Aceable Law of Agency Exam
Review, Verified Solution
Here are the four major types of agency acts:
Listing
Buying
Leasing
Property Management
TREC's purpose is to
regulate educational and licensing programs that maintain standards AND interpret
legislation that affects the real estate profession — primarily the Texas Real Estate
License Act (TRELA).
Integrity
Satisfy to the commission (TREC) that the candidate meets and exceeds their character
standards (honesty, trustworthiness, and integrity).
Competence
Demonstrate competence by passing the licensing exam.
Broker:
An individual licensed by TREC to perform brokerage duties; sponsors sales agents to
represent clients on their behalf
Sales agent:
An individual holding a sales agent license from TREC who is sponsored by a broker
License holder
A broker or a sales agent licensed by TREC
REALTOR
A licensed sales agent who is a member of the National Association of REALTORS®.
Brokers are
liable for all sponsored actions committed by their sales agents.
Sales agents represent
their broker in all transactions in real estate dealings and transactions.
Listing Agent:
A broker representing a seller in a real estate transaction, a.k.a. seller's agent, seller's
broker, or listing broker
Buyer's Agent:
A broker representing a buyer in a real estate transaction, a.k.a. selling agent, buyer's
broker, or selling broker
Tenant's Agent
A broker representing a tenant in a real estate transaction
Landlord's Agent:
A broker representing a landlord in a real estate transaction
Principal
The major parties of the transaction (the buyer and seller or landlord and tenant) or a
party who has authorized an agent to represent them
Client (principal)
, Anyone who has an agency relationship with you or your broker is your client
Customer
A party to the transaction who has an agency relationship with another license holder
Third Party
All non-client parties to a transaction, including real estate professionals
Types of Principles:
Seller: Party seeking to sell their property in a real estate transaction
Buyer: Party seeking to buy property in a real estate transaction
Tenant: Party who occupies land or property rented from a landlord
Landlord: Party who rents land or property to a tenant
Client Vs Customer:
A broker/agent works for a client.
A broker/agent works with a customer.
Agency relationships require the consent of both parties (client and agent), which
can be demonstrated by one of three methods:
Written agreement
Oral agreement
Action
Agency relationships are
fiduciary relationships; The client's interest must always come first.
the principal authorizes:
the agent to represent their interests.
The fiduciary duties (OLD CAR)
obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care
Real estate brokerage
is a type of agency
Express Authority
when a client has given an agent explicit permission for an action.
Express authority can be given
both verbally or through a written agreement.
Implied authority
when an agent takes actions that are considered customary for the profession in order
to represent their agent's interests.
Agency by ratification
is when a license holder acts without authorization on behalf of a principal and the
principal accepts those actions after the fact, thus affirming the actions taken and
creating retroactive agency.
Ostensible agency
occurs when a principal allows a license holder to act in such a way as to cause a third
party to believe that the license holder is the principal's agent.
Agency by estoppel
Review, Verified Solution
Here are the four major types of agency acts:
Listing
Buying
Leasing
Property Management
TREC's purpose is to
regulate educational and licensing programs that maintain standards AND interpret
legislation that affects the real estate profession — primarily the Texas Real Estate
License Act (TRELA).
Integrity
Satisfy to the commission (TREC) that the candidate meets and exceeds their character
standards (honesty, trustworthiness, and integrity).
Competence
Demonstrate competence by passing the licensing exam.
Broker:
An individual licensed by TREC to perform brokerage duties; sponsors sales agents to
represent clients on their behalf
Sales agent:
An individual holding a sales agent license from TREC who is sponsored by a broker
License holder
A broker or a sales agent licensed by TREC
REALTOR
A licensed sales agent who is a member of the National Association of REALTORS®.
Brokers are
liable for all sponsored actions committed by their sales agents.
Sales agents represent
their broker in all transactions in real estate dealings and transactions.
Listing Agent:
A broker representing a seller in a real estate transaction, a.k.a. seller's agent, seller's
broker, or listing broker
Buyer's Agent:
A broker representing a buyer in a real estate transaction, a.k.a. selling agent, buyer's
broker, or selling broker
Tenant's Agent
A broker representing a tenant in a real estate transaction
Landlord's Agent:
A broker representing a landlord in a real estate transaction
Principal
The major parties of the transaction (the buyer and seller or landlord and tenant) or a
party who has authorized an agent to represent them
Client (principal)
, Anyone who has an agency relationship with you or your broker is your client
Customer
A party to the transaction who has an agency relationship with another license holder
Third Party
All non-client parties to a transaction, including real estate professionals
Types of Principles:
Seller: Party seeking to sell their property in a real estate transaction
Buyer: Party seeking to buy property in a real estate transaction
Tenant: Party who occupies land or property rented from a landlord
Landlord: Party who rents land or property to a tenant
Client Vs Customer:
A broker/agent works for a client.
A broker/agent works with a customer.
Agency relationships require the consent of both parties (client and agent), which
can be demonstrated by one of three methods:
Written agreement
Oral agreement
Action
Agency relationships are
fiduciary relationships; The client's interest must always come first.
the principal authorizes:
the agent to represent their interests.
The fiduciary duties (OLD CAR)
obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care
Real estate brokerage
is a type of agency
Express Authority
when a client has given an agent explicit permission for an action.
Express authority can be given
both verbally or through a written agreement.
Implied authority
when an agent takes actions that are considered customary for the profession in order
to represent their agent's interests.
Agency by ratification
is when a license holder acts without authorization on behalf of a principal and the
principal accepts those actions after the fact, thus affirming the actions taken and
creating retroactive agency.
Ostensible agency
occurs when a principal allows a license holder to act in such a way as to cause a third
party to believe that the license holder is the principal's agent.
Agency by estoppel
