Texas Law of Agency Q&A
Agency - - ANSWER A relationship established between a principal and a real
estate agent
Agent - - ANSWER The person who is authorized to represent and act on the behalf
of another person
Brokerage Agreement - - ANSWER A written or oral agreement for brokerage
services in exchange for compensation
Client - - ANSWER A person who is being represented by an agent
Consumer - - ANSWER A person requesting or receiving licensed services
Customer - - ANSWER A person who is not represented by an agent, but receiving
ministerial acts
Ministerial Acts - - ANSWER Acts performed by a licensed agent for a customer that
are informative or clerical in nature
Fiduciary Relationship - - ANSWER A relationship in which one party places special
trust, confidence, and reliance in another
Principal - - ANSWER The person who hires the agent and delegates to the agent
the responsibility of representing the principal's interests
In most instances, real estate brokerage is based on a ______ agency. - ANSWER
special
An agency coupled with an interest is (2 things) - ANSWER an agency relationship
in which the agent has an interest in the property that is being sold. ; cannot be
revoked by the principal, nor is it terminated if the principal dies
the client is responsible for - ANSWER what the agent does
Agency is always formed at the _____ level - ANSWER broker
The salesperson has the power to create _____ - ANSWER agency on behalf of the
broker through his or her independent contractor agreement.
A property owner or a buyer is a customer until - ANSWER an agency relationship is
created.
duty agent - ANSWER person who is given the opportunity to answer the phones or
greet someone walking off the street in an attempt to find leads
,Single agency is - ANSWER when a licensee represents a either a seller/landlord or
a buyer/tenant directly and exclusively as an agent.
Single agency relationship is - ANSWER normally bound by a written agency
agreement, or listing agreement having a specified and limited duration.
Subagency is practiced between - ANSWER brokerage firms where "cooperating"
licensees, of other firms, are subagents of the listing supervising broker of the
principal.
A subagent is a license holder who: - ANSWER -- Represents a principal through
cooperation with a broker, and the consent of a broker representing the principal:
and
-- Is not sponsored by, or associated with the principal's broker
Intermediary agency is - ANSWER where a licensee represents both sides of a
transaction in an agent-client capacity
intermediary agency can occur in two ways: - ANSWER -- The supervising broker or
a single licensee represents both parties.
-- One of the principal broker's agents represents a seller and another of his agents
represents a buyer.
A broker may act as an intermediary between parties to a real estate transaction if
both of the following are true: - ANSWER -- The broker obtains written consent from
each party for the broker to act as an intermediary in the transaction.
-- The written consent states the source of any expected compensation to the broker.
in an intermediary, A license holder may be appointed if - ANSWER the broker
provides written notice of the appointment to all parties.
Texas law requires that seller agents provide to a party to a real estate transaction at
the time of ____ a ______ - ANSWER the first substantive dialogue a "written
statement" that explains in general terms the positions of seller representation,
subagency, buyer representation, and the intermediary position.
the term "substantive dialogue" means - ANSWER a meeting or written
communication that involves a substantive discussion relating to specific real
property.
buyer/tenant agents must disclose agency - ANSWER relationship at first contact
with the seller, landlord, or either party's agent. If made to the listing agent, the listing
agent becomes responsible for conveying the agency disclosure to the principal.
in intermediary agency, both parties must give - ANSWER written consent prior to or
at the time of execution of a transaction-related document. The parties at this point
have provided informed, written consent and may move forward with the
intermediary agency representation.
, Principal aka ___; agent aka ____ - ANSWER client; broker
Licensees derive their responsibilities from - ANSWER their broker
The best way to turn a customer into a client is by - ANSWER filling out a listing
agreement form or a buyer representation form
oral agreements can be express agency as long as the relationship is - ANSWER
clear, concise, and understandable.
The most important task a broker needs to perform with the seller-principal is to -
ANSWER give a market analysis of what the property is worth.
gratuitous agency - ANSWER times when a broker may choose to work for free,
such as selling his or her mother's home.
when a court declares that the licensee was acting like an agent - ANSWER
ostensible agency
agency after the fact. - ANSWER The licensee performed an unauthorized act.
The owner learned of the unauthorized act.
The owner did not deny what the licensee had done.
The owner benefited from the unauthorized act.
A principal can have only one - ANSWER universal agent
If the promise to pay the commission was done orally, - ANSWER there is nothing
the broker can do to receive the commission because no court will hear the case
unless the promise to pay was in writing.
The duties that the agent owes his or her principal are: - ANSWER Care
(Reasonable care)
Obedience
Accountability
Loyalty
Disclosure or Notice
An agent is liable to the principal for any loss that results from - ANSWER
carelessness or negligence.
Brokers must also give copies of documents to everyone who is affected by them
and retain these documents for - ANSWER at least three years.
a licensee is required to disclose - ANSWER any personal interest he or she has in
a property.
__________ about the principal's affairs is an important aspect of loyalty. - ANSWER
Confidentiality
the agent must disclose _____ facts about the property. - ANSWER material
Agency - - ANSWER A relationship established between a principal and a real
estate agent
Agent - - ANSWER The person who is authorized to represent and act on the behalf
of another person
Brokerage Agreement - - ANSWER A written or oral agreement for brokerage
services in exchange for compensation
Client - - ANSWER A person who is being represented by an agent
Consumer - - ANSWER A person requesting or receiving licensed services
Customer - - ANSWER A person who is not represented by an agent, but receiving
ministerial acts
Ministerial Acts - - ANSWER Acts performed by a licensed agent for a customer that
are informative or clerical in nature
Fiduciary Relationship - - ANSWER A relationship in which one party places special
trust, confidence, and reliance in another
Principal - - ANSWER The person who hires the agent and delegates to the agent
the responsibility of representing the principal's interests
In most instances, real estate brokerage is based on a ______ agency. - ANSWER
special
An agency coupled with an interest is (2 things) - ANSWER an agency relationship
in which the agent has an interest in the property that is being sold. ; cannot be
revoked by the principal, nor is it terminated if the principal dies
the client is responsible for - ANSWER what the agent does
Agency is always formed at the _____ level - ANSWER broker
The salesperson has the power to create _____ - ANSWER agency on behalf of the
broker through his or her independent contractor agreement.
A property owner or a buyer is a customer until - ANSWER an agency relationship is
created.
duty agent - ANSWER person who is given the opportunity to answer the phones or
greet someone walking off the street in an attempt to find leads
,Single agency is - ANSWER when a licensee represents a either a seller/landlord or
a buyer/tenant directly and exclusively as an agent.
Single agency relationship is - ANSWER normally bound by a written agency
agreement, or listing agreement having a specified and limited duration.
Subagency is practiced between - ANSWER brokerage firms where "cooperating"
licensees, of other firms, are subagents of the listing supervising broker of the
principal.
A subagent is a license holder who: - ANSWER -- Represents a principal through
cooperation with a broker, and the consent of a broker representing the principal:
and
-- Is not sponsored by, or associated with the principal's broker
Intermediary agency is - ANSWER where a licensee represents both sides of a
transaction in an agent-client capacity
intermediary agency can occur in two ways: - ANSWER -- The supervising broker or
a single licensee represents both parties.
-- One of the principal broker's agents represents a seller and another of his agents
represents a buyer.
A broker may act as an intermediary between parties to a real estate transaction if
both of the following are true: - ANSWER -- The broker obtains written consent from
each party for the broker to act as an intermediary in the transaction.
-- The written consent states the source of any expected compensation to the broker.
in an intermediary, A license holder may be appointed if - ANSWER the broker
provides written notice of the appointment to all parties.
Texas law requires that seller agents provide to a party to a real estate transaction at
the time of ____ a ______ - ANSWER the first substantive dialogue a "written
statement" that explains in general terms the positions of seller representation,
subagency, buyer representation, and the intermediary position.
the term "substantive dialogue" means - ANSWER a meeting or written
communication that involves a substantive discussion relating to specific real
property.
buyer/tenant agents must disclose agency - ANSWER relationship at first contact
with the seller, landlord, or either party's agent. If made to the listing agent, the listing
agent becomes responsible for conveying the agency disclosure to the principal.
in intermediary agency, both parties must give - ANSWER written consent prior to or
at the time of execution of a transaction-related document. The parties at this point
have provided informed, written consent and may move forward with the
intermediary agency representation.
, Principal aka ___; agent aka ____ - ANSWER client; broker
Licensees derive their responsibilities from - ANSWER their broker
The best way to turn a customer into a client is by - ANSWER filling out a listing
agreement form or a buyer representation form
oral agreements can be express agency as long as the relationship is - ANSWER
clear, concise, and understandable.
The most important task a broker needs to perform with the seller-principal is to -
ANSWER give a market analysis of what the property is worth.
gratuitous agency - ANSWER times when a broker may choose to work for free,
such as selling his or her mother's home.
when a court declares that the licensee was acting like an agent - ANSWER
ostensible agency
agency after the fact. - ANSWER The licensee performed an unauthorized act.
The owner learned of the unauthorized act.
The owner did not deny what the licensee had done.
The owner benefited from the unauthorized act.
A principal can have only one - ANSWER universal agent
If the promise to pay the commission was done orally, - ANSWER there is nothing
the broker can do to receive the commission because no court will hear the case
unless the promise to pay was in writing.
The duties that the agent owes his or her principal are: - ANSWER Care
(Reasonable care)
Obedience
Accountability
Loyalty
Disclosure or Notice
An agent is liable to the principal for any loss that results from - ANSWER
carelessness or negligence.
Brokers must also give copies of documents to everyone who is affected by them
and retain these documents for - ANSWER at least three years.
a licensee is required to disclose - ANSWER any personal interest he or she has in
a property.
__________ about the principal's affairs is an important aspect of loyalty. - ANSWER
Confidentiality
the agent must disclose _____ facts about the property. - ANSWER material
