Unit 4: Real Estate Brokerage & Law of Agency

Question 1

law of agency

Answer 1

rights and duties of the parties in a RE transaction

Question 2

principal

Answer 2

main party to a transaction- the person from whom the agent works

Question 3

client

Answer 3

the person who employs an agent to perform a service for a fee

Question 4

agent

Answer 4

one who acts or has the power to act for another

Question 5

subagent

Answer 5

represents a principal through cooperation and consent of a broker representing the principal & who is not sponsored by or associated with the principals broker

Question 6

commission

Answer 6

payment to a broker for services rendered

Question 7

customer

Answer 7

one who purchases or sells property w/o being represented by an agent

Question 8

general agent

Answer 8

authorized by a principal to perform a single act or transaction

Question 9

agency

Answer 9

relationship between principal and agent wherein the agent is authorized to represent the principal in certain transactions

Question 10

listing agreement

Answer 10

contract that agent is employed to sell RE on the owners terms w/in a given time and landowner agrees to pay commission

Question 11

Buyer Representation Agreement

Answer 11

contract that establishes a broker-buyer agency relationship

Question 12

express agency

Answer 12

created by specific agreement whether written or oral of principal and agent

Question 13

implied agency

Answer 13

created by acts or words of principal and agent

Question 14

agency by ratification

Answer 14

agency “after the fact”

Question 15

fiduciary relationship

Answer 15

relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent

Question 16

puffing

Answer 16

exaggerated comments or opinions not made as representations of fact

Question 17

misrepresentation

Answer 17

unintentional misstatement of a fact

Question 18

fraud

Answer 18

misstatement of a material fact made w/ intent to deceive or made w/ reckless disregard of the truth and actually does deceive

Question 19

Info About Brokerage Services

Answer 19

notice that must be provided summarizing broker agency positions available

Question 20

Appointed License Holder

Answer 20

appointed by broker to communicate, carry out instructions, and provide opinions and advice to whom license holder is appointed

Question 21

employee

Answer 21

works under supervision and control of another

Question 22

independent contractor

Answer 22

retained to perform a certain act but is subject to control and direction only as to the end result

Question 23

procuring cause

Answer 23

effort that brings about the desired result

Question 24

Ready Willing & Able Buyer

Answer 24

prepared to buy property on the sellers terms

Question 25

antitrust laws

Answer 25

designed to preserve the free enterprise of the open marketplace

Question 26

Caveat Emptor

Answer 26

"let the buyer be aware"

Question 27

TX Deceptive Trade Practices Consumer Protection Act (DTPA)

Answer 27

makes it illegal to use false, misleading, or deceptive practices in the advertising, offering for sale, selling, or leasing or an real or personal property

Question 28

Who is the person that hires the broker?

Answer 28

principal

Question 29

What are some of the duties of the agent?

Answer 29

reasonable care and skill, honest and fair dealing, disclosure of known facts about the property

Question 30

What should a broker obtain if they intend to receive a commission from someone other than the client?

Answer 30

consent of the client

Question 31

When is a commission payable

Answer 31

on closing,

Question 32

What are the requirements of the TX RE License Act?

Answer 32

valid license, agreement to pay in writing and signed by party to be charged, agent advised the buyer that they should obtain title insurance policy

Question 33

What replaced dual agency?

Answer 33

intermediary agency

Question 34

When does undisclosed dual agency occur?

Answer 34

when agent fails to disclose to a party that they represent the other party

Question 35

What does antitrust laws prohibit?

Answer 35

brokers conspiring to fix prices, boycott competitors, or allocate customers or markets

Question 36

What was the first law to regulate RE brokerage in TX?

Answer 36

TX RE Dealers act passed in 1939

Question 37

What law currently regulates RE in TX?

Answer 37

TX RE License Act passed in 1949