Law of Agency-Final Exam Review Questions
With Correct Answers
What are the minimum services an agent
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must offer; - CORRECT ANSWER✔✔-According TRELA subchapter 1101.557b
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states a broker representing a party or listing real estate for sale is the party's
| | | | | | | | | | | | | | |
agent and |
1. May not instruct another broker to directly or indirectly violate the sub chpt-
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1101.65b22, 2.Must inform the party if the broker Receives material information
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related to the transaction to list, buy, sell, or lease the parties real estate,
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including the receipt of an offer by the broker; and
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3. Shall, at a minimum, answer the parties questions and present Any offered to
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or from the party.
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What is TRELA? - CORRECT ANSWER✔✔-It is the law that establishes the duties
| | | | | | | | | | | | |
of a real estate licensee.
| | | |
> TRAC is responsible for the administration of
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TRELA. TREC consists of nine members - six brokers and three public members -
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who are who serve staggered terms of six years. The governor, with the approval
| | | | | | | | | | | | | |
of the senate,
| |
| appoints three replacement members every two years.
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Advice and opinions are given to whom: - CORRECT ANSWER✔✔-Clients.
| | | | | | | | |
, Who are the parties to agency agreement? - CORRECT ANSWER✔✔-The seller,
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buyer, broker or sales associate, tenant
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What is a subagent; - CORRECT ANSWER✔✔-A Licensee holder not sponsored by
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or associated with the clients broker who is representing the client through a
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cooperative agreement with the client broker. Also called the other broker.
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If a principal instructs His agent to violate the law, what should an agent do? -
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CORRECT ANSWER✔✔-The agent should remove himself from dealing with the
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principal and not violate the law. | | | | |
What is an attorney - in - fact; - CORRECT ANSWER✔✔-a person authorized to act
| | | | | | | | | | | | | |
for another under a power of attorney. This person is not necessarily a licensed
| | | | | | | | | | | | | | |
attorney.
Under what conditions may a broker buy property listed with the broker; -
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CORRECT ANSWER✔✔-Only with full disclosure to all parties in the transaction.
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What is agency by ramification: - CORRECT ANSWER✔✔-Occurs when a principal
| | | | | | | | | | |
gain some benefit from a previously unauthorized act of an agent, and the
| | | | | | | | | | | | |
principals, on learning of the act, do not deny that the agent has authority to
| | | | | | | | | | | | | | |
perform such an act on their behalf.| | | | | |
A sellers subagent is working with a buyer - who does the sub agent have a
| | | | | | | | | | | | | | | |
fiduciary relationship with, the buyer or the seller? - CORRECT ANSWER✔✔-The
| | | | | | | | | | |
seller.
With Correct Answers
What are the minimum services an agent
| | | | | | |
must offer; - CORRECT ANSWER✔✔-According TRELA subchapter 1101.557b
| | | | | | | |
states a broker representing a party or listing real estate for sale is the party's
| | | | | | | | | | | | | | |
agent and |
1. May not instruct another broker to directly or indirectly violate the sub chpt-
| | | | | | | | | | | | |
1101.65b22, 2.Must inform the party if the broker Receives material information
| | | | | | | | | | |
related to the transaction to list, buy, sell, or lease the parties real estate,
| | | | | | | | | | | | | |
including the receipt of an offer by the broker; and
| | | | | | | | |
3. Shall, at a minimum, answer the parties questions and present Any offered to
| | | | | | | | | | | | | |
or from the party.
| | |
What is TRELA? - CORRECT ANSWER✔✔-It is the law that establishes the duties
| | | | | | | | | | | | |
of a real estate licensee.
| | | |
> TRAC is responsible for the administration of
| | | | | | | |
TRELA. TREC consists of nine members - six brokers and three public members -
| | | | | | | | | | | | | |
who are who serve staggered terms of six years. The governor, with the approval
| | | | | | | | | | | | | |
of the senate,
| |
| appoints three replacement members every two years.
| | | | | |
Advice and opinions are given to whom: - CORRECT ANSWER✔✔-Clients.
| | | | | | | | |
, Who are the parties to agency agreement? - CORRECT ANSWER✔✔-The seller,
| | | | | | | | | | |
buyer, broker or sales associate, tenant
| | | | |
What is a subagent; - CORRECT ANSWER✔✔-A Licensee holder not sponsored by
| | | | | | | | | | | |
or associated with the clients broker who is representing the client through a
| | | | | | | | | | | | |
cooperative agreement with the client broker. Also called the other broker.
| | | | | | | | | |
If a principal instructs His agent to violate the law, what should an agent do? -
| | | | | | | | | | | | | | | |
CORRECT ANSWER✔✔-The agent should remove himself from dealing with the
| | | | | | | | | |
principal and not violate the law. | | | | |
What is an attorney - in - fact; - CORRECT ANSWER✔✔-a person authorized to act
| | | | | | | | | | | | | |
for another under a power of attorney. This person is not necessarily a licensed
| | | | | | | | | | | | | | |
attorney.
Under what conditions may a broker buy property listed with the broker; -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-Only with full disclosure to all parties in the transaction.
| | | | | | | | | |
What is agency by ramification: - CORRECT ANSWER✔✔-Occurs when a principal
| | | | | | | | | | |
gain some benefit from a previously unauthorized act of an agent, and the
| | | | | | | | | | | | |
principals, on learning of the act, do not deny that the agent has authority to
| | | | | | | | | | | | | | |
perform such an act on their behalf.| | | | | |
A sellers subagent is working with a buyer - who does the sub agent have a
| | | | | | | | | | | | | | | |
fiduciary relationship with, the buyer or the seller? - CORRECT ANSWER✔✔-The
| | | | | | | | | | |
seller.
