Texas Real Estate Agency - UNIT 7 - Creation and Termination of Agency 100% Correct

Texas Real Estate Agency - UNIT 7 - Creation and Termination of Agency 100% Correct Once parties have signed an offer to purchase a property, it becomes an enforceable contract after all parties have signed the offer and all parties have received notice. Which of the following is an example of ostensible agency? A seller leads a buyer to believe that a former seller's agent is still the seller's agent, despite the fact that the listing agreement has expired. Does Texas law hold principals responsible for the unauthorized acts of their agents? No, unless they are aware of the acts. How is the length of a listing agreement determined? Length of a listing is negotiated between a broker and a seller. Which of the following statements BEST describes constructive notice? Knowledge of the agent is imputed to the principal, even if the information is never actually conveyed to the principal. Janis is a sales agent with Ace Realty. Janis had a listing agreement with B4 Inc., wherein Janis helped B4, Inc. sell an office park to Sands, Inc. Janis is now representing Sands in the purchase of different commercial property from B4. Best Realty represents B4 in the transaction. What information belonging to B4 can Janis provide to Sands to ensure that the sale goes smoothly? Janis cannot release B4's confidential information to Sands without B4's consent. Paul is a sales agent who is sponsored by AAA Realty. Paul sold a commercial office building owned by Wings, LLP. Paul worked for TNT Realty, Inc. and represented the buyer, YellowBrick Road, LLC, in the purchase. Paul now represents a new buyer, Elton, in the purchase of the YellowBrick Road property. Paul did not have a written buyer representation agreement in the previous purchase and does not have one in the current resale. Paul knows quite a bit of confidential and nonconfidential informat Paul cannot disclose confidential information regarding the previous purchase of the YellowBrick Road property. Authority not specifically granted to the agent by the principal but necessary or customary if the agent is to perform agency duties is called implied authority. Incapacity of the broker or the principal will terminate an agency relationship. What paperwork is needed to prevent this incapacity from bringing about this result? A durable power of attorney What happens to a listing agreement if the principal dies? The agreement terminates. Janice is a broker who represents Raymond under a written listing contract. Raymond hasn't told Janice about carcinogenic and highly toxic mold in the attic, and Janice has no independent knowledge of the mold. Which of the following BEST describes whether Janice may be liable if Raymond misrepresents or conceals the presence of the toxic mold to Tybalt, the buyer? Janice is liable if she knows of the falsity of the misrepresentation and fails to disclose her knowledge. Jane is a sales agent with Ace Realty. She has a listing agreement with Ralph to sell Ralph's mother's property. Ralph is acting under a power of attorney as a universal agent of his mother. During the term of the listing and before anyone makes an offer on the property, Jane suddenly has a heart attack and passes away. How has her death affected the status of the listing agreement. There is no effect on the listing agreement, as it belongs to Ace Realty, not Jane. What are the two basic elements required to create an agency relationship? Consent and control Which of the following is NOT an element of agency by ratification? The principal denies the agent's authority to act. George has entered into a written property management agreement with Stella to manage her investment property. The terms of the agreement state that the management services will include leasing the property. The agreement automatically renews in perpetuity. Is there a problem with this type of agreement? Yes, the Real Estate License Act requires a definite termination date. Georgio listed his property for sale with Tony Principi, principal broker for Principi Realty. Georgio decides to seek a tenant for his property rather than sell, so he asks Tony to remove the property from the market. If Tony agrees to release Georgio from his obligations under the contract, agency has been terminated by rescission. Which of the following is NOT required to create an agency relationship? Compensation Ostensible agency is based on a third party's belief that an agency relationship exists. Clarence is a sales agent sponsored by broker Anita. Clarence is the listing agent for Robert to sell his condo. Anthony was Clarence's former sponsoring broker. When Clarence worked for Anthony, he represented Sandra as a buyer's agent in the purchase of a small townhome. Sandra is now buying Robert's property and Ruth at Supreme Realty represents Sandra in the transaction. Clarence has some inside information about Sandra's financial status that is important for Robert to know. What should Cla Clarence must withhold the information because his duty to Sandra to maintain the confidentiality of her information does not have a termination date. Jonie is a sales agent for Best Realty representing Bar None, Inc. in the sale of a large ranch to XLT, Inc. Jonie's firm also represents XLT under a buyer representation agreement. Best represented Bar None when it first purchased the ranch. Both parties have agreed to Best acting as intermediary in the transaction, but there will be no appointments, and Jonie will work with both parties. What is Jonie's duty to Bar None regarding disclosure of information related to Bar None's original purchas Jonie may disclose Bar None's confidential information only with Bar None's consent. The fiduciary duty that remains even after the termination of the agency relationship is confidentiality. Timmy is Sally's sales agent under a written listing agreement for one year. Sally is unhappy with Timmy's performance; the house is still on the market after six months, and Sally hasn't had any offers. Sally terminates the listing agreement. What should Timmy now do about the listing? He should take it off the market. What is imputed notice? Notification to the agent is considered notification to the principal. "Agency by ratification" does NOT require which of the following? The agent provides written notice describing the nature and results of the act. Seller Vincent has been critical of the ways that broker Bob is advertising his farm. He also feels that Bob is not networking with other real estate professionals enough to draw more interested buyers to the property. Can Vincent revoke the agency relationship between himself and Bob? Yes, the seller can revoke the agency, but he may be liable to the broker for damages. In which of the following situations would an implied agency MOST likely develop? A broker provides useful information to a buyer. Sascha is a sales agent with Best Realty. Sascha had a buyer representation agreement with Sylvan, Inc. wherein Sascha helped Sylvan, Inc. purchase a parking garage. Sascha is now representing the buyer, LINC, Inc., in the purchase of the property from Sylvan. Sylvan has an employee handling the purchase so Sylvan is not represented by a real estate agent. What is Sascha's duty to Sylvan regarding any confidential information that Sascha may have obtained while previously representing Sylvan? Sascha may disclose confidential information to LINC with Sylvan's consent. When can a seller force a broker to continue an agency relationship on the listing? Never, because the broker can renounce the relationship unilaterally Which of the following is NOT among the standards that real estate license holders owe to everyone with whom they work? Advice