Upgrade to remove ads
Only $35.99/year

Texas Real Estate Agency Unit 7

Terms in this set (50)

Seller Vincent has been critical of the ways that broker Bob is advertising his farm. He also feels that Bob is not networking with other real estate professionals enough to draw more interested buyers to the property. Can Vincent revoke the agency relationship between himself and Bob?
Yes, the seller can revoke the agency, but he may be liable to the broker for damages.
Which of the following is an example of agency by ratification?
A seller's former agent sells property for the seller after the listing agreement expires, and the seller does not deny the agent's authority to act on seller's behalf.
Which of the following is an example of ostensible agency?
A seller leads a buyer to believe that a former seller's agent is still the seller's agent, despite the fact that the listing agreement has expired.
"Agency by ratification" does NOT require which of the following?
The agent provides written notice describing the nature and results of the act.
Which of the following is NOT an example of termination of agency by operation of law?
Revocation by the principal
Sonya is a real estate agent. Technically, Sonya does not need a broker or sales agent license if
she is not compensated for providing real estate services for someone else.
Incapacity of the broker or the principal will terminate an agency relationship. What paperwork is needed to prevent this incapacity from bringing about this result?
A durable power of attorney
Paul is a sales agent who is sponsored by AAA Realty. Paul sold a commercial office building owned by Wings, LLP. Paul worked for TNT Realty, Inc. and represented the buyer, YellowBrick Road, LLC, in the purchase. Paul now represents a new buyer, Elton, in the purchase of the YellowBrick Road property. Paul did not have a written buyer representation agreement in the previous purchase and does not have one in the current resale. Paul knows quite a bit of confidential and nonconfidential information about YellowBrick Road and the property. What is Paul's duty to Elton to disclose what he knows about YellowBrick Road?
Paul cannot disclose confidential information regarding the previous purchase of the YellowBrick Road property.
George has entered into a written property management agreement with Stella to manage her investment property. The terms of the agreement state that the management services will include leasing the property. The agreement automatically renews in perpetuity. Is there a problem with this type of agreement?
Yes, the Real Estate License Act requires a definite termination date.
Which event would be an example of termination of agency by operation of law?
Death of the owner
Which of the following is required to create an agency relationship?
Consent
What is imputed knowledge?
Facts known by the agent are considered known by the client.
Which of the following statements is TRUE regarding disclosure of agency?
May be disclosed orally or in writing
Which of the following persons are NOT exempted from real estate licensing requirements?
An active Ohio-licensed attorney selling real estate to a client for his investment portfolio and compensated by a commission
Betty takes a listing on Sylvia's home. Without Sylvia's permission, Betty tells a prospective buyer at an open house that Sylvia is desperate to sell within the next 30 days. Betty Broker is
an implied agent of the buyer.
Does Texas law hold principals responsible for the unauthorized acts of their agents?
No, unless they are aware of the acts.
Which of the following guidelines is accurate for real estate license holders?
The best interests of the client must be kept in mind at all times.
When can a license holder disclose confidential information about a former client?
When the former client consents to the disclosure
What happens if a broker becomes ill and cannot continue to represent the seller during the term of a listing?
The listing is terminated.
Timmy is Sally's sales agent under a written listing agreement for one year. Sally is unhappy with Timmy's performance; the house is still on the market after six months, and Sally hasn't had any offers. Sally terminates the listing agreement. What should Timmy now do about the listing?
He should take it off the market.
Sandy, a real estate broker, is often asked for her opinion about real estate matters when she attends meetings of the Chamber of Commerce, and even when she attends her children's baseball games. What is the BEST advice for Sandy to follow to avoid potential agency issues?
Refrain from answering questions from nonclients.
Clarence is a sales agent sponsored by broker Anita. Clarence is the listing agent for Robert to sell his condo. Anthony was Clarence's former sponsoring broker. When Clarence worked for Anthony, he represented Sandra as a buyer's agent in the purchase of a small townhome. Sandra is now buying Robert's property and Ruth at Supreme Realty represents Sandra in the transaction. Clarence has some inside information about Sandra's financial status that is important for Robert to know. What should Clarence do?
Clarence must withhold the information because his duty to Sandra to maintain the confidentiality of her information does not have a termination date.
When can a seller force a broker to continue an agency relationship on the listing?
Never, because the broker can renounce the relationship unilaterally
Jonie is a sales agent for Best Realty representing Bar None, Inc. in the sale of a large ranch to XLT, Inc. Jonie's firm also represents XLT under a buyer representation agreement. Best represented Bar None when it first purchased the ranch. Both parties have agreed to Best acting as intermediary in the transaction, but there will be no appointments, and Jonie will work with both parties. What is Jonie's duty to Bar None regarding disclosure of information related to Bar None's original purchase of the ranch?
Jonie may disclose Bar None's confidential information only with Bar None's consent.
Ostensible agency is based on a third party's
belief that an agency relationship exists.
How is the length of a listing agreement determined?
Length of a listing is negotiated between a broker and a seller.
Janis is a sales agent with Ace Realty. Janis had a listing agreement with B4 Inc., wherein Janis helped B4, Inc. sell an office park to Sands, Inc. Janis is now representing Sands in the purchase of different commercial property from B4. Best Realty represents B4 in the transaction. What information belonging to B4 can Janis provide to Sands to ensure that the sale goes smoothly?
Janis cannot release B4's confidential information to Sands without B4's consent.
Seller Vincent decided to let the listing agreement he had with broker Bob expire and sell the property himself. Prospective buyers who looked at Vincent's farm twice while Bob had the listing remained interested in the property, and they want to buy the farm from Vincent directly. Does Bob retain any interest in this transaction?
Yes, if the buyer is registered under a protection clause.
Which of the following must a license holder provide to a client but NOT to a customer?
Advice
Jane is a sales agent with Ace Realty. She has a listing agreement with Ralph to sell Ralph's mother's property. Ralph is acting under a power of attorney as a universal agent of his mother. During the term of the listing and before anyone makes an offer on the property, Jane suddenly has a heart attack and passes away. How has her death affected the status of the listing agreement.
There is no effect on the listing agreement, as it belongs to Ace Realty, not Jane.
Which of the following guidelines is accurate for real estate license holders?
The best interests of the client must be kept in mind at all times.
Sascha is a sales agent with Best Realty. Sascha had a buyer representation agreement with Sylvan, Inc. wherein Sascha helped Sylvan, Inc. purchase a parking garage. Sascha is now representing the buyer, LINC, Inc., in the purchase of the property from Sylvan. Sylvan has an employee handling the purchase so Sylvan is not represented by a real estate agent. What is Sascha's duty to Sylvan regarding any confidential information that Sascha may have obtained while previously representing Sylvan?
Sascha may disclose confidential information to LINC with Sylvan's consent.
Prospective customers ask the listing agent "How long do you think this current roof will last?" Which of the following responses is BEST for the agent?
"The roof was put on 10 years ago, and the owners were given a 30-year warranty."
Which of the following is an example of termination of agency by operation of law?
Death of the agent or the principal
Agency by ratification occurs when an agent performs an unauthorized act and the principal
benefits from the act.
A third party is entitled to
accurate information.
Which of the following is an example of an express agency agreement?
Written listing agreement
Which of the following is NOT required to create an agency relationship?
Compensation
What happens to an individual broker's listing agreements if the broker dies?
The agreements are terminated.
What are the two basic elements required to create an agency relationship?
Consent and control
Bob, a broker, knows that a new highway will be built about 3 miles from his client Sarah's ranch. Even though Bob has not talked with Sarah about the highway, it is assumed that Sarah knows about it under the concept of
imputed knowledge.
Which of the following persons are NOT exempted from real estate licensing requirements?
An active Ohio-licensed attorney selling real estate to a client for his investment portfolio and compensated by a commission
Paul is a sales agent who is sponsored by Best Realty. Paul was the selling agent of a commercial office building owned by Wings, LLP. Paul worked for TNT Realty, Inc. and represented the buyer, YellowBrick Road, LLC, in the purchase. Paul now represents a new buyer, Elton, in the purchase of the YellowBrick Road property. Paul did not have a written buyer representation agreement in the previous purchase and does not have one in the current resale. George is a broker with Ace Realty and is serving as YellowBrick Road's agent in the sale and is working with its CEO, Bruce. Bruce and Paul have been friends since the previous transaction, and Bruce is now asking Paul for assistance on a due diligence matter because George is incompetent. What should Paul tell Bruce?
That he is no longer Bruce's agent and Bruce should work directly with George
Which of the following actions does NOT terminate an agency contract?
Relocation
Cleopatra is a sales agent for Caesar under a written listing agreement to sell Caesar's home on the range. Tiberius and Claudius are unrepresented buyers interested in purchasing Caesar's home. Cleopatra tells Tiberius about Claudius' offer and tells him he must beat the offer; Cleopatra doesn't tell Claudius about Tiberius because she thinks Tiberius is a much better fit for Caesar's lovely Grecian-style mansion, and Claudius hasn't yet applied for financing with Roman Bank. What are Cleopatra's actions an example of?
Violating a duty of fairness to Claudius
Paul is a sales agent who is sponsored by AAA Realty. Paul sold a commercial office building owned by Wings, LLP. Paul worked for TNT Realty, Inc. and represented the buyer, YellowBrick Road, LLC, in the purchase. Paul now represents a new buyer, Elton, in the purchase of the YellowBrick Road property. Paul did not have a written buyer representation agreement in the previous purchase and does not have one in the current resale. Paul knows quite a bit of confidential and nonconfidential information about YellowBrick Road and the property. What is Paul's duty to Elton to disclose what he knows about YellowBrick Road?
Paul cannot disclose confidential information regarding the previous purchase of the YellowBrick Road property.
Georgio listed his property for sale with Tony Principi, principal broker for Principi Realty. Georgio decides to seek a tenant for his property rather than sell, so he asks Tony to remove the property from the market. If Tony agrees to release Georgio from his obligations under the contract, agency has been terminated by
rescission
Agency can be created by an oral agreement between the agent and the principal, but a broker should establish a written contract to
protect the interests of both parties.
Janice is a broker who represents Raymond under a written listing contract. Raymond hasn't told Janice about carcinogenic and highly toxic mold in the attic, and Janice has no independent knowledge of the mold. Which of the following BEST describes whether Janice may be liable if Raymond misrepresents or conceals the presence of the toxic mold to Tybalt, the buyer?
Janice is liable if she knows of the falsity of the misrepresentation and fails to disclose her knowledge.
When can a license holder disclose confidential information about a former client?
When the former client consents to the disclosure
Sets found in the same folder