Law of Agency - Champions School of Real Estate 2024 Latest Questions With Passed Solutions!!

The principal is also known as - Answer-client fiduciary relationship - Answer-a relationship founded on trust and confidence Agency Relationship - Answer-Exists when one person (the agent) acts for, or on behalf of another person (the principal). the principal - Answer-is the one who hires and gives authority to the agent Texas Real Estate License Act TRELA - Answer-Was passed 1939. The purpose is to protect the public against unscrupulous brokers and sales agents. Texas Real Estate Commission TREC - Answer-Was created to enforce and administer TRELA in 1949. The purpose of this act is to protect the public against unscrupulous brokers and sales agents. A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is... - Answer-a license holder or a real estate broker licensed in another state TRELA may suspend or revoke a license or take other disciplinary action if the license holder, while engaged in real estate brokerage engages in... - Answer-conduct that is dishonest or in bad faith or that demonstrates untrustworthiness a broker works FOR - Answer-a client a broker works WITH - Answer-a customerhow does a buyer become a client - Answer-by entering into a buyer representation agreement with the broker Subagent - Answer-A license holder not associated with the seller's broker, but who is representing the seller through a cooperative agreement, often through membership in a Multiple Listing Service (MLS), with the seller's broker. An agency relationship exists when one person, the _____ acts for, or on behalf of another person, the ______ - Answer-agent, principal which of the following is grounds for suspension or revocation of license by TREC? - Answer-splitting commission with a person other than a license holder The commission can deny licensure to an applicant based on the applicant's _______________________ - Answer-moral character Ostensible Agency - Answer-exists when actions lead another person to assume that one is an agent. Agency by Ratification - Answer-Occurs when an agent acts without prior authorization, and the principal, upon learning of this action, accepts it. agency coupled with an interest - Answer-When a broker is the owner of a property that is being sold, or when a broker is interested in buying a property, we have agency coupled with an interest Agency Authority - Answer-or rights, may also be a result of "the norm", or what is considered customary in the business Implied Authority - Answer-an agent's authority to do things not specifically authorized in order to carry out express authority Fiduciaries - Answer-are held to the highest amount of good faith, are required to exclude all selfish interest, are prohibited from putting themselves in positions where personal interest and representativeinterest will conflict and must, in any direct dealing with the principal, make full disclosure of all relevant facts and give the latter an opportunity to obtain independent advice General Agent - Answer-has less authority than the universal agent. Has the right to represent his or her principal in a particular type of transaction or business. One common example of a general agent in real estate is the property manager. As agents, our fiduciary duties and responsibilities include - Answer-OLD CAR Obedience Loyalty Disclosure Confidentiality Accounting Reasonable care Obedience - Answer-an agent is obligated to follow all o the lawful instructions of a client The commission may suspend or revoke a license or take other disciplinary action if the license holder, while acting as a broker or sale agent... - Answer-commingles money that belongs to another person with the license holders own money The disclosure of representation may be done - Answer-orally or in writing When an agent and potential party enter into a "substantive" discussion of a real estate transaction, - Answer-the party must be provided with a TREC-prescribed agency information form Does a substantive discussion always occur at the first face to face meeting - Answer-NO When should the Information About Brokerage Services IABS form be provided to a seller - Answer-prior to a listing presentation, and should be provided to a buyer prior to discussion of a possible purchaseA license holder is not required to provide a representation disclosure if - Answer-the proposed transaction is for a residential lease for not more than one year and a sale is not being considered A broker may act as an intermediary between parties to a real estate transaction if - Answer-the broker obtains written consent from each party for the broker to act as an intermediary in the transaction What form must an agent provide to a potential client at the first substantive discussion of a real estate transaction - Answer-IABS In real estate, an example of a general agent would be a(n) _____________ - Answer-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-prescribed agency information form. First contact/orally or written - Answer-substantive When acting in an intermediary transaction - Answer-the broker is required to treat all parties honestly A special duty of honesty is applied in the act when - Answer-the license holder is buying or selling property in his or her name customer - Answer-also know as a third party, is a party to a transaction who is not being represented by the license holder A team name must end with the word - Answer-team or group advertisement - Answer-is any form of communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services and includes, but is not limited to, all publications, brochures, radio or television broadcasts, all electronic media T/F: Advertisement does not include communication from a license holder to the license holders current client - Answer-TRUEIn Texas, most sellers prepare a Seller's Disclosure of Property Condition, and who is responsible for its accuracy - Answer-the seller TREC rules define ___________________ as any form of communication on behalf of a license holder designed to attract the public for real estate services - Answer-advertisement