Law of Agency Questions and Answers Already Passed

Law of Agency Questions and Answers Already Passed Article 2. _____ Article 3. _____ Article 4. _____ _____ Integrity, Competency, Consumer Information An agency relationship exists when one person,_______, acts for or on behalf of another person,_____, who is also known as the client. This relationship is a fiduciary relationship, meaning that it is based on trust. p. 9 the agent, the principal _____ is the relationship between two parties, a principal, and an agent. Agency The _____ is the one who hires and gives authority to the agent. P.10 principal The __ __ __ __ __ (TRELA) was passed in 1939. P.10 Texas Real Estate License Act The Real Estate _____ was created to enforce and administer the act in _____. P.10 Commission, 1949 The _____ _____ provides for two types of licenses to be issued, a broker license, and a sales agent license. P.10 License Act The initial relationship with all potential buyers and sellers is a _____. customer The individual remains a customer until he or she enters into an _____ _____. agency agreement A seller becomes a client by entering into a _____ _____ with the broker. listing agreement A buyer becomes a client by entering into a ___ ___ ___ with the broker. p.17 buyer representation agreement A license holder not associated with the seller's broker, but who is representing the seller through a cooperative agreement, often through membership in a Multiple Listing Service (MLS), with the seller's broker. P.18 Subagent The broker represent the _____. The sales agent license holder represents the _____. P.20 client, broker Agency by actual authority exists when an individual grants _____ _____ to the agent to perform some act. P.27 express authority _____ _____ exists when actions lead another person to assume that one is an agent. P.27 Ostensible agency Agency authority, or rights, may also be a result of "the norm", or what is considered customary in the business. For example, a homeowner can expect the listing agent to make appointments to show the property, not only during business hours, but also on weekend, and in the evenings, This is standard practice in residential real estate, and this authority is defined as . p.28 implied authority _____ are held to the highest amount of good faith, are required to exclude all selfish interest, are prohibited from putting themselves in positions where personal interest and representative interest will conflict and must, in any direct dealing with the principal, make full disclosure of all relevant facts and give the latter an opportunity to obtain independent advice. P.28 Fiduciaries The _____ _____ has less authority than the universal agent. P.30 General Agency An agent is obligated to follow all of the lawful instructions of a client. P.32 Obedience At the first contact with a party to a potential transaction, a license holder must disclose to that party whom he or she represents. This may be done orally or in writing. P.36 Disclosure of Representation A license holder is not required to provide the notice required by Subsection (b-1) if: (1 of 3) the proposed transaction is for a residential lease for not more than one year and a sale is not being considered. P.37 Representation Disclosure (a) A broker may act as an _____ between parties to a real estate transaction if; (1 of 2) the broker obtains written consent from each party for the broker to act as an _____ in the transaction. P.38 intermediary when acting in an intermediary transaction, the broker is required to treat all parties _____. p.43 honestly A _____ _____, also known as a customer, is a party to a transaction who is not being represented by the license holder. P.44 third party In Texas, most sellers prepare a ___ ___ _ ___ ___, and the seller is responsible for its accuracy. P.54 Seller's Disclosure of Property Condition A _____ _____ should, at minimum include: (11 pieces) A legal description of the property, including a street address. The agreement to pay a stated commission, usually a percentage of the sales price p.79 listing package The _____ _____ gives the seller the right to list the property with multiple competing brokers and to sell the property personally without liability for payment of a commission. P.80 open listing The shared information is also used by agents to prepare a ___ ___ ___ (CMA). The agent uses sales information from the MLS data to show a seller the market value of the property. The agent bases this analyses on properties that have recently sold that are most similar to the seller's property. If possible, the agent should use data from sales that have closed within the last six months. P.81 Comparative Market Analysis All listing agreements must have a definite _____ _____. P.86 termination date Only a _____ may earn a commission and only a _____ may sue to collect a commission. The _____ may sue a seller who has defaulted on a listing agreement, or a buyer who has defaulted on a buyer's representation agreement. broker "_____ _____", means that area in the State of Texas within the perimeter boundaries of the following areas:____... Market area If a broker determined that a principal was not cooperating with their efforts to market their property, _____ would be an option. termination The duties of the agent do not end with the termination of an agency relationship. The duty of _____ extends forever into the future. confidentiality _____ is a process that makes it possible to bring client buyers and sellers together while at the same time representing their best interests. P.167 Intermediary The broker has a personal duty to represent _____ _____, therefore, it is only appropriate that the broker remain neutral and avoid negotiating for either party as an ____ . P.167 both sides, intermediary An in-house sale involving two agents where the appointed associates will give advice and opinions (negotiate) to their respective parties. P.167 Intermediary WITH Appointments An agent that has the opportunity to sell his or her own listing (both sides of sale). Under Intermediary rules, the agent can complete the transaction, but CANNOT give advice and/or opinions to either party. P.168 Intermediary without appointments Moving from Intermediary _____ appointments to Intermediary _____ appointments can reduce liability and possibly make clients more comfortable with the transaction. P.168 without, with When it becomes apparent that a client buyer has an interest in a property listed with the firm, the agent should put the parties on notice with the _____ _____ _____ as soon as possible. P.170 Intermediary Relationship Notice As mentioned earlier, the IABS is to be provided when the _____ _____ _____ of a real estate transaction takes place. P.189 first substantive discussion _____ _____ _____ _____, 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. p.190 Intermediary with appointments only A firm that will only represent buyers, and no intermediary practice is allowed is called? p.192 Buyer Agency Only The following guidelines set forth by the IRS are appropriate for designation of _____ _____ - a guaranteed minimum monthly compensation -If the broker pays the agent's licensing fees employee status A written contract with the broker specifying the sales agent is not an employee specifies that the said person is an _____ _____ Independent contractor _____ _____ demand that the primary duty of the real estate agent is to represent the interest of his or her client, and his or her position, in this respect, should be clear to all parties concerned in a real estate transaction, that however, the agent, in performing his or her duties to the client, shall treat other parties to a transaction fairly. Fiduciary duties