Law of Agency - Champions School of Real Estate test with Verified Solutions 2024

Law of Agency - Champions School of Real Estate test with Verified Solutions 2024 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 customer how 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 holderThe 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