Quizes Flashcards
(240 cards)
1
Q
This refers to the relationship between a principal and the principal’s agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party..? ▫️Agency ▫️Brokerage ▫️Joint venture ▫️Partnership
A
Agency
2
Q
Which of the following can serve as a principal…? ▫️Seller ▫️Buyer ▫️Lessor ▫️All of the above
A
All of the above
3
Q
Real estate agents operate as a/an …………….to their sponsoring broker? ▫️Partner ▫️Independent contractor ▫️Client ▫️Employer
A
Independent contractor
4
Q
A law that is made by a judge's decision in a court case is known as…? ▫️Statutory law ▫️Real estate law ▫️Common law ▫️Civil law
A
Common law
5
Q
A law that is written by a legislating body is known as…? ▫️Statutory law ▫️Real estate law ▫️Common law ▫️Civil law
A
Statutory law
6
Q
The acronym TRELA stands for which of the following…? ▫️Texas Real Estate License Association ▫️Texas Real Estate License Act ▫️Texas Real Estate Legal Act ▫️Texas Real Estate Legislation Act
A
Texas Real Estate License Act
7
Q
The rules and regulations regarding real estate licenses in Texas are described in which of the following…?
▫️Texas Real Estate License Act
▫️Texas Real Estate Law
▫️Texas Bureau of Real Estate
▫️Article 12-A of the State Real Estate Law
A
Texas Real Estate License Act
8
Q
The Texas Real Estate Commission was created in what year…? ▫️1949 ▫️1963 ▫️1988 ▫️2001
A
1949
9
Q
Which of the following is responsible for enforcing TRELA…? ▫️NAR ▫️TAR ▫️TREC ▫️Texas Attorney General
A
TREC
10
Q
A person acting as the agent for others in negotiating the purchase and sale of real property for a fee is known as a/an…? ▫️Real estate broker ▫️Client ▫️Customer ▫️Attorney
A
Real estate broker
11
Q
A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is known as a/an…? ▫️Real estate salesperson ▫️Associate broker ▫️Trustee ▫️Broker partner
A
Associate broker
12
Q
Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent is known as a/an…? ▫️Independent contractor ▫️Partner ▫️Client ▫️Associate
A
Client
13
Q
A broker who represents both the buyer and seller in the same transaction operates as a/an…? ▫️Intermediary ▫️Partner ▫️Associate ▫️Exclusive broker
A
Intermediary
14
Q
Which of the following receives advice, or an opinion, from a real estate broker…? ▫️A principal ▫️A customer ▫️A neutral third party ▫️All of the above
A
A principal
15
Q
A person in a position of trust and confidence is known as a/an…? ▫️Partner ▫️Associate ▫️Fiduciary ▫️Subordinate
A
Fiduciary
16
Q
The duty to not to obtain any advantage over a principal by the slightest misrepresentation, concealment, duress or pressure is known as a…? ▫️Common duty ▫️Fiduciary duty ▫️Statutory duty ▫️Professional duty
A
Fiduciary duty
17
Q
The party that the listing contract is with is referred to as the…? ▫️Principal ▫️Partner ▫️Associate ▫️Subordinate
A
Principal
18
Q
Ely is a real estate broker who represents that seller in a transaction. Ely owes which of the following to the seller…? ▫️Intermediary duties ▫️Common duties ▫️Fiduciary duties ▫️All of the above
A
Fiduciary duties
19
Q
A real estate broker owes fiduciary duties to his/her principal…?
▫️T (True)
▫️F (False)
A
True
20
Q
Which of the following orders the appraisal for a transaction…? ▫️The broker ▫️The lender ▫️The agent ▫️The seller
A
The lender
21
Q
The real estate broker is responsible for ordering the appraisal for a transaction…?
▫️T (True)
▫️F (False)
A
False
22
Q
This refers to the relationship between a principal and the principal’s agent, which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a third party…? ▫️Agency ▫️Brokerage ▫️Joint venture ▫️Partnership
A
Agency
23
Q
Which of the following is signed between an agent and their sponsoring broker…? ▫️Listing contract ▫️Purchase contract ▫️Independent contractor agreement ▫️Sales contract
A
Independent contractor agreement
24
Q
The authority of an agent is provided by which of the following…? ▫️The customer ▫️The principal ▫️The lender ▫️Anyone involved in the transaction
A
The principal
25
```
In order to establish an agency relationship, which of the following must agree to the terms of the agency…?
▫️The principal only
▫️The agent only
▫️Both the principal and agent
▫️Neither the agent or principal
```
Both the principal and agent
26
```
Which of the following contracts can establish an agency relationship…?
▫️Listing agreement
▫️Buyer representation agreement
▫️Property management agreement
▫️All of the above
```
All of the above
27
```
Which of the following contracts establishes an agency relationship between the seller and broker…?
▫️Listing agreement
▫️Buyer representation agreement
▫️Purchase contract
▫️Sales contract
```
Listing agreement
28
```
An agent that can serve the principal in any capacity is known as a…?
▫️General agent
▫️Special agent
▫️Specific agent
▫️Universal agent
```
Universal agent
29
```
A property manager is an example of a…?
▫️General agent
▫️Special agent
▫️Specific agent
▫️Universal agent
```
General Agent
30
```
A real estate agent is an example of a…?
▫️General agent
▫️Specific agent
▫️Special agent
▫️Universal agent
```
Special Agent
31
```
Agency can be classified in which of the following ways…?
▫️General agency
▫️Special agency
▫️Universal agency
▫️All of the above
```
All of the above
32
```
Abby is a real estate broker who represents a seller in a transaction. Abby is serving as what type of agent…?
▫️General agent
▫️Special agent
▫️Specific agent
▫️Universal agent
```
Special Agent
33
By signing a listing agreement with a principal, an agent can serve as a universal agent to the principal…?
▫️T (True)
▫️F (False)
False
34
```
Abby signs a buyer representation agreement with a buyer. What type of agency was created by the agreement…?
▫️General agency
▫️Special agency
▫️Specific agency
▫️Universal agency
```
Special agency
35
```
A person in a position of trust and confidence, as between a principal and broker is known as a…?
▫️Partner
▫️Fiduciary
▫️Associate
▫️Subordinate
```
Fiduciary
36
According to the fiduciary duty of obedience, the agent must obey a principal's unlawful instructions…?
▫️T (True)
▫️F (False)
False
37
According to the fiduciary duty of obedience, the agent must obey which of the following instructions from the principal…?
▫️Unlawful instructions
▫️Lawful instructions
▫️Any instructions from the principal
▫️Only the instructions the agent believes is relevant to the transaction
Lawful instructions
38
```
What fiduciary duty does a seller's broker owe to a customer…?
▫️Obedience
▫️Loyalty
▫️Full disclosure
▫️Accountability
```
Full disclosure
39
```
If an agent learns of something that is beneficial to their principal, the agent must reveal the information to the principal as per this fiduciary duty…?
▫️Obedience
▫️Reasonable care
▫️Full disclosure
▫️Accountability
```
Full disclosure
40
```
According to this fiduciary duty, an agent cannot disclose their principal's motives for selling their property…?
▫️Confidentiality
▫️Full disclosure
▫️Obedience
▫️Accountability
```
Confidentiality
41
```
An agent owes which of the following fiduciary duties to their principal…?
▫️Legal council
▫️Accounting services
▫️Reasonable care and diligence
▫️All of the above
```
Reasonable care and diligence
42
```
A customer is also known as a…?
▫️Client
▫️Non-client
▫️Principal
▫️Partner
```
Non-client
43
An agent must provide customers with advice if asked by the customer…?
▫️T (True)
▫️F (False)
False
44
An agent must disclose which of the following to a prospective buyer…?
▫️Material facts about the property
▫️The sellers motives for selling
▫️The lowest price the seller will accept
▫️All of the above
Material facts about the property
45
```
An agent owes the fiduciary duty of reasonable care to which of the following parties in a transaction…?
▫️The customer
▫️The principal
▫️The client
▫️All of the above
```
All of the above
46
```
Which of the following is considered a third party to a listing contract…?
▫️A principal
▫️A real estate broker
▫️A customer
▫️All of the above
```
A customer
47
```
An agent's duty of honesty and fairness applies to which parties…?
▫️The client
▫️The customer
▫️The principal
▫️All of the above
```
All of the above
48
```
An agent's duty to be honest with all parties may be compromised by which fiduciary duty owed to the principal…?
▫️Confidentiality
▫️Accountability
▫️Reasonable skill and diligence
▫️Obedience
```
Confidentiality
49
```
Since an agent owes the duty of confidentiality to his/her principal, which of the following duties owed to a customer may be compromised...?
▫️Loyalty
▫️Obedience
▫️Honesty
▫️Reasonable skill and diligence
```
Honesty
50
```
Which of the following duties are owed to a third party in a transaction…?
▫️Competency
▫️Good faith
▫️Fairness
▫️All of the above
```
All of the above
51
```
If a broker enters into a listing contract with a seller, what duties does the broker owe to prospective buyers…?
▫️Loyalty
▫️Obedience
▫️Disclosure of material facts
▫️Accountability
```
Disclosure of material facts
52
Which of the following is an example of fairness owed by a seller's agent to a customer…?
▫️The agent must present all offers received from prospective buyers
▫️The agent must disclose the seller's reasons for selling
▫️The agent must disclose the lowest offer the seller will accept
▫️All of the above
The agent must present all offers received from prospective buyers
53
An agent must avoid doing which of the following to a customer…?
▫️Operating in good faith towards the customer
▫️Being honest with the customer
▫️Misrepresenting material facts about the property
▫️Disclosing information about the property
Misrepresenting material facts about the property
54
```
An expression or exaggeration made by a salesperson that concerns the quality of real property offered for sale or lease is known as…?
▫️Selling
▫️Puffing
▫️Marketing
▫️Steering
```
Puffing
55
```
A false statement regarding a material fact is known as…?
▫️Misrepresentation
▫️Puffing
▫️Disclosure
▫️Reasonable care
```
Misrepresentation
56
Which of the following is an example of a material fact…?
▫️The house is the nicest house on the street
▫️The street is the best street in the city
▫️The existing roof is 20 years old
▫️All of the above
The existing roof is 20 years old
57
```
This refers to title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept…?
▫️Clouded title
▫️Unmarketable title
▫️Marketable title
▫️Partial title
```
Marketable Title
58
```
This refers to a summary of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title…?
▫️Title insurance
▫️Summary of title
▫️Abstract of title
▫️Survey
```
Abstract of title
59
```
The Seller's Disclosure of Property Condition is discussed in what section of the Texas Property Code…?
▫️12-A
▫️5.008
▫️14
▫️1031
```
5.008
60
```
Which of the following is considered a protected class under the fair housing laws…?
▫️National origin
▫️Handicap
▫️Color
▫️All of the above
```
All of the above
61
An agent may not be held liable for innocent acts of misrepresentation…?
▫️T (True)
▫️F (False)
True
62
```
This is a contract in which a property owner employs a real estate broker to market the property described in the contract…?
▫️Independent contractor agreement
▫️Listing contract
▫️Purchase contract
▫️Sales contract
```
Listing Contract
63
```
A contract that has been put into words, either spoken or written, is known as a/an…?
▫️Express contract
▫️Implied contract
▫️Statutory contract
▫️Substantial contract
```
Express Contract
64
```
A listing contract is signed by a broker and a/an…?
▫️Seller
▫️Buyer
▫️Agent
▫️Customer
```
Seller
65
```
What type of agency relationship is created through a listing contract…?
▫️Substantial agency
▫️Implied agency
▫️Partial agency
▫️Express agency
```
Express agency
66
According to a listing contract, a broker agrees to do which of the following…?
▫️Put the seller's interests above any others
▫️Market the property
▫️Represent the property and the seller
▫️All of the above
All of the above
67
```
The parties to an Exclusive Right to Sell Agreement are listed in which of the following paragraphs…?
▫️Paragraph 1
▫️Paragraph 2
▫️Paragraph 3
▫️Paragraph 4
```
Paragraph 1
68
```
In an Exclusive Right to Sell Agreement, the property is listed in which of the following paragraphs…?
▫️Paragraph 1
▫️Paragraph 2
▫️Paragraph 3
▫️Paragraph 4
```
Paragraph 2
69
```
In an Exclusive Right to Sell Agreement, the listing price is listed in which of the following paragraphs…?
▫️Paragraph 1
▫️Paragraph 2
▫️Paragraph 3
▫️Paragraph 4
```
Paragraph 3
70
```
In an Exclusive Right to Sell Agreement, the contract term is described in which of the following paragraphs…?
▫️Paragraph 1
▫️Paragraph 2
▫️Paragraph 4
▫️Paragraph 6
```
Paragraph 4
71
```
In an Exclusive Right to Sell Agreement, the broker's fee is listed in which of the following paragraphs…?
▫️Paragraph 1
▫️Paragraph 2
▫️Paragraph 5
▫️Paragraph 6
```
Paragraph 5
72
```
In an Exclusive Right to Sell Agreement, the listing services are listed in which of the following paragraphs…?
▫️Paragraph 2
▫️Paragraph 5
▫️Paragraph 6
▫️Paragraph 9
```
Paragraph 6
73
```
Which of the following is a listing contract given to one or more brokers in which the broker procuring a sale is entitled to the commission, but imposes no commission obligation on the owner when the owner sells the property…?
▫️Exclusive Right to Sell Agreement
▫️Exclusive Agency Agreement
▫️Open Listing
▫️Net Listing
```
Open listing
74
```
This is a listing contract which provides that the agent may retain as compensation for agent’s services, all sums received over and above a net price to the owner…?
▫️Exclusive Right to Sell Agreement
▫️Exclusive Agency Agreement
▫️Open Listing
▫️Net Listing
```
Net listing
75
A net listing is illegal in Texas…?
▫️T (True)
▫️F (False)
False
76
How does a seller benefit from an agency relationship…?
▫️The seller's property is broadly marketed
▫️The seller can receive advice from the broker
▫️The seller can receive assistance from the broker when negotiating with a prospective buyer
▫️All of the above
All of the above
77
How does a broker benefit from an exclusive agency relationship with the seller…?
▫️An exclusive agency relationship prevents a conflict of loyalty
▫️The broker's liability is limited with the buyer's broker
▫️The broker is ensured a commission if they sell the property
▫️All of the above
All of the above
78
```
A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agent’s principal, is known as a/an…?
▫️Exclusive agent
▫️Sub-agent
▫️Intermediary
▫️Prime agent
```
Sub-agent
79
```
If a broker brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is NOT owed to the buyer…?
▫️Honesty
▫️Fairness
▫️Confidentiality
▫️Full disclosure
```
Confidentiality
80
```
If a broker brings a buyer to a seller, but did not sign a buyers representation agreement with the buyer, which of the following duties is still owed to the buyer…?
▫️Confidentiality
▫️Loyalty
▫️Fairness
▫️All of the above
```
Fairness
81
```
Robert is looking to exclusively represent a buyer in a transaction. Which of the following document should Robert sign with the buyer…?
▫️Listing Contract
▫️Open Listing
▫️Exclusive Agency Agreement
▫️Buyer Representation Agreement
```
Buyer Representation Agreement
82
```
The parties to a Residential Buyer/Tenant Representation Agreement are listed in which of the following paragraphs of the contract…?
▫️Paragraph 1
▫️Paragraph 2
▫️Paragraph 3
▫️Paragraph 4
```
Paragraph 1
83
```
Which of the following terms are defined in paragraph 3 of the Residential Buyer/Tenant Representation Agreement…?
▫️Acquire
▫️Closing
▫️Property
▫️All of the above
```
All of the above
84
```
Paragraph 4 of the Residential Buyer/Tenant Representation Agreement describes which of the following…?
▫️Definitions
▫️Confidential information
▫️The term of the contract
▫️Broker's fees
```
The term of the contract
85
```
The broker's obligations are described in which of the following paragraphs of the Residential Buyer/Tenant Representation Agreement…?
▫️Paragraph 1
▫️Paragraph 2
▫️Paragraph 5
▫️Paragraph 10
```
Paragraph 5
86
```
Paragraph 6 of the Residential Buyer/Tenant Representation Agreement describes which of the following…?
▫️Definitions
▫️Client's obligations
▫️The parties
▫️The property
```
Client’s obligations
87
An agency relationship must be created in order for a broker to show properties to a buyer…?
▫️T (True)
▫️F (False)
False
88
```
A buyer representation agreement is signed by a buyer and a/an…?
▫️Real estate salesperson
▫️Real estate broker
▫️Associate licensee
▫️Seller
```
Real estate broker
89
```
If a buyer and broker do not sign a buyer representation agreement, the buyer will serve as a ……….to the broker?
▫️Principal
▫️Client
▫️Customer
▫️Partner
```
Customer
90
A buyer's broker can appoint sub-agents to help the buyer find a property…?
▫️T (True)
▫️F (False)
True
91
```
A buyer representation agreement creates what type of agency…?
▫️Express agency
▫️Implied agency
▫️Partial agency
▫️General agency
```
Express agency
92
```
A broker signed a buyer representation agreement with a buyer. What type of agency was created…?
▫️General agency
▫️Special agency
▫️Universal agency
▫️Specific agency
```
Special agency
93
```
A buyer's agent is allowed to provide which of the following services to the principal…?
▫️Negotiating services
▫️Legal services
▫️Financial services
▫️All of the above
```
Negotiating services
94
A buyer's broker should diligently assist their client in obtaining the necessary financing to purchase a house…?
▫️T (True)
▫️F (False)
False
95
```
David is operating as a buyer's agent. Which of the following services should David not provide to the buyer…?
▫️Legal services
▫️Financial services
▫️Appraisal services
▫️All of the above
```
All of the above
96
```
A buyer's agent should not provide advice regarding which of the following…?
▫️Legal matters
▫️Tax matters
▫️Accounting matters
▫️All of the above
```
All of the above
97
A buyer's broker should NOT provide legal advice to their client…?
▫️T (True)
▫️F (False)
True
98
```
Which of the following offers the most protection to a buyer's broker…?
▫️Exclusive right to purchase agreement
▫️Exclusive agency agreement
▫️Open buyer agreement
▫️Net listing agreement
```
Exclusive right to purchase agreement
99
```
An exclusive right to purchase agreement most favors which of the following parties…?
▫️The seller's broker
▫️The buyer's broker
▫️The seller
▫️The buyer
```
The buyer’s broker
100
```
Which of the following offers the least amount of protection to the buyer's broker…?
▫️Exclusive right to purchase agreement
▫️Exclusive agency agreement
▫️Open buyer agency agreement
▫️Net listing agreement
```
Open buyer agency agreement
101
```
An agent’s compensation for performing the duties of the agency is known as a/an…?
▫️Commission
▫️Salary
▫️Bonus
▫️Referral fee
```
Commission
102
```
A seller's broker may be compensated by the seller in which of the following means…?
▫️Retainer fee
▫️Seller paid fee
▫️Commission
▫️Any of the above
```
Any of the above
103
```
What is the standard broker commission rate for a real estate sales transaction…?
▫️1 percent (%) of the sales price
▫️3 percent (%) of the sales price
▫️6 percent (%) of the sales price
▫️There is no standard commission rate
```
There is no standard commission rate
104
```
A commission is typically calculated as a percentage of the…?
▫️Appraised value
▫️Assessed value
▫️Sales price
▫️Listing price
```
Sales price
105
```
In a ……….., the buyer pays the purchase price of a property while the seller pays the buyer's brokers commission?
▫️Net purchase price
▫️Gross price
▫️Commission split
▫️Flat rate
```
Gross price
106
```
A real estate salesperson must work under…?
▫️Another real estate salesperson
▫️A sponsoring broker
▫️An associate licensee
▫️Any of the above
```
A sponsoring broker
107
```
In order to become a real estate broker in Texas, a real estate salesperson must be active for ………..out of the previous five years?
▫️1
▫️2
▫️3
▫️4
```
4
108
```
A real estate salesperson serves as a …………to their sponsoring broker?
▫️Client
▫️Customer
▫️Fiduciary
▫️Principal
```
Fiduciary
109
```
Statutory dual agency was revoked in what year…?
▫️1949
▫️1988
▫️1993
▫️1996
```
1996
110
```
What was created in place of statutory dual agency…?
▫️Cooperating brokerage
▫️Single agency
▫️Intermediary brokerage
▫️Subordinate agency
```
Intermediary brokerage
111
```
When an agent represents both sides to a transaction, which of the following parties is responsible for the agency relationship…?
▫️The real estate salesperson
▫️The broker
▫️The seller
▫️The buyer
```
The broker
112
```
Law that is derived from a court decision is known as…?
▫️Common law
▫️Statutory law
▫️Civil law
▫️Judgement law
```
Common law
113
```
Law that is set down by a body of legislation or by a singular legislator is known as…?
▫️Common law
▫️Statutory law
▫️Civil law
▫️Judgement law
```
Statutory law
114
A real estate salesperson who represents a seller owes a fiduciary duty to which of the following parties…?
▫️The principal only
▫️The sponsoring broker only
▫️The real estate salesperson's sponsoring broker and the principal
▫️Neither the sponsoring broker or principal
The real estate salesperson's sponsoring broker and the principal
115
```
A real estate salesperson operates as a …………..to their sponsoring broker?
▫️General agent
▫️Special agent
▫️Specific agent
▫️Universal agent
```
General agent
116
```
A real estate salesperson operates as a …………..to their client?
▫️General agent
▫️Special agent
▫️Specific agent
▫️Universal agent
```
Special agent
117
Daniel is a real estate salesperson in a transaction. Daniel serves as a fiduciary to which of the following parties…?
▫️The principal only
▫️The sponsoring broker only
▫️Both the principal and Daniel's sponsoring broker
▫️Neither the sponsoring broker or principal
Both the principal and Daniel's sponsoring broker
118
```
An agency relationship created by oral or written agreement between the principal and the agent is known as…?
▫️Implied agency
▫️Express agency
▫️Statutory agency
▫️Common agency
```
Express agency
119
```
Agency that exists as a result of actions of the parties is known as…?
▫️Implied agency
▫️Express agency
▫️Statutory agency
▫️Common agency
```
Implied agency
120
```
Errors and omissions insurance typically does not cover an agent for which of the following…?
▫️Honest mistakes
▫️Open house property damage
▫️Negligent acts
▫️All of the above
```
Negligent acts
121
```
Agency can be implied or…?
▫️Express
▫️Partial
▫️Substantial
▫️Recorded
```
Express
122
```
Section 1101.559 of the Texas Real Estate License Act describes which of the following…?
▫️Real estate recovery trust account
▫️Application of judgment recovery
▫️Broker acting as an intermediary
▫️Prohibited practices
```
Broker acting as an intermediary
123
According to TRELA, a broker may act as an intermediary if he/she obtains written consent from all parties, which states…?
▫️The standard commission to be paid to the broker
▫️The closing date
▫️The source of any expected compensation to the broker
▫️All of the above
The source of any expected compensation to the broker
124
TRELA considerers which of the following as a fair and impartial act by a broker when acting as an intermediary…?
▫️Appointing separate associate licensees to represent the seller and buyer
▫️Having the broker directly represent both the seller and buyer
▫️Having the broker represent the seller and an associate licensee represent the buyer
▫️Having the broker represent the buyer and an associate licensee represent the seller
Appointing separate associate licensees to represent the seller and buyer
125
```
Which of the following sections of TRELA requires written consent for a broker to act as an intermediary…?
▫️Section 1101.559
▫️Section 1101.620
▫️Section 1101.500
▫️Section 1101.250
```
Section 1101.559
126
A broker must appoint associate licensees to represent the seller and buyer in an intermediary brokerage…?
▫️T (True)
▫️F (False)
False
127
An associate licensee who was appointed by their broker to represent the seller in an intermediary brokerage can offer opinions and advice to which of the following parties…?
▫️The seller only
▫️The buyer
▫️Both the seller and buyer
▫️The associate licensee can never provide opinions and/or advice
The seller only
128
Which of the following practices are prohibited in an intermediary brokerage transaction…?
▫️Disclosing to the buyer that the seller will accept an offer below the asking price
▫️Disclosing to the seller that the buyer is willing to pay more than the asking price
▫️Disclosing confidential information about either party
▫️All of the above
All of the above
129
If a broker serving as an intermediary in a transaction needs to appoint separate licensees to represent both the buyer and seller, what form may be used to satisfy the requirement of written consent…?
▫️Dual Agency Notice
▫️Intermediary Relationship Notice
▫️One to Four Family Residential Contract - Resale
▫️Any of the above
Intermediary Relationship Notice
130
```
Who serves as the 'prospect' on the Intermediary Relationship Notice form…?
▫️The seller
▫️The buyer
▫️The broker
▫️The agent
```
The buyer
131
```
John is a real estate broker who is looking to act as an intermediary in a transaction. John gives the parties the Intermediary Relationship Notice form. Which of the following parties needs to sign the form…?
▫️The seller only
▫️The buyer only
▫️Both the buyer and seller
▫️The seller and their broker
```
Both the buyer and seller
132
```
By signing the Intermediary Relationship Notice, what type of agency is created…?
▫️Implied
▫️Express
▫️Partial
▫️Subordinate
```
Express
133
```
Which of the following produces the Intermediary Relationship Notice…?
▫️TAR
▫️NAR
▫️TREC
▫️HUD
```
TAR
134
```
A fact, which should have been discovered because of the person’s actual notice of circumstances and the inquiry that a prudent person would have been expected to make, is known as…?
▫️Recorded notice
▫️Constructive notice
▫️Substantial notice
▫️Complete notice
```
Constructive Notice
135
An agency relationship is typically voluntary…?
▫️T (True)
▫️F (False)
True
136
```
A real estate salesperson serves as a ………….in a transaction?
▫️Broker
▫️Sub-agent
▫️Customer
▫️Client
```
Sub-agent
137
```
An agency relationship is created between a seller and a…?
▫️Real estate broker
▫️Real estate salesperson
▫️Customer
▫️Sub-agent
```
Real estate broker
138
```
Which of the following may serve as a fiduciary to a principal…?
▫️The broker
▫️The real estate salesperson
▫️The associate broker
▫️All of the above
```
All of the above
139
In order for a broker to sue a seller for a commission, which of the following is needed…?
▫️An oral agreement between the broker and seller
▫️A recorded agreement between the broker and seller
▫️A written agreement between the broker and seller
▫️Any of the above
A written agreement between the broker and seller
140
```
This refers to the cancellation of a contract and restoration of the parties to the same position they held before the contract was entered in to…?
▫️Novation
▫️Execution
▫️Rescission
▫️Executory
```
Rescission
141
```
An agency relationship may be terminated in which of the following ways…?
▫️Time
▫️Actions of the principal and agent
▫️Operation of law
▫️All of the above
```
All of the above
142
Agency agreements must have a specific termination date…?
▫️T (True)
▫️F (False)
True
143
```
Agency agreements typically last for how long…?
▫️1 month
▫️12 months
▫️18 months
▫️24 months
```
12 months
144
Abby entered into a buyer representation agreement with a buyer. What duty does Abby still owe the buyer after the buyer closes on the house…?
▫️Loyalty
▫️Full disclosure
▫️Confidentiality
▫️Abby no longer owes any duties to the buyer
Confidentiality
145
A listing contract may be terminated once the expiration date elapses…?
▫️T (True)
▫️F (False)
True
146
```
A brokerage company's policy should…?
▫️Get recorded
▫️Be in-writing
▫️Not be presented to customers
▫️All of the above
```
Be in-writing
147
```
Which of the following TREC rules requires a broker to maintain written policies and procedures…?
▫️Section 515
▫️Section 535.2
▫️Section 1031
▫️Section 101
```
Section 535.2
148
A broker's written company policies should include which of the following…?
▫️Matters regarding the competency of agents
▫️Matters regarding advertising rules
▫️Matters regarding continuing education
▫️All of the above
All of the above
149
Section 1101.803 of TRELA states which of the following…?
▫️Broker advertising
▫️A broker acting as an intermediary
▫️A broker is responsible for the conduct of his/her sales agents
▫️Broker disclosures
A broker is responsible for the conduct of his/her sales agents
150
```
A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is known as a/an…?
▫️Employee
▫️Partner
▫️Independent contractor
▫️Client
```
Independent contractor
151
```
An independent contractor agreement is signed between a real estate salesperson and…?
▫️Their sponsoring broker
▫️Their client
▫️Their customer
▫️Their principal
```
Their sponsoring broker
152
```
Which of the following sections are included in an independent contract agreement…?
▫️Exclusive Association
▫️Associate's Authority
▫️Advertising
▫️All of the above
```
All of the above
153
```
According to the independent contractor agreement, the real estate salesperson is referred to as the…?
▫️Client
▫️Associate
▫️Partner
▫️Principal
```
Associate
154
```
What is the standard term of an independent contractor agreement…?
▫️12 months
▫️24 months
▫️36 months
▫️There is no standard term
```
There is no standard term
155
Who owns any listing contracts secured by a real estate salesperson…?
▫️The real estate salesperson
▫️The seller
▫️The sponsoring broker
▫️Both the real estate salesperson and the broker
The sponsoring broker
156
```
James entered into an independent contractor agreement with City Realty. Which party may terminate the agreement…?
▫️City Realty only
▫️James only
▫️Either James or City Realty
▫️Neither James or City Realty
```
Either James or City Realty
157
```
Which of the following may a broker use to help distinguish between an employee and an independent contractor…?
▫️TREC Tax Guide
▫️Employer's Supplemental Tax Guide
▫️NAR Tax Guide
▫️Texas Broker's Tax Guide
```
Employer's Supplemental Tax Guide
158
```
A real estate salesperson may directly receive compensation from which of the following parties…?
▫️Their sponsoring broker
▫️The seller
▫️The buyer
▫️Any of the above
```
Their sponsoring broker
159
```
If a broker requires his/her agents to attend weekly training sessions, the IRS may classify the agents as…?
▫️Employees
▫️Independent contractors
▫️Partners
▫️Consultants
```
Employees
160
```
The Employer's Supplemental Tax Guide helps a broker distinguish between an employee and a/an…?
▫️Partner
▫️Consultant
▫️Independent contractor
▫️Client
```
Independent contractor
161
```
The employer of a broker is known as the…?
▫️Customer
▫️Principal
▫️Partner
▫️Consultant
```
Principal
162
A listing agreement is signed between a seller and a real estate salesperson…?
▫️T (True)
▫️F (False)
False
163
```
A property management agreement is signed between a broker and a/an…?
▫️Seller
▫️Buyer
▫️Landlord
▫️Tenant
```
Landlord
164
Who is responsible for paying the taxes on any commissions earned by a real estate salesperson…?
▫️The real estate salesperson
▫️The salesperson's sponsoring broker
▫️The salesperson's financial advisor
▫️The salesperson does not have to pay taxes
The real estate salesperson
165
```
A personal assistant serves as a/an ……….to their broker?
▫️Partner
▫️Employee
▫️Independent contractor
▫️Consultant
```
Employee
166
A personal assistant to a broker may perform which of the following acts…?
▫️Negotiate on the principal's behalf
▫️Sign a listing agreement on the broker's behalf
▫️Host an open house
▫️All of the above
Host an open house
167
```
Which of the following parties may be eligible to receive a referral fee for referring a client to broker…?
▫️A real estate salesperson
▫️An unlicensed friend
▫️A family member
▫️Anyone can receive a referral fee
```
A real estate salesperson
168
```
An unlicensed individual may receive which of the following for referring a client to a broker…?
▫️A commission
▫️A 1% referral fee
▫️A gift card
▫️All of the above
```
A gift card
169
```
This is a system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties…?
▫️Ethics
▫️Law
▫️Morals
▫️Guidelines
```
Law
170
```
Moral principles that govern a person’s or group’s behavior are known as…?
▫️Law
▫️Ethics
▫️Guidelines
▫️Codes
```
Ethics
171
```
The law establishes an agent's …….....duties?
▫️Ethical
▫️Moral
▫️Legal
▫️All of the above
```
Legal
172
```
Laws may be categorized as which of the following…?
▫️Federal laws
▫️State laws
▫️Local laws
▫️Any of the above
```
Any of the above
173
```
Self imposed duties that guide a person's conduct are known as…?
▫️Guidelines
▫️Morals
▫️Laws
▫️Ethics
```
Morals
174
```
Which of the following establishes a code of ethics for real estate agents…?
▫️NAR
▫️HUD
▫️AIA
▫️All of the above
```
NAR
175
```
Which of the following takes precedent over an individual's moral standards…?
▫️Ethics
▫️Guidelines
▫️The law
▫️None of the above
```
The law
176
```
Regulation Z is also known as…?
▫️RESPA
▫️TILA
▫️Fair Housing Act
▫️Sherman Anti-Trust Act
```
TILA
177
```
A federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status, is known as the…?
▫️Fair Housing Act of 1866
▫️Fair Housing Act of 1968
▫️Fair Housing Act of 1973
▫️TILA
```
Fair Housing Act of 1968
178
```
A federal law protecting the rights of individuals with physical or mental impairments is known as the…?
▫️Fair Housing Act of 1968
▫️TILA
▫️Americans with Disabilities Act
▫️RESPA
```
Americans with Disabilities Act
179
```
Which of the following actions is prohibited under the Sherman Anti-Trust Act…?
▫️Dual agency
▫️Referral fees
▫️Price fixing
▫️All of the above
```
Price fixing
180
Which of the following addenda must be used in a residential real estate transaction, if the house was built prior to 1978…?
▫️Addendum For Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law
▫️Addendum for Environmental Protection
▫️Addendum for Hazardous Materials
▫️All of the above
Addendum For Seller's Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as Required by Federal Law
181
```
Failing to disclose which of the following may be considered an act of omission…?
▫️Lead-based paint
▫️Ground water contamination
▫️Asbestos
▫️All of the above
```
All of the above
182
```
Which of the following are protected classes under the Equal Credit Opportunity Act…?
▫️Religion
▫️Sex
▫️Marital status
▫️All of the above
```
All of the above
183
Sherman Anti-Trust Act prohibits companies from monopolizing a particular market…?
▫️T (True)
▫️F (False)
True
184
```
Jane owns a multi-family building in Austin. According to this federal law, Jane must make reasonable accommodations for handicapped individuals…?
▫️Fair Housing Act of 1968
▫️TILA
▫️Americans with Disabilities Act
▫️RESPA
```
Americans with Disabilities Act
185
```
Which of the following describes the rules and regulations regarding the practice of real estate in Texas…?
▫️TRELA
▫️TREC
▫️TAR
▫️NAR
```
TRELA
186
```
Who is responsible for enforcing TRELA…?
▫️TAR
▫️TREC
▫️NAR
▫️HUD
```
TREC
187
```
TREC is comprised of how many commissioners…?
▫️2
▫️3
▫️6
▫️9
```
9
188
```
The TREC commissioners consists of how many real estate brokers…?
▫️2
▫️3
▫️6
▫️9
```
6
189
```
The TREC commissioners consists of how many public members…?
▫️2
▫️3
▫️6
▫️9
```
3
190
```
Which of the following cannot serve as a TREC commissioner…?
▫️A real estate salesperson
▫️A real estate broker
▫️A real estate attorney
▫️All of the above
```
A real estate salesperson
191
```
Which of the following is a cannon of professional ethics and conduct stated in the Texas Administrative Code…?
▫️Fidelity
▫️Integrity
▫️Competence
▫️All of the above
```
All of the above
192
```
The five cannons of professional ethics and conduct for real estate professionals is described in which of the following…?
▫️Texas Administrative Code
▫️TRELA
▫️Texas Property Code
▫️Business and Commerce Code
```
Texas Administrative Code
193
```
Which of the following is the oldest code of ethics for real estate professionals…?
▫️TAR code of ethics
▫️Texas Property Code
▫️NAR code of ethics
▫️Texas Administrative Code
```
NAR code of ethics
194
```
A real estate professional may be held criminally liable for violating which of the following…?
▫️NAR code of ethics
▫️TAR code of ethics
▫️TRELA
▫️HAR code of ethics
```
TRELA
195
```
The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury is known as…?
▫️Misrepresentation
▫️Fraud
▫️Extortion
▫️Duplicity
```
Fraud
196
```
False statements made negligently or innocently are known as…?
▫️Misrepresentation
▫️Fraud
▫️Deception
▫️Duplicity
```
Misrepresentation
197
```
The DTPA was amended in ………….to include real property transactions?
▫️1964
▫️1975
▫️1992
▫️2001
```
1975
198
Which of the following is a violation of the DTPA…?
▫️Disclosure by a real estate agent
▫️Intermediary representation by a real estate agent
▫️Fraudulent acts by a real estate agent
▫️All of the above
Fraudulent acts by a real estate agent
199
Which of the following elements must be present in order to be found guilty of fraud under the DTPA…?
▫️The victim must have incurred damages
▫️An intentional false representation
▫️The victim must have relied on the false information provided by the person committing fraud
▫️All of the above
All of the above
200
```
Real estate professionals who ………….conduct violations can be charged under the DTPA?
▫️Knowingly
▫️Innocently
▫️Unknowingly
▫️Any of the above
```
Knowingly
201
```
Damages simply for the purpose of punishment are known as…?
▫️Civil damages
▫️Punitive damages
▫️Criminal damages
▫️Express damages
```
Punitive Damages
202
```
The DTPA is a ………..law?
▫️Local
▫️Municipal
▫️State
▫️Federal
```
State
203
```
Which of the following is a consumer protection Act…?
▫️ADA
▫️HMDA
▫️DTPA
▫️All of the above
```
DTPA
204
```
Under the DTPA, a consumer may recover …………..their actual loses?
▫️Less than
▫️More than
▫️An amount equal to
▫️A small fraction of
```
More than
205
```
Which of the following acts by a real estate agent may lead to a violation under the DTPA…?
▫️Misleading statements
▫️Fraud
▫️Misrepresentation
▫️All of the above
```
All of the above
206
Which of the following is a violation under the DTPA…?
▫️Passing off goods or services as those of another
▫️The failure to disclose information concerning goods or services in an effort to induce a customer into a transaction
▫️Representing that goods are original or new if they are deteriorated
▫️All of the above
All of the above
207
Linda is a consumer who would like to waive her rights under the DTPA. Which of the following must be present in order for the waiver to be enforced…?
▫️The waiver is in-writing and signed by the consumer
▫️The waiver is conspicuous and in bold-face type
▫️The seller cannot have an unfair advantage
▫️All of the above
All of the above
208
```
The consumer must give a ………….notice of intent to bring a lawsuit under the DTPA?
▫️7 day
▫️30 day
▫️60 day
▫️180 day
```
60 Days
209
```
The DTPA primarily protects which of the following parties…?
▫️Consumers
▫️Real estate brokers
▫️Attorneys
▫️Corporations
```
Consumers
210
```
The contributing factor in which an ordinary sequence would produce injury or damage, is known as the…?
▫️Procuring cause
▫️Producing cause
▫️Leading cause
▫️Harmful cause
```
Producing cause
211
```
A consumer may bring a suit against a broker under the DTPA if the broker's actions were the ………..cause to the damages incurred by the consumer?
▫️Implied
▫️Notifying
▫️Contributing
▫️None of the above
```
Contributing
212
```
A consumer may recover which of the following under the DTPA…?
▫️Attorney fees
▫️Economic damages
▫️Court costs
▫️All of the above
```
All of the above
213
```
A consumer who incurred loses as a result of the unconscionable acts of a broker may receive compensation for which of the following in addition to their economic loses…?
▫️Investment loses
▫️Hardship
▫️Mental anguish
▫️None of the above
```
Mental anguish
214
```
A customer who is looking to recover damages under the DTPA for mental anguish, may receive up to three times the…?
▫️Liquidated damages
▫️Criminal damages
▫️Economic damages
▫️Nominal damages
```
Economic damages
215
When is a waiver under the DTPA not enforceable…?
▫️The customer's residence is not included on the waiver
▫️If the waiver is not conspicuous
▫️The customer has legal council
▫️All of the above
If the waiver is not conspicuous
216
```
A licensee may have their license suspended if they violate which of the following…?
▫️TILA
▫️TRELA
▫️RESPA
▫️ECOA
```
TRELA
217
```
Which of the following is included in the National Association of Realtors Code of Ethics…?
▫️Duties to clients and customers
▫️Duties to the public
▫️Duties to Realtors
▫️All of the above
```
All of the above
218
```
A sponsoring broker must provide which of the following for his/her agents to give to clients…?
▫️Written disclosures
▫️Marketing signs
▫️Newsletter templates
▫️All of the above
```
Written disclosures
219
The most frequent basis for complaints by a client include which of the following…?
▫️Having to extend the closing date
▫️The failure of the agent to provide legal advice
▫️The failure of the agent to disclose material facts
▫️The failure of the agent to provide financial advice
The failure of the agent to disclose material facts
220
```
A broker who acts as an intermediary represents which party…?
▫️The seller only
▫️The buyer only
▫️Both the buyer and seller
▫️Neither the buyer or seller
```
Both the buyer and seller
221
```
What duties does a broker owe to a customer…?
▫️Fairness
▫️Loyalty
▫️Confidentiality
▫️Obedience
```
Fairness
222
```
A seller's broker should provide advice to which of the following parties…?
▫️The seller only
▫️The buyer only
▫️Both the seller and buyer
▫️Neither the seller or buyer
```
The seller only
223
```
Mark is a real estate broker who represents a seller. What duties does Mark owe to prospective buyers…?
▫️Loyalty
▫️Confidentiality
▫️Honesty
▫️Accountability
```
Honesty
224
```
A listing agreement is used between a broker and a…?
▫️Seller
▫️Buyer
▫️Either a buyer or seller
▫️Buyer's agent
```
Seller
225
Which of the following forms must a broker provide a potential client at the first substantial conversation…?
▫️Broker Disclosure form
▫️Summary of Services form
▫️Information About Brokerage Services form
▫️All of the above
Information About Brokerage Services form
226
```
If a broker represents a seller in a transaction, a real estate salesperson working under the broker will serve as a/an…?
▫️Customer
▫️Sub-agent
▫️Client
▫️Consultant
```
Sub-agent
227
Which of the following should be explained to a prospective seller, prior to entering into a listing contract…?
▫️How the broker's fee will be split with other brokers
▫️The broker's commission rate for the transaction
▫️Compensation for the buyer's broker is negotiable
▫️All of the above
All of the above
228
Commission are always negotiable…?
▫️T (True)
▫️F (False)
True
229
Which of the following should be explained to a prospective seller, prior to entering into a listing contract…?
▫️Federal fair housing laws
▫️The broker's resume
▫️The standard commission rate for brokers
▫️All of the above
Federal fair housing laws
230
```
The seller is responsible for providing which of the following documents…?
▫️CMA
▫️Pro-forma
▫️Property survey
▫️Appraisal
```
Property survey
231
What is a seller's broker responsible for after a purchase contract has been signed with a buyer…?
▫️Review the settlement statement
▫️Verify that the buyer's earnest money has been deposited according to the contract
▫️Explain to the seller what they need to bring to closing
▫️All of the above
All of the above
232
```
A buyer representation agreement is signed between a buyer and a…?
▫️Real estate broker
▫️Real estate salesperson
▫️Seller
▫️Client
```
Real estate broker
233
```
In a typical real estate transaction, who pays the broker's commission…?
▫️The buyer
▫️The seller
▫️The seller's broker
▫️Both the buyer and seller
```
The seller
234
Prior to representing a buyer in a transaction, a broker should provide the buyer with which of the following information…?
▫️Information About Brokerage Services form
▫️The HUD Protect Your Family From Lead in Your Home booklet
▫️The broker's intermediary brokerage policy
▫️All of the above
All of the above
235
```
A buyer representation agreement must be…?
▫️Oral
▫️In-writing
▫️Either in-writing or oral
▫️Recorded
```
In-writing
236
What should a broker do after signing a buyer representation agreement…?
▫️Hire an appraiser
▫️Create a seller's profile
▫️Provide the buyer with the Information About Brokerage Services form
▫️Create a profile of the buyer's needs and wants
Create a profile of the buyer's needs and wants
237
What is the broker required to disclose to their client…?
▫️The broker's resume
▫️The broker's opinion of value
▫️Any known material information about the transaction
▫️All of the above
Any known material information about the transaction
238
How many offers is the seller's broker required to present to the seller…?
▫️All offers received by the broker
▫️At least 3 offers
▫️However many offers agreed upon between the seller and broker
▫️Any offer the broker determines matches the seller's terms
All offers received by the broker
239
Multiple offers received by a seller's broker should be presented to the seller…?
▫️Only one offer can be presented to the seller at once
▫️Simultaneously
▫️At the end of the showing period
▫️By the end of the listing contract
Simultaneously
240
```
A seller entered into a contract with the buyer. What may the seller sign with another buyer, if they feel the first buyer may not be able to close on the deal…?
▫️Back-up contract
▫️Sub-contract
▫️Secondary contract
▫️Executory contract
```
Back-up contract
