58 terms

Law of Agency-Final Exam Review

Seventh addition Dearborn
What are the minimum services an agent
must offer;
According TRELA subchapter 1101.557b states a broker representing a party or listing real estate for sale is the party's agent and
1. May not instruct another broker to directly or indirectly violate the sub chpt-1101.65b22, 2.Must inform the party if the broker Receives material information related to the transaction to list, buy, sell, or lease the parties real estate, including the receipt of an offer by the broker; and
3. Shall, at a minimum, answer the parties questions and present Any offered to or from the party.
What is TRELA?
It is the law that establishes the duties of a real estate licensee.
> TRAC is responsible for the administration of
TRELA. TREC consists of nine members - six brokers and three public members - who are who serve staggered terms of six years. The governor, with the approval of the senate,
appoints three replacement members every two years.
Advice and opinions are given to whom:
Who are the parties to agency agreement?
The seller, buyer, broker or sales associate, tenant
What is a subagent;
A Licensee holder not sponsored by or associated with the clients broker who is representing the client through a cooperative agreement with the client broker. Also called the other broker.
If a principal instructs His agent to violate the law, what should an agent do?
The agent should remove himself from dealing with the principal and not violate the law.
What is an attorney - in - fact;
a person authorized to act for another under a power of attorney. This person is not necessarily a licensed attorney.
Under what conditions may a broker buy property listed with the broker;
Only with full disclosure to all parties in the transaction.
What is agency by ramification:
Occurs when a principal gain some benefit from a previously unauthorized act of an agent, and the principals, on learning of the act, do not deny that the agent has authority to perform such an act on their behalf.
A sellers subagent is working with a buyer - who does the sub agent have a fiduciary relationship with, the buyer or the seller?
The seller.
The person receiving services, but who is not represented is called?
The customer.
May the listing agent disclose the selling motivation to a buyer;
No, that is a breach of fiduciary responsibility.
In a real estate transaction, who do the buyer and/or seller inter into a contract with to create the agency relationship - the broker or salesperson:
The broker.
What is agency educational requirement.
Licensee must show evidence of a minimum of 30 clock hours - 2 semester hours - in the law of agency.
What happens to the fiduciary duties when the agency relationship terminates:
The duty of confidentiality continues after the termination of an agency.
What does TRELA require in regard to the duration of a listing or buyer representation agreement:
It requires a expiration or termination date.
Must a buyer believe that he is represented in order for agency to exist:
YES, expressed agency
What is the difference between implied and express authority:
Implied Authority not specifically granted to the agent but necessary or customary if the agent is to perform the agency duties, and it is implied by the principal's action.

> Express authority is legal term means clear, definite, explicit, unmistakable, and unambiguous.
Is a payment required to create agency;
Is a written agreement require;
No a payment is not required to create agency.
a written agreement is not required. But if you want to collect your commission it must be in writing.
What does TRELA required in order for a broker to sue for a commission;
Must be in writing.
What is a net listing? If an agent takes a net listing, what advice should the agent give the seller:
Net listing is a listing agreement in which the broker's commission is the difference - net- between the sales proceeds and the amount desired by the owner of the real estate.
Advice to the seller is informed of the current market conditions the value of the property to be sold and that the broker should inform the seller of market conditions And What the maximum broker commission will be.
Are net listings legal in Texas; and what does TRELA recommend;
Yes, legal and recommends that only if the seller wants the net listing then the broker is responsible for informing him of the market condition and the maximum commission the broker will receive.
What is an open listing:
a listing in which the broker has the non-exclusive right to sell the property and receive a commission. If the sale results through the efforts of the seller or another broker, the open listing broker receives no commission.
When must a buyer's
representation agreement terminate:
Upon expiration date or mutual agreement by revocation or renunciation or mutual agreement of termination by both parties
Does listing property in MLS create a fiduciary relationship:
Yes, in order to get an MLS listing a formal contract for listing buyer or seller representation must be secured in order to listed in MLS.
When is a buyer required to
purchase property through a particular broker.
Buyer has signed an exclulsived buyers representation agreemt.
When is a written agency
agreement required:
When the broker wants to ensure that he is paid a commission.
In a sub agency relationship the seller is the client or customer?
When is the seller liable for the missrepresentations of the subagent:
Always, if the subagent represents the seller if not then there is no liability on the part of the seller.
Are the subagents fiduciary duties the same as the listing agent - or are they different:
Yes they are the same as the listing agent.
What is required to create the intermediary relationship:
Written Consent from Seller and Buyer......
That all parties in the relationship be informed that and intermediary relationship exists and that the broker of appoints or does not appoint another associate to act as either the buyer or sellers representive.
What is required for the broker appoint Associates:
Mutual consent from all parties in the transaction the broker and two associates or brokers.
Create all parties fairly and honestly I don't want disclosure of any information that is confidential or the parties are requested not to be disclosed;
Determine whether appointments will be made and, if so, disclose in writing to all parties that such has been done;
And comply with the provisions of TRELA.
May intermediary be used in two different brokerage companies are involved:
What must a written agreement authorizing intermediary state.:
With the parties consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under the Texas real estate license act and associated with the broker to communicate with and carry out instructions of one party and another party whose license under that act and associated with the broker to communicate with and carry out the instructions of the other party
treat all parties honestly, may not disclose that the buyer will pay a greater price, may not disclose confidential information, may not disclose the owner will accept price less than the asking price.
-Buyers Rep or Sellers listing.
What may a broker acting as intermediary disclose, not disclose:
Only pertinent material fact that are agreed by the buyer/seller and may never disclose any confidential information.
If an associate is appointed to the seller, must an associate be appointed to the buyer:
No, if the broker only appoints an associate to both the buyer and the seller the only information that can be given by the associate is factual information and no advice or opinion will be given to either buyer or seller.
If a broker has no associates, May he be an intermediary in the transaction:
yes, without appointments
Must a broker make appointments:
The broker must disclose whether he made an appointment or an appointment was not made that has to be mutually agreed on by all parties.
How many associates must a broker have in order to make appointments:
At least two associates, but if all parties agree then one associate may act for both the buyer and the seller --no representation adviser will be performed by the agent.
True/false; intermediary may be used on section 1031 exchanges and syndications
Is common-law dual agency still used in Texas for real estate transactions:
True or false: a salesman has the authority to: inner into his own contract with the buyer seller, advertise property on his own behalf, accept commissions from a broker, assume responsibility assigned by his broker.
What type of employment agreement can a salesman have with his broker,:
Special or limited agency, authorizes the salesman/agent to perform all of those acts committed by the principal or by the broker.
The client agreement is a outside
contractor agreement with the broker.
What can unlicensed person personal assistant to do?
General's office assistant duties but never acting as a real estate agent.
What is the purpose of the IBS:
Information about brokerage services - it is to inform the general consumer of the services offered by the broker and disclose what duties the broker will be performed and whether they would like to be represented by The broker.
Know all about the disclosure of
representation - to whom, when win etc.:
Sellers disclosure TPC subsection 5.008 states: a seller of residential real estate comprising not more than one dwelling unit located in this day so give the purchaser of the property a written notice as prescribed by the sec. and or written notice substantially similar to the notice prescribed by the section which contains, At a minimum, all of the items in the notice prescribed by this section.

Exceptions,: Foreclosure, transfer property in a co-op, new house, seller if you sell your own house, rental property.

Use form approved by the Texas real
estate commission sellers disclosure of property condition. Better to use the
TAR disclosure form instead of the Texas real estate commission form.

€ Disclosure should be given before the signing of the Sales contract.
Who may a broker share a commission with. They broker share a commission with an attorney.
... Broker can share commissions with anyone he wishes as long as it's disclosed even an attorney.
An attorney.
Who owns the listing - in whose name on the list is taken
Owned by the broker and in the broker's name.
May salesman received a commission from a broker other than the broker who sponsoring him:
Whose name or names must appear in the real estate ad?
Yes....both....The broker name and real estate agent. It may include the agents name.
Can a court suspend or revoke a license if there has been a DTPA violations:
No, only TRELA.
TRELA requires disclosure of which defects:
a material facts relevant to a person making a decision. Agents must disclose all of the clients they just must disclose to buyer material facts the condition of the property such as no structural defects building code violations dangerous conditions. Kown latent facts
What is the name of the law dealing with the registration of sex offenders
Megan's law.
Which portion of the licensee services are except from DTPA
None. advice, opion, professional
Who can suspend or revoke a real estate license:
Who prepare the seller's disclosure notice?
The seller.
When should the seller's disclosure notice be delivered?
Before signing the sellers contract.
What happens if the sellers disclosure notice is not deliver on time?
The buyer may cancel the purchase of the property if no notice is delivered if it's delivered late then it gives the buyer additional time to cancel the contract.