Unit 5 Study Questions

Which of the following is the best practice for license holders to establish a buyer/agency relationship?

A written agreement signed and dated by all the parties to the agreement

Which of the following is a benefit enjoyed by buyers who enter buyer-agency relationships?

Access to a larger marketplace

The listing broker has agreed to pay the cooperating broker a fee of 2% of the sales price. The buyer is represented and has agreed in writing to pay her broker a nonrefundable $2,000 flat fee. Which statement is true?

All parties must be notified of the compensation agreement between the buyer and the broker

Jeff paid a retainer fee to Elena, who agreed to serve as his buyer's broker. According to TREC rules, what must Elena do with the retainer fee?

Deposit the money in a trust account

In which case must a real estate broker obtain a written agreement with a buyer?

Broker wishing to take legal action against a buyer for commission

James is a sales agent who is sponsored by Best Realty, and he is a member of the A-1 Team. What must be done to ensure that James can use the team name in advertising?

James's broker must register the name with TREC.

Which of the following statements is FALSE regarding reasons why a buyer may wish to be unrepresented as a customer in a transaction?

Listing agent just a facilitator for the transaction

Which of the following is typically NOT addressed in a buyer/tenant representation agreement?

Property description

Broker Sue of Holy Loch Realty has scheduled several showings for Gus, a buyer-client. One of the showings is for a property on Loch Awe Road. Three years ago, Sue was in a buyer-agency relationship with the current owner in the purchase of that property. In regard to the property on Loch Awe Road, which of the following is the BEST answer?

Sue must disclose all of these.

Who is the primary agent of the buyer in a buyer/agent relationship?

The broker

When a buyer's agent shows a property listed through an MLS, the agent is the fiduciary of which of the following?

The buyer

Which requires that a buyer purchase only through a particular broker?

The buyer signed an exclusive representation agreement

Which of the following statements is TRUE regarding an exclusive buyer representation agreement?

There must be a definite termination date.

Buyers may hear that the TREC-promulgated contract forms for residential sales contain some buyer compromises and want their buyer's agent to help them prepare an addendum to the contract. Which of the following guidelines should a license holder follow in this situation?

You are not an attorney and must avoid the unauthorized practice of law.

License holders do NOT need to disclose to buyers that they are license holders if the license holders are selling a property on....

behalf of the license holder's best friend.

The increase in buyer representation is due primarily to...

better disclosure and information required of brokers

Buyer representation agreements...

impose duties on buyers' brokers similar to those that listing agreements impose on sellers' brokers

Buyer agency...

may be created by the actions of a license holder, as well as by written agreements