ACEABLE AGENT TEXAS PROMULGATED
CONTRACTS EXAM PREP QUESTIONS
AND ANSWERS ACCURACY CHECKED
◉ Frank is handling a lot of foreclosed properties for a bank. He
frequently gets bids for having work done to the properties. Since
Frank is sending these vendors a lot of business, he asks them to
give him a 15% referral fee off the top of their invoices when paid.
Is Frank violating any laws?
Answer: - Yes, he is violation of TRELA
◉ Agent Susan is representing a buyer who lives out of the
country. The buyer finds the perfect property, but can't make it to
the closing. The buyer authorizes Susan to sign all of the
necessary documents on her behalf. What type of agency is this a
representation of?
Answer: - Universal Agency
◉ Broker Emilio has been found guilty of fraud. He is liable for all
of the following EXCEPT:
automatic donation to the Texas Legal Fund
special witness fees
,economic and exemplary damages
court cost and attorney fees
Answer:
◉ In Texas, it is illegal to be:
Answer: - Dual agent
◉ An intermediary might also be referred to as:
Answer: - a broker representing both parties in a transaction
◉ George's buyer client has decided to make an offer on a
property that is listed by George's brokerage firm. George's
broker's agency policy says he will become an intermediary
representative with an appointment to help the buyer. What
further action must George take before proceeding?
Answer: - George must ensure he has written authorization from
both buyer and seller to enter an intermediary relationship.
◉ If a buyer assumes a sales agent represents their interests
because of the sales agent's actions, an agency relationship might
be formed. What is this called?
Answer: - implied agency
, ◉ Which duties — known as the non-fiduciary duties — does
every sales agent owe everyone in a transaction?
Answer: - honesty and fairness
◉ Sales Agent Buffy signs a listing agreement with Seller Willow.
Who is responsible and beholden for Buffy's actions?
Answer: - Buffy's broker
◉ Chloe is a buyer. When she first spoke to Elisa, a broker, Chloe
was Elisa's ___________. After Chloe signed a buyer representation
agreement with Elisa, she became Elisa's _________.
Answer: - customer; client
◉ A real estate brokerage advertises that they will list property
for a low commission. Later, the seller finds out that he advertised
low commission is contingent upon the seller signing a 12-month
listing and agreeing to do all of the showings themselves. Is the
brokerage guilty of a violation?
Answer: - Yes, they are guilty of misrepresentation.
◉ Broker Dennis decides that before an open house for Client
Joe's house, there should be landscaping work done. Joe's out of
the country on business, and Dennis can't reach him. Dennis gets
the landscaping work done. Does Joe have to reimburse him?
Answer: - Yes, Joe has to reimburse Dennis, since this is an
expense incurred on Joe's behalf.
CONTRACTS EXAM PREP QUESTIONS
AND ANSWERS ACCURACY CHECKED
◉ Frank is handling a lot of foreclosed properties for a bank. He
frequently gets bids for having work done to the properties. Since
Frank is sending these vendors a lot of business, he asks them to
give him a 15% referral fee off the top of their invoices when paid.
Is Frank violating any laws?
Answer: - Yes, he is violation of TRELA
◉ Agent Susan is representing a buyer who lives out of the
country. The buyer finds the perfect property, but can't make it to
the closing. The buyer authorizes Susan to sign all of the
necessary documents on her behalf. What type of agency is this a
representation of?
Answer: - Universal Agency
◉ Broker Emilio has been found guilty of fraud. He is liable for all
of the following EXCEPT:
automatic donation to the Texas Legal Fund
special witness fees
,economic and exemplary damages
court cost and attorney fees
Answer:
◉ In Texas, it is illegal to be:
Answer: - Dual agent
◉ An intermediary might also be referred to as:
Answer: - a broker representing both parties in a transaction
◉ George's buyer client has decided to make an offer on a
property that is listed by George's brokerage firm. George's
broker's agency policy says he will become an intermediary
representative with an appointment to help the buyer. What
further action must George take before proceeding?
Answer: - George must ensure he has written authorization from
both buyer and seller to enter an intermediary relationship.
◉ If a buyer assumes a sales agent represents their interests
because of the sales agent's actions, an agency relationship might
be formed. What is this called?
Answer: - implied agency
, ◉ Which duties — known as the non-fiduciary duties — does
every sales agent owe everyone in a transaction?
Answer: - honesty and fairness
◉ Sales Agent Buffy signs a listing agreement with Seller Willow.
Who is responsible and beholden for Buffy's actions?
Answer: - Buffy's broker
◉ Chloe is a buyer. When she first spoke to Elisa, a broker, Chloe
was Elisa's ___________. After Chloe signed a buyer representation
agreement with Elisa, she became Elisa's _________.
Answer: - customer; client
◉ A real estate brokerage advertises that they will list property
for a low commission. Later, the seller finds out that he advertised
low commission is contingent upon the seller signing a 12-month
listing and agreeing to do all of the showings themselves. Is the
brokerage guilty of a violation?
Answer: - Yes, they are guilty of misrepresentation.
◉ Broker Dennis decides that before an open house for Client
Joe's house, there should be landscaping work done. Joe's out of
the country on business, and Dennis can't reach him. Dennis gets
the landscaping work done. Does Joe have to reimburse him?
Answer: - Yes, Joe has to reimburse Dennis, since this is an
expense incurred on Joe's behalf.
