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

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

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Claims against licensees that involve providing advice, judgment, or opinion are excluded from DTPA EXCEPT for situations involving misrepresentation, unconscionable conduct, or breach of warranty T/F?
T
Which occurs when brokers conspire together to set a standard commission rate rather than letting rate be set by the open market?
Price Fixing
An errors and omissions insurance policy purchased by broker will NOT cover fraud or intentional violations of DTPA T/F?
T
The practice of unfairly excluding brokers from real estate professional associations or withholding patronage from other businesses is known as
Boycotting the Competition
Broker found guilty of antitrust violations can receive a maximum of ten years in prison and how much in fines?
1,000,000
It is customary to make commission payable when?
the seller delivers the deed
Advertising, telephone charges and other expenses in a broker's office may be paid by which of the following?
Both of the above
Because licensed associates (salespersons) are agents of broker, they should have which with broker?
Written Agreement
An errors and omissions insurance policy purchased by a broker will NOT cover fraud or intentional violations of the DTPA T/F?
T
Recovery under DTPA for an act committed knowingly is limited to
Economic plus anguish damages
License Act requires that, in order to earn commission, broker must (1) be licensed, (2) have a written memorandum for a commission, and (3) advise buyer to obtain which kind of insurance or have an abstract examined by an attorney of buyer's choice?
Title
Brokers in certain area meet and agree that some brokers will handle residential property under $100,000, others will handle residential property over $100,000, others will handle commercial property, and others will sell condominiums. This is an example of
Market Allocation
For consumer waiver of provisions under DTPA to be valid and enforceable, consumer must NOT be in a significantly disparate bargaining position T/F?
T
To earn commission, broker must do which of the following?
All of the Above
A broker can control what licensed associates do, but NOT how they will do it if associates have the status of
Independent Contractor
In a DTPA suit, consumer must prove presence of fraud; an innocent misrepresentation is NOT actionable T/F?
F
Defenses to the DTPA include the impossibility of the broker's knowing that information was false or inaccurate T/F?
T
Which covers innocent misrepresentations as well as unfulfilled promises?
Statutory Fraud
In addition to proportionate responsibility for damages under DTPA, defendant may be held jointly and separately responsible for all damages recoverable if defendant's percentage of responsibility is found to be more than what percent?
50
With exception of which kind of property, the DTPA does NOT apply to transactions that exceed $100,000 where there is a written contract and consumer is represented by legal counsel?
Residential
Either party to lawsuit filed under DTPA may file motion to compel mediation of dispute T/F?
T
That people buy at their own risk and should examine property before they buy is expressed by the concept of
Caveat Emptor
Attorney who is NOT licensed by the Texas Real Estate Commission (TREC), but performs brokerage services in transaction may NOT be compensated by broker in the form of cash payment, but could be given gifts equal to amount of commission earned T/F?
F
Misleading or deceptive practices according to the DTPA include advertising property with no intention of selling property as advertised T/F?
T
Defenses to DTPA include reasonable offer of settlement within specified time limits T/F?
T
With exception of residential property, DTPA does NOT apply to transactions that exceed $100,000 where there is a written contract and the consumer is represented by legal counsel T/F?
T
It is illegal in Texas for broker to share commission with someone who does NOT have real estate license T/F?
T
Broker may require that employee adhere to regulations concerning such matters as working hours, office routine, and dress or language standards T/F?
T
Agreement between broker and salesperson (licensed associate) does NOT include what duties of salesperson are if agent is an independent contractor T/F?
F
In Texas, real estate licensees who withhold information concerning known latent or hidden defects of property can be held liable for false or misleading statements made about property T/F?
T
Broker may provide rebate of portion of commission to principal in return for referral T/F?
F
Price-fixing is the practice of setting prices for products or services rather than letting competition in open market establish those prices T/F?
T
If broker finds someone who will buy on seller's terms, but seller changes his mind and refuses to sell, broker is generally entitled to commission T/F?
T
Definition of "false, misleading or deceptive acts or practices" is defined in general terms in DPTA T/F?
F
Misleading or deceptive practices according to DTPA include representing that repairs have been done on real or personal property when they have not T/F?
T
In DTPA suit, consumer must prove that deceptive act was producing cause of damages T/F?
T
According to common law, to be entitled to sales commission, selling broker need NOT be able to show that he or she was procuring cause of sale T/F?
F
Broker cannot be held responsible for all real estate activities of licensed associates (salespersons) T/F?
F
In DTPA lawsuit, each liable defendant will be liable to consumer for full damages regardless of percentage of responsibility T/F?
F
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