Test -Law of Agency

Which of the following is considered to stigmatize a property?

Death on the property

The amount of commission to be paid to a broker upon successful completion of the terms of a listing agreement is:

Defined by negotiation between the broker and the client

A termination date on a listing must be:

Definite

Agency relationships can be terminated at any time by ____.

Mutual agreement

A real estate sales agent generally gets paid ___.

Commission

Agents owe certain fiduciary duties to their principals. What duties do principals owe to their agents?

Compensation, Reimbursement, Indemnification, Performance

____ is a serious offense in which a broker spends his or her clients' funds without authorization.

Conversion

The duties we know as ____ apply in all states, and understanding these duties on the highest level establishes the agent's creditability and competitive standing in the marketplace.

OLDCAR

Which of the following statement is INCORRECT?

The IABS should be presented as the buyer is about to write an offer.

John has secured a listing for the property at 123 Main St. He is showing the property to a buyer customer. He has disclosed to the buyer that he represents the seller for this property. While showing the property, John notices a problem with the roof that he did not see when he listed the property. What should he do?

Mention the problem to the buyer because it is material fact.

Texas real estate law requires license holders to provide two separate disclosures, agency and representation. When must disclosure of representation be made to comply with the law?

At first contact

Who is responsible for registering a team name with TREC?

The sales agents' sponsoring broker

Statement is True

The term REALTOR may only be used by members of the National Association of Realtors

Brokerage firms with a buyer-agency only or seller-agency only policy have the advantage of ____.

These are all advantages Avoiding unintentional dual representation, brokers not having to act as Intermediary or make appointments, avoiding conflicts of interest

An agent in ABC Realty has a listing that is being sold by a buyer's agent whose license is also with ABC Realty. The broker will most likely:

Appoint the associates to represent their parties under intermediary rules.

Data used for a CMA shoud be no older than ___.

6 months

Which of the following situation might be consider defamation?

A sales agent writes an ad stating that a competing agent "cheats his clients"

Individuals who are placing their home on the market as For Sale By Owner (FSBO) are not receiving the benefit of _____ signing listing agreement with a real estate agent can provide.

All of these Marketing, negotiation, qualifying buyers

John listed his property, and the listing agreement is set to terminate at the end of the month. John found a buyer for the house and signed a purchase agreement with the buyer. When the house sold, John owed his listing agent a commission. In this situation, what type of listing did John most likely have with the agent?

An exclusive right to sell listing

ABC Realty has just hired Norma, who does not have a real estate license, to work in their office as an assistant. What functions are Norma allowed to perform at the brokerage?

Answer phone calls

According to TREC's rules on advertising, the font of the printed name of the broker must be at least ____ the size of the font of the largest contract information in an ad.

Half

Fiduciaries are:

Held to the highest degree of good faith; Required to exclude selfish interest; Require to make disclosures of all relevant facts

Agency authority that is the result of the "norm", or what is considered customary, is ____.

Implied authority

____ means that the principal will protect the agent from suffering a loss due to the agent's reliance on information received from the principal.

Indemnification

_____ means that, if a single agent in the firm is working with both buyer and seller, another agent in the firm needs to be brought into transaction so appointments can be made.

Intermediary with appointments only

Confidential information between client and agent is:

Kept confidential forever

The listing that allows the seller to list property with multiple competing brokers at the same time and to sell the property personally without paying any broker a fee is a(n) ____.

Open listing

Which of the following is not included in the Canons of Professional Ethics for real estate license holders?

Patience Competency, Integrity and consumer protection notice 1-2 are

Setting commission rates between groups of brokers in an area is called ____.

Price-fixing

Sam is the cooperative broker involved in the transaction for 112 1/2 Beacon Street. What can be said about Sam's role in this transaction?

Sam is a broker selling the listing of another broker.

The ____ is responsible for preparing a Seller's Disclosure Notice.

Seller

Under DTPA brokerage is defined as:

Service

Sales agent Maria has secured a verbal promise of a listing on a property on Elm St. She has an appointment with the seller to sign a written agreement this evening. She will be in the neighborhood this afternoon and would like to put her sign in the yard at the time. Which of the following is true?

She cannot place her sign in the yard until after she has a written listing agreement giving her permission to place the sign.

Defamation that is spoken aloud is referred to as _____.

Slander

What is true of the practice of subagency in Texas?

Subagency is rare and tends to show up more often in rural communities.

Which of the following is NOT an element of a listing agreement?

The broker's guarantee of profit for the seller is not an element The signatures of all of the owners and the listing agent, a legal description of the property, including the street address, the list price of the property as set by the seller, a definite starting and ending date, the agreement to pay a state commission to the broker, usually a percentage of the sales price.

A brokerage firm sends out a memo that there is a mandatory sales meeting every Friday morning for all sales agents. All sales agents in the brokerage are independent contractors. What could be said about this situation?

The brokerage could violate the IRS rule on independent contractor status. Under TREC, an agent cannot be required to attend sales meetings.

A broker who has a website is required by TREC to post a link on that site to a completed copy of the TREC IABS form. Which of the following statements about the link is true?

The link must be in a noticeable position on the homepage of their website

Which of the following actions does not terminate agency?

The passage of exactly one year since the agreement was signed

The Tax Equity and Fiscal Responsibility Act has which of the following tests for independent contractor status?

The sales agent signs a written contract with the broker stating the salesperson is not an employee.

Which of the following is the best way for an agent to avoid a DTPA lawsuit when listing property?

Use written information obtained from a government record like the county's appraisal district.

The designated broker of Wayne's brokerage passed suddenly over the weekend. On Monday morning:

Wayne's license and all of the license of the sponsored agents are placed on inactive status.

If a sales agent has a prospect who is interested in purchasing a property, the agent's goal is to secure the buyer as ____.

a client

Gene made a will naming his oldest daughter as executor. His other children are noted as heirs. In this circumstance, Gene is referred as the ____.

a) Administrator b) Beneficiary c) Devisee d)Testator Double check

The key to determining whether a conveyance is voluntary is the ___.

absence of force Double Check

Whether or not to appoint associates in an intermediary real estate transaction is:

at the discretion of the broker

Only a _________ may earn a commission and only a _________ may sue to collect a commission.

broker, broker

TREC's rules on advertising express that the failure to remove an advertisement within a reasonable amount of the time after it ends may be considered ____ or misleading.

deceptive

Agency is:

the relationship the agent has with the principal; when the agent for or on behalf of the client; a fiduciary relationship

The main purpose of the Texas Real Estate Commission is:

to protect the public

A buyer-tenant representation agreement:

Can be for a definite tern as short as one day

In Texas, ______ is a process that makes it possible to bring client buyers and sellers together while at the same time representing their best interest.

Dual agency

Disclosure of representation may be:

Either oral or written

A(n) ____ occurs when an individual does not know the right course of action in a certain situation, often makes the wrong choice very tempting.

Ethical dilemma

The Information About Brokerage Services:

Explains the ways a license holder can represent a party in a real estate transaction

The written document is evidence that the agency exists and provides the agent with ____.

Express authority

Which of the five source of ethical standards states that ethics are habits that enable individuals to act accordingly as person who are truthful, honest, courageous, generous, and toletant?

The Virtue Approach

Keenan, Nathan, and Devin have formed a team under their brokerage, Country Roads Brokerage. The team name that they wish to use is The Brokerage Boys Group. What is true of this scenario?

The agent's broker will warn them that TREC will reject the name because the word brokerage is considered misleading.