Unit 9 Quiz
A broker assists his friend in purchasing real estate from a seller. The broker does not disclose his friend's identity at his friend's request. Which of the following is a consequence for his failure to disclose such information if he also represents the seller in the transaction? A) All of these. B) He can be accused of unlawful dual agency. C) He could lose his license for acting as an undisclosed principal. D) He can be considered to be the principal.
a
A broker wishes to purchase property for his own account from a seller. What should the broker do? A) He is required to disclose that he is a license holder acting on his own behalf. B) He should purchase the property using a shell company. C) He must provide a BPO to the seller in all cases. D) He should purchase the property under an assumed name.
a
According to TRELA, which entity is eligible to hold a broker's license in Texas? A) All may hold a broker license in Texas B) Harry Smith, resident of Texas C) Sonia Martinez, a Texas attorney D) Happy Homes, a Texas corporation
a
An agent spends his own money to pay the monthly internet bill for the broker's office while the broker is out of the country. The broker pays the agent for the cost of the bill when he returns. This is an example of which of the following? A) Reimbursement B) Indemnification C) Compensation D) Performance
a
Angela has decided to move to a different sponsoring broker. She has indicated to her current sponsoring broker that she has every right to take her listings with her; after all, she is the one who solicited the listings. Is Angela's understanding of the law correct? A) No, the listings belong to the broker. B) No, the listings must be interplead into a court registry to determine who they belong to. C) Yes, she solicited and negotiated the listings. D) Yes, as long as a TAR professional standards panel agrees with her conclusion.
a
Attorney Eric Page received compensation from the sale of the White Ridge Ranch. In which of the following ways would the compensation to Page have been permissible? A) Paid directly by the seller. B) Paid by the listing agent's subagent. C) Paid from the seller's agent's commission. D) Paid from the listing agent's commission.
a
Broker Nelson Forbes wants to sue a seller-client because he was not paid his commission. Which of the following must Forbes prove to bring suit? A) He was a licensed broker at the time the brokerage services began. B) He has financial obligations to share the commission that has been withheld. C) He reviewed the legal aspects of the sales contract with the seller. D) All parties that would be charged the commission signed the written agreement.
a
Claudia Smith, a real estate attorney, solved complicated legal problems to make the sale of the Conner's farm. Broker Albert McLin, agent for the sellers, appreciated Smith's work and sent Smith a check after he collected his commission on the sale. Is this commission sharing permissible? A) No, brokers are prohibited from sharing their commissions with attorneys. B) No, only the buyer's attorney can share a commission with attorneys. C) Yes, as long as Smith is a licensed attorney. D) Yes, as long as Smith was directly involved in facilitating the transaction.
a
Delila is a sales agent working for a buyer, Amon, who is purchasing raw land. Braxton is Delila's sponsoring broker. Delila did not have Amon sign a buyer representation agreement because Amon felt uncomfortable doing so. The sale has closed and Delila and Braxton are having problems collecting their share of the commission because the sellers think their agent breached the listing agreement. Delila is not worried because the TREC contract that was used to purchase the land states on the last page under "Broker Information" that the listing broker will pay the other broker 3% of the commission. Can Delilia sue Amon for collection of the commission on this basis? A) No, Amon has not signed a written agreement to pay Delila or Braxton a commission. B) Yes, Amon signed the sales contract that indicates the listing broker will the pay selling broker 3%. C) Yes, it is not necessary that Amon's promise to pay be in writing. D) No, only Braxton can sue, because any alleged agreement is between Braxton and Amon.
a
For a broker to bring suit against a consumer to recover compensation, TRELA requires the broker to show proof A) of all of these. B) that the consumer signed a written agreement to compensate. C) that a buyer was advised to check title prior to signing the sales contract. D) that the broker's license was active at the time services began.
a
Fred Sanders is a sales associate working for American Home Real Estate. Fred receives a check on the 15th and 30th of each month, which eases his personal budgeting. To receive these regular draws on his share of commissions, Fred has signed a note with the broker, which helps maintain Fred's status as A) independent contractor. B) tax-exempt. C) subagent. D) employee.
a
Fred Snyder, a broker, took the listing to sell his neighbor's condominium on an oral agreement. Fred found a buyer, who happened to be a coworker of the seller, in a week. When the property closed, the seller refused to pay a commission to Fred, saying that he and the buyer had discussed the property before Fred showed it to him. Will Fred be able collect his commission? A) No, he should have formed a written contract. B) No, it was illegal for him to have entered an oral contract. C) Yes, the court is likely to award the commission to him. D) No, he is not the one who found the buyer.
a
George is a broker for company A representing a seller under a listing agreement. Sam is a broker for company B. If George and Sam have an arm around relationship in the same transaction, what type of agency relationship do they have? A) Subagency relationship B) Intermediary agency relationship C) Nonagency relationship D) Dual agency relationship
a
Irma, a nonlicense holder, inherits a large sum of money. Her husband, Danny, is an associate broker with Honshu Realty. Irma agrees to finance her husband's dream of opening his own brokerage office under the condition that she be a co-owner of the business and that 75% of the monthly net income be deposited to her separate checking account. Which statement is TRUE? A) Danny could pay the fee as long as Irma does not perform any brokerage activities. B) Danny could pay the fee but only if it was deposited to the joint checking account to avoid the perception that he was paying a nonlicense holder. C) Danny could pay the fee but only if no single deposit exceeded $50 in value. D) TRELA would prohibit Danny from paying a fee to Irma because she is not licensed
a
John and Miranda both work for Liverpool Realty. John is told to make copies of files, file the records in the records room, and answer the phone for the office, in that specific order. Miranda's job is to be an assistant to two brokers from 10 -2, open homes for home inspections, and deliver records to title companies and other brokerage firms. Which of the following is TRUE regarding their status as employees or independent contractors? A) Both would probably be considered employees. B) John would probably be considered an employee and Miranda an independent contractor. C) John would probably be considered an independent contractor and Miranda an employee. D) Both would probably be considered independent contractors.
a
Jose has been a real estate broker in Mexico for five years. In that time, Mexico has not required any kind of license or registration to engage in brokerage activity. Jose has clients in Mexico interested in purchasing property on the Gulf Coast of Texas. Jose has referred his clients to Christopher, a licensed broker who practice in Corpus Christi, Texas. Can Christopher pay Jose compensation for referring his clients to Christopher? A) Yes, Mexico does not license real estate agents. B) No, Jose is not licensed in Texas. C) No, Jose is not licensed by a U.S. jurisdiction. D) Yes, as long as Jose brings his clients to Texas so he can show them the property.
a
Selma is a broker associated with Best Realty. She leads a team called Selma's Team. What is required of Selma or Best before she starts using the team name on her website? A) Best must file the team name with TREC. B) Selma must submit the team name to TREC for preapproval. C) Selma must file the team name with TREC. D) Best must submit the team name to TREC for preapproval.
a
Which of the following forms is a broker required to use when entering into a contract with a sales agent? A) None of these B) An independent contractor agreement created by the broker's attorney C) The TAR independent contractor agreement D) The TREC independent contractor agreement
a
Which of the following would be considered an independent contractor? A) A person who sets his own hours and works strictly on commission basis B) A person who is paid an hourly wage and works 40 hours per week C) A person who is told when, where, and how to work D) A person who is reimbursed for travel expenses for business trips
a
Which state or federal agency publishes guidance to brokers to determine whether sponsored sales agents and broker associates are considered employees or independent contractors? A) The Internal Revenue Service B) The Independent Revenue Service C) The Texas Real Estate Commission D) The Consumer Finance Protection Bureau
a
A broker wishes to purchase property for his own account from a seller. What should the broker do? A) He must provide a BPO to the seller in all cases. B) He is required to disclose that he is a license holder acting on his own behalf. C) He should purchase the property under an assumed name. D) He should purchase the property using a shell company.
b
At what point in a real estate transaction are fees generally paid to the listing broker? A) When an offer is accepted B) At closing C) When an offer is made D) When a buyer is identified
b
Dumfrie is a licensed sales associate with Loch Ness Realty whose sponsoring broker is Fitzroy McClean. Fitzroy and Loch Ness Realty would A) probably not be held liable if a buyer riding with Dumfrie during an afternoon of showings is injured when Dumfrie runs a red light and is hit by another driver. B) probably not be held liable if Dumfrie embezzles funds from a hospital where Dumfrie does volunteer work. C) be liable for all of these actions by Dumfrie. D) probably not be held liable if Dumfrie leaves a gate open after a showing and the owner's pet dog escapes.
b
MLS systems offer which of the following types of agency to participants? A) Mandatory subagency B) Optional subagency C) Mandatory buyer agency D) Nonexclusive seller agency
b
Sam works at a brokerage firm. She is paid an hourly wage and must work from nine to five. Which of the following would Sam be considered? A) An aide B) An employee C) An assistant D) An independent contractor
b
Sebastian is an unlicensed assistant who works at AAA Realty. He provides assistance to a team of sales associates at the firm, including unlocking doors for prospective buyers. Which of the following is TRUE regarding this activity? A) An unlicensed assistant can only engage in clerical work, otherwise, the activity would require a license. B) Opening a door for a prospective buyer is considered showing a property, which requires a real estate license. C) Opening a property for any reason is considered brokerage activity that requires a real estate license. D) Opening a door is considered administrative or support work that does not require a real estate license.
b
Susan is a broker associate with Highland Realty, where she specializes in residential property management. Jerry is the principal broker. Unless prohibited by her contract with Jerry, Susan could A) pay a referral fee directly to another broker. B) do all of these. C) open a trust account in her own name for rental monies. D) place an ad without mentioning Jerry's name.
b
The relationship between a broker and license holders associated with the broker is A) a nonagency relationship. B) an agency relationship and a fiduciary relationship. C) an intermediary relationship. D) a mediation relationship.
b
What is an independent contractor agreement used for in the real estate profession? A) It is an employment agreement between a sales agent and a buyer. B) It is generally an employment contract between a broker and a sales agent. C) It is a professional services agreement between a landlord and tenant. D) It is an employment agreement between a sales agent and a seller.
b
Which of the following acts supports a case that a person is an employee rather than an independent contractor? A) The person obtains his own training for the work. B) Federal income taxes are withheld for the person. C) The person is not reimbursed for his own business expenses. D) The person is paid a flat fee for their work.
b
Which of the following is not an example of performance in a contract between a broker and a sales agent? A) The broker providing information to the broker's agent B) The broker paying the agent for the agent's acts on behalf of the broker C) The broker providing business guidance to the broker's agent D) The broker being available to the broker's agent
b
Which of the following statements BEST defines a subagent? A) A license holder who is sponsored by a licensed broker B) A license holder who represents a principal through cooperation with and consent of a broker representing the principal C) A license holder who is associated with the principal's broker D) A license holder who has no agency relationship with a principal
b
Debbie is the designated broker for Shetland Realty. She counsels Jenny, a sales associate, that Jenny must stop wearing miniskirts to work, start attending all sales meetings, be at her desk Monday through Friday by 9:00 am, and sign up for two Saturday duties every month. Debbie is jeopardizing Jenny's A) sales agent's license. B) civil rights. C) independent contractor status. D) REALTOR® Code of Ethics.
c
How are nonexclusive agents paid? A) Always by the agent's client B) Through an annual retainer fee paid by the client C) By the client, the other party, or a commission split D) Always by the other party
c
Tom Smith, a sales agent who is an independent contractor with ABC Realty, has been told that his "floor time" is between 9 am and 10 am on Saturday mornings. Should Tom comply with this directive? A) No, he should refuse to comply because he doesn't like being told what to do. B) Yes, Tom should comply because he doesn't want to make his broker angry. C) No, he should refuse to comply because he does not want to jeopardize his independent contractor status. D) Yes, Tom should comply because he wants to pick up a few more buyers and he is really good at converting inquiries about listings into buyers.
c
Tom and Jerry work for Trapp Realty. Tom works from home most of the time and gets most of his work done late at night on his own computer. Jerry must be at the office to answer the phone from 10-2 and is required to order office supplies from Trapp's vendor. Which of the following is TRUE regarding their status as employees or independent contractors? A) Jerry would probably be considered an independent contractor. B) Tom would probably be considered an employee. C) Tom would probably be considered an independent contractor. D) Both Tom and Jerry would be considered independent contractors.
c
What can happen if an agent acts on behalf of an undisclosed principal? A) The agent can be criminally charged with a violation of federal law. B) The agent can be criminally charged with a violation of state law. C) The agent could be presumed to be acting on his own behalf. D) There is no presumption that the agent is acting on his own behalf.
c
When is a person obligated to pay the broker's fee under the terms of the TAR buyer/tenant agreement? A) After the buyer/tenant agreement is signed by both the broker and the buyer B) When the broker's fee is earned and payable C) At the closing of the contract where the buyer purchases the property D) Three days after the buyer and seller execute the TREC-promulgated sales contract
c
Which of the following acts requires a real estate license? A) Setting appointments to show a house B) Accompanying a home inspector C) Showing property D) Placing for sale signs at a property
c
Which of the following must a broker provide to associate brokers who work as independent contractors? A) Workers' compensation coverage B) Regular salary C) Written contract D) Medical benefits
c
Which of the following statements is FALSE? A) A licensed sales agent can be hired as an employee or as an independent contractor. B) A licensed sales agent cannot list property in her own name. C) A licensed sales agent can hold active licenses under multiple brokers at the same time. D) A licensed sales agent cannot sue buyers and sellers directly for unpaid commissions.
c
A broker may offer an unlicensed person which of the following as compensation for referral? A) Not more than $50 cash B) None of these C) A gift not to exceed $100 D) A gift worth not more than $50
d
An independent contractor agreement is usually entered into between which of the following parties? A) An agent and a buyer in a real estate transaction B) A broker and the seller in a real estate transaction C) A buyer and a seller in a real estate transaction D) A broker and a sponsored sales agent
d
Christopher is a licensed sales agent sponsored by Coastal Realty in Corpus Christi, Texas. Jose has been a real estate broker in Playa del Carmen, Mexico, for five years. In that time, Mexico has not required any kind of license or registration to engage in brokerage activity. Christopher has clients interested in purchasing property on the Gulf Coast of Mexico. Christopher has referred his clients to Jose. Can Christopher accept compensation from Jose for referring his clients to Jose? A) No, Jose is not licensed by a U.S. jurisdiction. B) No, Jose is not licensed in Texas. C) Yes, since there is no law in Mexico that prevents it. D) No, Christopher must be paid through his broker.
d
Indicate whether the following statement is true or false and why: Samson owns a brokerage firm, Strong Realty, LLC. He regularly gets paid profits from the brokerage activity conducted by the firm. Does he need a license to do so? A) Yes, if a person realizes a profit from brokerage activity his company engages in, that person must be license. B) Yes, Samson needs a license because he and the firm are legally considered the same person. C) No, it doesn't matter whether Samson engages in brokerage or not, as long as the company he owns is registered with the secretary of state in Texas. D) No, as long as Samson does not personally engage in brokerage activity, he can share in the business's income.
d
Is an advertisement of a broker associated with another broker (principal broker) required to include the principal broker's name? A) No, associate brokers normally work independently of the principal broker. B) Yes, TREC rules require that the advertisement include just the principal broker's name. C) No, brokers are allowed to represent themselves in all advertising. D) Yes, TREC rules require that the advertisement include the associate broker's name and the principal broker's name.
d
Jamison works as a Goliath Realty licensed assistant. Jamison does many things for the brokerage firm, including showing properties, meeting with clients on behalf of brokers, and a variety of other things depending on the work that gets assigned to him on a weekly basis. Jamison is paid by each of the license holders for whom he does work, and sometimes Goliath pays him on the books. Is Jamison an employee or an independent contractor? A) He is an employee because Goliath and other license holders pay him for his work. B) He is an independent contractor because he has a real estate license. C) He is an independent contractor because his work is assigned. D) It cannot be determined from the facts presented.
d
Of the following, which acts can a licensed sales agent engage in without the supervision of a broker? A) Opening her own offices without a designated broker B) Listing property in her own name C) Move her listings to a new sponsoring broker's office D) Buying or selling her own property
d
Sales agents sponsored by one company function in what type of relationship with sales agents sponsored by another company if the sales agents are each acting on behalf of their own broker? A) Arm around B) Arms together C) Arm's up D) Arm's-length
d
Unless licensed as a sales agent or a broker, a personal assistant could NOT A) type sales contracts. B) place signs. C) open a property D) show listings.
d
What is considered avoidance under agency law? A) When the principal fails to reimburse the client B) When a principal actively fails to return the agent's calls C) When the principal indemnifies a client D) When a principal refuses to pay an agent based on the agent's breach of a contractual duty
d
When advertising a listing, A) a sales agent's name may not appear; only the broker's name may appear. B) a sales agent's name may appear without the broker's name. C) a sales agent's name may appear without the broker's name as long as the main office telephone number and address is shown. D) a sales agent's name and a broker's name should both be in the advertisement.
d
Which of the following is a TRUE statement regarding a broker's agreement with other brokers? A) TREC requires that contractual agreements between brokers must be filed with TREC. B) A broker associated with another broker is not an agent of the other broker. C) TREC requires that contractual agreements between brokers must be in writing. D) TREC does not generally regulate contractual relationships with other brokers.
d
