Which of the following is NOT one of the benefits of buyer agency to buyer?

No requirement for confidentiality for buyer when broker is agent for buyer

Which action should broker take to limit liability when quoting square footage. Broker had access to appraisal and AD.

Should reveal all information in writing, citing all sources of information

All are ways to limit liability and manage potential risks in a real estate transaction EXCEPT

assist selling in completing disclosures of property condition

When may a broker in Texas take a net listing?

When a seller requires it and is familiar with market values

Which of the following is NOT a primary ingredient in the creation of an agency relationship?

Compensation promised by the client

Which statement is TRUE when a broker is representing the parties in an intermediary transaction?

Appointees of broker may give parties advice and opinions

A selling agent knows the roof needs repair when he shows an unrepresented buyer his listing but does not disclose.

Agent held liable to 3rd party for failure to disclose material defects

A sales agent shares the seller is eager to sell with an unrepresented buyer looking at property for the first time.

Sales agent placed broker in undisclosed dual agency

Actions that help reduce the risk associated with acting as a broker include all of the following EXCEPT

warranting the condition of the property

To ensure that sales agents & associate brokers are not considered employees by IRS broker may do all of these EXCEPT

require agents & associate brokers to comply with a weekly work schedule

To act as an intermediary, a broker must have written consent from

each party being represented in the transaction

A sponsoring broker must maintain written policies & procedures. All the following responsibilities are mandated EXCEPT

all listings and buyer representation agreements are reported to TREC

Listing agent shares with buyer agent that seller must sell as quickly as possible so bring any offer. The listing agent

violated fiduciary duty to his client by revealing confidential information

A broker represents both buyer & seller, now seeks intermediary status. When should intermediary disclosure happen?

Before entering into an agency relationship with each potential client

Representing a seller in a listing or a buyer in a rep agreement the broker owes all the following to principal EXCEPT

duty to sell listing or duty to find acceptable property for buyer

Prior to signing a listing agreement, which of the following is TRUE?

Acting on behalf of broker only until listing signed

The general agency relationship created by the written agreement between a broker and a sales agent establishes that

the sales agent owes fiduciary duties to the broker

Broker A has one sales person. He decides to represent seller in intermediary & appoints sales agent to buyer. Broker A

NOT allowed to appoint himself to either party-no appointment may be made

A real estate broker, acting as an agent for another in a transaction, has a primary duty to

represent the interests of the agent's principal

A listing agreement does not authorize a listing broker to

execute a document in the name of the seller concerning the property

If a broker chooses to act as intermediary between buyer and seller, under TRELA intermediary broker may

make appointments; one to buyer client and one to seller client

In the case of multiple offer being received by the broker, the listing broker must

present all offers at the same time

A broker or sales agent owes customers

honesty, fairness, and disclosure of material facts about the property

If a real estate agent or broker violates TRELA, TREC may do all of the following EXCEPT

revoke the broker's membership in NAR

To create an agency relationship

there must be express mutual consent either oral or written between parties

With respect to listing in most MLS systems, commission to be paid to other broker is determined by an agreement between

the seller and the listing broker

The seller signs listing agreement authorizing broker to represent him with 3rd parties in sale. This agreement is

a written express agency agreement

Broker A lists property & seller tells broker to share he must close in 30 days. Broker A shares with Broker B. Broker A

has specific instruction from seller, is not in violation of fiduciary duty

Buyer filled out a sales contract himself and delivered to listing agent after viewing property with listing agent.

Buyer is a customer of the listing broker

One of the primary requirements to establish an independent contractor status as defined by IRS is a

written contract with statement that agent will not be treated as employee

A broker is required by TRELA to offer minimum services to seller-client. Minimum service does NOT include

telling other brokers to negotiate directly with the client

Seller & agent do not disclose foundation repairs. Buyer sues seller, broker, & agent under DTPA. What is NOT true

If seller requires confidentiality agent must keep information confidential

An agency relationship with a buyer may be created by

implication, an express written agreement, or express oral agreement

An illegal boycott has occurred when two or more business entities conspire to

withhold their patronage to reduce competition

If a broker does not find a property that suits a buyers needs prior to expiration of rep agreement, the buyer

cannot argue breach; broker obligated to use best efforts to find property

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RELE 2301 Law of Agency (F1 F4)

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Answers

1
A listing agent would be required to disclose to a potential buyer all of the following EXCEPT
fire damage
the seller getting a divorce
use of the premises for the manufacture of methamphetamines
termite damage
2
Which of the following is NOT one of the benefits of buyer agency to buyer?
Tailored agreement specific to needs of buyer client
No requirement for confidentiality for buyer when broker is agent for buyer
No conflicts of interest as opposed to broker as intermediary
Stronger negotiating position-strategy when exclusively representing buyer
3
Which action should broker take to limit liability when quoting square footage. Broker had access to appraisal and AD.
Should reveal all information in writing, citing all sources of information
Should not share square footage in MLS, website or other literature
Should not reveal appraisal square footage
should not reveal sellers confidential appraisal
4
All are ways to limit liability and manage potential risks in a real estate transaction EXCEPT
never provide specialized services outside field of competance
clearly and accurately disclose agency relationships
assist selling in completing disclosures of property condition
present written Information About Brokerage Services time of first meeting
5
Fiduciary relationship between principal and agent to act on principal's behalf and control where agent consents to act.
A common law relationship
A customer relationship
An agency relationship
An arm's-length transaction
6
When may a broker in Texas take a net listing?
Never, because net listings are unlawful in Texas
Anytime it is agreed on between a seller and broker
When a seller requires it and is familiar with market values
With the express written permission of the TREC
7
Which of the following is NOT a primary ingredient in the creation of an agency relationship?
Delegation of authority by the client
Reliance on the agent by the client
Compensation promised by the client
Control of the agent by the client
8
Which statement is TRUE when a broker is representing the parties in an intermediary transaction?
Seller appointee must tell seller if buyer will pay more than offered
Neither broker or appointees may give parties advice and opinion
Appointees of broker may give parties advice and opinions
Buyer appointee must tell buyer if seller will accept less than offered
9
A selling agent knows the roof needs repair when he shows an unrepresented buyer his listing but does not disclose.
Unless broker instructs agent to disclose, the agent is not responsible
Agent owes fiduciary duties to seller and owes no duty to 3rd party
Seller made clear agent does not have authority to disclose defects
Agent held liable to 3rd party for failure to disclose material defects
10
A sales agent shares the seller is eager to sell with an unrepresented buyer looking at property for the first time.
Sales agent placed broker in undisclosed dual agency
Agent has NOT put broker in undisclosed dual agency-listing is signed
Agent act in broker best interest by making sure buyer remain unrepresented
Agent did not violate any fiduciary duties to seller, but ensured sale
11
If a real estate license holder violates the Rules of the TREC, he has violated
a statutory law
an ethical standard
a moral imperative
an administrative law
12
Actions that help reduce the risk associated with acting as a broker include all of the following EXCEPT
recommending the use of other experts
maintaining a written policies and procedures manual
using written disclosures whenever possible
warranting the condition of the property
13
To ensure that sales agents & associate brokers are not considered employees by IRS broker may do all of these EXCEPT
require agents & associate brokers to sign independent contractor agreement
require agents & associate brokers to comply with a weekly work schedule
require agent & brokers to sign statement indicating no partnership created
require agents & associate brokers to sign a statement of understanding
14
The TRELA mandates that all agency agreement must include a(n)
expiration date with optional extension
percentage commission fee to be paid by the client on settlement
"subject to prior notice" clause in the expiration section
definite termination date
15
To act as an intermediary, a broker must have written consent from
TREC
the agents and all parties involved in the transaction
each party being represented in the transaction
the local REALTOR association
16
A sponsoring broker must maintain written policies & procedures. All the following responsibilities are mandated EXCEPT
all listings and buyer representation agreements are reported to TREC
each sales agent maintains license in active states while subject to act
each sales agent is advised of authorized activities and competent for them
any & all compensation is paid through/with written consent of broker
17
Listing agent shares with buyer agent that seller must sell as quickly as possible so bring any offer. The listing agent
did not violate his fiduciary duties to his seller client
was acting in best interest to get an offer & did not violate any law-rule
violated fiduciary duty to his client by revealing confidential information
was being honest and fair with the buyer's agent by being truthful
18
A broker represents both buyer & seller, now seeks intermediary status. When should intermediary disclosure happen?
During closing but before signing the final papers
After the good-faith estimate is presented, but before closing
No further disclosures once both sign Information About Brokerage Services
Before entering into an agency relationship with each potential client
19
Representing a seller in a listing or a buyer in a rep agreement the broker owes all the following to principal EXCEPT
obedience and loyalty
confidentiality and reasonable care and due diligence
duty of full disclosure and to account for all monies, documents, and so on
duty to sell listing or duty to find acceptable property for buyer
20
Prior to signing a listing agreement, which of the following is TRUE?
Agent is in arm-around relationship & owes all fiduciary duties to client
Agent acts on behalf of broker & owes seller all fiduciary duties to client
Agent acting in own behalf, once listing signed acts on behalf of broker
Acting on behalf of broker only until listing signed
21
The general agency relationship created by the written agreement between a broker and a sales agent establishes that
both broker and sales agent owe fiduciary duties to customers
fiduciary duties are not applicable in general agency
the sales agent owes fiduciary duties to the broker
the broker owes fiduciary duties to the sales agent
22
Broker A has one sales person. He decides to represent seller in intermediary & appoints sales agent to buyer. Broker A
NOT allowed to appoint himself to either party-no appointment may be made
met TRELA permission in both agreements to act as intermediary; not appoint
allowed to act as intermediary; may only appoint to seller-no rep to buyer
has met TRELA permission in both agreements as an intermediary & to appoint
23
A real estate broker, acting as an agent for another in a transaction, has a primary duty to
treat all parties impartially
help the parties reach a mutually beneficial agreement
represent the interests of the agent's principal
get the transaction closed successfully
24
A seller would generally NOT be liable for the acts and representations of the
cooperating broker acting as subagent
buyer's agent
listing broker
sales agent of the listing broker
25
A listing agreement does not authorize a listing broker to
place a For Sale sign on the property and advertise the property
obtain information from any holder of a note secured by a lien on property
place information about the property on the internet
execute a document in the name of the seller concerning the property
26
Even though a broker is an agent for one party, she is obligated to treat both parties
impartially
with loyalty
fairly
equally
27
The TRELA is
under Commission Rule
underwritten by TREC
an ethics canon
a licensing statute
28
If a broker chooses to act as intermediary between buyer and seller, under TRELA intermediary broker may
make appointments; one to buyer client and one to seller client
give negotiating strategies except broker must keep strategies confidential
choose to continue to give opinion & advice as long as all parties present
offer a price opinion to seller and offer a price opinion to buyer
29
In the case of multiple offer being received by the broker, the listing broker must
present all offers in the order they were received
first present the offers produced in-house
first present the offers produced from cooperating brokers
present all offers at the same time
30
A broker or sales agent owes customers
honesty, fairness, and disclosure of material facts about the property
fairness, disclosure of material facts about the property, obedience
honesty, fairness, loyalty, and financial accountability
honesty, full disclosure, and financial accountability
31
A licensed broker does not want to run his own office. He can obligate himself administratively to another broker. He is
a designated broker
a sales agent broker
a broker associate
a broker REALTOR
32
If a real estate agent or broker violates TRELA, TREC may do all of the following EXCEPT
revoke the broker's license
revoke the broker's membership in NAR
require broker to attend additional education course related to violation
suspend the broker's license
33
An agent owes fiduciary duties to
sponsoring broker
principal
all of these
client
34
To create an agency relationship
there must be express mutual consent either oral or written between parties
a written promise from principal to pay compensation be signed
written agreement must be signed by seller or buyer then accepted by agent
principal & agent sign written agreement stating agent act on her behalf
35
With respect to listing in most MLS systems, commission to be paid to other broker is determined by an agreement between
TREC and the broker
the other broker and the buyer
the listing broker and cooperating broker
the seller and the listing broker
36
A real estate broker hired by the buyer to locate a property must obey all of the following EXCEPT
the agency law
the instructions of the seller
the instructions of the buyer
state licensing law
37
An agency relationship would NOT be terminated by
withdrawal by the principal
destruction of the property
marriage of the principal
death of the principal
38
The seller signs listing agreement authorizing broker to represent him with 3rd parties in sale. This agreement is
an oral express agency agreement
implied agency agreement with right of the seller to hire other brokers
an implied agency agreement
a written express agency agreement
39
An agent would NOT owe fiduciary duties to a
customer
client
sponsoring broker
principal
40
Broker A lists property & seller tells broker to share he must close in 30 days. Broker A shares with Broker B. Broker A
is in violation of fiduciary duty by revealing confidential information
is not in violation of TRELA because TRELA does not address this issue
is required by TRELA to get instruction in writing or Broker A in violation
has specific instruction from seller, is not in violation of fiduciary duty
41
Buyer filled out a sales contract himself and delivered to listing agent after viewing property with listing agent.
Buyer is an arm-around relationship with listing broker
Buyer is a principal of the listing broker
Buyer is a client of the listing broker
Buyer is a customer of the listing broker
42
One of the primary requirements to establish an independent contractor status as defined by IRS is a
statement of understanding defining duties of the contractor
written contract with specific commission arrangements listed
written contract with statement that agent will not be treated as employee
written contract and list of required duties of the contractor
43
A broker is required by TRELA to offer minimum services to seller-client. Minimum service does NOT include
telling other brokers to negotiate directly with the client
presenting any offer to or from the client
informing the client of material information
answering the client's questions
44
Seller & agent do not disclose foundation repairs. Buyer sues seller, broker, & agent under DTPA. What is NOT true
If seller requires confidentiality agent must keep information confidential
Fraud is a deceptive act and if defrauded, consumer may sue broker or agent
If material representation was false, plaintiff may be able to prove fraud
Applies to those who knowingly do not disclose defects affecting decisions
45
Broker signs exclusive right to sell listing with divorcing couple & it closes. Which fiduciary duties survive closing?
The duties of obedience, loyalty, disclosure, and confidentiality
The duty of reasonable care and due diligence
The duty of confidentiality
The duties of obedience, loyalty, and confidentiality
46
An agency relationship with a buyer may be created by
an express written agreement only
showing property to a buyer
directly by any licensed sales agent
implication, an express written agreement, or express oral agreement
47
An illegal boycott has occurred when two or more business entities conspire to
allocate specific territories for marketing to certain firms
charge the same fees for specific services
conduct a buyout and merger transaction
withhold their patronage to reduce competition
48
A third party you work with but do not represent in a transaction would be referred to as a
service recipient
consumer
customer
client
49
The initial disclosure of an agency relationship may be
written
oral
on the TREC form
oral or written
50
A listing broker would be obligated to follow all the following instructions from a seller EXCEPT
show the property only on Fridays
conceal the suicide on the property
set showing appointments with tenant during the period on listing
conceal the cracked foundation
51
If a broker does not find a property that suits a buyers needs prior to expiration of rep agreement, the buyer
can bring a lawsuit against broker for breach of fiduciary duties
cannot argue breach; broker obligated to use best efforts to find property
can file a complaint with TREC to have license revoked
can bring a lawsuit against broker under DTPA and Statute of Frauds
52
Sales agent did not give his buyer client information in writing about obtaining title insurance. Which is true?
Unless broker or client directs disclosure, sales agent is not required
Agent is not in violation of TRELA
Agent is in violation of TRELA and could have license revoked or suspended
There is no obligation for the sales agent to give that disclosure
53
A sales agent sold a property to an unrepresented buyer in a cooperative sale. Which statement is true?
This is a cooperative sale and no subagency exists
The sales agent would only be subagent if he sold his brokers listing
The sales agent represents her broker, who is subagent of the seller broker
The sales agent is a subagent of the seller's broker
54
In a suit filed under the DTPA, each consumer who prevails may obtain all of the following EXCEPT
no more than 3X the amount for economic damages & 3X for mental anguish
economic damages, attorney fees, court costs, & more for mental anguish
economic damages, attorney fees, court costs but nothing for mental anguish
no more than 3X consumer's economic damages if act committed knowingly
55
Second offer received by broker while seller waiting on response from counteroffer, listing broker should
hold the second offer while other offer is 'working'
present second offer, instructing not to accept until counter is settled
present second offer, instructing not to accept without withdrawing counter
tell the agent not to bring the offer because "we have contract working"
56
Broker representing owner of commercial office building negotiating a lease with unrepresented tenant may do all EXCEPT
negotiate the lease on behalf of owner/landlord
show the property to tenant and explain terms of lease agreement
share with tenant the monthly lease amount is 20% over market
negotiate terms and conditions on behalf of owner/landlord
57
Mutual agreement to terminate a written agency agreement
must include consideration paid to the broker
must be in writing
must include a waiver of the client's rights under DTPA
may be done orally
58
A seller's agent is permitted by law to
agree to counteroffer without the buyer's approval
make a secret profit in addition to the commission
present an offer from agent's parents with full disclosure of relationship
accept a bonus from the seller without buyer's approval
59
During a listing presentation to a seller, a sales agent is
acting agent of broker in broker best interest, no agency duties to seller
not an agent to anyone until listing signed, sales agent represents seller
acting as agent of seller & must act in best interest of seller
a neutral party or mediator, negotiates terms of listing agreement
60
No agency relationship but party to real estate transaction who receives information & has no relationship with broker
is a broker associate
is a customer
is an intermediary
is a client
61
A real estate broker, when engaging in a real estate transaction on his own behalf
is only obligated to inform if other person is a license holder
is obligated to inform he is licensed if other person is a buyer or seller
is not obligated to inform any person that he holds a real estate license
is obligated to inform licensed & will not use expertise to disadvantage
62
Listing with XYZ. Buyer to ABC & showed XYZ listing & wrote offer. Compensation offered to buyer agent & subagent. TRUE?
The ABC broker must be the subagent of the seller
The ABC broker does not represent the buyer
The ABC broker must be the agent of the buyer
The XYZ broker must be an intermediary
63
Which offer must a listing broker submit to the seller?
All of these
Offer from a buyer who recently filed for bankruptcy
Offer submitted through cooperating broker at $100 less than inhouse offer
Offer for a price below the amount that the seller said was unacceptable
64
A seller refused to pay commission after successful sale of listing. For broker to sue, TRELA requires all EXCEPT
at-before contract signed buyer advised in writing to get title insurance
broker must prove he is 'member in good standing' of NAR, TAR, or local
agreement for compensation be in writing and signed by authorized party
broker must prove that he was duly licensed at time services began
65
Which of the following is NOT a recognized way for an agency relationship to be terminated?
Lapse of the time specified in the agreement
Completion of the purpose for which the agency relationship was created
Marriage of the principal
Mutual rescission
66
A sales agent is sponsored by a licensed broker. The agency relationship created between sales agent and broker is
a general agency
an intermediary agency
a universal agency
a special agency
67
While the TRELA is a statute, TREC Rules are
guidelines pertaining to how agents & brokers carry out daily activities
administrative regulation created by TREC to clarify TRELA have effect law
instrumental in explaining conduct of licensee being sued under TRELA
not created by TREC, but generated by Broker-Lawyer committee
68
In the case of multiple offers being received, the listing broker should
first present the offers produced in-house
first present the highest-priced offer, then the next, then the next
present them as soon as possible in each case
first present the offers produced by cooperating brokers
69
A sellers listing agreement gives no authority to broker to represent both parties through intermediary. Which is true?
broker still owes duty of confidentiality to both buyer and seller
broker remains neutral and cannot give advice or opinion to seller or buyer
broker owes fiduciary duties to seller only, negotiates only for seller
the only duty the broker has to buyer is that of fiduciary
70
In a typical residential transaction where subagency is offered & accepted, which agent owes primary allegiance to buyer
Listing broker
Subagent
Selling sales agent
None
71
Cooperating broker acting as subagent tells buyer that seller is filing for divorce. This disclosure is improper unless
the broker refrained from disclosing any other details
it helped the broker become a buyer's agent
the listing broker authorized the release of this information
the seller authorized the release of this information
72
Regarding listing and buyer rep contracts in Texas and ability of broker to sue for commission, which is NOT correct?
TRELA states no action can be taken unless agreement in writing and signed
An oral listing contract is legal in Texas but cannot be used to bring suit
Both oral listing & written listing contracts are always enforceable in TX
TRELA does not require that contract be in writing
73
Seller agent receives inspection report from buyer agent. It reveals a heater defect. Which is TRUE?
Until seller is notified of report, seller has no notice of defect
Moment inspector gave report to buyer, seller agent had imputed knowledge
Once report was received, seller agent had imputed notice of defect
Imputed notice does not apply in Texas
74
When is a new sales agent able to represent a buyer or seller in a real estate transaction?
After the agent signs an independent contractor agreement with broker
As soon as agent passes the TREC exam
When broker permits, not matter if license has arrived or not
After the broker agrees to sponsor the agent and license is received
75
If a broker secures a buyer rep agreement with a buyer, the broker
cannot secure listing agreement with seller once broker in buyer agreement
is the exclusive rep of buyer unless agreement authorizes intermediary
may represent both buyer and seller through dual agency with consent
may negotiate against buyer is buyer wants to buy brokers listing
76
Buyer writes in par. 17 broker agrees to pay buyer $1000 from brokers commission at closing. Under TRELA, which is true?
In Texas, a broker is allowed to pay no more than $50
In Texas broker is not prohibited from sharing fees to unlicensed principal
In Texas, broker is not allowed to pay because the buyer is unlicensed
None of these
77
Broker and sales agents acting as agent for seller have an obligation to disclose all the following to buyer EXCEPT
sellers property was built prior to 1978 & could contain lead-based paint
an appraisal shows the sellers home worth $40,000 less than asking price
Sellers home tested for termites and damage found
which party broker/agent is acting for in the transaction
78
One who has accepted a delegation of authority to act for and on behalf of another is a(n)
client
principal
agent
facilitator
79
There are 15 agents in the firm. One signs an exclusive right to sell listing. What is the parties agency relationship?
Broker agent of seller client, 15 agents have no relationship to seller
Listing agent is only seller agent. 14 agents have not relationship
Broker agent of seller client, listing agent & 14 agents are seller agents
Broker & listing agent are seller client agents & 14 agents no relationship
80
Which statement by listing broker to buyer might lead a court to imply an agency relationship existed with the buyer?
"Lets test the seller with a low offer and then go up if we have to"
"Let me tell you about the type of loans available at the bank today"
"Now is the time to submit an offer"
"This is a good buy"
81
Unless there is an agreement to the contrary, the duties of a broker acting as principal to licensed agents include
performance, compensation, indemnification, and reimbursement
none of these
performance, compensation, provision of office space, and health insurance
performance, compensation, health insurance, and automobile insurance
82
Delegation of authority by a client and acceptance of that authority by the agent
must be in writing to create an agency relationship
are the core requirements to create an express agency relationship
create a power of attorney
create subagency
83
When showing property a broker discriminates based on race. Which of the following does NOT address the issue?
Texas Statute of Frauds
Code of Ethics
Rules of the Real Estate Commission
TRELA
84
A statement found in part 22 TAC:531: Canons of Professional Ethics and Conduct, is found in the
Texas Statute of Frauds
Real Estate License Act
Truth in Lending Act (TILA)
TREC Rules
85
The DTPA is a state law intended to protect Texas consumers against all the following EXCEPT
personal injury
breaches of warranty
unconscionable actions
false, misleading, and deceptive business practices
86
Sales agent has listing agreement and buyer rep agreement, both with intermediary and compensation stated. This scenario
scenario does not meet requirements to make decision to act as intermediary
the broker has NOT met the requirements of TRELA to act as intermediary
broker must get a second permission to act as intermediary from both
broker has met the requirements or TRELA to act as intermediary
87
Broker allows sales agents to list their own homes without charging. Compensation is still paid to cooperating brokers.
This type of agency is agency by estoppel
This type of agency is gratuitous agency
This type of agency is illegal under TRELA
This type of agency is agency by ratification
88
TRELA holds brokers responsible to
members of the public, TREC, and their clients
Canons of Ethics
The brokers and their conscience
public members of TREC and clients
89
Common law dual agency was added to TRELA in 2005. It was
made legally impossible under TRELA.
changed in TRELA & became a relationship known as transaction broker agency
added to TRELA, allowing all agents to act as dual agents
strengthened by those who practice dual agency give full disclosure
90
A seller hires a broker to sell his home & tells the broker his father died from a balcony that collapsed. The broker
should treat this as a demographic impact and does not need to be disclosed
should treat this as a psychological stigma and should be disclosed
should treat this as a death related to condition and should be disclosed
should treat this as a functional obsolescence that must be disclosed
91
An unlicensed person helped her neighbor seller her home with no compensation. The unlicensed person is
in violation of TRELA in sale of home without a license
would not be an agent for the neighbor because she is unlicensed
is not in violation of TRELA because no compensation was received
in violation of TRELA & must have license to help neighbor no matter pay
92
Which action of the broker is MOST likely to result in the creation of an agency relationship with the buyer?
Discussing the financing alternative available
Transmitting the buyer's offer to the seller
Showing the buyer an available property
Negotiating on the buyer's behalf
93
Which of the following is NOT a federal law that addresses national concerns that apply to any state?
The Sherman Antitrust Act
Occupation Code, Title 7, Section 1101
Truth in Lending Act and Regulation Z
Fair Housing Act of 1968
94
Seller requests Agent contact Roofer for repairs & gives specific instructions to make repairs. What are relationships?
R=vendor to A; S=client of A; A=3rd party to R
A=A to S; R=3rd party vendor; S=customer of R; A has no relationship to R
R=principal to S; S=principal to A; A=3rd party to R
R=vendor to S; S=customer of R; A has no relationship
95
Section 5008 of Texas Property Code requires a written seller's disclosure in most resale properties. Which is TRUE?
Disclosure must be delivered at first face-to-face meeting
There is no time requirement for delivery of the notice
Disclosure must be delivered at first substantive dialogue
Disclosure must be delivered on or before the effective date of contract
96
In listing agreement the type of agency relationship between broker & sales agent is -- & between broker & seller is --
a special agency; an intermediary agency
a general agency; a special agency
a general agency; a universal agency
a universal agency; a general agency
97
A buyer is seeking exclusive representation from broker. Which is true?
Broker requires to give IABS to buyer at first face-to-face meeting
Broker only required to give IABS at listing presentation and not to buyer
IABS required to be given to both buyer and seller after agreements signed
Broker required to give IABS to buyer at time of first substantive meeting
98
Prior to buyer representation being signed, sales agent is required to do all the following EXCEPT
represent buyer position & interests in negotiation of agreement
give and explain Information About Brokerage Services form
disclose to buyer agency relationship with broker
negotiate terms & conditions of agreement in arms-length relationship
99
Real estate agents must be
employed by broker prior to conducting real estate activities for a fee
sponsored by licensed broker, license received, prior to any investments
sponsored by broker prior to taking the state licensing exam
sponsored by licensed broker, license received, prior to acting as agent
100
Subagency is created by
mutual consent of parties by agreement, words, or conduct.
mutual consent but is a function of actions of subagent only.
mutual consent between broker and subagent broker.
special Subagency Agreement form created by TREC and signed by all parties

RELE 2301 Law of Agency (F1 F4) Flashcards | StudBud