Texas 30-Hour Law of Agency
Josephina is a broker in the same firm as Emilia. Josephina sticks to representing one client, because she knows how hard it is to not favor one party over another in the same transaction. Josephina is acting in which capacity?
A single agent
Regulation Z codifies the rules of the ______.
Truth in Lending Act
exclusive right-to-sell
the agent is entitled to receive a commission no matter who brings the buyer to the property.
The 2011 amendment to the DTPA
licensees are not held liable for their advice, judgment, or opinion as long as they don't intend to deceive
general agent
responsible for handling all details of a specific property. Property managers often serve as general agents.
The Texas Workforce Commission consists of three members who serve ______-year terms.
six
Which of the following is true about inadvertent misrepresentation?
A false statement was made.
stigmatized property
A home where a homicide, suicide, or haunting occurred
Designated Agent
A licensee authorized by a broker to act as the agent for a specific principal in a particular transaction.
Undisclosed dual agency
A licensee who unintentionally created an implied agency relationship with the customer has created undisclosed dual agency, which is illegal.
Marie's brokerage relationship with the Clarks has terminated. She has some paperwork she needs to send to them. When she provides this paperwork to them, what is this an example of?
Accounting
When you're involved in a transaction as a licensee, who are the third parties?
Anyone involved in the transaction who isn't your client
Beverly is a broker who supervises just one licensee, Kevin. If Beverly acts as an intermediary in a transaction, which of the following arrangements is allowed?
Beverly may act as an intermediary without appointments.
Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Texas. Which of these activities can he perform?
Calculate commissions for team members.
When you are an independent contractor, your sponsoring broker is limited in setting work requirements for you. Which of these may a sponsoring broker impose on affiliated licensees who are independent contractors?
Direct or control the result of your work, not how that work is done
In 1993, the Texas legislature modified common law dual agency to create statutory dual agency. What did statutory dual agency permit?
Disclosed dual agency
Dottie is a sub-agent to Leonard, the listing agent for the Reynaldos' property. Which of the following is true about the agency relationships in this scenario?
Dottie owes loyalty to the Reynaldos
What does it mean to say that dual agency was permitted by common law?
Dual agency was permitted because there was sufficient precedent for it in the courts.
Which of these tasks must a licensee perform for buyer clients?
Ensure that the buyer receives copies of all signed paperwork.
Which one of the following tasks must licensees perform for seller clients?
Ensure that the buyer's earnest money is deposited.
Material facts
Facts that negatively affect a property's value
Canons of Professional Ethics and Conduct.
Fidelity, integrity, competency, consumer information, and discriminatory practices
About 50% of the borrowers in Neighborhood One are Hispanic, while only 4% in Neighborhood Two are Hispanic. The median home price in both neighborhoods is the same. However, statistics show that there is a significantly greater percentage of minority and low-income borrows who were denied financing for loans on properties in Neighborhood Two and were offered lower rates to live in Neighborhood One. What act is intended to prevent this type of potentially discriminatory lending pattern?
Home Mortgage Disclosure Act
Not wanting to cause the sellers or mortgage lenders unnecessary concern, Gwen, the buyer's agent, wasn't exactly forthcoming about a slight change in her client's financial status that her client had shared with her in confidence. Which duty to the customer is Gwen violating?
Honesty and fair dealing
Paulo signed an open listing agreement with Debbie, his real estate agent. Which of the following statements is true?
If Paulo finds a buyer on his own, he doesn't owe anyone a commission.
Which of the following is true of a material fact?
If known to the buyer or seller, it would likely influence the buyer or seller's decision.
Because of the employing party's lack of control over the individual, which of these is not classified as an employee?
Independent contractor
Statutory Employee
Independent contractors specifically classified as employees by statute for Social Security and Medicare taxes.
Kathryn is a broker acting as an intermediary. Is she required to use the Notice of Intermediary Relationship?
No, this form is needed only if the intermediary is going to make appointments, which are optional.
Which of the following statements about the fiduciary duty of confidentiality is true?
It doesn't extend to material facts relating to the property.
The Intermediary Relationship Notice is used by the broker to obtain consent to make appointments, if any. What other purpose is served by this notice, if any?
It reaffirms the authorization of the broker to act as an intermediary
Fiduciary Duty of Disclosure
It's owed to the licensee's clients only.
A licensee stating that a property is "guaranteed to increase in value over the next five years" is an example of ______.
Misrepresentation
Who is responsible for disclosing the location of registered sex offenders?
Neither the seller, listing agent, nor the broker.
Ken has signed an exclusive buyer agency agreement with Nina. Which of the following is true?
Nina can show him all properties that meet his criteria.
Brady and Tanya have enlisted the help of several real estate professionals to sell their home. They signed a listing agreement with each broker that specifies that if Brady and Tanya sell the property on their own, they won't owe anyone a commission. What type of listing agreement is this?
Open listing agreement
Under which types of agency agreement may a buyer and agent operate?
Open, exclusive right to represent, and exclusive agency
Where in the listing agreement would you find the details about what is included in and what is excluded from the sale of the property?
Property
Customers, lenders, and appraisers are all ______.
Third parties
Francis, a listing agent, isn't comfortable with his client's insistence that a material fact be omitted from the seller's disclosure. By which of the following may Francis terminate agency with this client?
Renouncing
Susie is a licensee accompanying her buyer client, Jeff, to an open house. The seller's agent approaches her and introduces herself. "Hi, I'm Helen, the listing broker, representing Elite Realty." Susie shakes her hand and says, "Hello there. I'm Susie. Great house! I was just talking to Jeff here about all that great closet space. And that backyard is to die for! Jeff has three dogs, so he's very excited about that." What, if anything, has Susie done wrong?
She has not identified herself as the buyer's agent.
If a private individual owner doesn't own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply?
Single-family housing sold or rented without the use of a broker
When working with a client on a real estate sale, a real estate licensee is usually acting as which type of agent?
Special
Which pair of words best complete this sentence? In 1996, Senate Bill 489 in Texas eliminated ______ and replaced it with the legal concept of ______.
Statutory dual agency, intermediary brokerage
Andrew just signed a listing agreement with Jordan of XYZ Realty. Andrew gave Jordan permission to work with another broker (from ABC Realty), who will earn a share of Jordan's compensation for finding a buyer. The buyer in this situation is not seeking representation. What relationship does ABC Realty have with Andrew?
Sub-agency
Chester has been providing some real estate services for new buyer customer Tom. Which of these is a task that Chester may only perform if he signs an agency agreement with Tom?
Suggest negotiation terms for a listing Tom would like to buy.
Susan has represented Tim in a few transactions in the past. Now Susan has a listing that she knows Tim will love. The seller didn't consent to an intermediary. Which of the following best describes how Susan can sell the house to Tim?
Susan can disclose her agency relationship with the seller to Tim, and explain that she can work with Tim as a customer.
Sandy has a listing with Jason at Fairview Realty. When Sandy's fiancé loses his job, Sandy decides to take her house off the market. Jason agrees, and agency is ______.
Terminated by mutual agreement
Candace and Phil Tolson listed their home for sale with Trent Richards, the broker for Richards Homes. Sadly, Trent became incapacitated due to a car accident. What's the status of the listing agreement?
The agreement terminates by operation of law.
Which fiduciary duty may continue even after the transaction closes?
The duty of accounting
Which of the following is true of the harm caused to a person relying on false information?
The harm can be physical or monetary.
Which of the following is an example of a physical stigma?
The home has high levels of radon.
In order to utilize the written notice defense, a licensee must provide the consumer a written statement that they have relied on information from a third party. Which of the following is also true?
The information received from the third party must be in writing.
Agency by Estoppel
is an agency relationship that is created because the principal's action caused a third party to believe that an agency relationship exists.
intermediary brokerage
The only current legal option for the representation of more than one party in Texas
Who does a licensee who's cooperating with the listing agent represent?
The seller
What happens if an independent contractor earns $600 or more during the tax year?
The worker's brokerage firm must prepare and submit forms 1096 and 1099 to the IRS and distribute form 1099 to the worker.
How does the exclusive buyer's representation agreement benefit the buyer's agent?
There's a better chance of the agent earning a fee.
Significant life changes like death, divorce or bankruptcy severely impact peoples' lives, but may also have impact on the sale of a home. What sort of issues might these types of events have on the closing of a home purchase?
Title issues
Which of the following best describes the purpose of a buyer agency agreement?
To identify the terms of the buyer agent/buyer agency relationship
Why might you want to share the progression of buyer agency over time with a buyer?
To show how it has evolved to benefit buyers
In a real estate transaction in which you represent the seller, your duty to other parties is to ______.
Treat them honestly and fairly
Valuable consideration
When a real estate licensee receives compensation for referring a client to a real estate licensee in a proposed real estate transaction
Can a licensee who represented seller Smith in one transaction represent a different seller, Jones, in another transaction where Smith is the buyer?
Yes, but confidential information learned during the former relationship cannot be disclosed.
Which of the following qualities is it most important that you demonstrate to a buyer through your buyer presentation?
Your service mindset
Buyer agency agreements
helps to ensure buyer loyalty for the term of the agreement and allow the agent to represent the buyer's interests
Net listing
illegal in many states because it represents a conflict of interest between the agent and the seller
Who benefits from the limitation of liability for acts of the listing broker in the buyer agency relationship?
buyers agent
Regulation Z
codifies the rules of the Truth in Lending Act
Of the fiduciary duties an agent owes to a client, which one was left out of the following string: loyalty, care, obedience, confidentiality, accounting?
disclosure
servicing a listing
discuss property issues, provide the Seller's Disclosure of Property Condition, and discuss staging and marketing with a client
Tenant representation agreement
employment agreement with someone who wants to lease a space to use for their business or residence
supervising broker's duty
ensure associate performance, compensation, indemnification, and reimbursement
Written buyer representation agreements
ensure that All of the commissions earned by the licensees are protected because the buyer agency relationships have been formalized
Valuable Consideration
ex - When a real estate licensee receives compensation for referring a client to a real estate licensee in a proposed real estate transaction
three types of listing agreements
exclusive right-to-sell, exclusive agency, and open listing.
Property managers most often serve as which type of agent?
general
back up offers
generally increase the chance that the first buyer will close on the home. They create competition for the property. In addition, if the back-up offer is for a higher price than the original offer, it often creates a sense that the first buyer is getting a good deal.
Illegal self-dealing
having an undisclosed personal interest in a transaction
Why are ethics important in real estate?
helps the real estate profession, the public, and the licensee's reputation
On what do personal beliefs, such as religious ones, have the greatest effect?
morals
duties owed by the intermediary to the client
obedience, loyalty, disclosure, confidentiality, accountability, and reasonable skill and care
A physical stigma occurs when a condition exists which may physically affect ___________.
occupants
Agency by Ratification
occurs when a party to the transaction accepts the benefits from the previously unauthorized act of the agent after the fact
Open agency
offers the flexibility to work with multiple agents but results in buyers acting on their own behalf since no agent owes fiduciary duties
Sandra has a listing which is physically stigmatized. Physical stigmas can impact marketability and ________________.
property values
Texas Property Code
requires that sellers disclose material defects related to the condition of their property
Sub-agent
the name for a real estate professional who works for neither the buyer nor the seller, cooperates with the listing broker with the agreement of the seller, the listing broker, and the sub-agent.
Margaret, a consumer in a DTPA lawsuit, was able to prove that the licensee in her suit knowingly failed to disclose information. What type of damages is Margaret entitled to?
up to triple their original damages.
Intermediary brokerage
when a licensee represents a client and unintentionally implies representation of a customer
