Aceable law of Agency Review Questions With 100 % Correct Answers | latest

(TRELA) The Real Estate License Act - provides the statutory guidelines stipulating the duties of disclosure of license holder agency relationships. A breach of duty - includes acts of commission or omission on the part of the license holder which constitute a violation of the agency agreement A buyer/tenant representation agreement is the best way to create a written agency agreement with - a buyer A defect - item that was installed or is attached to the home and has an imperfection. A fiduciary duty that never terminates is - the duty of confidentiality and the duty of accounting A listing agent can help a buyer with - the process of obtaining financing A listing agreement is the best way to create a written agency agreement with - a seller (TREC does not provide such a form, but TAR does.) a malfunction - something is designed or built to perform a certain function and no longer does so. a place of refuge for those industries Congress felt were victims of an overly aggressive IRS practice of attempting to reclassify independent contractors as employees. It specifically addresses the independent contractor status of real estate agents. - Safe Harbor (Section 530 of the Revenue Act of 1978)A subagent - a license holder, not affiliated with the seller's broker, brings an UNREPRESENTED buyer to the transaction via a cooperative agreement with the seller's broker. Abandonment - when an agent ceases to perform their agency duties without notifying the principal. Actual agency - Refers to actions an agent has been authorized (orally or in writing) to complete on behalf of a principal. Agency by estoppel - is agency imposed by law when it is determined that ostensible agency existed. occurs in an environment of ostensible agency. Agency by ratification - agent takes an action outside of what they were explicitly authorized to do but which was accepted after the fact by the principal. Agency by ratification - is when a license holder acts without authorization on behalf of a principal and the principal accepts those actions after the fact, thus affirming the actions taken and creating retroactive agency. Agency by Ratification - When the principal accepts an agent's actions after the fact, thus affirming the actions taken and creating retroactive agency. Agency Disclosure - if the broker or any of the broker's agents are acting on their own behalf whether real estate agents and brokers are licensed or have potential conflicts of interest Everyone in the transaction is entitled to know who the agent is working for. agent and broker duties and the responsibilities owed to the buyer if the agent or the broker has relatives that have any personal interest in the transaction Agency relationships are - fiduciary relationships; The client's interest must always come first.Agency relationships require the consent of both parties (client and agent), which can be demonstrated by one of three methods: - Written agreement Oral agreement Action Americans with Disabilities Act in 1990: - Identified and defined the protected disabilities. An agency relationship is created either by - contract or law It can be expressly stated by the agent and buyer or implied by their actions. Another required disclosure is giving the buyer a notice to - have the abstract of title examined by an attorney. Apparent or ostensible agency - When a principal allows a license holder to act in such a way as to cause a third party to believe that license holder is the principal's agent