TEXAS REAL ESTATE AGENCY
Brokers who do not belong to the MLS can
a.elect to reject offers of subagency
b. have individual agreements with other brokers
c. have individual agreements with other brokers for limited periods of time
d. do all of these - Answer-do all of these
In a transaction involving appointed associates, which of the following is true
a. associates may be appointed by to either the buyer or the seller
b. the broker maybe appointed to the buyer, while an associate is appointed to the seller
c. written notification and identification of the appointed associates must be given to both parties -
Answer-c. written notification and identification of the appointed associates must be given to both
parties
What is agency? - Answer-A. Person acts on behalf of, or for the benefit of another
1. One party performs acts and is called the agent
2. One party receives benefits of the acts and is called the principal (or client)
B. Involves a fiduciary relationship
,1. Fiduciary (agent) handles money or property for the principal (or client)
2. Special duties are created (discussed in later chapter)
C. Laws govern agency practices
1. Common laws derived from court cases and decisions
2. Statutory laws enacted by legislatures and other governing bodies
Fiduciary - Answer-(agent) handles money or property for the principal (or client)
TREC established in - Answer-1949
The Real Estate License Act (TRELA)
1. TREC established?
2. TRELA provides?
3. Laws of agency are carefully detailed within - Answer-1. TREC established in 1949
2. TRELA provides legal framework within which each licensee operates
3. Laws of agency are carefully detailed within the act
The Texas Real Estate Commission (TREC)
1. ________ members appointed by Governor to administer TRELA - Answer-9
REALTOR® - Answer-A licensed broker or sales person who is a member of the National Association of
REALTORS® (NAR)
Realists - Answer-a member of the National Association of Real Estate Brokers ( NAREB) the largest and
oldest minority trade association in America
, License holder - Answer-A broker or sales agent licensed under The Texas Real Estate Commission also
called Licensee
agent - Answer-1.a broker who represents a seller, landlord, buyer, or tenant 2. Salespersons or broker
licensee who represents the broker with whom they are associated.
dual agent - Answer-someone who represents both parties. It's illegal As of June 1, 2003 " broker may
act as intermediary"
Broker Licensee - Answer-An individual holding a brokers license issued by TREC. May act independently
or may engage with other brokers or sales person licensees
Why study agency? - Answer-the increased litigation against agents.
six fiduciary responsibilities that agents owe clients - Answer-(OLDCAR):
Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable care and diligence
Name 3 Classifications of Agency - Answer-Universal, General, Special Agency
Universal Agency relationship - Answer-1. Very broad and general scope of power, not common in real
estate relationships
2. Typical use is General Power of Attorney
Brokers who do not belong to the MLS can
a.elect to reject offers of subagency
b. have individual agreements with other brokers
c. have individual agreements with other brokers for limited periods of time
d. do all of these - Answer-do all of these
In a transaction involving appointed associates, which of the following is true
a. associates may be appointed by to either the buyer or the seller
b. the broker maybe appointed to the buyer, while an associate is appointed to the seller
c. written notification and identification of the appointed associates must be given to both parties -
Answer-c. written notification and identification of the appointed associates must be given to both
parties
What is agency? - Answer-A. Person acts on behalf of, or for the benefit of another
1. One party performs acts and is called the agent
2. One party receives benefits of the acts and is called the principal (or client)
B. Involves a fiduciary relationship
,1. Fiduciary (agent) handles money or property for the principal (or client)
2. Special duties are created (discussed in later chapter)
C. Laws govern agency practices
1. Common laws derived from court cases and decisions
2. Statutory laws enacted by legislatures and other governing bodies
Fiduciary - Answer-(agent) handles money or property for the principal (or client)
TREC established in - Answer-1949
The Real Estate License Act (TRELA)
1. TREC established?
2. TRELA provides?
3. Laws of agency are carefully detailed within - Answer-1. TREC established in 1949
2. TRELA provides legal framework within which each licensee operates
3. Laws of agency are carefully detailed within the act
The Texas Real Estate Commission (TREC)
1. ________ members appointed by Governor to administer TRELA - Answer-9
REALTOR® - Answer-A licensed broker or sales person who is a member of the National Association of
REALTORS® (NAR)
Realists - Answer-a member of the National Association of Real Estate Brokers ( NAREB) the largest and
oldest minority trade association in America
, License holder - Answer-A broker or sales agent licensed under The Texas Real Estate Commission also
called Licensee
agent - Answer-1.a broker who represents a seller, landlord, buyer, or tenant 2. Salespersons or broker
licensee who represents the broker with whom they are associated.
dual agent - Answer-someone who represents both parties. It's illegal As of June 1, 2003 " broker may
act as intermediary"
Broker Licensee - Answer-An individual holding a brokers license issued by TREC. May act independently
or may engage with other brokers or sales person licensees
Why study agency? - Answer-the increased litigation against agents.
six fiduciary responsibilities that agents owe clients - Answer-(OLDCAR):
Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable care and diligence
Name 3 Classifications of Agency - Answer-Universal, General, Special Agency
Universal Agency relationship - Answer-1. Very broad and general scope of power, not common in real
estate relationships
2. Typical use is General Power of Attorney
