Tx Law of Agency Real Estate Practice
Exam
A Buyer who discovers after closing that a seller wasn't honest about the property condition on
the required disclosures can? - Sue the seller
(Once closing has occurred, the buyer can sue the seller if the buyer discovers the seller wasn't
honest about the properties condition.)
In a real estate transaction in which you represent the seller, your duty to other parties is to? -
Treat them honestly and fairly
(You must treat other parties in the transaction honestly and fairly, and you must disclose all
material facts.)
In what way (S) do consumers compensate brokers for their services? - As a flat fee, fee for
service, and/or percentage of sale. (Consumers generally compensate brokers for their services
in the form of a percentage of the sales price of the property, but other options include a flat fee
or fee for service.)
In addition to providing a disclosure of any lead-based hazards in a home built before 1978,
what my sellers provide to perspective buyers? - EPA lead safety pamphlet
(sellers must also provide a lead safety pamphlet, available from the environmental protection
agency, to perspective buyers.)
Which of the following statements about buyer representation is true? - An open agency
relationship gives the buyer flexibility, but limits the amount of representation received by any
one professional.
(Open agency offers buyers with the most flexibility to work with multiple agents but limits the
level of a representation.)
Customers, lenders, and appraisers are all? - Third parties
(these are all third parties.)
Marsha's title insurance policy was issued on closing day, June 18. The policy list the standard
exclusions as well as requirements for the company to issue the policy, such as pay not existing
recorded lines. Which of these will not be addressed in the schedule of exceptions? - Marsha's
second mortgage on the property, which was properly recorded in January.
,(Title insurance typically covers events or claims filed on the public record before the title
insurance policies effective date but excludes disclosed an undisclosed easements.)
When agents put their clients interest ahead of their own, this describes the duty of? - Loyalty
(loyalty means putting the clients interest first ... Ahead of customers interests and ahead of
your own.)
What makes urea for formaldehyde foam insulation a health hazard? - It contains formaldehyde.
(Urea formaldehyde foam insulation contains formaldehyde which can be a health hazard.)
At least 60 days prior to filing A lawsuit under DTPA, what is the consumer required to do? -
Provide a written notice to the person against whom the suit is to be filed.
(At least 60 days before filing a DTP a suit, the consumer must provide a written notice to the
person against whom the suit is to be filed.)
Amelia is a broker who is employed to negotiate a transaction between both parties to the
transaction, and with the parties written consent, may act as the agent of the two parties. In
what capacity is Amelia acting? - An intermediary.
(A broker who is acting as the agent to both parties to a transaction such as the buyer and the
seller is known as an intermediary. The broker must have the signed, written permission of both
parties to act in this capacity. When acting as an intermediary, the broker is prohibited from
favoring one party over the other.)
In Texas, the commission is responsible for preparing information outlined in its purpose and
duties. It must then make this information available to him? - The public.
(Under TRELA, the commission has a responsibility to prepare information outlined in his duties
and powers for the public interest, and then make this information available to the public.)
What's the purpose of a buyer presentation? - To build rapport with the buyer
(a sit down meeting helps the buyer invest in you as a professional and helps to establish
rapport.)
Personal beliefs, such as religious ones, have the greatest effect on what? - Morals
(morals tend to be specific to the individual and are shaped by personal believes.)
The neighbors in South Mountain Village got tired of all the drug dealing and criminal activity
surrounding a shot, the mystery market. The community boycotted the store, which eventually
, closed, and with the help of local financial institutions, a social service center was added to the
area. What act is this an example of? - Community reinvestment act
(it requires financial institutions to invest in community development and rehabilitation efforts.)
Which fiduciary duty is missing in the following string: Loyalty, Care, obedience, confidentiality,
accounting, and? - Disclosure
(skill is a part of care lawfulness is required, but it's not one of the duties. The one that is
missing is disclosure of all the pertinent facts.)
Sally knows that a recent storm has caused severe wind damage to a listing which is the reason
for many updates. She does not disclose this to potential buyers. Chris and Jeff by the property
and later find out from a neighbor. They decide to sue Sally for Friday. Which of the following is
true? - Chris and Jeff must prove that she intended to deceive them.
(Fraud is an intentional deceptive act. In a fraud related lawsuit, the plaintiff must prove that the
other party intended to deceive them.)
Candy wants out of her contract, because she doesn't believe her agent has estimated the
property value correctly. She thinks her property is worth more. What must happen before the
listing agreement can be terminated? - Candy and her agent must mutually agree in writing to
terminate their agreement.
(A listing agreement can be terminated when the seller and broker mutually agreed to terminate
their agency relationship.)
Jose forgot to measure the homes interior to verify the square footage. After the bar moved in,
she found that he had made an error and that her home was 200 ft.² smaller than what she
thought. What crime has Jose committed? - Negligent misrepresentation
(Jose has been negligent in his duties and committed misrepresentation.)
Which of the following is true about radon testing? - Test kits are available for purchase.
(Test kits are available for purchase but must be sent to a laboratory for analysis. Licensee
should advise all buyers to have Homes tested for radon regardless of location.)
A homeowner has converted to rooms in his home to a rental unit. What does the "Mrs Murphy"
Exemption permit him to do? - Refuse to rent to a female tenant.
Exam
A Buyer who discovers after closing that a seller wasn't honest about the property condition on
the required disclosures can? - Sue the seller
(Once closing has occurred, the buyer can sue the seller if the buyer discovers the seller wasn't
honest about the properties condition.)
In a real estate transaction in which you represent the seller, your duty to other parties is to? -
Treat them honestly and fairly
(You must treat other parties in the transaction honestly and fairly, and you must disclose all
material facts.)
In what way (S) do consumers compensate brokers for their services? - As a flat fee, fee for
service, and/or percentage of sale. (Consumers generally compensate brokers for their services
in the form of a percentage of the sales price of the property, but other options include a flat fee
or fee for service.)
In addition to providing a disclosure of any lead-based hazards in a home built before 1978,
what my sellers provide to perspective buyers? - EPA lead safety pamphlet
(sellers must also provide a lead safety pamphlet, available from the environmental protection
agency, to perspective buyers.)
Which of the following statements about buyer representation is true? - An open agency
relationship gives the buyer flexibility, but limits the amount of representation received by any
one professional.
(Open agency offers buyers with the most flexibility to work with multiple agents but limits the
level of a representation.)
Customers, lenders, and appraisers are all? - Third parties
(these are all third parties.)
Marsha's title insurance policy was issued on closing day, June 18. The policy list the standard
exclusions as well as requirements for the company to issue the policy, such as pay not existing
recorded lines. Which of these will not be addressed in the schedule of exceptions? - Marsha's
second mortgage on the property, which was properly recorded in January.
,(Title insurance typically covers events or claims filed on the public record before the title
insurance policies effective date but excludes disclosed an undisclosed easements.)
When agents put their clients interest ahead of their own, this describes the duty of? - Loyalty
(loyalty means putting the clients interest first ... Ahead of customers interests and ahead of
your own.)
What makes urea for formaldehyde foam insulation a health hazard? - It contains formaldehyde.
(Urea formaldehyde foam insulation contains formaldehyde which can be a health hazard.)
At least 60 days prior to filing A lawsuit under DTPA, what is the consumer required to do? -
Provide a written notice to the person against whom the suit is to be filed.
(At least 60 days before filing a DTP a suit, the consumer must provide a written notice to the
person against whom the suit is to be filed.)
Amelia is a broker who is employed to negotiate a transaction between both parties to the
transaction, and with the parties written consent, may act as the agent of the two parties. In
what capacity is Amelia acting? - An intermediary.
(A broker who is acting as the agent to both parties to a transaction such as the buyer and the
seller is known as an intermediary. The broker must have the signed, written permission of both
parties to act in this capacity. When acting as an intermediary, the broker is prohibited from
favoring one party over the other.)
In Texas, the commission is responsible for preparing information outlined in its purpose and
duties. It must then make this information available to him? - The public.
(Under TRELA, the commission has a responsibility to prepare information outlined in his duties
and powers for the public interest, and then make this information available to the public.)
What's the purpose of a buyer presentation? - To build rapport with the buyer
(a sit down meeting helps the buyer invest in you as a professional and helps to establish
rapport.)
Personal beliefs, such as religious ones, have the greatest effect on what? - Morals
(morals tend to be specific to the individual and are shaped by personal believes.)
The neighbors in South Mountain Village got tired of all the drug dealing and criminal activity
surrounding a shot, the mystery market. The community boycotted the store, which eventually
, closed, and with the help of local financial institutions, a social service center was added to the
area. What act is this an example of? - Community reinvestment act
(it requires financial institutions to invest in community development and rehabilitation efforts.)
Which fiduciary duty is missing in the following string: Loyalty, Care, obedience, confidentiality,
accounting, and? - Disclosure
(skill is a part of care lawfulness is required, but it's not one of the duties. The one that is
missing is disclosure of all the pertinent facts.)
Sally knows that a recent storm has caused severe wind damage to a listing which is the reason
for many updates. She does not disclose this to potential buyers. Chris and Jeff by the property
and later find out from a neighbor. They decide to sue Sally for Friday. Which of the following is
true? - Chris and Jeff must prove that she intended to deceive them.
(Fraud is an intentional deceptive act. In a fraud related lawsuit, the plaintiff must prove that the
other party intended to deceive them.)
Candy wants out of her contract, because she doesn't believe her agent has estimated the
property value correctly. She thinks her property is worth more. What must happen before the
listing agreement can be terminated? - Candy and her agent must mutually agree in writing to
terminate their agreement.
(A listing agreement can be terminated when the seller and broker mutually agreed to terminate
their agency relationship.)
Jose forgot to measure the homes interior to verify the square footage. After the bar moved in,
she found that he had made an error and that her home was 200 ft.² smaller than what she
thought. What crime has Jose committed? - Negligent misrepresentation
(Jose has been negligent in his duties and committed misrepresentation.)
Which of the following is true about radon testing? - Test kits are available for purchase.
(Test kits are available for purchase but must be sent to a laboratory for analysis. Licensee
should advise all buyers to have Homes tested for radon regardless of location.)
A homeowner has converted to rooms in his home to a rental unit. What does the "Mrs Murphy"
Exemption permit him to do? - Refuse to rent to a female tenant.
