Champion School of Real Estate- Law of Agency Exam 2023

Broker - Answer- A Properly Licensed party who serves a principal in an agency relationship Agency - Answer- A fiduciary relationship between a broker and a principal or a broker and a client Fiduciary - Answer- A Party acting for another in a position of trust-a broker or agent Fiduciary Relationship - Answer- The relationship based on trust-the relationship governed by the law of the agency between a broker and a principal Principal - Answer- A party represented by a broker in an agency relationship-also called a client Client - Answer- A Party represented by a broker in an agency relationship-also called a principal Customer - Answer- A third party-one a broker is working with, but who is not represented by that broker Buyer Representation Agreement - Answer- An employment contract obligating a broker to act as a fiduciary to a buyer Listing Agreement - Answer- An employment contract obligating a broker to act as a fiduciary to a seller Management Agreement - Answer- An Employment contract obligating a broker to act as a fiduciary to a property owner Public Responsibilities - Answer- The responsibilities a broker has to customers or third partyies including-Honesty, Fairness and disclosure to material facts Fiduciary Responsibilities - Answer- The responsibilities a broker has to clients in an agency relationship-includes placing the interest of the client first, full disclosure of all facts, material and other, and giving advice and opinions Oral Agency - Answer- An agency relationship created by an oral or spoken agreement Implied Agency - Answer- Agency as a result of customary, usual or typical conditions Ostensible Agency - Answer- Agency as a result of the actions of an agent and the response of others to those actions Agency by Ratification - Answer- Agency established when an agent acts without permission of the principal and the principal accepts or ratifies those actions Agency by Estoppel - Answer- A principal fails to maintain due diligence over his agent and as a result the court prevents the principal from denying the agency relationship Universal Agency - Answer- A principal gives an agent the power to transact matters of all types for him General Agency - Answer- A principal gives an agent the power to bind him in a particular trade or business Special Agency - Answer- A principal gives an agent the power to perform specific acts, but not to bind the principal-also called limited agency Limited Agency - Answer- A principal give an agent the power to perform specific acts, but not to bind the principal-also call Special Agency Duties of an Agent - Answer- An Agent owes his client obedience, loyalty, disclosure, confidentiality, accounting and reasonable care OLDCAR - Answer- Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care-Duties of an agent Duties of a Principal - Answer- A principal owes his agent compensation, reimbursement, indemnification and performance CRIP - Answer- Compensation, Reimbursement, Indemnification and Performance-duties of a Principal or client Blind Ad - Answer- An advertisement that does not clearly indicate the licensed status of the party placing the ad-real estate licensees are prohibited from placing blind ads Dual Agent - Answer- A broker who has the written permission of both the buyer and the seller to represent both parties in a single transaction Designated Agent - Answer- A licensee appointed by a broker in a dual agency situation to work with either the buyer or the seller in the transaction Intermediary - Answer- A broker in Texas who has the written permission of both the buyer and the seller to represent both parties in a single transaction Appointed Associate - Answer- A licensee appointed by a broker in Texas in an intermediary situation to work with either the buyer or the seller in the transaction Open Listing - Answer- A listing where a seller reserves the right to list with as many brokers as he chooses-he also reserves the right to sell the property himself-only a broker who brings a contract to the seller will earn a commision Exclusive Agency Listing - Answer- A listing where one broker is the exclusive agent and will earn a commission if the property is sold, unless the seller sells it himself-the seller is competing with his broker Exclusive Right to Sell - Answer- A listing where on broker will earn a commission when the property is sold, no matter who sells it. Procuring Cause of Sale - Answer- The effort that results in the sale of a property-the act of bringing a ready, willing, and able buyer to a seller resulting the sale of the seller's property Sherman Anti-Trust Act - Answer- Federal Law that preserves business competition by prohibiting monopolies, monopolistic practices and restraint of trade-in real estate, the biggest impact is on commissions-they are always negotiable Commission - Answer- A negotiated compensation in a broker's employment contract Agency coupled with an Interest - Answer- Any transaction where the agent is also the seller, or the agent is also the buyer-this dual role must always be disclosed Subagent - Answer- An agent for a person who is already and agent for a principal-the listing salesperson under a listing broker-this is not a Texas Definition Texas Real Estate Licence Act (TRELA) - Answer- TRELA was passed in 1939-the purpose of the Act is to protect the public against unscrupulous brokers and sales agents Texas Real Estate Commission -