Texas Law of Agency Real Estate
Practice Exam
A Buyer who discovers after closing that a seller wasn't honest about the property condition on the
required disclosures can? - Answer-Sue the seller
(Once closing has occurred, the buyer can sue the seller if the buyer discovers the seller wasn't honest
about the properties condition.)
In a real estate transaction in which you represent the seller, your duty to other parties is to? - Answer-
Treat them honestly and fairly
(You must treat other parties in the transaction honestly and fairly, and you must disclose all material
facts.)
In what way (S) do consumers compensate brokers for their services? - Answer-As a flat fee, fee for
service, and/or percentage of sale. (Consumers generally compensate brokers for their services in the
form of a percentage of the sales price of the property, but other options include a flat fee or fee for
service.)
In addition to providing a disclosure of any lead-based hazards in a home built before 1978, what my
sellers provide to perspective buyers? - Answer-EPA lead safety pamphlet
,(sellers must also provide a lead safety pamphlet, available from the environmental protection agency,
to perspective buyers.)
Which of the following statements about buyer representation is true? - Answer-An open agency
relationship gives the buyer flexibility, but limits the amount of representation received by any one
professional.
(Open agency offers buyers with the most flexibility to work with multiple agents but limits the level of a
representation.)
Customers, lenders, and appraisers are all? - Answer-Third parties
(these are all third parties.)
Marsha's title insurance policy was issued on closing day, June 18. The policy list the standard exclusions
as well as requirements for the company to issue the policy, such as pay not existing recorded lines.
Which of these will not be addressed in the schedule of exceptions? - Answer-Marsha's second
mortgage on the property, which was properly recorded in January.
(Title insurance typically covers events or claims filed on the public record before the title insurance
policies effective date but excludes disclosed an undisclosed easements.)
When agents put their clients interest ahead of their own, this describes the duty of? - Answer-Loyalty
(loyalty means putting the clients interest first ... Ahead of customers interests and ahead of your own.)
What makes urea for formaldehyde foam insulation a health hazard? - Answer-It contains
formaldehyde.
(Urea formaldehyde foam insulation contains formaldehyde which can be a health hazard.)
, At least 60 days prior to filing A lawsuit under DTPA, what is the consumer required to do? - Answer-
Provide a written notice to the person against whom the suit is to be filed.
(At least 60 days before filing a DTP a suit, the consumer must provide a written notice to the person
against whom the suit is to be filed.)
Amelia is a broker who is employed to negotiate a transaction between both parties to the transaction,
and with the parties written consent, may act as the agent of the two parties. In what capacity is Amelia
acting? - Answer-An intermediary.
(A broker who is acting as the agent to both parties to a transaction such as the buyer and the seller is
known as an intermediary. The broker must have the signed, written permission of both parties to act in
this capacity. When acting as an intermediary, the broker is prohibited from favoring one party over the
other.)
In Texas, the commission is responsible for preparing information outlined in its purpose and duties. It
must then make this information available to him? - Answer-The public.
(Under TRELA, the commission has a responsibility to prepare information outlined in his duties and
powers for the public interest, and then make this information available to the public.)
What's the purpose of a buyer presentation? - Answer-To build rapport with the buyer
(a sit down meeting helps the buyer invest in you as a professional and helps to establish rapport.)
Personal beliefs, such as religious ones, have the greatest effect on what? - Answer-Morals
(morals tend to be specific to the individual and are shaped by personal believes.)
Practice Exam
A Buyer who discovers after closing that a seller wasn't honest about the property condition on the
required disclosures can? - Answer-Sue the seller
(Once closing has occurred, the buyer can sue the seller if the buyer discovers the seller wasn't honest
about the properties condition.)
In a real estate transaction in which you represent the seller, your duty to other parties is to? - Answer-
Treat them honestly and fairly
(You must treat other parties in the transaction honestly and fairly, and you must disclose all material
facts.)
In what way (S) do consumers compensate brokers for their services? - Answer-As a flat fee, fee for
service, and/or percentage of sale. (Consumers generally compensate brokers for their services in the
form of a percentage of the sales price of the property, but other options include a flat fee or fee for
service.)
In addition to providing a disclosure of any lead-based hazards in a home built before 1978, what my
sellers provide to perspective buyers? - Answer-EPA lead safety pamphlet
,(sellers must also provide a lead safety pamphlet, available from the environmental protection agency,
to perspective buyers.)
Which of the following statements about buyer representation is true? - Answer-An open agency
relationship gives the buyer flexibility, but limits the amount of representation received by any one
professional.
(Open agency offers buyers with the most flexibility to work with multiple agents but limits the level of a
representation.)
Customers, lenders, and appraisers are all? - Answer-Third parties
(these are all third parties.)
Marsha's title insurance policy was issued on closing day, June 18. The policy list the standard exclusions
as well as requirements for the company to issue the policy, such as pay not existing recorded lines.
Which of these will not be addressed in the schedule of exceptions? - Answer-Marsha's second
mortgage on the property, which was properly recorded in January.
(Title insurance typically covers events or claims filed on the public record before the title insurance
policies effective date but excludes disclosed an undisclosed easements.)
When agents put their clients interest ahead of their own, this describes the duty of? - Answer-Loyalty
(loyalty means putting the clients interest first ... Ahead of customers interests and ahead of your own.)
What makes urea for formaldehyde foam insulation a health hazard? - Answer-It contains
formaldehyde.
(Urea formaldehyde foam insulation contains formaldehyde which can be a health hazard.)
, At least 60 days prior to filing A lawsuit under DTPA, what is the consumer required to do? - Answer-
Provide a written notice to the person against whom the suit is to be filed.
(At least 60 days before filing a DTP a suit, the consumer must provide a written notice to the person
against whom the suit is to be filed.)
Amelia is a broker who is employed to negotiate a transaction between both parties to the transaction,
and with the parties written consent, may act as the agent of the two parties. In what capacity is Amelia
acting? - Answer-An intermediary.
(A broker who is acting as the agent to both parties to a transaction such as the buyer and the seller is
known as an intermediary. The broker must have the signed, written permission of both parties to act in
this capacity. When acting as an intermediary, the broker is prohibited from favoring one party over the
other.)
In Texas, the commission is responsible for preparing information outlined in its purpose and duties. It
must then make this information available to him? - Answer-The public.
(Under TRELA, the commission has a responsibility to prepare information outlined in his duties and
powers for the public interest, and then make this information available to the public.)
What's the purpose of a buyer presentation? - Answer-To build rapport with the buyer
(a sit down meeting helps the buyer invest in you as a professional and helps to establish rapport.)
Personal beliefs, such as religious ones, have the greatest effect on what? - Answer-Morals
(morals tend to be specific to the individual and are shaped by personal believes.)
