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Law of Agency-Final Exam Review Questions with correct Answers
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Law of Agency-Final Exam Review
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Law of Agency-Final Exam ReviewWhat are the minimum services an agent
must offer; - answer According TRELA subchapter 1101.557b states a broker
representing a party or listing real estate for sale is the party's agent and
1. May not instruct another broker to directly or indirectly violate the sub chpt-
1101.65b22, 2.Must inform the party if the broker Receives material information related
to the transaction to list, buy, sell, or lease the parties real estate, including the receipt
of an offer by the broker; and
3. Shall, at a minimum, answer the parties questions and present Any offered to or from
the party.
What is TRELA? - answer It is the law that establishes the duties of a real estate
licensee.
> TRAC is responsible for the administration of
TRELA. TREC consists of nine members - six brokers and three public members - who
are who serve staggered terms of six years. The governor, with the approval of the
senate,
appoints three replacement members every two years.
Advice and opinions are given to whom: - answer Clients.
Who are the parties to agency agreement? - answer The seller, buyer, broker or sales
associate, tenant
What is a subagent; - answerA Licensee holder not sponsored by or associated with the
clients broker who is representing the client through a cooperative agreement with the
client broker. Also called the other broker.
If a principal instructs His agent to violate the law, what should an agent do? -
answerThe agent should remove himself from dealing with the principal and not violate
the law.
What is an attorney - in - fact; - answera person authorized to act for another under a
power of attorney. This person is not necessarily a licensed attorney.
Under what conditions may a broker buy property listed with the broker; - answerOnly
with full disclosure to all parties in the transaction.
What is agency by ramification: - answerOccurs when a principal gain some benefit
from a previously unauthorized act of an agent, and the principals, on learning of the
act, do not deny that the agent has authority to perform such an act on their behalf.
, A sellers subagent is working with a buyer - who does the sub agent have a fiduciary
relationship with, the buyer or the seller? - answerThe seller.
The person receiving services, but who is not represented is called? - answerThe
customer.
May the listing agent disclose the selling motivation to a buyer; - answerNo, that is a
breach of fiduciary responsibility.
In a real estate transaction, who do the buyer and/or seller inter into a contract with to
create the agency relationship - the broker or salesperson: - answerThe broker.
What is agency educational requirement. - answerLicensee must show evidence of a
minimum of 30 clock hours - 2 semester hours - in the law of agency.
What happens to the fiduciary duties when the agency relationship terminates: -
answerThe duty of confidentiality continues after the termination of an agency.
What does TRELA require in regard to the duration of a listing or buyer representation
agreement: - answerIt requires a expiration or termination date.
Must a buyer believe that he is represented in order for agency to exist: - answerYES,
expressed agency
What is the difference between implied and express authority: - answerImplied Authority
not specifically granted to the agent but necessary or customary if the agent is to
perform the agency duties, and it is implied by the principal's action.
> Express authority is legal term means clear, definite, explicit, unmistakable, and
unambiguous.
Is a payment required to create agency;
Is a written agreement require; - answerNo a payment is not required to create agency.
a written agreement is not required. But if you want to collect your commission it must
be in writing.
What does TRELA required in order for a broker to sue for a commission; - answerMust
be in writing.
What is a net listing? If an agent takes a net listing, what advice should the agent give
the seller: - answerNet listing is a listing agreement in which the broker's commission is
the difference - net- between the sales proceeds and the amount desired by the owner
of the real estate.
Advice to the seller is informed of the current market conditions the value of the property
to be sold and that the broker should inform the seller of market conditions And What
the maximum broker commission will be.
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