Della about Christine and/or the property absent Christine's consent?

the house has foundation problems

When acting as the listing agent for a seller, why is the license holder's prior relationship with a buyer important?

the license holder may possess information that cannot be disclosed to the seller

what may result from the license holder providing advice or opinions to a party in a real estate transaction

the license holder may unintentionally become the party's agent

According to TRELA, which of the following license holders is NOT required to make a disclosure?

the license holder who represented an unsuccessful bidder the last time the property was sold

what happens if a license holder does not explain, in writing, to a customer that the license holder represents the other party

the license holder's actions may accidentally create implied agency

what happens if a broker becomes ill and cannot continue to represent the seller during the term of a listing

the listing is terminated

which of the following is NOT an element of agency by ratisification

the principal denies the agent's authority to act

which of the following is an example of a purely psychological stigma of real property

the property is the location of a murder

prospective customers ask the listing agent "how long do you think this current roof will last?" which of the following responses is BEST for the agent?

the roof was put on 10 years ago, and the owners were given a 30-year warranty

what are the intermediary rules for commercial real estate transactions

the same intermediary rules and laws apply to commercial transactions and residential transactions

ABC Brokerage is careful to include all the proper language to permit intermediary relationships in their buyer-representation and listing contracts. They have trained their sales agents to carefully explain how this can happen in an in-house transaction. Under these circumstances, why might it be important to provide a "second consent" form when a represented buyer becomes interested in one of the brokerage's listings?

the second form helps to remind the buyer and the seller about intermediary brokerage and provides a way to meet the statutory requirement to identify the appointed license holders by name to all parties

indicate whether the following statement is true or false and why: a broker may negotiate the terms that the firm will take for the listing

the statement is true; for example, commissions are fully negotiable

a specific termination date is required in a buyer's representation agreement under which of the following laws or rules

the texas real estate license act

The Texas Fair Housing Act is enforced by which of the following state agencies?

the texas workforce commission

Jones Realty is a licensed brokerage firm that engages in commercial real estate leasing with intermediary agency. The firm has two brokers: the designated broker for the firm and an associated broker. There are two sales associates. Ace, LLC has engaged Jones to find commercial tenants for an office building. Smyth, LLP is a Jones client interested in leasing space for a law firm. Although both parties have legal counsel, they have consented to intermediary representation. If license holders are appointed to each of the parties, what can be expected of the license holders?

they must be available to provide advice and opinion to their designated principal

what is mortgagee title insurance

title coverage for the lender

why might a broker practicing exclusive seller agency treat a buyer as a customer

to take advantage of earning an undivided commission

which of the following is a clear breach of a license holder's fiduciary duties to the buyer and seller

undisclosed dual agency

Which topic should a license holder discuss with a consumer who needs to conduct a complex transaction even before offering to assist the consumer in a transaction?

what the license holder can and cannot do

when is it NOT necessary to provide the IABS notice

when the transaction is for a lease of less than one year and a sale is not being considered

Broker Becky is negotiating a listing agreement with seller Sue. Which of the following is NOT an example of items Becky is free to negotiate with Sue?

whether to disclose foundation problems to prospective buyers

in which of the following situations is unintended dual agency likely to occur?

working with a former client as a customer

Can a newly licensed sales agent engage in property management?

yes, a new sales agent may engage in property management if her sponsoring broker authorizes her to do so

Seller Vincent decided to let the listing agreement he had with broker Bob expire and sell the property himself. Prospective buyers who looked at Vincent's farm twice while Bob had the listing remained interested in the property, and they want to buy the farm from Vincent directly. Does Bob retain any interest in this transaction?

yes, if the buyer is registered under a protection clause

A recent buyer is making a claim of misrepresentation because the property taxes on his newly purchased home are far higher than was disclosed by the seller. Could the broker be liable on this claim?

yes, the broker cannot claim that she merely passed along information from the seller

is a broker liable for the acts of the broker's sponsored sales agents?

yes, the broker is vicariously liable for the acts of sponsored sales agents

Broker Bob has a buyer-representation contract with buyer Jay Sterling. Do the licensees who work in Bob's office have any relationship with Sterling?

yes, they automatically represent starling

Aiko, a broker, represents the seller, Kotori, under a listing agreement. Two competing buyers, Allen and Betty, are interested in submitting offers to the seller. Which of the following statements by Aiko would be considered unfair conduct?

you are going to have to beat betty's offer of $200,000 (to allen)