Aceable Agent – Finance Exam Questions and Answers (SCORED A+)
TEXAS REAL ESTATE LICENSE ACT (TRELA) 1939 - ANSWER-Who was the first legislation created to govern the real estate profession in Texas?
TEXAS REAL ESTATE COMMISSION (TREC) 1949 - ANSWER-Which commission was created to enforce TRELA (it's main purpose)? Also regulates educational and licensing programs that maintain standards AND interprets legislation that effects the real estate profession, but these are not it's main function.
1. INSPECTORS
2. EASEMENT/RIGHT OF WAY AGENTS
3. EDUCATION PROVIDERS FOR REAL ESTATE AND INSPECTION
4. DEVELOPERS OF TIMESHARES
5. RESIDENTIAL SERVICE COMPANIES
6. REAL ESTATE AGENTS AND SALES BROKERS - ANSWER-Who does TREC regulate?
OSTENSIBLE AGENCY - ANSWER-When a principal allows a license holder to act in such a way as to cause a third party to believe the license holder is the principal's agent?
AGENCY BY ESTOPPEL - ANSWER-Agency imposed by law when it is determined that ostensible agency existed; used to create legal accountability for the agent or the principal on whose behalf the agent acted?
AGENCY BY RATIFICATION - ANSWER-Created when a license holder acts on behalf of but without prior authorization of a principal and that principal accepts the license holder's action after the fact?
AGENCY COUPLED WITH INTEREST - ANSWER-When an agent is involved in a real estate transaction with a personal interest (either for themselves, a family member, or a business interest)?
AGENCY BY ACTUAL AUTHORITY - ANSWER-Actions taken by an agent for which they have permission whether given through express or implied authority by a principal?
EXPRESS AUTHORITY - ANSWER-When a principal gives an agent authority to act on
their behalf by mutual consent either by written or oral agreement?
IMPLIED AUTHORITY - ANSWER-When an agent takes action that are considered customary for the profession in order to represent their agents interests? SPECIAL AGENCY - ANSWER-A form of agency relationship in which agents are limited in scope and are only authorized to perform acts permitted by their principal (Broker/Client)
GENERAL AGENCY - ANSWER-A form of agency relationship in which the principal is responsible for the acts of their agent as long as the agent is acting within the scope of their duties (Broker/ Sales Agent)
UNIVERSAL AGENCY - ANSWER-A form of agency relationship in which agents have a very broad scope of power to act on behalf of the principal. Agents have the general power of attorney (Child/ Parent)
HONESTY & FAIRNESS - ANSWER-What are non-fiduciary duties?
1. HAVE ABSTRACT EXAMINED BY ATTORNEY
2. GET A TITLE INSURANCE POLICY - ANSWER-License holders must advise buyers
to do what 2 things?
A LOAN - ANSWER-What should you advise your buyer client to get pre-approved for before looking at homes in order to put a stronger offer on a home?
TITLE AGENT - ANSWER-Who inspects the land titles to ensure there are no liens and seller indeed owns the property?
FALSE - NOT ALL THIRD PARTIES ARE CUSTOMERS - ANSWER-T/F - All customers are third parties and all third parties are customers.
TRUE - ANSWER-T/F - A seller's agent is allowed to help a third party buyer obtain financing?
MATERIAL FACT - ANSWER-A fact that could possibly persuade a buyer or seller to change their decision if they knew about it.
NO - ANSWER-Is TAR's Sales Disclosure Notice (SDN) required to be attached to the sales contract?
SUICIDE, NATURAL CAUSES, DEATH UNRELATED TO PROPERTY - ANSWER-
What type of deaths on a property do not have to be disclosed when selling a home?
FIRST DAY PROPERTY IS ON MARKET - ANSWER-When should a SDN be filled out?
STIGMATIZED PROPERTY - ANSWER-A property on which an event has occurred that is effecting the perceived value of the property?
TEXAS REAL ESTATE LICENSE ACT (TRELA) 1939 - ANSWER-Who was the first legislation created to govern the real estate profession in Texas?
TEXAS REAL ESTATE COMMISSION (TREC) 1949 - ANSWER-Which commission was created to enforce TRELA (it's main purpose)? Also regulates educational and licensing programs that maintain standards AND interprets legislation that effects the real estate profession, but these are not it's main function.
1. INSPECTORS
2. EASEMENT/RIGHT OF WAY AGENTS
3. EDUCATION PROVIDERS FOR REAL ESTATE AND INSPECTION
4. DEVELOPERS OF TIMESHARES
5. RESIDENTIAL SERVICE COMPANIES
6. REAL ESTATE AGENTS AND SALES BROKERS - ANSWER-Who does TREC regulate?
OSTENSIBLE AGENCY - ANSWER-When a principal allows a license holder to act in such a way as to cause a third party to believe the license holder is the principal's agent?
AGENCY BY ESTOPPEL - ANSWER-Agency imposed by law when it is determined that ostensible agency existed; used to create legal accountability for the agent or the principal on whose behalf the agent acted?
AGENCY BY RATIFICATION - ANSWER-Created when a license holder acts on behalf of but without prior authorization of a principal and that principal accepts the license holder's action after the fact?
AGENCY COUPLED WITH INTEREST - ANSWER-When an agent is involved in a real estate transaction with a personal interest (either for themselves, a family member, or a business interest)?
AGENCY BY ACTUAL AUTHORITY - ANSWER-Actions taken by an agent for which they have permission whether given through express or implied authority by a principal?
EXPRESS AUTHORITY - ANSWER-When a principal gives an agent authority to act on
their behalf by mutual consent either by written or oral agreement?
IMPLIED AUTHORITY - ANSWER-When an agent takes action that are considered customary for the profession in order to represent their agents interests? SPECIAL AGENCY - ANSWER-A form of agency relationship in which agents are limited in scope and are only authorized to perform acts permitted by their principal (Broker/Client)
GENERAL AGENCY - ANSWER-A form of agency relationship in which the principal is responsible for the acts of their agent as long as the agent is acting within the scope of their duties (Broker/ Sales Agent)
UNIVERSAL AGENCY - ANSWER-A form of agency relationship in which agents have a very broad scope of power to act on behalf of the principal. Agents have the general power of attorney (Child/ Parent)
HONESTY & FAIRNESS - ANSWER-What are non-fiduciary duties?
1. HAVE ABSTRACT EXAMINED BY ATTORNEY
2. GET A TITLE INSURANCE POLICY - ANSWER-License holders must advise buyers
to do what 2 things?
A LOAN - ANSWER-What should you advise your buyer client to get pre-approved for before looking at homes in order to put a stronger offer on a home?
TITLE AGENT - ANSWER-Who inspects the land titles to ensure there are no liens and seller indeed owns the property?
FALSE - NOT ALL THIRD PARTIES ARE CUSTOMERS - ANSWER-T/F - All customers are third parties and all third parties are customers.
TRUE - ANSWER-T/F - A seller's agent is allowed to help a third party buyer obtain financing?
MATERIAL FACT - ANSWER-A fact that could possibly persuade a buyer or seller to change their decision if they knew about it.
NO - ANSWER-Is TAR's Sales Disclosure Notice (SDN) required to be attached to the sales contract?
SUICIDE, NATURAL CAUSES, DEATH UNRELATED TO PROPERTY - ANSWER-
What type of deaths on a property do not have to be disclosed when selling a home?
FIRST DAY PROPERTY IS ON MARKET - ANSWER-When should a SDN be filled out?
STIGMATIZED PROPERTY - ANSWER-A property on which an event has occurred that is effecting the perceived value of the property?
