RELE 1311 Final UPDATED Exam Questions and CORRECT Answers
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Course
RELE 1311
Institution
RELE 1311
RELE 1311 Final UPDATED Exam
Questions and CORRECT Answers
An example of a general agency relationship would be one that exists between the - Correct
Answer- sales associates and the broker.
Special agency occurs when - Correct Answer- the principals give an agent a limited
authority to act...
RELE 1311 Final UPDATED Exam
Questions and CORRECT Answers
An example of a general agency relationship would be one that exists between the - Correct
Answer- sales associates and the broker.
Special agency occurs when - Correct Answer- the principals give an agent a limited
authority to act on their behalf.
Brokers can buy a property listed with them under which of the following conditions? -
Correct Answer- Only if full disclosure is made to the seller of the broker's involvement as a
purchaser.
Which statement is TRUE of listing agents? - Correct Answer- They must present every
written offer to the seller.
A salesperson owes all of the following fiduciary duties EXCEPT - Correct Answer- prepare
a power of attorney for the buyer.
A listing agent tells a buyer-customer that the seller is under pressure to sell because of a
pending divorce and possible foreclosure. Such disclosure is - Correct Answer- unacceptable
because of the fiduciary duty owed the owner.
Sally, as an agent for the seller, listed and subsequently sold George's town house. She did not
tell George that a major zoning change in progress would allow business use in the area, thus
increasing property values. Which statement is TRUE? - Correct Answer- Sally was required
to disclose the change because it was a material and pertinent fact.
Which is NOT a fiduciary obligation owed to a client? - Correct Answer- Inspection
A material fact is one that - Correct Answer- a reasonable person might feel is important.
A customer is entitled to all of the following - Correct Answer- the broker's opinion of value.
,Universal agency - Correct Answer- gives a very broad and general scope of power to the
agent to act for the principal.
General agency - Correct Answer- is more restricted than in universal agency. The agent is
authorized to conduct an ongoing series of transactions for the principals and can obligate
them to certain types of contractual agreements.
Special agency - Correct Answer- sometimes known as a limited agency, authorizes the agent
to perform only those acts permitted by the principal.
Fiduciaries - Correct Answer- are held to the highest amount of good faith, are required to
exclude all selfish interest, are prohibited from putting themselves in positions where
personal interest and representative interest will conflict. The most important obligations a
fiduciary owes to a principal can be remembered by using the "OLD CAR" memory device:
(1) obedience, (2) loyalty, (3) disclosure, (4) confidentiality, (5) accounting, and (6)
reasonable care and diligence.
Reasonable care and diligence - Correct Answer- Real estate agents are held to a standard of
care that requires, among other things, that they be knowledgeable concerning the land, the
title, and the physical characteristics of the property being sold.
Obedience - Correct Answer- The agent has an obligation to follow the lawful instructions of
the client.
Loyalty - Correct Answer- Agents must always act in the best interest of their clients and
must be loyal to the trust placed in them.
Disclosure - Correct Answer- A key point related to loyalty is the obligation of the agent to
make a full, fair, and timely disclosure to the client of all known facts relevant or material to
the transaction.
Full disclosure relating to the property - Correct Answer- regardless of whether the fact is
favorable or unfavorable, i.e. property defects, defects in the title, ... .
Full disclosure of relationship - Correct Answer- The real estate agent must disclose to client
any special relationship that might exist between the broker and any of the broker's associates
and the other parties in the transaction.
,Full dislcosure of other offers - Correct Answer- Unless instructed otherwise by the Seller, the
listing agent should continue to present all offers until the transaction is closed.
Full disclosure of information - Correct Answer- Because the licensee's relationship with the
client is that of a fiduciary, licensees must always place the interest of the client above that of
their own interest.
Full disclosure regarding status of earnest money deposits. - Correct Answer- The buyer, not
the broker, is responsible for depositing the earnest money with an escrow agent on final
signing of the contract by all parties.
Full disclosure of buyer's financial condition. - Correct Answer- The seller's agent must
disclose to the seller all information, good or bad, regarding the buyer's financial condition.
Full disclosure of property value. - Correct Answer- Disclosure of property value is a very
important part of an agent's fidcuciary duty to the client. Real estate agents provide a broker
price opinion (BPO) or a comparative market analysis (CMA) to a consumer.
Full disclosure of commission split. - Correct Answer- The listing agent must disclose to the
seller the existence of any fee-sharing arrangement with a cooperating broker.
Full disclosure of contract provisions. - Correct Answer- Before executing any document that
is intended to be legally binding the licensee is obligated to discuss the provisions of the
contract with the client.
Confidentiality - Correct Answer- The duty of loyalty requires that the agent keep
confidential any discussions, facts, or information about the principal that should not be
revealed to others.
Accounting - Correct Answer- Money received by a broker as a result of transactions such as
purchase contracts or property management agreements are trust funds and are frequently
held by the broker for the benefit of the principal.
, Minimum Service Requirements - Correct Answer- A party's agent has a fiduciary duty to
provide certtain defined minimum services to their client, services that cannot be passed to
the other broker in the transaction.
Agency is - Correct Answer- one person acting on behalf of another.
An agent works on behalf of - Correct Answer- the client.
TRELA - Correct Answer- is the law that establishes the duties of real estate licensees.
The Texas Real Estate Commission - Correct Answer- holds the broker accountable for the
professional actions of sponsored associates.
A broker is representing Jim Smith, a buyer. In this transaction, Smith is considered a(n) -
Correct Answer- client.
People who engage an agent to represent their interests in a transaction are called principals,
or - Correct Answer- clients.
A key distinction between the services given to clients versus those given to customers is that
- Correct Answer- a. advice, opinions, and advocacy are given to clients, not customers.
A licensee NOT associated with the listing broker is known as a(n) - Correct Answer-
subagent.
One of the BEST ways a broker might protect against agency problems is to - Correct
Answer- develop a clear, written office policy regarding agency issues.
A key reason to study agency today is - Correct Answer- the increased litigation against
agents.
Licensee (active) - Correct Answer- A person licensed by the Texas Real Estate Commission
(TREC) to act as a broker or a salesperson in a real estate transaction.
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