Name: Score:
48 Multiple choice questions
Definition 1 of 48
is the act of harming the reputation of another person by making a false statement to a third
party either by slander (spoken words) or libel (printed words). Usually, a defamation claim
requires evidence of:
• a false statement,
• a statement made to someone other than the person who is allegedly defamed, and
• the damage to the person allegedly defamed (either by intention or reckless disregard for the
truth).
cooperating or cooperative brokers:
Defamation
Subagency
Elements of a valid listing agreement:
Definition 2 of 48
License holders must provide a link to the IABS form in a readily noticeable place on the
homepage of their business website, in at least 10-point font, and labeled "Texas Real Estate
Commission Information About Brokerage Services." A sales agent or broker must also provide
the form at the first substantive communication with a prospective client by one of the
following four methods: (1) by personal delivery; (2) by first class mail or overnight common
carrier delivery service; (3) in the body of an email; or (4) as an attachment to an email, or a link
within the body of an email, with a specific reference to the IABS Form in the body of the email.
NOTE: A link to the IABS in the signature line or footnote of an email does not satisfy this
requirement.
Disclosure requirements for the agent to customers and clients
Information About Brokerage Services - IABS - purpose and content
DTPA - steps for an agent to help avoid lawsuits
Types of deceptive or misleading advertisements or advertisement practices
,Definition 3 of 48
The Utilitarian Approach - Ethical action produces the greatest balance of good over harm to
those who are affected.
The Rights Approach - Individuals have the right to have their moral rights protected and
respected, and the right to be told the truth, and not to be injured.
The Fairness or Justice Approach - Ethical action is equal for all, or if not, then fair for some,
based on some defensible standard.
The Common Good Approach - Ethical standards and actions embrace common conditions
that are important to the welfare (common good) of all.
The Virtue Approach - Ethics are habits that enable us to act accordingly as persons who are
truthful, honest, courageous, compassionate, generous, tolerant, and possess integrity, fairness,
self-control, and prudence.a
Types of listings and commissions owed under each
Five sources of ethical standards and what each includes
Disclosure requirements for the agent to customers and clients
REALTOR© - the meaning of the term and how/when it is used
Definition 4 of 48
a situation in which individuals may find themselves when they:
• do not know the right course of action
• have difficulty doing what they consider to be right
• and the wrong choice is very tempting
Pg. 180 for 5 steps to approaching ethical dilemma
Benefits of seller agency:
What is an ethical dilemma
Unlicensed assistants and permitted activities
Agency / The Agency Relationship
,Definition 5 of 48
Obedience, Loyalty, Disclosure, Confidentiality, Accounting and Reasonable care - OLD CAR
Duties of the Principle
Canons of Ethics
Duties of an Agent
Responsibilities of the Seller
Definition 6 of 48
Commission rates and any other means by which sellers and buyers compensate brokers are
always negotiable between the parties. Any attempt by a group of brokers to set the
commission rates in their area or between a group of brokerage firms would be considered
illegal price-fixing. e federal laws that have the most significant impact in this area are the
Sherman Anti-Trust Act and the Clayton Act. e Sherman Anti-Trust Act is very specific
concerning this violation. All commissions are negotiable between the broker and his or her
client and are not set by any Board of REALTORS® or between competitors, or by TREC.
Any attempt to x prices would be a violation of federal law. Any agreement to limit competition
by assigning market areas would also be a violation. Likewise, boycotting of discount brokers is
also a violation of federal law.
IRS independent Contractor Status Rules
Setting commission rates - violations
Dtpa - steps for an agent to help avoid lawsuits
Seller's disclosure notice requirements
Definition 7 of 48
Duties do not end with the termination or expiration of an agency relationship. e duty of
confidentiality extends forever into the future.
The responsibilities of a principal in a contract
The legal obligations of a client after a deal closes
The rights of an agent to disclose client information
Duties of an agent and the expiration of those duties
, Definition 8 of 48
Cooperative broker: A broker who participates in facilitating a real estate transaction along with
the broker who listed the property. Often, the cooperating broker is the agent who locates a
buyer for the property and represents the buyer's interests during negotiation
How most real estate agents are paid
Defamation
DTPA
cooperating or cooperative brokers:
Definition 9 of 48
when some adverse event occurs on-site, or some people believe that a past event or
condition is affecting it
Conditions:
Physiologically: would be the belief among some that a house is haunted. Events on a property
such as murder, death, and infectious disease can also create psychological stigma.
Physically: occurs as a result of some environmental or natural conditions near or on the
property. Previous flooding, foundation problems, nearby land fills, and nuclear power plants
in the area are examples of physical stigma.
Disclosures: disclose any facts that could affect a purchaser's decision to buy
- do not disclose of HIV/AIDS, handicapped individuals, death of natural causes, suicide, or
accidental unrelated to the condition of the property
Disclosure of representation vs disclosure of agency - when and how
Results of broker death and the effect on sponsored agents
General vs. Special Agent
Stigmatized properties - conditions and disclosure requirements
48 Multiple choice questions
Definition 1 of 48
is the act of harming the reputation of another person by making a false statement to a third
party either by slander (spoken words) or libel (printed words). Usually, a defamation claim
requires evidence of:
• a false statement,
• a statement made to someone other than the person who is allegedly defamed, and
• the damage to the person allegedly defamed (either by intention or reckless disregard for the
truth).
cooperating or cooperative brokers:
Defamation
Subagency
Elements of a valid listing agreement:
Definition 2 of 48
License holders must provide a link to the IABS form in a readily noticeable place on the
homepage of their business website, in at least 10-point font, and labeled "Texas Real Estate
Commission Information About Brokerage Services." A sales agent or broker must also provide
the form at the first substantive communication with a prospective client by one of the
following four methods: (1) by personal delivery; (2) by first class mail or overnight common
carrier delivery service; (3) in the body of an email; or (4) as an attachment to an email, or a link
within the body of an email, with a specific reference to the IABS Form in the body of the email.
NOTE: A link to the IABS in the signature line or footnote of an email does not satisfy this
requirement.
Disclosure requirements for the agent to customers and clients
Information About Brokerage Services - IABS - purpose and content
DTPA - steps for an agent to help avoid lawsuits
Types of deceptive or misleading advertisements or advertisement practices
,Definition 3 of 48
The Utilitarian Approach - Ethical action produces the greatest balance of good over harm to
those who are affected.
The Rights Approach - Individuals have the right to have their moral rights protected and
respected, and the right to be told the truth, and not to be injured.
The Fairness or Justice Approach - Ethical action is equal for all, or if not, then fair for some,
based on some defensible standard.
The Common Good Approach - Ethical standards and actions embrace common conditions
that are important to the welfare (common good) of all.
The Virtue Approach - Ethics are habits that enable us to act accordingly as persons who are
truthful, honest, courageous, compassionate, generous, tolerant, and possess integrity, fairness,
self-control, and prudence.a
Types of listings and commissions owed under each
Five sources of ethical standards and what each includes
Disclosure requirements for the agent to customers and clients
REALTOR© - the meaning of the term and how/when it is used
Definition 4 of 48
a situation in which individuals may find themselves when they:
• do not know the right course of action
• have difficulty doing what they consider to be right
• and the wrong choice is very tempting
Pg. 180 for 5 steps to approaching ethical dilemma
Benefits of seller agency:
What is an ethical dilemma
Unlicensed assistants and permitted activities
Agency / The Agency Relationship
,Definition 5 of 48
Obedience, Loyalty, Disclosure, Confidentiality, Accounting and Reasonable care - OLD CAR
Duties of the Principle
Canons of Ethics
Duties of an Agent
Responsibilities of the Seller
Definition 6 of 48
Commission rates and any other means by which sellers and buyers compensate brokers are
always negotiable between the parties. Any attempt by a group of brokers to set the
commission rates in their area or between a group of brokerage firms would be considered
illegal price-fixing. e federal laws that have the most significant impact in this area are the
Sherman Anti-Trust Act and the Clayton Act. e Sherman Anti-Trust Act is very specific
concerning this violation. All commissions are negotiable between the broker and his or her
client and are not set by any Board of REALTORS® or between competitors, or by TREC.
Any attempt to x prices would be a violation of federal law. Any agreement to limit competition
by assigning market areas would also be a violation. Likewise, boycotting of discount brokers is
also a violation of federal law.
IRS independent Contractor Status Rules
Setting commission rates - violations
Dtpa - steps for an agent to help avoid lawsuits
Seller's disclosure notice requirements
Definition 7 of 48
Duties do not end with the termination or expiration of an agency relationship. e duty of
confidentiality extends forever into the future.
The responsibilities of a principal in a contract
The legal obligations of a client after a deal closes
The rights of an agent to disclose client information
Duties of an agent and the expiration of those duties
, Definition 8 of 48
Cooperative broker: A broker who participates in facilitating a real estate transaction along with
the broker who listed the property. Often, the cooperating broker is the agent who locates a
buyer for the property and represents the buyer's interests during negotiation
How most real estate agents are paid
Defamation
DTPA
cooperating or cooperative brokers:
Definition 9 of 48
when some adverse event occurs on-site, or some people believe that a past event or
condition is affecting it
Conditions:
Physiologically: would be the belief among some that a house is haunted. Events on a property
such as murder, death, and infectious disease can also create psychological stigma.
Physically: occurs as a result of some environmental or natural conditions near or on the
property. Previous flooding, foundation problems, nearby land fills, and nuclear power plants
in the area are examples of physical stigma.
Disclosures: disclose any facts that could affect a purchaser's decision to buy
- do not disclose of HIV/AIDS, handicapped individuals, death of natural causes, suicide, or
accidental unrelated to the condition of the property
Disclosure of representation vs disclosure of agency - when and how
Results of broker death and the effect on sponsored agents
General vs. Special Agent
Stigmatized properties - conditions and disclosure requirements
