champions school of real estate law of agency chapter quiz| 74 questions and answers

An agency relationship exists when one person, the ______________ acts for, or on the behalf of another person, the _____________________. Agent, principal Which of the following is ground for suspension or revocation of license by TREC? Splitting commission with a person other than a license holder The commission can deny licensure to an applicant based on the applicants? Moral character What form must an agent provide to a potential client at the first substantive discussion of a real estate transaction? IABS In real estate, an example of a general agent would be a? Property Manager When an agent and potential party enter into a _____________discussion of a real estate transaction, the party must be provided with a TREC- proscribed agency information form. First contact/orally or written? substantive TREC rules define _______________as any form of communication on behalf of a license holder designed to attract the public to use real estate brokerage services. Advertisement If any person violates the provisions of the Texas Business and Commerce Code, Fraud in Real Estate and Stock Transactions, he or she is liable to the person defrauded for: Attorney's fees, Expert witness fees and Court cost According to TREC's advertising rules, which of the following terms may NOT be used in a real estate team name? Company The _______is usually a fixed percentage of the sales price negotiated between the brokerage and the client, payable to the broker? Broker's fee Exclusive agency agreements Grant the broker a commission even if the seller sells the property himself. The shared information from the MLS can be used by agents to prepare a? Comparative Market Analysis The agreement that buyers sign, allowing a broker to represent them is called a? Buyer/Tenant Representation Agreement Which of the following statements should a license holder only say AFTER a Buyer's Representation Agreement has been signed? My professional option is that the market value of this property is $350,000. I will write up the offer of 347,000 for you at my office. It is my professional option that this house is overpriced for the neighborhood. The individual who, a series of uninterrupted activities or actions, brought about the completion of a contract is also known as? The procuring cause of sale Why is timing critical when taking a listing? There are time limits attached to oral representation Broker Susan is representing the seller and Broker Daniel is working with a buyer customer. Susan is representing the seller. Who is Daniel representing? The Buyer only In Texas, there is no_________agency relationship with any party to a transaction. Implied The _________notifies the parties that both the seller and buyer are clients of the broker. Dual Agency Noitce Which of the following is true regarding Intermediary rules for a transaction? The transaction must be in-house sale. Both sides of the transaction must be clients of the broker. The broker must have written consent from both parties. Broker Steve having no agents, is a solo practitioner in the state of Texas. He has a buyer-client who wants to purchase one of his listings. The process that Broker Steve must us is? Intermediary without appointments Which of the following is NOT an advantage of a brokerage policy of Seller Agency Only- No Intermediary? The broker does not have to make appointments. The broker and agents are free to negotiate for the seller without conflict of interest. The broker collects both selling and buying commission. If one agent in the firm is working with both the buyer and the seller,___________ says that another agent in the firm needs to be brought into the transaction. Intermediary with appointments only Which statement is INCORRECT? An Agent must provide a blank copy of the IABS at the first substantive with a potential client Unlicensed assistants may not? Receive a commission on a real estate transaction. Which of the following is NOT anti-discrimination legislation that affects employers? Truth-in Lending The TAR Independent Contractor Agreement for Sales Associates? Gives the associate the authority to sign listing agreements on the broker's behalf. Where would you find the Canons of Professional Ethics and Conduct for Real Estate License Holders NAR Code of ethics What does the Consumer Protection Notice(CN1-2) notify of? How to file a complaint against the license holder. The Recovery Trust Account. TREC regulates brokers, sales agents, and inspectors among others. __________requires that TREC investigates complaints against license holders according to a risk-based approach. The secretary of the Commission Who can suspend or revoke a sales agent license under DTPA violation? TREC The Deceptive Trade Practices Act is found in the? Texas Business and Commerce Code According to DTPA, trade and commerce includes the __________of any good or service affecting the people of Texas. Advertising Distribution Offering for sale or lease A buyer is? Someone who wants to buy a home and is on a timeline to do so Which of the following actions creates risk for the broker? Mishandling trust funds. Unintentionally creating an unwritten agency relationship with a potential buyer/ seller. Failing to give the proper disclosures in a timely manner. TREC rules require that most records for brokerage firms be retained for at least_______years? 4