Chapter 6: Law Of Agency And Real Estate Brokerage

Question 1

Any relationship in which one party acts for or represents another is called

Answer 1

Agency

Question 2

A person who is authorized to act for another

Answer 2

Agent

Question 3

Another name for principal

Answer 3

Client

Question 4

A person who has the legal authority to act as a broker or sales agent in a real estate transaction

Answer 4

License holder

Question 5

A Texas consumer protection law

Answer 5

DTPA

Question 6

The principal is also known as

Answer 6

The client

Question 7

What is a fiduciary relationship?

Answer 7

Relationship based on trust

Question 8

What are the 3 types of agency?

Answer 8

Universal, General and Special

Question 9

What type of agent has full authority to conduct business on behalf of the client?

Answer 9

Universal agent

Question 10

What right does a general agent have?

Answer 10

Right to represent a principal in a particular type of transaction or business

Question 11

What is a common example of a general agent?

Answer 11

Property managers

Question 12

A broker is responsible for what activities on the part of his associates?

Answer 12

-compliance with fair housing laws
- compliance with advertising regulations
- compliance with regulations for disclosure
-use of promulgated forms
-compliance with all aspects of the TRELA

Question 13

What agency allows an agent to only perform limited duties for the principal?

Answer 13

Special agency

Question 14

Special agency is also referred as

Answer 14

Limited agency

Question 15

What acronym describes an AGENTS duty to their principal?

Answer 15

OLD CAR
OBEDIENCE
LOYALTY
DISCLOSURE
CONFIDENTIALITY
ACCOUNTING
REASONABLE CARE

Question 16

What acronym describes a PRINCIPALS duty to an agent:

Answer 16

CRIP
COMPENSATION
REIMBURSEMENT
INDEMNIFICATION
PERFORMANCE

Question 17

Any potential party to a transaction is an unrepresentative customer until they become

Answer 17

A client

Question 18

When a potential buyer contacts an agent for information regarding a property

Answer 18

Customer

Question 19

It’s a license holder, behaves in a manner that makes a party reasonably believe that he, or she is being represented then what will be created?

Answer 19

Implied agency

Question 20

A _______ will not act as a dual agent when their client is interested in purchasing one of the broker’s in house listings

Answer 20

Single-agency broker

Question 21

What type of broker is considered the middleman?

Answer 21

Transactional broker

Question 22

A __________ facilitates a buyer and seller to return agreement in a little estate transaction, even though he, or she does not have any agency relationship with each other 

Answer 22

Transactional broker

Question 23

All transactions are said to have 2 sides:

Answer 23

Listing and selling side

Question 24

A _______ side occurs when the seller retains the services of the broker

Answer 24

Listing

Question 25

A _________ side occurs when the buyer retains the services of a broker

Answer 25

Selling

Question 26

When an agent is working with the buyer they are referred as the

Answer 26

Selling agent

Question 27

If a property is sold by the listing firm it is referred to as

Answer 27

An in-house sale

Question 28

If a property is listed by one firm and later sold by another this is

Answer 28

A cooperative sale

Question 29

True or false: the commission in a transaction is to be paid by the listing broker to a cooperating broker is negotiated between the seller and listing broker in the listing agreement

Answer 29

True

Question 30

The set of rules that make it possible to bring client buyers and sellers together while at the same time representing their best interests

Answer 30

Intermediary

Question 31

In order to practice intermediary, the broker must have _____________ from both parties, stating the source of any anticipated compensation

Answer 31

Written Consent

Question 32

What are the two forms of intermediary

Answer 32

With and without appointments

Question 33

If one agent is involved in his selling his or her own listening to his or her homebuyer it will be

Answer 33

Intermediary without appointments

Question 34

If two agents from the same brokerage are involved, one working with the seller and the other with the buyer, it will be

Answer 34

Intermediary with appointments

Question 35

What provide consumers with necessary information regarding agency relationships with license holders?

Answer 35

Information about brokerage services IABS

Question 36

If a broken wishes to terminate a license, sales agent, sponsorship, he or she must notify the agent

Answer 36

In writing

Question 37

What Texas law was passed in 1973 and allows an agreement consumer to see a seller for goods for damages

Answer 37

Deceptive Trade Practices Act DTPA

Question 38

The sellers disclosure notice is a good tool to use as a defense in a ______ lawsuit

Answer 38

DTPA

Question 39

According to their DTPA ________ means actual awareness, or flagrant disregard of prudent and unfair business practices

Answer 39

Intentionally

Question 40

When a potential buyer contacts an agent for information regarding a property he or she is a

Answer 40

Customer

Question 41

______ means actual awareness of a falsity, deception, or unfairness of an act

Answer 41

Knowingly

Question 42

What is defined as tangible chattels?

Answer 42

GoodS

Question 43

When an agent ask without prior authorization, and the principal finds out about it, and accept it

Answer 43

Agency by ratification

Question 44

In real estate, a buyer or seller is considered an agent customer until he or she becomes an

Answer 44

Client

Question 45

The agreement between a broker and the client is most often a

Answer 45

Special agency relationship

Question 46

The broker and his or her associates are most often in a

Answer 46

General agency relationship