Law of Agency - Practice

Which of the following is an example of an express agency agreement? a. Written listing agreement b. Commission payment c. Oral agreement d. Newspaper advertisement

A

What is market division?

An agreement among competitors to divide sales territories

Misrepresentation does NOT always include what? a. two parties b. the intention to decieve c. a false statemetn

B

Sunnyside Realty provides representation services only to sellers. Sunnyside Realty practices a.non-agency. b.exclusive seller agency. c.nonexclusive seller agency. d.intermediary agency.

B

Once an agency relationship has been established by written agreement, how are the duties of the broker different from the duties of the broker's sponsored sales agents? a. The broker has a greater fiduciary duty than the sponsored sales agents. b. The broker owes the same fiduciary duties as the sponsored sales agents. c.The broker owes a greater duty of competence than the sponsored sales agents.

B. As agents of the broker, license holder associates owe the same duties to the broker's client/principal as the sponsoring broker owes to the client.

To be able to appoint license holders to the buyer and the seller, the broker must have which of the following? a. At least one branch office to appoint the branch to the buyer and to appoint himself to the seller b. Written consent to act as an intermediary and written consent to make appointments

B. Written consent to act as an intermediary and written consent to make appointments

A license holder working with a buyer-customer could NOT a. discuss financing options. b. provide a list of local elementary schools. c. recommend a negotiating strategy. d. reveal that the roof leaked when it rains.

C

Lena is a broker associated with Bluebonnet Realty. She holds which license? a. sales agent license b. associated brokers license c. broker's license

C

Which of the following is NOT a fiduciary duty to a client? a. loyalty b. obedience c. consent d.full disclosure

C

Which of the following is prohibited by the Sherman Antitrust Act? a. unfair credit billing b. housing discrimination c. price fixing

C

What does TRELA do?

Creates grounds for suspension or revocation of a real estate license

What written notice is the listing agent required to provide to the seller before the listing agreement is signed?

The written Information About Brokerage Services Notice. (IABS)

What is the purpose of the IABS Notice?

To inform the buyer or seller about who the broker represents when the opposite party is buying/selling a home. Alsop, to present all prospective buyers, tenants, sellers and landlords the form called IABS. This form is to be presented by a real estate agent upon meeting a prospective client at the first "substantive dialogue".

True or False: The license holder becomes an advocate for the client's best interest?

True

What is the difference between an exclusive agency listing and an exclusive right-to-sell listing?

Under an exclusive right-to-sell listing, the seller pays regardless of who sells the property. And an exclusive agency listing, listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker.

How should an agent treat a customer?

With honesty and fairly

Can Only REALTOR® members use the Intermediary Relationship Notice form created by the Texas Association of REALTORS®?

Yes

Should the buyer's agent negotiate repairs during the option period.

Yes

Are sales agents required to be notified of the scope of their authorized activities? Yes or no?

Yes, TREC rules require the broker to notify sales agents of the scope of their authorized activities subject to the act.

Must a buyer's agent disclose his relationship with a buyer to an owner who is selling a property on her own? Yes or No?

Yes, at first contact

If a broker provides useful information to a buyer, could it be considerend implied agency?

Yes, broker provides useful information to a buyer.

Would you have to disclose a friend visiting the owner slips and falls on the pool tile?

Yes, death on property.

Are license holders required to provide the Information About Brokerage Services (IABS) Notice at an open house? Yes, if therer is a substantive discussion about that property OR Yes, if there is a substantive discussion about another property?

Yes, if there is a substantive discussion about another property.

Is a broker representing a seller providing customer advice on making an offer, considered unintended agency?

Yes, the customer could interpret the advice as an agency relationship.

What are license holders in Texas responsible for telling buyers regarding quality of title? a. License holders must advise buyers to obtain either an attorney's opinion of title, based on an abstract, or a policy of title insurance. b. License holders are responsible for recommending attorneys and title insurance companies to buyers and making certain that they receive title protection. c. License holders should not talk with buyers regarding title because this is a legal issue.

a. License holders must advise buyers to obtain either an attorney's opinion of title, based on an abstract, or a policy of title insurance.

In an exclusive seller agency, brokers can offer representation services to buyers a. Never, as they only represent sellers b. who are interested in properties listed by the same broker. c. who are interested in any properties. d. who are interested in properties for sale by owner only.

a. Never, as they only represent sellers

A broker acts as an intermediary between a buyer and a seller. Once appointments are made, the broker must a. remain neutral b. give advice and opinions of the appointed agents c. give advice and opinions to the seller

a. remain neautral

dual agents?

are not legal in texas BUT a dual agent is someone who represents both parties in a real estate transaction.

Net listings relate to the a.owner's ability to search for buyer or b. way the broker is paid

b. the way the broker is payed

Which of the following is NOT a third party to a listing agreement? broker, lender, buyer, inspector

broker

Which of the following is a TRUE statement regarding the Seller's Disclosure Notice? a. A trustee in bankruptcy is required to provide the notice. b. A license holder is required to provide the TREC-approved form to the seller to use in order to provide the required notice. c.If a seller fails to provide the notice at or before the time the contract is signed, the buyer may terminate the contract within seven days after receiving the notice.

c. If a seller fails to provide the notice at or before the time the contract is signed, the buyer may terminate the contract within seven days after receiving the notice.

When a real estate license holder acts as an agent for a buyer or a seller, the license holder acts in which of the following capacities? a. Attorney in fact b. Executor c.Trustee d. Fiduciary

d. Fiduciary, acting in a fiduciary duty

The Seller's Disclosure Notice, which has been developed by TREC,

does not relieve the seller or the listing agent of their responsibility to disclose property issues not covered by the form and protects the general public.

What gives the broker the greatest amount of security?

exclusive right to sell listing.

Bruce broker sponsors two sales agents: Jack and Jill. Henry has signed a buyer representation agreement with Bruce to have Bruce and his team help Henry find a new home. What kind of agents are Jack and Jill to Bruce?

general agents

Acting as a subagent, Cheryl shows a property to a buyer. Cheryl notices water stains on the carpet near the entrance to the guest bathroom and on the vinyl tile at the back door. The buyer is greatly interested in the property. Cheryl should

point out the condition to the buyer, and then notify the listing associate about possible plumbing leaks and drainage problems. An agent must be honest to all parties to a transaction, including the customer.

Must a license holder treat a customer the same as he treats his client? Yes or No?

No, a license holder has a duty of confidentiality to his client that he does not owe to a customer.

Which of the following is a primary source of law regulating real estate license holders? a. property code b. DTPA c. TAR code of ethics d. TRELA

D

Which of these is NOT a type of agent? a. sellers agent b. buyers agent c. landlords agent d. customers agent

D

T or F: Is inspection a fiduciary obligation to a client

False

True or False: when a broker dies the agreements are trasferred to the listing agents?

False, the agreements are terminated.

What type of agency relationship typically exists between brokers and sponsored sales associates, where sales associates make decisions and conduct transactions on behalf of the sponsoring broker, while the broker assumes significant liability for the agent's actions? Exlclusive, general or limited?

General

What is meant by a foreign broker?

Someone licensed in another state or country.

Which of the following acts by a broker would fall under the list of deceptive practices as defined by the Deceptive Trade Practices Consumer Protection Act?

Telling the buyer that the tiles in the foyer were American made, when they were imports

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

That the house has foundation problems

Name the levels of agency that flow in a typical real estate sales transaction.

The broker is special agent of client, and sponsored sales agents are general agents of the broker.