Chapters 18-23

Disclosure is made in two (2) stages...

(1) when meeting a party for the first time and (2) while representing a party

An applicant for a salespersons' license in Texas must complete how many clock hours in real estate core courses ...

180

An applicant for a Texas Real Estate Brokerage license must complete ...

900 clock hours of real estate core and related courses

______ could be licensed as a real estate broker

A corporation, an LLC, an individual, and a sole proprietorship

Sales Person

A person employed by a broker to list, negotiate, sell, or lease real property for others

Broker

A person or legal entity licensed to act independently in conducting a real estate brokerage business

REALTOR (R)

A registered trademark owned by the national association of realtors for use by its members

Sales Associate

A sales person or broker employed by a broker

A real estate broker differs from a real estate salesperson under the law in that the broker may act independently in conducting a brokerage business and ...

A salesperson may operate in the brokerage business only under the supervision of a real estate broker

Recovery Fund

A state operated fund that can be tapped to pay for uncollectable judgments against real estate licensees

The two levels of license under the Texas Real Estate License Act are ...

Broker and salesperson

True or False: A listing is a contract between an owner and the listing salesperson

False

True or False: All net listings are open listings

False

True or False: On a listing contract, a sales associate may be an agent

False

True or False: The Statue of Frauds requires all agency agreements to be made in writing in order to be enforcable

False

In Texas the requirement that a real estate agent hold a real estate license is set by ...

Legislature

Real Estate Inspectors

Licensed individuals hired to perform real property inspections at the request of potential buyers and their representatives

The term "sales associates" may refer to both a ...

Licensed salesperson employed by a broker and a licensed real estate broker employed by another licensed broker

_______ may conduct a real estate brokerage business without a proper license

No one

Independent Contractor

One who contracts to do work according to personal methods and is responsible to the employer only for the results of that work

Licensee

One who holds a license

Real Estate Licensing Laws represent a governments efforts to ascertain that real estate brokers and sales persons are ...

Persons of good reputation: honest, truthful, competent

A license can be suspended or revoked for ...

Placing a sign on a property offering it for sale without the written consent of the owner, offering property for sale without the consent of the owner, publishing an unjustified threat of legal proceedings

The composition of the Texas Real Estate Commission includes ...

Six real estate brokers

A real estate salesperson under the Texas Real Estate License Act may ....

Take a listing in the name of a broker

Texas Association of Realtors (R) (TAR)

The Texas organization of realtors authorized to use the registered trademark of realtors

For a corporation to be granted a license as a real estate broker ...

The chief executive officer must be a licensed broker

Texas Real Estate Commission

The state board that advises and sets policies regarding real estate licensees and transaction procedures

Real Estate brokers may operate their businesses as sole proprietorships under ...

Their own name or fictitious name

License Revocation

To recall and make void a license

License Suspension

To temporarily make a license ineffective

True or False: A real estate broker is the agent under a real estate listing

True

True or False: A real estate listing is an agency contract

True

True or False: Fiduciary responsibilities of an agent to the principal include faithful performance

True

True or False: In a real estate listing, the property owner is the principal

True

True or False: In regard to net listings, most brokers avoid them

True

True or False: Many states prohibit a broker from accepting a net listing

True

True or False: Most brokers are reluctant to accept net listings, even when permitted to do so

True

True or False: On a listing contract, a corporation may be a principal

True

True or False: On a listing contract, a natural persona may be an agent

True

True or False: On a listing contract, purchasers are third parties to the contract

True

True or False: Sales associates are licensed salespersons or brokers who work for a broker

True

True or False: Sales associates operate under the authority of an employing broker's license

True

True or False: The broker is legally liable for he proper execution of a listing contract

True

True or False: The commission is the excess above the seller's net price

True

The ultimate responsibility for a mistake in a document prepared by a real estate salesperson rests ...

Upon the employing broker

Intermediary

a broker who is employed to negotiate a transaction between the parties

Ready, Willing, and Able Buyer

a buyer who is ready to buy at the seller's price and terms and who has the financial capability to do so

Listing

a contract wherein a broker is employed to find a buyer or tenant

An agent who is authorized to bind an employer in a trade or business is...

a general agent

The advantages of a multiple listing arrangement include...

a greater market exposure of the property, the possibility of a higher sales price, and quicker sale

Net Listing

a listing agreement that pays the broker an uncertain amount of commission, generating the principal net proceeds from the sale

Exclusive Right to Sell

a listing that gives the broker the right to collect a commission no matter who sells the property during the listing period

Exclusive Agency Listing

a listing wherein the owner reserves the right to sell his property himself, but agrees to list with no other broker during he listing period

Principal

a person who authorizes another to act

Middleman

a person who brings two or more parties together but does not represent either party

Reasonable Care

a requirement that an agent exhibit competence and expertise, keep his client informed, and take proper care of property entrusted to him

Trust Account

a separate account for hilding clients' and/or customers' money

the relationship of a real estate broker to the owner of a property listed for sale with the broker is that of...

a special agent

Implied Authority

agency authority that arises from custom rather than expressed agreement

Faithful Performance

aka obedience; a requirement that an agent obey all legal instructions give to him by his principal

Ostensible Authority

an agency relationship created by the conduct of the principal

Special Agency

an agency relationship created for the performance of specific acts only

General Agency

an agency wherein the agent has the power to transact the principal's affairs in a particular business or at a certain location

A real estate listing is...

an employment contract between a property owner and a real estate broker

An agent's authority may be granted by both a written agreement and

custom in the industry

____________ are most likely to accept only listings that he thinks will sell quickly

discount brokers

An agency may be created by both ratification and...

estoppel

A listing to find a buyer for __________, __________, or _________ properties will usually be for a period of time ranging from six (6) months to one year...

farms, commercial properties, or industrial properties

When an agent's authority arises from custom in the industry, it is identified as...

implied authority

The amount of commission to be paid to the broker for selling a property is stated in the...

listing contract

Exclusive Authority to Purchase

listing used by buyer's broker

Agency by Ratification

one that is established after the fact

Multiple Listing Services are open to...

only members of real estate boards

Multiple Listing Service (MLS)

organization of member brokers agreeing to share listing information and share commissions

If a purchaser arbitrarily defaults on a purchase contract, any earnest money previously paid, in the absence of an agreement to the contrary will be...

owed to the owner/seller

A typical exclusive right tot sell listing requires the owner to exclude other brokers from advertising or placing a sign on the property and...

pay a commission if a purchaser is found who agrees to buy at the price and terms stipulated in the listing

When a property under an open listing is shown to a prospect by two different brokers and a sale results, the commission is...

payable to the broker who made the sale

Compensation

payment for brokers and salespersons

Third Parties

persons who are not parties to a contract but who may be affected by it

Performance

principal is expected to do whatever he reasonably can to accomplish the purpose of the agency, such as referring inquiries by prospective buyers to the broker

Agency by Estoppel

relationship that results when a principal fails to maintain due diligence over his agent and the agent exercises powers not granted to him

Duel Agency

representation of two or more principals in a transaction by the same agent

Variable Rate Commission

retains the lower commission for the bargain broker but allows the commission to increase (i.e. to a full 3%) to the other broker in order to give other brokers an incentive to help market their properties

Puffing

statements a reasonable person would recognize as non-factual or extravagant

Procuring Clause

the clause originating in a series of events that, without a break in their continuity, results in the accomplishment of the agency objective (closing the transaction)

An exclusive listing contract with a definite termination date is NOT terminable by

the death of the listing saleperson

Under the terms of an exclusive right to sell listing, a commission is due the listing broker if a buyer is found by...

the listing broker, a sales associate employed by the listing broker, the owner through his own efforts, or another broker

Commingling

the mixing of clients' or customers' funds with an agents personal funds

A real estate listing is a contract between...

the owner and the listing broker

A broker has fiduciary responsibilities to...

the owner of property listed by the broker

An exclusive agency listing permits...

the owner to sell of his own efforts without liability to pay a commission to the listing brokers

Agent

the person empowered to act by and on behalf of the principal

An open listing may be terminated by

the sale of the property, abandonment by the broker, destruction of the property by casualty, and/or death of the owner

Price Fixing

two or more people conspiring to charge a fixed fee, having an anticompetitive effect

Boycotting

two or more people conspiring to restrain competition

When an agent is given the right to transact all types of matters on behalf of the principal, the agent serves as a...

universal agent

Universal Agency

very broad in scope, as the principal gives the agent the legal power to transact matters of all types

Recent innovations for marketing properties through the MLS include both computerized listings and

videodisc display of listings

To be valid in texas, a listing contract must be both

written and signed