Unit 12 - Implementation and Presentation

Which of the following statements would be the BEST way to begin an explanation of a brokerage's policy on intermediary brokerage to a customer who is interested in entering a seller agency agreement? A) "Don't even worry about intermediary brokerage now. We can think about that if the need arises." B) "Intermediary brokerage is similar to dual brokerage, but with the added bonus of the appointment process, which is good for you and the buyer." C) "If we run into a situation that requires intermediary brokerage, the process will be invisible to you, because it's really a broker-to-broker situation." D) "Intermediary brokerage is a method of handling the transaction if a suitable buyer for your property is identified who does not have a relationship with another broker."

"Intermediary brokerage is a method of handling the transaction if a suitable buyer for your property is identified who does not have a relationship with another broker."

Broker Judd has the listing for a property that customer Nelson wants to buy. A license holder in Judd's office has explained intermediary brokerage to Nelson. Nelson responds, "I don't want any part of that dual agency! I've had that once and no one paid attention to my interests." How should Judd reply? A) "What we can offer you is intermediary brokerage, which is different than the dual brokerage of the past. With intermediary brokerage, a license holder will be appointed to place your interests above all others." B) "That was before TRELA made improvements in the law that concerned dual brokerage. Things are much better now that we have the opportunity to appoint intermediaries. I can promise you will be protected." C) "That was with a different brokerage, wasn't it? We always make sure to treat everyone fairly. It's our company's policy." D) "I can understand what you mean. Dual brokerage wasn't a good idea for buyers. The seller's interests were always primary and buyers were a second thought."

"What we can offer you is intermediary brokerage, which is different than the dual brokerage of the past. With intermediary brokerage, a license holder will be appointed to place your interests above all others."

What is the UETA? A) A state law that prohibits electronic signatures in real estate transactions B) A TREC rule that authorizes electronic signatures for listing agreements C) A state law that makes electronic transactions the equivalent of written agreements if the parties agree D) A federal law that prohibits electronic signatures

A state law that makes electronic transactions the equivalent of written agreements if the parties agree

Valerie is a sales agent working for a buyer under a written buyer representation agreement. Which of the following is NOT included in the list of items Valerie should discuss with or provide to the buyer in preparing to make an offer? A) How offers and counteroffers proceed B) Agency disclosures and the IABS Notice C) Assisting the buyer/client in structuring the offer D) Each contract provision

Agency disclosures and the IABS Notice

What is the difference between an appointee in an intermediary brokerage and a subagent for the seller? A) An appointee is always a sales agent; a subagent is licensed as a broker. B) An appointee is made by a written agreement; a subagent can be any other broker other than the listing broker. C) An appointee is prohibited from sharing a commission; a subagent always shares in a commission. D) An appointee is named by a broker for a particular transaction; a subagent enters a transaction through a relationship with a client or customer.

An appointee is named by a broker for a particular transaction; a subagent enters a transaction through a relationship with a client or customer.

Why must a broker ensure the competency of a sales agent in the services he provides to a party in a real estate transaction? A) Because the sales agent does not have authority to bind the broker B) Because a sales agent is vicariously liable for the acts of the client C) Because the sales agent has the authority to bind a client D) Because the broker is responsible for the sales agent's actions

Because the broker is responsible for the sales agent's actions

Wes is a broker associate with Best Realty. Wes is working with Teresa on the sale of an historic hotel she inherited from her mother. There are several potential uses for the property, given its location. When should Wes discuss such things as market conditions, as well as other conditions such as environmental, economic, geographic, and demographic that might affect the hotel salability? A) Once there is a contract B) After Teresa signs the listing agreement C) Before Teresa signs the listing agreement D) After an offer is made on the property

Before Teresa signs the listing agreement

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? A) Before looking at properties listed on the MLS B) Before showing Henry any properties C) When Henry states that he is not in an agency relationship D) When Henry makes an offer on a property

Before looking at properties listed on the MLS

When should a broker clarify what they can and cannot do to a consumer? A) Before the consumer signs a contract to buy or sell real property B) After a buyer's representation agreement is signed C) After a listing agreement is signed D) Before offering to assist consumers in a transaction

Before offering to assist consumers in a transaction

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? A) Before the seller signs the listing agreement B) When the seller is ready to counteroffer on an offer C) At closing, with the appropriate disclosures, depending on who finds the buyer D) When the first offer comes in

Before the seller signs the listing agreement

Ralph is a sales agent working with a seller on the sale of the seller's home. This is the first time the seller has sold real property. At what point in the transaction process should Ralph discuss agency issues with the seller? A) After a listing agreement is signed, but before an offer is made on the property B) After the parties sign the sales contract C) After an offer is made on the property, but before the parties sign the sales contract D) Before the seller signs the listing agreement

Before the seller signs the listing agreement

When should a listing agent work with the seller to establish a sales price for property? A) After an offer is made because the first offer will establish a minimum sales price B) When the seller counteroffers on an offer, the listing price is firm and it is the same as the sales price C) Before the seller signs the listing agreement D) After the seller signs the listing agreement, but before an offer is made on the property

Before the seller signs the listing agreement

Which of the following is a TRUE statement regarding the TREC advertising rules and law? A) Brokers are no longer required to use in their advertising a term such as broker or agent to signify that they are real estate brokers. B) Sales agents are required to include their license number in any advertising. C) Brokers are required to include their license number in any advertising. D) Brokers are required to include a designation such as broker or agent to signify that they are real estate brokers.

Brokers are no longer required to use in their advertising a term such as broker or agent to signify that they are real estate brokers.

Which of the following is FALSE regarding the TREC advertising rules and laws? A) Brokers must include a reference to the Texas Real Estate Commission in their advertising. B) The TREC rules now define associated broker for purposes of filing assumed names used in advertising. C) The Texas Real Estate Commission cannot require brokers to include a reference to the commission in their advertising. D) License holders are required to notify TREC when they use an alternate name in advertising.

Brokers must include a reference to the Texas Real Estate Commission in their advertising.

Cameron is a sales agent sponsored by Wurst Realty. He is the listing agent under a listing agreement with David to sell David's home. The property is located in a very hot market where properties do not stay on the market for long, and there are often multiple offers on any listing. Cameron has received three offers within minutes of each other, and he is in the process of presenting the offers to David. Which of the following should Cameron do in this situation? A) Cameron should rank the offers in terms of which has the best terms and present the best one first to David. B) Cameron should hold on to all three and wait several days until no more offers come in and present all of them simultaneously. C) Cameron should determine which one came in to the office first and present that one first, regardless of the terms. D) Cameron should prepare presentations of all three offers and present them all to David at the same time.

Cameron should prepare presentations of all three offers and present them all to David at the same time.

Cindy is an associate broker at Best Realty and represents Sandy under a written listing agreement. So far, the firm has received one offer that Cindy has passed on to Sandy for review and possible counteroffer. Sandy has not yet countered to the first offer and a second one comes in. Which of the following is the appropriate thing for Cindy to do under these circumstances? A) Cindy should notify Sandy and tell her to consider the second offer before making a decision on the first offer. B) Cindy should tell Sandy she has a second offer waiting, but she will hold on to it until Sandy makes a decision on the first offer. C) Cindy should wait until Sandy has made a decision on the first offer before submitted the second or any subsequent offer. D) Cindy should notify the second offeror's agent that an offer is pending, and they should wait until Sandy deals with that first offer.

Cindy should notify Sandy and tell her to consider the second offer before making a decision on the first offer.

After concluding a business transaction that involves nonexclusive seller agency, how long must an agent keep business information confidential? A) Confidential information remains confidential even after an agency relationship is terminated. B) Unless otherwise specified, confidentiality arrangements always last for 90 days after closing. C) As soon as the transaction is complete, confidentiality requirements also terminate. D) Terms of confidentiality always vary and should be specified in a listing agreement.

Confidential information remains confidential even after an agency relationship is terminated.

Once a listing agreement is signed, but before an offer is made on the property, which of the following should the seller's agent do for or discuss with the seller? A) Create a marketing strategy for the seller's approval B) Establish a listing price C) Clarify the listing agreement line by line so that the seller understands the contract D) Explain the brokerage firm's intermediary brokerage policy

Create a marketing strategy for the seller's approval

Caroline is in the process of selling her home, and she has signed a listing agreement with A-2 Realty's James, a sales agent with the firm. Caroline has agreed to intermediary agency in the listing agreement. What issues or matters are typically not addressed before an offer is made on the property, but after the listing agreement is signed? A) Explain subagency B) Discuss how commissions are split between the listing agent and other broker C) Discuss what personal property items go with the property D) Explain to the seller the process of working with other brokers to increase the likelihood of finding a buyer

Discuss what personal property items go with the property

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? A) Dual agency B) Exclusive buyer agency C) Intermediary agency D) Subagency

Dual agency

Broker Sue of Dunoon Realty has an office policy of nonexclusive single agency and is representing seller Ivan in the sale of his property. Buyer John comes into the office after seeing Sue's sign on Ivan's property and asks for representation during negotiations for the purchase of the property. Given Sue's office policy, which option would be available to Sue? A) Explain the office policy to John and insist that he must be treated as a customer on this in-house negotiation; if he insists on his need for representation, refer John to another broker for representation B) Agree to represent John and proceed with negotiations as an intermediary C) Explain to John that representation is not available to him under any circumstances in this transaction D) Revoke the listing with the seller and agree to represent John

Explain the office policy to John and insist that he must be treated as a customer on this in-house negotiation; if he insists on his need for representation, refer John to another broker for representation

A broker is wise to manage risk by having every sales agent have every offer that they assist on reviewed by the broker's attorney. True False

False

A sales agent representing the buyer has submitted an offer with a note from the buyer stating that the buyer requests that her agent present the offer to the seller. Your first reaction is to deny the request. Preventing the buyer from presenting the offer to the seller is your BEST course of action because you need to stay in control of the presentation and you don't want the prospective buyer and seller meeting at this point. True False

False

If multiple offers are received, the listing agent should present the best one first, and, if accepted, not bother the seller with the other offers. True False

False

If the offer is ridiculously low, the listing broker may decline to present the offer to the seller. True False

False

Only sellers pay commissions. True False

False

Sellers should be discouraged from accepting backup offers. True False

False

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? A) George could have his license revoked for listing the seller's property without her consent. B) George is a dual agent because he is serving as the seller's agent and the broker's agent. C) George has the implied authority to list the seller's property because she invited him to her home to discuss listing the property. D) George should be admired for his tenacity in listing the property.

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

Which information should a broker who is acting as subagent to the seller obtain from the listing broker? A) How earnest money deposits will be handled B) The racial composition of the community C) The lowest price the seller will accept D) The types of buyers the seller wants to target

How earnest money deposits will be handled

In a typical conversation between a broker who works alone and a property owner who is interested in selling, which topic might require the MOST extensive explanation of subagency? A) Title B) Open houses C) Disclosures D) MLS

MLS

Tally is a broker working with a buyer, but the buyer has not signed a buyer representation agreement. The buyer understands fully that Tally is not her agent, but the buyer is working with Tally nonetheless as Tally's customer. Sherry is a broker representing the seller under a written listing agreement. Is Sherry obligated to share her compensation with Tally if the buyer Tally is working with purchases the property? A) No, Sherry is only obligated to pay Tally a flat fee of $100. B) Yes, Sherry is obligated under a common-law duty of fairness to share her commission with Tally. C) No, Sherry's duty to cooperate does not include an obligation to compensate another broker. D) Yes, Sherry's duty to cooperate with other brokers includes the obligation to compensate the other broker.

No, Sherry's duty to cooperate does not include an obligation to compensate another broker.

If a seller retains the earnest money as liquidated damages when a buyer defaults on the sales contract, are the listing agent and other agent (either subagent or buyer's agent) entitled to receive a share of the retained earnest money under the TREC-promulgated residential contract, the TAR residential listing agreement, or buyer/tenant representation agreement? A) No, only the listing agent is entitled to receive a portion of the retained earnest money pursuant to the listing agreement. B) No, neither the listing agent nor the other agent is entitled to receive a portion of the retained earnest money. C) Yes, both the listing agent and the other agent are entitled to receive a portion of the retained earnest money under the TREC-promulgate contract. D) Yes, both the listing agent and the other agent are entitled to receive a portion of the retained earnest money pursuant to the TAR residential listing agreement.

No, only the listing agent is entitled to receive a portion of the retained earnest money pursuant to the listing agreement.

What form of agency describes a relationship where the broker represents either the buyer/tenant or the seller/landlord, but the broker never represents both in the same transaction? A) Universal agency B) Proprietary agency C) Nonexclusive seller agency D) Exclusive agency

Nonexclusive seller agency

Les Stoker, a broker who practices nonexclusive single agency, is acting as a seller/agent for Hedy Black, a long-term client. Les has another client who showed interest in Black's property. Stoker explained the situation to the buyer/customer, and the buyer/customer decided to go ahead with the transaction as an unrepresented buyer. When Stoker told Black about the situation, including his inability to disclose information about the buyer that was gained through the agency relationship, Black refused to accept the situation. She told Les, "You're my broker and you owe your full allegiance to me. You should tell me everything I can use to benefit from this transaction." What should Les do if this seller/client continues to object to his position? A) Determine which relationship will be more valuable to him in the future B) Request that the seller sign a release for the information the seller wants C) Disclose the information that the seller requests after notifying the buyer D) Refer the seller to another broker for representation

Refer the seller to another broker for representation

Which of the following does a license holder typically not address or do for a seller before a listing agreement is signed? A) The license holder's agency position B) The brokerage firm's agency disclosure form C) Showing the property to potential buyers and buyer's agents D) The Information About Brokerage Services Notice

Showing the property to potential buyers and buyer's agents

TREC rules require which of the following regarding maintenance of transaction-related records? A) That such records be maintained for at least four years B) That such records be maintained as paper copies C) That such records be maintained offsite D) That such records be maintained by each license holder that worked on the transaction

That such records be maintained for at least four years

A listing agent representing the seller receives a second offer on the property while the seller is considering the first offer. What is the BEST course of action for the broker to pursue? A) The agent should notify the seller of the second offer and advise the seller not to accept the first offer without also considering the second. B) The agent should hold on to the second offer until the seller has made a decision on the first offer. C) The agent should notify the seller of the second offer only if it is more favorable to the seller. D) The agent should notify the seller of the second offer and advise the seller to counteroffer both offers.

The agent should notify the seller of the second offer and advise the seller not to accept the first offer without also considering the second.

In which of the following situations could a nonexclusive seller agency broker earn an undivided commission? A) The broker represents the seller, and the buyer/customer is unrepresented. B) The broker acts as a disclosed dual agent for the buyer and the seller. C) The broker represents both the buyer and the seller as customers. D) The broker appoints intermediaries to represent the buyer and the seller.

The broker represents the seller, and the buyer/customer is unrepresented.

Which of the following is a good way for a license holder to prove that information was provided as required by the Real Estate License Act or TREC rules, or other laws? A) To provide all disclosure vial email B) To provide all disclosures in writing whether required by law or not C) That the agent complied with the minimum requirements of the law D) To provide all disclosures orally or in writing

To provide all disclosures in writing whether required by law or not

A broker's policy manual should be detailed enough that a sales agent can find answers to her questions when the broker is not available. True False

True

A license holder should point out the negatives of a property to a buyer-client. True False

True

Brokers should use written disclosures to practice preventive brokerage. True False

True

Commissions are always negotiable between the broker and the seller. True False

True

If multiple offers are received, the listing broker must prepare appropriate net proceeds statements for the seller for each offer. True False

True

Listing brokers should expect to receive offers from other brokers on behalf of buyer-clients and should work with the buyer's brokers in a spirit of cooperation and goodwill. True False

True

Rehearsed dialogue should be used in presentations because it helps license holders become more comfortable in handling common situations. True False

True

When making the initial contact with the buyer, the first step is to determine whether the buyer will receive customer-level or client-level services. True False

True

You have just been approached to manage a 24-unit apartment complex. You do have a property management division in your brokerage, but up to this point, you have just managed single-family rental homes. An apartment complex has many more needs—tenant requests, rent collection, maintenance issues, lawn care—that you have never needed to do on this scale. Because you don't have the experience in this type of property management, you should pass on this opportunity. True False

True

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? A) Subagency and an MLS B) The relationship between client and broker C) What the license holder can and cannot do D) TRELA's nondiscrimination policies

What the license holder can and cannot do

Can a party to a real estate transaction be bound to a contract that is signed electronically? A) No, the statute of frauds requires that real estate transactions not be conducted electronically. B) Yes, if both parties agree to conduct a transaction by electronic means. C) No, federal law prohibits electronic signatures in real estate contracts. D) Yes, if the parties petition the FTC for authority to conduct the transaction electronically.

Yes, if both parties agree to conduct a transaction by electronic means.

A nonexclusive seller agency broker will notearn an undivided commission when A) a listing is obtained after a buyer agency is established. B) both sides of a transaction require representation. C) a seller agrees to continue with a transaction without representation. D) a buyer on an inside sale agrees to continue without representation.

both sides of a transaction require representation.

Julie, the principal broker with O'Keeffe Realty, is representing buyer Ken in the purchase of a property listed by broker John at RBI Realty. The amount of commission to be paid to Julie by Ken is determined by agreement between A) broker Julie and TREC. B) broker John and broker Julie. C) broker Julie and the seller. D) buyer Ken and broker Julie.

buyer Ken and broker Julie.

All commissions in a residential real estate transaction are usually paid A) by each of the parties. B) in advance. C) from the seller's proceeds. D) when the representation agreements are signed.

from the seller's proceeds.

Broker Tom has received a considerably less than full-price offer on one of his listings from a subagent. As he is leaving to deliver the offer to his seller-client, Tom receives a call from subagent Drue, who says she is typing up an offer that she will deliver tomorrow morning after she has the buyer sign. Drue mentions a price that is almost full price. Tom should A) present the first offer but not mention Drue's offer until it is actually delivered. B) present the first offer but mention Drue's offer to his seller. C) hold the first offer, wait for and deliver only Drue's offer, then present the first offer only if the seller finds Drue's offer unacceptable. D) hold the first offer until Drue delivers the second offer tomorrow morning.

present the first offer but mention Drue's offer to his seller.

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 A) listing agency's brokerage. B) subagent's brokerage. C) seller. D) buyer.

seller

Before listing the property, the seller A) should be given a copy of a listing contract that you have completed for another seller-client. B) should only be given a summary of the listing contract highlights. C) should not be given anything about the listing contract because it will raise too many questions in the seller's mind, and he may decide not to list with your brokerage. D) should be given a copy of the listing contract to review.

should be given a copy of the listing contract to review.

When showing properties to a buyer-customer, the license holder should A) discourage buyers from purchasing properties at the upper end of their loan limits because they won't have enough residual income. B) show in-house properties meeting the buyer's requirements first, and proceed to other broker's listings only if the buyer expresses no interest in the company's listings. C) show other broker's listings first, then in-house properties. D) show properties slightly above the buyer's loan limits because sellers usually sell below the list price anyway.

show in-house properties meeting the buyer's requirements first, and proceed to other broker's listings only if the buyer expresses no interest in the company's listings.