AYPO Real Estate Law of Agency Final Exam Review with Complete Solutions

AYPO Real Estate Law of Agency Final Exam Review with Complete Solutions Real estate agents are considered to have which kind relationship with clients? A fiduciary relationship Acting as which of the following is a violation of The Real Estate License Act? Acting as a broker without possessing a valid license issued by the Texas Real Estate Commission Which of the following is a reason to study the aspects of agency and agency law? 1. Agents who are well versed in the aspects of the agency roles can project an aura of confidence that can calm a nervous client 2. Agents who follow the law are less prone to being held liable for harm suffered by clients or customers 3. Agents who follow the law have a better reputation with the public A licensee who is representing a buyer is required to treat which of the following in an honest and fair manner? 1. The seller's agent 2. The seller 3. The buyer Brokers have which of the following with a client? Privity of contract True or False: Apparent authority is expressly detailed in the contract that establishes the agency relationship. FALSE A principal becomes disabled and gives authority to an agent to act on behalf of the principal in nearly all circumstances. This type of agent is... a universal agent. Which one of the following is not one of the commonly recognized fiduciary duties? Punctuality According to Section 1101.558 of TRELA, which of the following parties must be provided with a disclosure when the first instance of contact occurs? 1. Another licensee who represents another party to the transaction 2. Another party to the transaction What is the term for a duty owed by an agent to someone who is not the principal party? Non-fiduciary duty The duty of a seller's agent to be loyal to the _______ trumps the duty to be forthright with the_______. seller / buyer What is the term for a person or organization that a person interacts with while acting as an agent for a principal party? Third party What is private information? information about a person which is not public knowledge but which will most likely not result in identity theft if it is revealed What is the name of the form created by TREC to help sellers meet the requirements of Section 5.008 of the Property Code? The Seller's Disclosure of Property Condition Who has the right to choose whether to disclose non-material stigmas related to a property being sold? The seller Which of the following is a type of listing agreement? 1. Exclusive Right-to-Sell 2. Open 3. Net What is the term for a transaction in which licensees from the same brokerage represent both the buyer and seller? In-house sale A seller who has established a listing contract with a broker benefits from the broker's... ience. edge. s to resources possessed by the brokerage. An agency agreement between a supervising broker and their selling client generally takes a written form as which of the following? A listing agreement. When is a licensee required to provide a seller with a written statement which contains the disclosure describing services which may be expected from an agent of a seller? At the time of first substantive dialogue True or false: a non-exclusive right to represent buyer-broker agreement requires the buyer to pay commission to the broker for services rendered. TRUE Who does a buyer representation agreement drafted by a sales agent belong to? The broker who sponsors that sales agent All real estate contracts (with the exception of property management contracts) are required to contain a... termination date. When setting up a buyer representation agreement, the licensee must make sure that he or she does not do which of the following? Promise to do things that are outside their area of expertise Which of the following is not a common way in which the buyer's commission can be paid? Paid by the financial institution financing the transaction The Real Estate License Act forbids which of the following with regard to advertising? Advertising that is purposefully deceptive When was statutory dual agency in Texas fully replaced by intermediary brokerage? 1996 What is the term for the type of agreement that is formed when the parties didn't establish an expressed agreement but act in all ways as if an expressed agreement exists? Implied-in-fact Before any appointments of licensees can be made, the broker who is acting as the intermediary must receive... the written permission of the both the buyer and seller to appoint licensees. A licensee inadvertently representing more than one party is normally also... an undisclosed agent. A person contacts a licensee and expresses an interest to buy real estate. The licensee provides a written document that details the duties of the licensee while acting as an agent and the compensation the licensee expects to receive in return. The person signs the document. What kind of agency relationship was formed? An expressed agency relationship A contract is terminated because the agent neglected to file all of the necessary paperwork to make the contract legal. This contract was terminated