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Terms in this set (25)
A buyer who is a client of a broker wants to purchase a house that the broker has listed for sale. Which statement is TRUE?
the seller and buyer must be informed of the situation and agree in writing that the broker may act as an intermediary between both of them.
The seller and buyer must be informed of the situation and must give written consent before a broker may act as an intermediary between parties to a real estate transaction.
A licensed salesperson obtains a listing. Several days later, the salesperson meets prospective buyers at the property and tells them, "Our office represents the seller for this property, so I'm very familiar with it." Under these circumstances, the salesperson
has properly disclosed agency relationship with the seller.
In Texas, a license holder must disclose an existing agency relationship at the first contact with another potential party to the transaction or that party's agent, which this salesperson has done in the statement. However, had the license holder used the term salesperson or broker, the disclosure might have been questionable.
A salesperson obtains a listing contract on behalf of the salesperson's sponsoring broker. When a prospective buyer asks to look at the property, the salesperson must provide the prospect with the TREC Information About Brokerage Services form, or another statutorily acceptable version, and
inform them orally or in writing that the salesperson and salesperson's broker represent the seller's interests.
Agency disclosure informing the buyer that the salesperson and broker represent the seller must be made so that the buyer understands that the buyer is not represented and that the salesperson and broker, in fact, do represent the seller in the transaction as the seller's agent or subagent.
When a broker and the broker's salespersons represent a seller or owner of real estate, that fact must be disclosed to the
buyer, tenant, or broker's agent at the beginning of the first contact with the buyer, tenant, or broker's agent.
The licensee must disclose to the buyer, tenant, or broker's agent at the beginning of the first contact with the buyer or tenant that the licensee represents the seller/owner. The disclosure may be made orally or in writing.
A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wishes to buy this property, the salesperson must
inform the owner in writing that the salesperson is a license holder and that the salesperson is an agent of the listing broker before entering into a purchase contract.
The salesperson must inform the owner in writing that the salesperson is a license holder sponsored by the listing broker before making the offer and get the owner's consent to proceed despite the conflict of interest.
A real estate license holder has signed a tenant representation agreement with a tenant who is looking for an apartment or a commercial building to lease. The license holder does not charge a fee to prospective tenants; rather, the license holder expects to receive a commission from a landlord. The license holder tells a landlord that the prospective tenant could probably pay a somewhat higher rent than the landlord is asking. Which statement is TRUE?
the license holder's disclosure violated the statutory and common law duties of confidentiality and loyalty owed to the tenant.
The license holder's disclosure violated the statutory duties and common law fiduciary duties owed to the tenant by violating the duties of obedience, loyalty, reasonable care, due diligence, and confidentiality to the tenant who employed the licensee as the tenant's agent.
A seller's listing agreement has expired, and the seller lists with a different brokerage firm. The original listing agent now has a buyer interested in the seller's property. Based on this information, the original agent
cannot disclose to the buyer offers received on the seller's property while it was listed with the original agent. Confidential information, such as information regarding previous offers, must remain confidential.
However, the original listing agent is now free to represent the buyer since the original agent no longer has an agency relationship with the seller. Agents must always disclose known material facts about the property.
A salesperson for a brokerage company obtained a written listing agreement with a seller authorizing the salesperson's broker to act as an intermediary and to make appointments should the situation arise. Another salesperson for the same brokerage company has an oral agreement to represent a buyer. The buyer also agreed orally that the broker could act as an intermediary and make appointments should the situation arise. The broker may
not act as an intermediary or make appointments under this scenario.
The broker must obtain the written consent of each party to the transaction as an intermediary.
A realty company has entered into agency agreements with both a seller and a buyer. The seller and the buyer have given written authorization for the broker to function as an intermediary. A salesperson with the realty company has previously been working for, but not yet appointed to, the buyer. The salesperson previously working for, but not appointed to, the seller and the salesperson working with, but not appointed to, the buyer may legally disclose
A)seller will accept less than the listing price.
B)the buyer's financial
qualifications.
C)comparable market data (but not analysis) to the seller and buyer.
D)buyer will pay more than the offering price.
comparable market data (but not analysis) to the seller and buyer. Legally, the salesperson carrying out intermediary duties on behalf of the salesperson's broker (i.e., not yet appointed and still being impartial) may likely be able to provide raw comparable market data.
However, no analysis of that data, a comparative market analysis (CMA), or even an opinion of value could be provided to either party once an intermediary relationship has been properly authorized and commences until lawful appointments are made. Supplying merely the raw data would likely be considered a fair and impartial act under the intermediary role, but not under a CMA.
Five years ago, a condominium unit was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. As the agent for the woman's estate, you
are specifically relieved of liability for nondisclosure of the AIDS-related death but should probably disclose the murder.
A license holder is not required to inquire about, disclose, or release information relating to whether a previous or current occupant may have or had AIDS or AIDS-related illnesses or as to whether death by natural causes or suicide occurred, or an accidental death not caused by a condition of the property. Discussion of the AIDS-related death is prohibited by federal and state fair housing laws and TREC Rules.
All of the following types of agency are permitted in Texas EXCEPT
A)a broker employed to negotiate a transaction between the parties as an intermediary.
B)a broker employed to negotiate a transaction between the parties as an intermediary without appointments.
C)a broker employed to negotiate a transaction between the parties as a dual agent under common-law principles.
D)a broker employed to negotiate a transaction between the parties as an intermediary with appointments.
a broker employed to negotiate a transaction between the parties as a dual agent under common-law principles.
A real estate broker in Texas representing both parties in the same transaction must obtain an agreement in writing from both parties to act as an intermediary.
Regarding a competitive market analysis or a broker's price opinion, which of the following statements is TRUE?
it must contain a prescribed statement that clearly establishes that it is not and should not be regarded as an appraisal. A broker's price opinion (BPO) or a competitive market analysis (CMA) can be offered by a broker (or salesperson in the name of the broker) who may charge a separate fee for preparing either.
If charging a separate fee for the BPO or the CMA, and neither follows the Uniform Standards of Professional Appraisal Practice, TREC Rules provides (a) specific language be included to inform anyone reading the opinion that guidelines for development of an appraisal have not been followed. The TREC Rules use this language: "THIS IS AN OPINION OF VALUE OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation."
Which statement BEST describes the role of a broker acting as an intermediary in Texas?
intermediary's duties are more restricted than a true agent's duty to one principal.
The intermediary must remain impartial to the interests of both parties and must maintain confidentiality with both parties.
A buyer prospect is interested in viewing a house listed with the real estate company, but does not wish to enter into a buyer representation agreement. A salesperson from the real estate company can show the buyer an in-house listing if the
A)salesperson obtains the seller's permission.
B)salesperson provides the buyer with a dual agency consent form properly executed by both the licensee and the buyer.
C)buyer orally agrees to buyer agency.
D)salesperson provides the buyer with an Information About Brokerage Services form at the first substantive dialogue and discloses the company's agency status with the seller.
salesperson provides the buyer with an Information About Brokerage Services form at the first substantive dialogue and discloses the company's agency status with the seller.
A broker who is representing both parties as an intermediary may receive a commission from both the seller and the buyer, or landlord and tenant, if
A)both parties give their written informed consent to the dual compensation.
B)both parties are represented by attorneys.
C)the buyer and the seller are related by blood or marriage.
D)the broker holds a state license.
both parties give their written informed consent to the dual compensation.
In an intermediary transaction, both parties must give their informed written consent to the dual compensation.
When should a real estate license holder provide the Information About Brokerage Services form or its statutory written statement equivalent to a party to a real estate transaction?
A)At an open house
B)At the time of the first substantive dialogue with the party concerning a specific real property
C)At the closing table
D)At first contact between the prospect and license holder
At the time of the first substantive dialogue with the party concerning a specific real property
In Texas, a license holder must present the Information About Brokerage Services form, or its statutory written statement equivalent, at the time of the first substantive dialogue with the party. Substantive dialogue is defined as "a meeting or written communication that involves a substantive discussion relating to specific real property."
A broker has entered into a listing agreement with the seller. Another broker, who has been working with the buyer, learns of the property through the MLS. The second broker could represent
A)the seller as an agent.
B)neither buyer nor seller.
C)the seller as a subagent or the buyer as buyer's agent.
D)the buyer and seller as a dual agent.
the seller as a subagent or the buyer as buyer's agent.
In Texas, an unlicensed real estate assistant may perform all of these activities EXCEPT
A)explain simple contract documents to prospective buyers.
B)prepare and distribute flyers and promotional materials.
C)compute commission checks.
D)assemble legal documents required for a closing.
explain simple contract documents to prospective buyers.
Only a licensed person may explain simple contract documents to prospective buyers as this would be considered an act of brokerage. An unlicensed person may perform bookkeeping such as computing commission checks, performing secretarial work such as assembling legal documents for closing, and writing advertising under the direction of a license holder. These activities are not considered to be acts of brokerage.
Which would be considered acting in a lawful position as an intermediary?
A)A broker acting as intermediary disclosing to the buyer the lowest price a seller will consider
B)A broker obtaining verbal permission to act as an intermediary
C)Appointed licensees communicating with and carrying out the instructions of different principals in one transaction
D)A broker acting as an appointed licensee for both the buyer and seller
appointed licensees communicating with and carrying out the instructions of different principals in one transaction.
A license holder may be appointed to provide opinions and advice during negotiations to the party to whom the license holder is appointed. This requires the written consent of the parties. The broker is required to provide written notice of the appointment to all parties involved in the real estate transaction.
A buyer asks a salesperson with LMN Realty to show the buyer a house listed with XYZ Realty but does not wish to enter into an agency relationship. As long as the buyer is informed that LMN Realty represents the seller, the salesperson from LMN Realty may show the buyer the house, and the broker for LMN Realty may then act as a subagent of the seller if
A)this cannot occur.
B)LMN Realty obtains XYZ Realty's consent to subagency and the buyer is given the TREC Information About Brokerage Services form (or a statutorily legally comparable form) stating that both XYZ and LMN Realty represent the seller and that compensation of the broker by a party does not necessarily determine that the broker represents that party.
C)the buyer signs a document stating that the buyer does not wish to be represented.
D)LMN Realty has obtained the listing broker's and the seller's consent to subagency and the buyer is given the TREC Information About Brokerage Services form (or a statutorily legally comparable form) explaining the buyer's right to be represented if desired and that compensation of the broker by a party does not necessarily determine that the broker represents that party.
LMN Realty has obtained the listing broker's and the seller's consent to subagency and the buyer is given the TREC Information About Brokerage Services form (or a statutorily legally comparable form) explaining the buyer's right to be represented if desired and that compensation of the broker by a party does not necessarily determine that the broker represents that party.
A salesperson engaged in activities that constitute violations of the Texas Fair Housing Act, including blockbusting and discrimination on the basis of disability. The salesperson also cashed a $25,000 earnest money check from a prospective buyer and used the proceeds to buy a new car. The salesperson's sponsoring broker was unaware of these activities. In the event a complaint is filed with the Texas Real Estate Commission, the sponsoring broker
might not have his license revoked as long as the broker was not negligent in supervising the activities of the salesperson.
A broker is liable to the Commission, the public, and the broker's clients for any conduct engaged in by the broker or a salesperson associated with or acting for the broker. By rule, however, TREC mitigates the responsibility of the broker by stating that the broker is responsible only for the authorized act of the salesperson. A strong training program and/or a well-written office policy manual prohibiting such activity would probably result in TREC not suspending or revoking the broker's license if the broker could show that the broker was not aware of the salesperson's actions and the salesperson exceeded the scope of the authority delegated to the salesperson by the broker. That said, a broker could face disciplinary action for "acting negligently or incompetently by failing to monitor and properly supervise the brokerage activities of a sponsored salesperson."
A buyer contacts a real estate broker and indicates an interest in purchasing a home listed by the brokerage. Without entering into a buyer agency relationship with the buyer, a salesperson from the real estate office can do all of the following EXCEPT
disclose the motivation for selling of a seller represented by the broker as their agent.
A licensee working with a customer must always keep the client's personal information confidential. Such confidential information could include the motivation to buy or sell.
A seller lists a home with a brokerage company and discloses material defects to the listing salesperson. The salesperson, wanting to provide great service by selling the home quickly, decides that the defects are not significant and excludes the information from the MLS, advertising, and communication with buyer brokers. A buyer, unaware of the defects, purchases the home only to discover the defects six months after closing. Against whom may the buyer have legal recourse?
broker and salesperson.
The broker is "responsible to the Commission, members of the public, and the broker's clients for all acts and conduct performed under the Act by the broker or by a real estate salesperson associated with or acting for the broker." TRELA protects the seller from liability for the misrepresentation since the seller had disclosed the defects to the agent.
A broker's unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to accept the seller's counteroffer. Largely because of the assistant's efforts, the sale went through with no problem. Now the broker wants to pay the assistant a percentage of the commission "because the assistant has really earned it." Under Texas law, the broker may
A)pay a commission to the assistant only if the assistant is an independent contractor.
B)not pay the assistant a cash commission, but is permitted to make a gift of tangible personal property.
C)compensate the assistant in the form of a commission under the circumstances described here.
D)not pay a commission to the assistant under the facts presented here. They are both in violation of rules regarding unlicensed assistants.
not pay the assistant a cash commission, but is permitted to make a gift of tangible personal property.
The broker may not pay a commission to the assistant under the facts presented here.
When must the broker or salesperson give the seller a written Information About Brokerage Services form that explains agency positions?
A)At the time the listing agreement is signed
B)On or before a sales contract is signed
C)Within three days after the initial meeting with the seller
D)On the first substantive dialogue with the seller
On the first substantive dialogue with the seller
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