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Real estate agents are considered to have which kind relationship with clients? ✔✔A fiduciary relationship Acting as which of the following is a violation of The Real Estate License Act? ✔✔Acting as a broker without possessing a valid license issued by the Texas Real Estate Commission Which of the following is a reason to study the aspects of agency and agency law? ✔✔1. Agents who are well versed in the aspects of the agency roles can project an aura of confidence that can calm a nervous client
- Agents who follow the law are less prone to being held liable for harm suffered by clients or customers
- Agents who follow the law have a better reputation with the public A licensee who is representing a buyer is required to treat which of the following in an honest and fair manner? ✔✔1. The seller's agent
- The seller
- The buyer
AYPO Real Estate Law of Agency
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Brokers have which of the following with a client? ✔✔Privity of contract True or False: Apparent authority is expressly detailed in the contract that establishes the agency relationship. ✔✔FALSE A principal becomes disabled and gives authority to an agent to act on behalf of the principal in nearly all circumstances. This type of agent is... ✔✔a universal agent. Which one of the following is not one of the commonly recognized fiduciary duties? ✔✔Punctuality According to Section 1101.558 of TRELA, which of the following parties must be provided with a disclosure when the first instance of contact occurs? ✔✔1. Another licensee who represents another party to the transaction
- Another party to the transaction What is the term for a duty owed by an agent to someone who is not the principal party? ✔✔Non-fiduciary duty The duty of a seller's agent to be loyal to the trumps the duty to be forthright with the. ✔✔seller / buyer
- access to resources possessed by the brokerage. An agency agreement between a supervising broker and their selling client generally takes a written form as which of the following? ✔✔A listing agreement. When is a licensee required to provide a seller with a written statement which contains the disclosure describing services which may be expected from an agent of a seller? ✔✔At the time of first substantive dialogue True or false: a non-exclusive right to represent buyer-broker agreement requires the buyer to pay commission to the broker for services rendered. ✔✔TRUE Who does a buyer representation agreement drafted by a sales agent belong to? ✔✔The broker who sponsors that sales agent All real estate contracts (with the exception of property management contracts) are required to contain a... ✔✔termination date. When setting up a buyer representation agreement, the licensee must make sure that he or she does not do which of the following? ✔✔Promise to do things that are outside their area of expertise
Which of the following is not a common way in which the buyer's commission can be paid? ✔✔Paid by the financial institution financing the transaction The Real Estate License Act forbids which of the following with regard to advertising? ✔✔Advertising that is purposefully deceptive When was statutory dual agency in Texas fully replaced by intermediary brokerage? ✔✔ 1996 What is the term for the type of agreement that is formed when the parties didn't establish an expressed agreement but act in all ways as if an expressed agreement exists? ✔✔Implied-in-fact Before any appointments of licensees can be made, the broker who is acting as the intermediary must receive... ✔✔the written permission of the both the buyer and seller to appoint licensees. A licensee inadvertently representing more than one party is normally also... ✔✔an undisclosed agent. A person contacts a licensee and expresses an interest to buy real estate. The licensee provides a written document that details the duties of the licensee while acting as an agent and the compensation the licensee expects to receive in return. The person signs the document. What kind of agency relationship was formed? ✔✔An expressed agency relationship
A personal assistant without a valid broker's license is allowed to do which of the following? ✔✔None of these are correct Which of the following parties acts as an agent of a sponsoring broker? ✔✔A sponsored licensee True or false: a broker licensed in a state other than Texas may receive a share of the compensation from a real estate transaction, as long as the broker does not conduct any of the negotiations for which the commission is paid. ✔✔TRUE Which of these is NOT a common way of dividing Ethics/Morals? ✔✔Reasonable/Unreasonable Title IX prohibits discrimination by educational programs and activities that receive federal funds on the basis of which of the following? ✔✔Sex Which of the following prohibits credit discrimination on the basis of nationality? ✔✔The Equal Credit Opportunity Act How are violations of The Real Estate License Act punished? ✔✔Suspension or revocation of a license
According to Rule 531.3 of the Texas Administrative Rules, a real estate agent should be informed on which of the following? ✔✔1. State developments in the real estate industry
- Market conditions affecting the real estate business
- National real estate issues Real estate advertising must be... ✔✔completely truthful. Claiming to be a tax professional when you do not actually hold the appropriate professional license can be considered an example of... ✔✔fraud. According to Section 17.46 of the DTPA, a real estate licensee is forbidden from doing which of the following? ✔✔1. Advertising buyer brokerage with no intent to actually represent buyers
- Failing to disclose information about a piece of real estate which was known by the licensee at the time of the transaction, if the failure to disclose the information was intended to induce the consumer into a transaction that the consumer would not have entered had the information been disclosed
- Causing confusion with regard to the licensee's affiliation with a broker Which type of damages is intended to punish someone for committing an action? ✔✔Punitive Can a broker who is defendant in a lawsuit brought under the DTPA mount a defense by claiming that he or she relied on information provided by another source? ✔✔Yes, if the broker shows that he or she received the information in writing, he or she gave the the prospective
If a risk can result in a positive outcome, a neutral outcome, or a negative outcome, it is considered to be which of the following? ✔✔A speculative risk
