Exam (elaborations)
Champions Real Estate Exam: Law of Agency Q&A
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- Champions Real Estate
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- Champions Real Estate
Champions Real Estate Exam: Law of Agency Q&A
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Champions Real Estate Exam: Law of AgencyThis person hires an agent Correct Ans - The Principal
The agent works on behalf of this person Correct Ans - the client
(principal)
This type of agency allows for the greatest range of authority Correct Ans
- Universal
This is provided to the agent when there is written documentation that the
agency relationship exists. Correct Ans - Express authority
This is the most limited of all the agency relationships Correct Ans -
Special agency
This type of agency is created when a 3rd party believes that an agent has
authority that has NOT been granted by a principal Correct Ans -
Agency by Estoppel
This type of agency is created when actions lead another person to assume
that one is an agent (Example- you have a key to neighbors home and show
the property) Correct Ans - Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the
buyer? Correct Ans - No one
This establishes a relationship with a broker Correct Ans - The
Buyer/Tenant Representation agreement
This can be written or oral Correct Ans - Disclosure of Representation
These are required to place their own selfish interests behind that of their
clients. Correct Ans - Fiduciaries
A licensee isn't required to provide the IABS when... Correct Ans - the
licensee meets with a party that is already represented
,A broker is obligated to treat who honestly? Correct Ans - client,
customer, and agents
Broker must have written consent to act as... Correct Ans - an
intermediary
IABS form is the property of... Correct Ans - TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a
listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is
being represented by the firm. Agent Sue's buyer wants to purchase Agent
Bill's listing
In the above transaction, Broker Bob will: Correct Ans - Remain
neutral and refrain from providing advice and opinion to either party
The IABS should contain Correct Ans - How the broker will be
compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer
that wants to purchase one of his listings. The process that Broker Steve must
use is: Correct Ans - Intermediary without appointments
A fiduciary relationship is based on Correct Ans - trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer
who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen
to not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the buyer? Correct Ans -
No body because the buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer
who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen
to not enter into an
agency relationship with City Realty.
,In the above transaction, who is City Realty representing? Correct Ans -
The seller, because City Realty is a subagent of ABC Realty in this transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer
who wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen
to not enter into an
agency relationship with City Realty.
What type of transaction is this? Correct Ans - cooperative (co-op)
An exemption to using the Information About Brokerage Services form is:
Correct Ans - a lease for less than 1 year with no sale anticipated
A licensee not associated with the client's broker but who is representing the
client through a
cooperative agreement with the client's broker is known as: Correct Ans -
Subagent
This must be in at least 10 point type, must have the exact language
prescribed in the License Act
and must be provided to a buyer or seller at the first substantive discussion of
a real estate
transaction Correct Ans - IABS (Information About Brokerage
Services)
Jeffrey wants to see property that your company has listed; he does not want
to be represented.
The agent must: Correct Ans - give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form:
Correct Ans - at the first substantive discussion of a real estate transaction
A licensee has a listing with a seller and has a buyer's representation
agreement signed with a
buyer who desires to purchase this agent's listing. How is the agent operating?
Correct Ans - as a non-appointed associate in an Intermediary relationship
TREC was established in: Correct Ans - 1949
, Which of the following is the real estate licensing authority in Texas?
Correct Ans - TREC
A termination date in a listing agreement must be: Correct Ans -
definite
Which of the following is NOT an agent's duty to a client? Correct Ans -
Trust
These are the duties: OLDCAR: Obedience, loyalty, disclosure, confidentiality,
accounting, reasonable care
The duty of ___________ means that an agent must follow all of the lawful
instructions of
the client. Correct Ans - obedience
Jerome is a licensed agent who desires to sell his mother's home. Jerome has
the property
listed with his brokerage firm and finds a buyer himself to buy mom's home.
Jerome should: Correct Ans - Disclose to the buyer in writing that the
seller is his mother.
If an agent sells their own property, acting as a principal, the agent must:
Correct Ans - disclose to the party in writing that they are a licensed agent
Confidential information between client and agent should be: Correct Ans
- kept confidential forever
In most states other than Texas, the most common method of dealing with in-
house
transactions between client buyers and sellers is: Correct Ans - dual
agency
When handling escrow funds for clients, the License Act requires that funds be
deposited in
a "reasonable time". A reasonable time is defined as: Correct Ans - 2
business days
The listing agreement should contain: Correct Ans - the legal
description of the property
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