LAW OF AGENCY COMPLETE REAL
QUESTIONS AND CORRECT VERIFIED
ANSWERS LATEST REVISED EXAM
GUARANTEED PASS A+.
◉ Broker I. Mann Asse listed a property that, according to the local
appraisal district's website, was approximately 3,000 square feet in size,
even though the seller had given him a copy of a previous appraisal he had
had done that showed the property to actually be 2,500 square feet. Broker
Asse then gave a copy of the appraisal district website's property details
sheet, showing the 3,000 square feet, to a prospective buyer and his buyer
broker, who quickly made an offer, thinking they were getting a great
bargain for the price. After the buyer's appraisal came in showing the 2,500
actual square footage and Broker Asse admitted to having known and even
showed the buyer a copy of the previous appraisal, the buyer sued under
DTPA and won damages. Further, the buyer filed a complaint against
Broker Asse to TREC. TREC revoked Broker Asse's license for violations of
TRELA and DTPA. Which of the following actions should Br. Answer:
Broker Asse should have submitted, in written form, citing the sources,
both the appraisal district-recorded 3,000 square feet information and the
2,500 square feet information in the existing appraisal to the buyer or
buyer's broker, allowing them to decide which information to take into
consideration in their offer
◉ What is the most frequent complaint against real estate license holders?
a. Failure to disclose material facts.
b. Failure to disclose whom they represent.
c. Failure to identify themselves as license holders.
,d. Charging commission rates that are too high. Answer: Failure to disclose
material facts
◉ Which one of the following is NOT a way that a broker can minimize the
risks involved in acting as a broker in a real estate transaction?
a. referring buyers and sellers to professionals and experts when
warranted.
b. providing the IABS and other disclosures when applicable.
c. expressing warranty to the condition of the property.
d. recommending that a seller and buyer consult with an attorney before
signing any contract. Answer: Warranting the condition of the property. All
license holders should emphasize the need for consumers to use area
experts for such things as surveys, title verification, loan
qualifications, and identification of property defects. Be prepared to prove
in a legal dispute with a consumer that important information was
provided in written form. Maintaining a written policies and procedures
manual is required by TREC rule
◉ When multiple offers are presented, the listing broker must
a. present the offers in the order they were received.
b. present all offers at the same time.
c. present the highest offers first.
d. present only the offers that bring the broker the highest commission.
Answer: Present all offers at the same time. All offers must be presented at
the same time because sellers must make their own decision as to which
offer to accept/reject.
, ◉ How should a listing broker handle a second offer coming in while the
seller is still waiting for a response to a counteroffer he has made to the
first buyer?
a. present the second offer immediately and instruct the seller to counter
the second one with a higher price.
b. tell the agent that other offers are not being considered because there is
another offer on the table.
c. Tell the agent that he/she must present a "backup offer."
d. present the second offer immediately but instruct the seller to be careful
of accepting without first withdrawing the counteroffer to the first buyer.
Answer: Present the second offer immediately but instruct the seller to be
careful of accepting without first withdrawing the counteroffer to the first
buyer. A seller should never accept an offer while a counteroffer is
outstanding because he might become party to two contracts on the same
property
◉ When a sales agent is at an owner's property and is attempting to list a
property for sale or lease, the agent is
a. acting as an agent to her broker.
b. acting solely as an intermediary.
c. acting as an agent to the seller.
d. not an agent to anyone until the negotiations of the listing are completed.
Answer: Is acting as an agent to her broker and must act in the best interests of
the broker during the negotiations of the listing agreement, but owes no
agency duties to the seller at this time
◉ When a license holder is working with a party whom he/she does not
represent, that party is the license holder's?
QUESTIONS AND CORRECT VERIFIED
ANSWERS LATEST REVISED EXAM
GUARANTEED PASS A+.
◉ Broker I. Mann Asse listed a property that, according to the local
appraisal district's website, was approximately 3,000 square feet in size,
even though the seller had given him a copy of a previous appraisal he had
had done that showed the property to actually be 2,500 square feet. Broker
Asse then gave a copy of the appraisal district website's property details
sheet, showing the 3,000 square feet, to a prospective buyer and his buyer
broker, who quickly made an offer, thinking they were getting a great
bargain for the price. After the buyer's appraisal came in showing the 2,500
actual square footage and Broker Asse admitted to having known and even
showed the buyer a copy of the previous appraisal, the buyer sued under
DTPA and won damages. Further, the buyer filed a complaint against
Broker Asse to TREC. TREC revoked Broker Asse's license for violations of
TRELA and DTPA. Which of the following actions should Br. Answer:
Broker Asse should have submitted, in written form, citing the sources,
both the appraisal district-recorded 3,000 square feet information and the
2,500 square feet information in the existing appraisal to the buyer or
buyer's broker, allowing them to decide which information to take into
consideration in their offer
◉ What is the most frequent complaint against real estate license holders?
a. Failure to disclose material facts.
b. Failure to disclose whom they represent.
c. Failure to identify themselves as license holders.
,d. Charging commission rates that are too high. Answer: Failure to disclose
material facts
◉ Which one of the following is NOT a way that a broker can minimize the
risks involved in acting as a broker in a real estate transaction?
a. referring buyers and sellers to professionals and experts when
warranted.
b. providing the IABS and other disclosures when applicable.
c. expressing warranty to the condition of the property.
d. recommending that a seller and buyer consult with an attorney before
signing any contract. Answer: Warranting the condition of the property. All
license holders should emphasize the need for consumers to use area
experts for such things as surveys, title verification, loan
qualifications, and identification of property defects. Be prepared to prove
in a legal dispute with a consumer that important information was
provided in written form. Maintaining a written policies and procedures
manual is required by TREC rule
◉ When multiple offers are presented, the listing broker must
a. present the offers in the order they were received.
b. present all offers at the same time.
c. present the highest offers first.
d. present only the offers that bring the broker the highest commission.
Answer: Present all offers at the same time. All offers must be presented at
the same time because sellers must make their own decision as to which
offer to accept/reject.
, ◉ How should a listing broker handle a second offer coming in while the
seller is still waiting for a response to a counteroffer he has made to the
first buyer?
a. present the second offer immediately and instruct the seller to counter
the second one with a higher price.
b. tell the agent that other offers are not being considered because there is
another offer on the table.
c. Tell the agent that he/she must present a "backup offer."
d. present the second offer immediately but instruct the seller to be careful
of accepting without first withdrawing the counteroffer to the first buyer.
Answer: Present the second offer immediately but instruct the seller to be
careful of accepting without first withdrawing the counteroffer to the first
buyer. A seller should never accept an offer while a counteroffer is
outstanding because he might become party to two contracts on the same
property
◉ When a sales agent is at an owner's property and is attempting to list a
property for sale or lease, the agent is
a. acting as an agent to her broker.
b. acting solely as an intermediary.
c. acting as an agent to the seller.
d. not an agent to anyone until the negotiations of the listing are completed.
Answer: Is acting as an agent to her broker and must act in the best interests of
the broker during the negotiations of the listing agreement, but owes no
agency duties to the seller at this time
◉ When a license holder is working with a party whom he/she does not
represent, that party is the license holder's?
