Study (Principles 1) Real Estate Brokerage and the Law of Agency "Part One" Flash Cards

 
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(Principles 1) Real Estate Brokerage and the Law of Agency "Part One"

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If licensee fails to make clear to all parties to a transaction which party he or she is acting for, his or her license may be suspended or revoked T/F?
T
Licensee is NOT required to furnish written statement providing general information concerning agency positions if proposed transaction is for residential lease for NOT more than one year and no sale is being considered T/F?
T
To protect themselves from financial loss due to liability for mistakes and negligence, many brokers and agents purchase which kind of insurance?
Errors and Omissions
If homeowner who has NOT hired broker agrees to accept an offer brought to him by broker, he may create an
Agency by Ratification
Suicide on the property does NOT require disclosure by a seller T/F?
T
If owner tells buyer's agent something owner would NOT want buyer to know, buyer's agent is obligated to withhold information from buyer because owner disclosed information in confidence T/F?
F
Whose responsibility is it to disclose how long property has been listed and why?
Buyer's Agent
Agent for seller has duty to disclose to seller buyer's intention to resell property for profit T/F?
T
If broker says that house is the most beautiful house in the neighborhood, the broker's statement is an example of
Puffing
Broker may act as an intermediary
With the written consent of each party of the transaction
Which duty that is owed to agent by principal consists of furnishing accurate information when requested by broker?
Information
Licensee who represents party in proposed real estate transaction must disclose that representation at time of licensee's first contact with another party to transaction T/F?
T
If listing broker or sub-agent assists buyer in any way, he or she becomes buyer's agent and can no longer place interests of owner first T/F?
F
Seller hires broker, who has several licensed associates, to sell his house. In this transaction broker is
Agent
Agency can be terminated by which without liability for breach of contract?
Mutual Agreement
Broker who represents party in real estate transaction may NOT
Instruct another broker to negotiate directly with the client
Broker who acts as sub-agent represents
Seller
Broker must NOT act in self-interest because of the duty of
Loyalty
Property manager would be what kind of agent?
General
An intermediary broker (or appointed licensee) must treat all parties honestly T/F?
T
Which duty requires broker to keep principal fully informed at all times of all information broker obtains that could affect principal's decisions?
Disclosure
Listing agreement between seller and broker creates an
Express Agency
Broker who lists property for sale or lease represents owner as a(n)
Seller's Agent
Broker who represents seller knows that house has structural defects that will need expensive repairs, but does NOT tell prospective buyers. This is an example of
Fraud
The four statutory positions broker might take when doing business include intermediary position, seller representation, sub-agency, and
Buyer Representation
Seller instructs broker NOT to tell prospective buyers about certain hidden defects in property as required by Texas law. Because of the duty of obedience, broker must obey these instructions T/F?
F
An intermediary broker (or appointed licensee) may NOT disclose that buyer will pay a price greater than the price submitted in a written offer T/F?
T
Because of the duty of loyalty, broker representing buyer under buyer representation agreement cannot disclose to seller that buyer is willing to make higher offer T/F?
T
Agent may be classified as general agent or special agent, based on level of licensing he or she has attained T/F?
F
Consumer in real estate transaction is NOT required to have broker representation T/F?
T
Substantive dialogue requiring an agent to give party Information About Brokerage Services form includes meeting at an open house T/F?
F
If seller has camouflaged property defect (but NOT repaired it), broker must disclose defect if he or she knows about it T/F?
T
With few exceptions, agent for seller has a duty to disclose to Seller all offers received T/F?
T
Broker can assist buyer in locating property, preparing a contract or lease, or obtaining financing without representing individual T/F?
T
Licensee is NOT required to furnish written Information About Brokerage Services form concerning agency positions if he or she meets with party who is represented by another licensee T/F?
T
Real estate broker is usually a special agent T/F?
T
Agency is created at salesperson level T/F?
F
If seller's agent has an agreement with buyer that agent will manage property after it is purchased, agent is NOT required to disclose this information to seller T/F?
F
The role of broker as agent of principal is a fiduciary relationship T/F?
T
Licensee who represents party in proposed real estate transaction is NOT required to disclose representation to another licensee who represents another party to the transaction T/F?
F
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