Agency- Real Estate Questions with Complete Solutions Latest Update 2024 ( Already Passed)
A broker or salesperson owes customers - Answers Honesty, fairness, and disclosure of material facts
about the property
The initial disclosure of an agency relationship may be - Answers Oral or written
An agency relationship would NOT be terminated by - Answers Marriage of the principal
To act as an intermediary, a broker must have written consent from - Answers Each party being
represented in the transaction
In the case of multiple offers being received by the broker, the listing broker must - Answers Present all
offers at the same time
During a listing presentation to a seller, a sales agent is - Answers Acting as an agent to her broker and
must act in the best interests of the broker during the negotiations of the listing agreement, but owes
no agency duties to the seller at this time.
In the case of a second offer being received by the listing broker while the seller is awaiting a response
to a counteroffer he has made to another buyer, the listing broker should - Answers Present the second
offer immediately but instruct the seller to be careful of accepting without first withdrawing the
counteroffer to the first buyer
An illegal boycott has occurred when two or more business entities conspire to - Answers Withhold their
patronage to reduce competition
What action of the broker is MOST likely to result in the creation of an agency relationship with the
buyer? - Answers Negotiating on the buyer's behalf
Actions that help reduce the risk associated with acting as a broker in a real estate transaction include all
of the following EXCEPT
1. Recommending the use of other experts
2. Warranting the condition of the property
3. Using written disclosures whenever possible
4. Maintaining a written policies and procedures manual - Answers 2. Warranting the condition of the
property
A third party you work with but do not represent in a transaction would be referred to as a - Answers
Customer
Which statement by the listing broker to the buyer might lead a court to imply an agency relationship
existed with the buyer? - Answers "Let's test the seller with a low offer and then go up if we have to"
,A broker is required by TRELA to offer certain minimum services to her seller-client. Minimum service
does NOT include - Answers Telling other brokers to negotiate directly with the client
When may a broker in Texas take a et listing? - Answers When a seller requires it and is familiar with
market values
A listing agreement does not authorize a listing broker to - Answers Execute a document in the name of
the seller concerning the property
A listing agent would be required to disclose to a potential buyer all of the following EXCEPT
1. Fire damage
2. Termite damage
3. Use of the premises for the manufacture of methamphetamines
4. The sellers are getting a divorce - Answers 4. The sellers are getting a divorce
A real estate broker, acting as an agent for another in a transaction, has a primary duty to - Answers
Represent the interests of the agent's principal
Delegation of authority by a client and acceptance of that authority by the agent - Answers Must be in
writing to create an agency relationship
Even though a broker is an agent for one party, she is obligated to treat both parties - Answers Fairly
The TRELA mandates that all agency agreements must include a(n) - Answers Definite termination date
Fiduciary duties demand that an agent be - Answers Scrupulous and meticulous in performing the
agent's functions.
It may be MOST reasonably inferred that fiduciary duties demand that a real estate broker, acting as an
agent for the buyer in a real estate transaction, place - Answers No personal interest above that of the
buyer
Agents appointed to each of the parties by an intermediary broker may give - Answers Only publicly
recorded facts to the clients
One reason for an agent's obligation to exercise integrity in discharging his responsibilities is to avoid -
Answers Misrepresentation
A misrepresentation can be made by acts of - Answers Commission or omission
What is a fiduciary relationship? - Answers A contractual relationship between a principal and an agent
that requires valuable consideration to be paid
, A seller signed a listing agreement with Broker A, giving Broker A the authority to represent her in the
sale of her home. In the listing agreement the seller promised to pay Broker A his compensation no
matter who successfully sold her property at the price, terms and conditions that she agreed upon. This
type of listing agreement is called - Answers Exclusive right to sell listing agreement
A broker secures a listing to represent a seller in the sale of her home. The listing guarantees the broker
payment of an agreed upon commission no matter who sells the property, with one exception. If the
seller sells the property herself, the broker will not receive any compensation. This type of listing is
referred to as - Answers An exclusive agency listing agreement
The parties to a buyer representation agreement are the - Answers Broker's agent and the buyer-client
The Texas Real Estate Commission is responsible for - Answers The administration of TRELA
TREC Rules - Answers Do not require licensees to be members of trade associations
Brokers are responsible for their salespersons - Answers Authorized acts
A real estate agent owes what level of obligation to a client? - Answers Highest fiduciary obligation
What kind of listing agreement would obligate the seller to pay a commission to the listing broker, no
matter which broker produces the buyer, but would allow the seller to pay no commission if the seller
finds a buyer without any broker's participation? - Answers Exclusive agency
The broker's legal and ethical obligation under a listing contract is to negotiate - Answers The best
possible transaction for the client
A sales agent, acting as the agent for the buyer, takes his buyer client to see several homes currently on
the market. While driving through one neighborhood, he finds a For Sale By Owner (FSBO) sign in the
ward of one property that his buyer client wants to preview. The sales agent knocks on the door,
introduces himself, asks if he can preview the seller's home, but does not give the "Information About
Brokerage Services" form to the owner/seller. - Answers This is a violation of Texas law because the law
requires that the sales agent give the Information About Brokerage Services form to prospective buyers,
tenants, sellers, and landlords at the first substantive dialogue with a party to the transaction, about
specific property, except in limited circumstances
A broker advised his seller-client, who is selling his principal residence, to provide a completed Seller
Disclosure Notice as required by the Texas Property Code. He should also advise the seller, that if a
buyer does not receive the disclosure prior to signing a sales contract, the - Answers Contract will be
voidable by the buyer for any reason at any time prior to closing if the buyer does not receive the notice
A broker who is not a REALTOR wishes to use written contracts to establish her agency agreements with
buyer-clients. The broker should - Answers Have a Texas attorney prepare a contract form
Universial agency - Answers Gives a very broad scope of power to the agent
A broker or salesperson owes customers - Answers Honesty, fairness, and disclosure of material facts
about the property
The initial disclosure of an agency relationship may be - Answers Oral or written
An agency relationship would NOT be terminated by - Answers Marriage of the principal
To act as an intermediary, a broker must have written consent from - Answers Each party being
represented in the transaction
In the case of multiple offers being received by the broker, the listing broker must - Answers Present all
offers at the same time
During a listing presentation to a seller, a sales agent is - Answers Acting as an agent to her broker and
must act in the best interests of the broker during the negotiations of the listing agreement, but owes
no agency duties to the seller at this time.
In the case of a second offer being received by the listing broker while the seller is awaiting a response
to a counteroffer he has made to another buyer, the listing broker should - Answers Present the second
offer immediately but instruct the seller to be careful of accepting without first withdrawing the
counteroffer to the first buyer
An illegal boycott has occurred when two or more business entities conspire to - Answers Withhold their
patronage to reduce competition
What action of the broker is MOST likely to result in the creation of an agency relationship with the
buyer? - Answers Negotiating on the buyer's behalf
Actions that help reduce the risk associated with acting as a broker in a real estate transaction include all
of the following EXCEPT
1. Recommending the use of other experts
2. Warranting the condition of the property
3. Using written disclosures whenever possible
4. Maintaining a written policies and procedures manual - Answers 2. Warranting the condition of the
property
A third party you work with but do not represent in a transaction would be referred to as a - Answers
Customer
Which statement by the listing broker to the buyer might lead a court to imply an agency relationship
existed with the buyer? - Answers "Let's test the seller with a low offer and then go up if we have to"
,A broker is required by TRELA to offer certain minimum services to her seller-client. Minimum service
does NOT include - Answers Telling other brokers to negotiate directly with the client
When may a broker in Texas take a et listing? - Answers When a seller requires it and is familiar with
market values
A listing agreement does not authorize a listing broker to - Answers Execute a document in the name of
the seller concerning the property
A listing agent would be required to disclose to a potential buyer all of the following EXCEPT
1. Fire damage
2. Termite damage
3. Use of the premises for the manufacture of methamphetamines
4. The sellers are getting a divorce - Answers 4. The sellers are getting a divorce
A real estate broker, acting as an agent for another in a transaction, has a primary duty to - Answers
Represent the interests of the agent's principal
Delegation of authority by a client and acceptance of that authority by the agent - Answers Must be in
writing to create an agency relationship
Even though a broker is an agent for one party, she is obligated to treat both parties - Answers Fairly
The TRELA mandates that all agency agreements must include a(n) - Answers Definite termination date
Fiduciary duties demand that an agent be - Answers Scrupulous and meticulous in performing the
agent's functions.
It may be MOST reasonably inferred that fiduciary duties demand that a real estate broker, acting as an
agent for the buyer in a real estate transaction, place - Answers No personal interest above that of the
buyer
Agents appointed to each of the parties by an intermediary broker may give - Answers Only publicly
recorded facts to the clients
One reason for an agent's obligation to exercise integrity in discharging his responsibilities is to avoid -
Answers Misrepresentation
A misrepresentation can be made by acts of - Answers Commission or omission
What is a fiduciary relationship? - Answers A contractual relationship between a principal and an agent
that requires valuable consideration to be paid
, A seller signed a listing agreement with Broker A, giving Broker A the authority to represent her in the
sale of her home. In the listing agreement the seller promised to pay Broker A his compensation no
matter who successfully sold her property at the price, terms and conditions that she agreed upon. This
type of listing agreement is called - Answers Exclusive right to sell listing agreement
A broker secures a listing to represent a seller in the sale of her home. The listing guarantees the broker
payment of an agreed upon commission no matter who sells the property, with one exception. If the
seller sells the property herself, the broker will not receive any compensation. This type of listing is
referred to as - Answers An exclusive agency listing agreement
The parties to a buyer representation agreement are the - Answers Broker's agent and the buyer-client
The Texas Real Estate Commission is responsible for - Answers The administration of TRELA
TREC Rules - Answers Do not require licensees to be members of trade associations
Brokers are responsible for their salespersons - Answers Authorized acts
A real estate agent owes what level of obligation to a client? - Answers Highest fiduciary obligation
What kind of listing agreement would obligate the seller to pay a commission to the listing broker, no
matter which broker produces the buyer, but would allow the seller to pay no commission if the seller
finds a buyer without any broker's participation? - Answers Exclusive agency
The broker's legal and ethical obligation under a listing contract is to negotiate - Answers The best
possible transaction for the client
A sales agent, acting as the agent for the buyer, takes his buyer client to see several homes currently on
the market. While driving through one neighborhood, he finds a For Sale By Owner (FSBO) sign in the
ward of one property that his buyer client wants to preview. The sales agent knocks on the door,
introduces himself, asks if he can preview the seller's home, but does not give the "Information About
Brokerage Services" form to the owner/seller. - Answers This is a violation of Texas law because the law
requires that the sales agent give the Information About Brokerage Services form to prospective buyers,
tenants, sellers, and landlords at the first substantive dialogue with a party to the transaction, about
specific property, except in limited circumstances
A broker advised his seller-client, who is selling his principal residence, to provide a completed Seller
Disclosure Notice as required by the Texas Property Code. He should also advise the seller, that if a
buyer does not receive the disclosure prior to signing a sales contract, the - Answers Contract will be
voidable by the buyer for any reason at any time prior to closing if the buyer does not receive the notice
A broker who is not a REALTOR wishes to use written contracts to establish her agency agreements with
buyer-clients. The broker should - Answers Have a Texas attorney prepare a contract form
Universial agency - Answers Gives a very broad scope of power to the agent
