Exam Prep - State Portion IV - Trebs Agency/Brokerage
questions with verified answers
Senate Bill 489 was passed in 1996 and dealt with what issue?
A. The elimination of statutory dual agency and replacing it with
intermediary
brokerage
B. The rules pertaining to eviction of tenants
C. The formation of a financial taskforce to study FHA loans
D. The elimination of the Sunset Commission Ans✓✓✓ The correct
answer is A. The elimination of statutory dual agency and replaced it
with intermediary brokerage. That was the purpose of the 1996 Senate
Bill 489.
T4. ____________ means a broker who is employed to negotiate a
transaction between the parties to a transaction and for that purpose
may act as an agent of the parties.
A. Seller's agent
B. Buyer's agent
C. Subagent
D. Intermediary Ans✓✓✓ D. Intermediary. Intermediary status was
created by statute in 1996 to acknowledge that a broker could be in the
position of assisting two principals involved in the same transaction. An
intermediary is a broker who is employed to negotiate a transaction
between parties and acts as an agent of the parties. A broker who
,represents the buyer and the seller in the same transaction must act as
an intermediary.
T4. A broker may refuse to work with a customer because of the
customers:
A. Income
B. Race
C. Religion
D. Familial status Ans✓✓✓ A. Income. If the buyer cannot qualify for a
mortgage or does not have sufficient income to pay cash for a property,
the licensee is not obligated to work with them. No other reason is
justified or legal.
T4. A broker represents a seller under a listing agreement. The broker
meets the potential buyer of the property. What must the broker do?
A. Nothing
B. Disclose his agency status to the potential buyer
C. Ask the buyer to cancel his buyer representation agreement with the
other broker
D. Tell the buyer that the property is overpriced Ans✓✓✓ B. Disclose
his agency status to the potential buyer. A broker must always disclose
who they represent to all parties to the transaction.
T4. According to The Real Estate License Act of Texas, which one of the
following actions is a fair and impartial act for an intermediary?
, A. Appointing associated licensees to work with the parties
B. Appointing subagents to work with the parties
C. Agreeing to represent only the owner
D. Agreeing to represent only the buyer Ans✓✓✓ A. Appointing
associated licensees to work with the parties. The intermediary
(sponsoring broker) may appoint associated licensees (agents
sponsored by the broker) to work with each party (the buyer and seller)
to the transaction.
T4. An agent is on his way to make a presentation to his client, the
seller, on an offer he received earlier that day. The agent is involved in a
car accident while an unlicensed assistant is also in the car with him.
The agent is taken to the hospital while the assistant is unharmed.
What should the assistant do?
A. Make the presentation himself
B. Call the agent's broker so she can make the presentation
C. Just go back to the office and let the agent deal with it at a later date
D. Discuss the offer with the seller over the phone Ans✓✓✓ B. Call the
agent's broker so she can make the presentation. The unlicensed
assistant cannot act as an agent and present the offer or discuss it. The
appropriate thing to do is to get the broker involved and have the
broker present the offer.
T4. An agent owes a fiduciary duty to a client. These duties include
obedience, loyalty, disclosure, and confidentiality. Which one of these
duties continues after the agency relationship terminates?
questions with verified answers
Senate Bill 489 was passed in 1996 and dealt with what issue?
A. The elimination of statutory dual agency and replacing it with
intermediary
brokerage
B. The rules pertaining to eviction of tenants
C. The formation of a financial taskforce to study FHA loans
D. The elimination of the Sunset Commission Ans✓✓✓ The correct
answer is A. The elimination of statutory dual agency and replaced it
with intermediary brokerage. That was the purpose of the 1996 Senate
Bill 489.
T4. ____________ means a broker who is employed to negotiate a
transaction between the parties to a transaction and for that purpose
may act as an agent of the parties.
A. Seller's agent
B. Buyer's agent
C. Subagent
D. Intermediary Ans✓✓✓ D. Intermediary. Intermediary status was
created by statute in 1996 to acknowledge that a broker could be in the
position of assisting two principals involved in the same transaction. An
intermediary is a broker who is employed to negotiate a transaction
between parties and acts as an agent of the parties. A broker who
,represents the buyer and the seller in the same transaction must act as
an intermediary.
T4. A broker may refuse to work with a customer because of the
customers:
A. Income
B. Race
C. Religion
D. Familial status Ans✓✓✓ A. Income. If the buyer cannot qualify for a
mortgage or does not have sufficient income to pay cash for a property,
the licensee is not obligated to work with them. No other reason is
justified or legal.
T4. A broker represents a seller under a listing agreement. The broker
meets the potential buyer of the property. What must the broker do?
A. Nothing
B. Disclose his agency status to the potential buyer
C. Ask the buyer to cancel his buyer representation agreement with the
other broker
D. Tell the buyer that the property is overpriced Ans✓✓✓ B. Disclose
his agency status to the potential buyer. A broker must always disclose
who they represent to all parties to the transaction.
T4. According to The Real Estate License Act of Texas, which one of the
following actions is a fair and impartial act for an intermediary?
, A. Appointing associated licensees to work with the parties
B. Appointing subagents to work with the parties
C. Agreeing to represent only the owner
D. Agreeing to represent only the buyer Ans✓✓✓ A. Appointing
associated licensees to work with the parties. The intermediary
(sponsoring broker) may appoint associated licensees (agents
sponsored by the broker) to work with each party (the buyer and seller)
to the transaction.
T4. An agent is on his way to make a presentation to his client, the
seller, on an offer he received earlier that day. The agent is involved in a
car accident while an unlicensed assistant is also in the car with him.
The agent is taken to the hospital while the assistant is unharmed.
What should the assistant do?
A. Make the presentation himself
B. Call the agent's broker so she can make the presentation
C. Just go back to the office and let the agent deal with it at a later date
D. Discuss the offer with the seller over the phone Ans✓✓✓ B. Call the
agent's broker so she can make the presentation. The unlicensed
assistant cannot act as an agent and present the offer or discuss it. The
appropriate thing to do is to get the broker involved and have the
broker present the offer.
T4. An agent owes a fiduciary duty to a client. These duties include
obedience, loyalty, disclosure, and confidentiality. Which one of these
duties continues after the agency relationship terminates?
