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Texas Real Estate Exam > Law of Agency 2 > Flashcards

Law of Agency 2 Flashcards

(55 cards)

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1
Q

Fiduciary

A

Based on Trust

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2
Q

Indemnification

A

Protection against damage or loss

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3
Q

Agency is…

A

The relationship the agent has with the principal. When the agent acts for, or on behalf of the client. A fiduciary relationship.

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4
Q

Customer

A

A person who receives limited brokerage services without establishing an agency relationship

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5
Q

Client

A

Also known as the principal

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6
Q

An agency relationship exists when one person, the ____ acts for, or on the behalf of another person, the ____

A

Agent, principal

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7
Q

(True/False) The principal must always remain loyal to the customer

A

False

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8
Q

The duties of the principal to the agent include all of the following, EXCEPT: Trust, Reimbursement, Performance, Indemnification

A

Trust

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9
Q

____ means that the principal will protect the agent from suffering a loss due to the agent’s reliance on information received from the principal.

A

Indemnification

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10
Q

(True/False) A licensee has no duties to a customer

A

False

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11
Q

A buyer’s agent…

A

Represents the buyer

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12
Q

A sub-agent…

A

Is a licensee not associated with the seller’s broker

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13
Q

Special Agency

A

also known as limited agency

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14
Q

General Agency

A

The right to represent the principal in a particular type of transaction or business

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15
Q

Express Authority

A

Authority that comers from specific instructions, either oral or written

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16
Q

Universal Agency

A

The power to act for the principal in all transactions

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17
Q

Agency by ratification

A

Established when an agent acts without prior authorization and the principal accepts it.

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18
Q

Real estate agents owe certain non-fiduciary duties to customers such as…

A

Honesty and fairness

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19
Q

(True/False) The Texas Real Estate License Act is the only law impacting third-party obligations in the real estate brokerage business

A

False

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20
Q

The federal law requiring all states to release information to the public about known, convicted sex offenders, when necessary, to protect the public’s safety is…

A

Megan’s Law

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21
Q

(True/False) A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent

A

True

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22
Q

What events can stigmatize a property?

A

Suicide on the premises. Paranormal activity. Death on the property.

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23
Q

(True/False) Licensees must disclose where or not a former tenant had AIDS or an HIV-related disease to potential buyer.

24
Q

(True/False) A seller does not have to disclose any stigma that relates to a material defect in the property.

25
What are the three types of agency?
General, Special, Universal
26
(True/False) A general agent has less authority than a universal agent.
True
27
A property manager is a common example of what type of agent?
General Agent
28
A buyer/tenant representation agreement creates what type of agency relationship with the broker?
Special
29
A written listing agreement provides an agent with ____ authority.
Express
30
The duties of the agent to the principal can be remembered by using the acronym....
OLDCAR
31
(True/False) An agent can share confidential information about a client's property once the listing agreement is terminated.
False
32
(True/False) Commingling is legal in the state of Texas.
False
33
(True/False) A real estate agent does not have any duties to a customer, only a client.
False
34
(True/False) A variety of seller's disclosure notices comply with the Texas Property Code.
True
35
(True/False) A seller must always fill out the Seller's Disclosure of Property Condition.
True
36
(True/False) An agent does not have to disclose whether or not there has been a suicide on the property.
True
37
(True/False) Agents should always disclose whether or not a previous or current tenant has had AIDS or HIV- related illness.
False
38
Real estate agents owe certain non-fiduciary duties to customers such as...
Honesty and fairness
39
(True/False) The Texas Real Estate License Act is the only law impacting third-party obligations in the real estate brokerage business.
False
40
The federal law requiring all states to release information to the public about known, convicted sex offenders, when necessary, to protect the public's safety is...
Megan's Law
41
(True/False) A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.
True
42
Which of the following happened, iris believed to have happened, on a property can "stigmatize" it? a) Suicide on the premises b) Paranormal activity c) Death on the property d) All of the above
d)All of the above
43
(True/False) Licensees must disclose whether or not a former tenant had AIDS or an HIV-related disease to potential buyers.
False
44
(True/False) A seller does not have to disclose any stigma that relate to a material defect in the property.
False
45
CMA
Analysis based on properties that have recently sold that are most similar to the subject property.
46
Net Listing
The real estate broker's commission is the difference between the minimum net established by the seller, and the price that the buyer is willing to pay
47
Listing Agreement
Contract with a seller that gives the broker the right to find a purchaser for his or her property .
48
Open Listing
The seller can list his or her property with multiple competing brokers.
49
Exclusive Agency
The seller lists the property with only one broker, but can sell it him or herself without paying a commission
50
(True/False) Oral listing agreements are allowed in Texas
True
51
All of the following elements should be included in a listing agreement, EXCEPT... A)The IABS form B)A beginning date and termination date C)The percentage of the broker's commission D)Intermediary consent
C)The percentage of the broker's commission
52
The shared information from the MLS can be used by agents to prepare a(n)...
Comparative Market Analysis
53
Subagency is...
When a licensee not associated with the seller's broker is representing the seller through a cooperative agreement with the seller's broker.
54
(True/False) Brokers do not need written authorization to advertise on social media
False
55
All listing agreements must have a definite ____ date.
Termination

Texas Real Estate Exam (19 decks)

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