ACEABLE AGENT TEXAS PROMULGATED
CONTRACTS FINAL PAPER EXAM SCRIPT
TESTED QUESTIONS AND VERIFIED
SOLUTIONS
◉ If a seller fails to give the buyer a Seller's Disclosure Notice
before signing the contract, what consequences could they face?
Answer: - the buyer can terminate the contract
◉ Sylvia, a salesperson, wants to help a friend find a property and
to do it for free. What does she need to do?
Answer: - She must get permission from her broker before
proceeding.
◉ Bernard wants to file a claim against his former broker under
the DTPA. The alleged violation happened on June 5, 2020 (which
is the same day Bernard found out about the alleged violation). He
intends to file the claim on April 3, 2022. Can he file a claim?
Answer: - Yes, Bernard is within the statute of limitations for filing
a claim under the DTPA.
***The statute of limitations for a claim under the DTPA is two
years from the date that the violation occurred or two years from
the date the plaintiff discovered the violation.***
,◉ Completion of the Notice of Intermediary is needed in which of
the following examples?
Answer: - Delores is representing a buyer who is going to make an
offer on a property listed by another agent in her office.
**When a broker sells their own listing, it's called an in-house
transaction. The broker is considered to be both on the listing side
and the buying side of the transaction. The intermediary role is
really the only correct vehicle for taking on in-house
transactions.**
◉ In a seller subagency transaction, who represents the buyer?
Answer: - no one
**No license holders represent the buyer in a seller subagency
transaction. Both the listing agent and the subagent are
representing the interests of the seller.**
◉ Lester's buyer-client has just signed an offer. Lester should:
Answer: - in writing, tell the buyer to get the abstract of title
examined by the buyer's attorney (or to get a title insurance
policy)
◉ What is the difference between ethics and morals?
,Answer: - Ethics are determined by an external group and are
standardized, while morals are held internally and vary by the
individual.
◉ What is something that does NOT need to be held in confidence
by an agent after agency termination?
Answer: - the original listing price.
**Agents must hold certain information about their clients in
confidence past their agency relationship. Things like seller
motivation to sell, property history, and offer acceptance should
all be held in confidence by an agent.
◉ Which type of listing allows the license holder to obtain any
amount over the seller's minimum price as commission?
Answer: - net listing
**With a net listing agreement, the seller sets a minimum net
price. The license holder obtains as commission any amount over
the net price. Note: Net listing agreements are NOT legal in all
states.
◉ Which of the following BEST describes a material fact?
Answer: - a fact that could cause someone to take a different
course of action
, ◉ Selma, a broker, sponsors 25 associated sales agents. When one
of her sales agents brings in a new listing, who owes the duty of
reasonable care to that seller?
Answer: - Selma and her 25 associated sales agents
◉ Recently, Broker Elizabeth and client Lucky terminated their
agency relationship. What duties does Elizabeth still owe Lucky
after termination?
Answer: - confidentiality and accounting
◉ Buyer agency can be created in all of the following ways
EXCEPT:
Answer: - listing agency
◉ New Sales Agent Kayla is reading a document that spells out the
scope of her authorized activity as an agent. It also includes
information about fees, how to represent clients, and office
policies. What is she reading?
Answer: - the brokerage's policy manual
◉ Kristy is trying to purchase a home. Logan, a broker, is
representing her. They have signed a:
Answer: - buyer/tenant representation agreement
◉ All of the below are examples of limited dual representation
EXCEPT:
CONTRACTS FINAL PAPER EXAM SCRIPT
TESTED QUESTIONS AND VERIFIED
SOLUTIONS
◉ If a seller fails to give the buyer a Seller's Disclosure Notice
before signing the contract, what consequences could they face?
Answer: - the buyer can terminate the contract
◉ Sylvia, a salesperson, wants to help a friend find a property and
to do it for free. What does she need to do?
Answer: - She must get permission from her broker before
proceeding.
◉ Bernard wants to file a claim against his former broker under
the DTPA. The alleged violation happened on June 5, 2020 (which
is the same day Bernard found out about the alleged violation). He
intends to file the claim on April 3, 2022. Can he file a claim?
Answer: - Yes, Bernard is within the statute of limitations for filing
a claim under the DTPA.
***The statute of limitations for a claim under the DTPA is two
years from the date that the violation occurred or two years from
the date the plaintiff discovered the violation.***
,◉ Completion of the Notice of Intermediary is needed in which of
the following examples?
Answer: - Delores is representing a buyer who is going to make an
offer on a property listed by another agent in her office.
**When a broker sells their own listing, it's called an in-house
transaction. The broker is considered to be both on the listing side
and the buying side of the transaction. The intermediary role is
really the only correct vehicle for taking on in-house
transactions.**
◉ In a seller subagency transaction, who represents the buyer?
Answer: - no one
**No license holders represent the buyer in a seller subagency
transaction. Both the listing agent and the subagent are
representing the interests of the seller.**
◉ Lester's buyer-client has just signed an offer. Lester should:
Answer: - in writing, tell the buyer to get the abstract of title
examined by the buyer's attorney (or to get a title insurance
policy)
◉ What is the difference between ethics and morals?
,Answer: - Ethics are determined by an external group and are
standardized, while morals are held internally and vary by the
individual.
◉ What is something that does NOT need to be held in confidence
by an agent after agency termination?
Answer: - the original listing price.
**Agents must hold certain information about their clients in
confidence past their agency relationship. Things like seller
motivation to sell, property history, and offer acceptance should
all be held in confidence by an agent.
◉ Which type of listing allows the license holder to obtain any
amount over the seller's minimum price as commission?
Answer: - net listing
**With a net listing agreement, the seller sets a minimum net
price. The license holder obtains as commission any amount over
the net price. Note: Net listing agreements are NOT legal in all
states.
◉ Which of the following BEST describes a material fact?
Answer: - a fact that could cause someone to take a different
course of action
, ◉ Selma, a broker, sponsors 25 associated sales agents. When one
of her sales agents brings in a new listing, who owes the duty of
reasonable care to that seller?
Answer: - Selma and her 25 associated sales agents
◉ Recently, Broker Elizabeth and client Lucky terminated their
agency relationship. What duties does Elizabeth still owe Lucky
after termination?
Answer: - confidentiality and accounting
◉ Buyer agency can be created in all of the following ways
EXCEPT:
Answer: - listing agency
◉ New Sales Agent Kayla is reading a document that spells out the
scope of her authorized activity as an agent. It also includes
information about fees, how to represent clients, and office
policies. What is she reading?
Answer: - the brokerage's policy manual
◉ Kristy is trying to purchase a home. Logan, a broker, is
representing her. They have signed a:
Answer: - buyer/tenant representation agreement
◉ All of the below are examples of limited dual representation
EXCEPT:
