Law Of Agency

Front 1

One who hires an agent is called a:

Back 1

principal

Front 2

The agent works for or on behalf of a:

Back 2

client

Front 3

A fiduciary relationship is based upon:

Back 3

Trust

Front 4

Which of the following is the real estate licensing authority in Texas?

Back 4

TREC

Front 5

Which of the following is a principal's duty to an agent?

Back 5

compensation, indemnification, performance

Front 6

A broker must have __________ to act as an intermediary.

Back 6

written consent

Front 7

The written document is evidence that the agency relationship exists and provides the agent with:

Back 7

express authority

Front 8

The most limited of all the agency relationships is called:

Back 8

special agency

Front 9

Activity which causes a third-party to believe that an agent has authority which in fact was not granted by a principal to the agent is known as:

Back 9

agency by estoppel

Front 10

When actions lead another person to assume that one is an agent this is known as:

Back 10

ostensible agency

Front 11

Disclosure of representation may be:

Back 11

either oral or written

Front 12

Jerome is a licensed agent who wants to sell his mother's home. Jerome has the property listed with his brokerage firm and finds a buyer himself to buy his mother's home. Jerome should:

Back 12

disclose to the buyer in writing that the seller is his mother

Front 13

Confidential information between client and agent should be:

Back 13

kept confidential forever

Front 14

An exemption to using the Information About Brokerage Services form is:

Back 14

a lease for not more than 1 year with no sale anticipated

Front 15

Real estate agents owe certain non-fiduciary duties to customers, such as:

Back 15

honesty and fairness

Front 16

A broker is obligated to treat which of the following fairly?

Back 16

customers, sellers, clients

Front 17

A licensee is not liable for a misrepresentation of a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.

Back 17

true

Front 18

Which of the following events that happened, or is believed to have happened, on a property can "stigmatize" it?

Back 18

suicide on the premises, paranormal activity, death on the property

Front 19

The listing agreement should contain:

Back 19

the legal description of the property

Front 20

Sam listed his property with three different real estate brokers at the same time. In each agreement he reserved the right to sell the property himself without paying a commission. The type of listing that Same signed with each broker was an:

Back 20

open listing

Front 21

Data used for a CMA should be no older than:

Back 21

6 months

Front 22

The report used to give a seller or buyer an indication of market value is called a:

Back 22

Comparative Market Anaysis

Front 23

What is an element of a listing?

Back 23

the broker's fee

Front 24

A termination date in a listing agreement must be:

Back 24

definite

Front 25

A licensee is not required to provide the IABS when the licensee meets with a party who is:

Back 25

represented by another licensee

Front 26

If a broker sells a property on behalf of a seller without a signed listing agreement, the courts will most likely declare that the broker is:

Back 26

a volunteer, an agent in a listing agreement that is un-enforceable against the seller, unable to enforce payment of the commission

Front 27

Commission rates are set by?

Back 27

client and broker

Front 28

The TAR Buyer Representation Agreement in our textbook:

Back 28

authorizes intermediary, is limited to the market area designated in the agreement, authorizes the agent to show properties to competing buyers

Front 29

Listings may be terminated by:

Back 29

death, either part - broker or client, mutual agreement

Front 30

When the broker is given notice of termination by the principal, the broker must:

Back 30

terminate the listing in the MLS, remove signage and lockbox, if any, and cease all marketing activities

Front 31

A broker has the power to terminate an agency agreement early,

Back 31

is the principal is not cooperating with the broker's efforts to market the property

Front 32

If a broker dies what happens to the listing with the seller?

Back 32

It automatically terminates

Front 33

Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty. In this transaction, who is representing the buyer?

Back 33

nobody, because the buyer is a customer

Front 34

Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty. In this transaction, who is City Realty representing?

Back 34

the seller, because City Realty is a subagent of ABC Realty in this transaction

Front 35

Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty. What type of transaction is this?

Back 35

cooperative (co-op)

Front 36

A licensee not associated with the client's broker but who is representing the client through a cooperative agreement with the client's broker is known as a:

Back 36

subagent

Front 37

Broker Steve, having no agents, is a solo practitioner. He has a buyer client that wants to purchase one of his listings. The process that Broker Steve must use is:

Back 37

intermediary without appointments

Front 38

Broker Bob is the broker/owners of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing. In this transaction, Agents Bill and Sue will most likely be acting as:

Back 38

Appointed associated in an intermediary relationship

Front 39

Broker Bob is the broker/owners of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing. In this transaction, Broker Bob will be the:

Back 39

intermediary

Front 40

Broker Bob is the broker/owners of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing. In this transaction, Broker Bob will:

Back 40

remain neutral and refrain from providing advice and opinions to either party

Front 41

A licensee has a listing with a seller and has a buyer's representation agreement signed with a buyer who desires to purchase this agent's listing. How is the agent operating?

Back 41

as a non-appointed associate in an intermediary relationship

Front 42

In some states other than Texas, the most common method of dealing with in-house transactions between client buyers and sellers is:

Back 42

dual agency

Front 43

A real estate brokerage firm that practices buyer agency only has a lot of intermediary transaction.

Back 43

false

Front 44

__________ 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 the transaction so appointments can be made.

Back 44

intermediary with appointments only

Front 45

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

Back 45

false

Front 46

A licensee must present the Information About Brokerage Services form:

Back 46

at the first substantive discussion of a real estate transaction

Front 47

If a broker's agents are independent contractors, there can be policies and procedures manual for the agents, however,

Back 47

the broker cannot require mandatory compliance

Front 48

Real estate agents who are independent contractors generally get paid:

Back 48

commission

Front 49

Your company sends out a memo that there is a mandatory sales meeting this week for the sales agent.

Back 49

the IRS rule on independent contractor status could be violated

Front 50

In Texas, Worker's Compensation must be paid for real estate agents by brokers:

Back 50

false

Front 51

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

Back 51

the salesperson signs a written contract with the broker stating the salesperson is not an employee

Front 52

Sally is an unlicensed assistant to Agent Bill at ABC Realty. In her role as a transaction coordinators, Sally recently called a buyer and discussed some minor title issues that turned up in the title search. She also mentioned to the buyer that rates are down, and that, considering the buyer's situation, an FHA loan might be more attractive than a conventional loan. Based on this conversation, we can say that Sally:

Back 52

is dealing with issues that should only be discussed by a licensed assistant

Front 53

A business practice may not be ethical, even if it is legal.

Back 53

True

Front 54

All of the following are in the Canons of Professional Ethics for real estate licensees

Back 54

competency, integrity, consumer information form 1-1

Front 55

All licensees are Realtors

Back 55

false

Front 56

Which of the following is a statutory defense for a lawsuit brought about by DTPA?

Back 56

written information obtained from a government record

Front 57

Usually a defamation claim requires evidence of:

Back 57

a false statement made to someone other than the person who is allegedly defamed, a false statement, damage to the person allegedly defamed by a false statement