Texas Law of Agency 2

Texas Law of Agency Q&A


1-1
A special agent is also referred to as a(n): - ANSWER limited agent

1-2
The role of the _____ never changed in a listing or buyer representation agreement:
- ANSWER third party

1 Exam
In Texas, a broker may offer a limited form of representation to both parties called: -
ANSWER intermediary

1 Exam
The role of each cast member (agent, principal, third party) plays is determined by
the type of _____ used. - ANSWER employment agreement

1 Exam
A(n) _____ is someone who seeks the services of a real estate broker without the
protection of an agency relationship. - ANSWER customer

1 Exam
A(n) _____ is a written document that gives a person legal authority to act on behalf
of another person. - ANSWER power of attorney

1 Exam
Agency relationships are party of the body of law called the: - ANSWER law of
agency

1 Exam
A broker is a person who holds a broker license issued by: - ANSWER TREC

1 Exam
In a real estate agency relationship, an agent is anyone who acts on behalf of
another. Though a salesperson can and does act on behalf of a client, the formal
relationship is with the: - ANSWER broker

1 Exam
A client is represented by a(n): - ANSWER agent

2 Exam
A new listing comes on the market and you immediately show it to your buyer-client.
The next day, the listing agent informs you that the sellers are moving out-of-state
and need the property sold by the end of the month. As a buyer's agent, you are: -
ANSWER required to disclose this information ASAP
(your client is entitled to know whatever facts you know as soon as you have
knowledge.)

, 2 Exam
Reasonable care, also known as due care, refers to: - ANSWER the amount of care
that an average, rational person would take under the same or similar
circumstances.

2 Exam
A listing agent must disclose to a third party all of the following, except: - ANSWER -
known defects in the property
-AN AGENT'S OPINION OF VALUE OF PRICE
-soil or drainage problems
-matters affecting title

2 Exam
As a listing agent, which of the following requires disclosure to both buyer and
seller? - ANSWER -CONDITIONS AFFECTING TITLE
-ITEMS RELATING TO SURVEY OR LOGICAL INFO
-ENVIRONMENTAL ISSUES OR HEALTH SAFETY HAZARDS

2 Exam
The willingness to follow the orders of others is known as: - ANSWER obedience

2 Exam
Information shared between agent and client should remain in confidence: -
ANSWER -UNLESS THE CLIENT PROVIDES WRITTEN PERMISSION FOR IT TO
BE DISCLOSED
-until the other party asks
-EVEN AFTER THE TRANSACTION HAS BEEN COMPLETED

2 Exam
What is a fiduciary duty of the agent? - ANSWER acting with the utmost trust,
confidence, honesty, and loyalty.

2 Exam
Puffing is a statement of _____ that is not factual, about a piece of property. -
ANSWER opinion
(puffing describes an opinion made by an agent who honestly believes that the
inflated statement about the condition of a property is just another innocent way to
make a sale.)

2 Exam
After signing a listing agreement, Tim decided not to sell his house. The broker had
found a buyer for Tim's house. Which of the following is true? - ANSWER Tim may
choose to not sell his house, but may still have to pay the broker a commission.

2 Exam
You own a property and plan on selling it. Ideally, you should disclose the fact that
you have a real estate license: - ANSWER before the property is shown to a
prospect.