Law of Agency QUESTIONS AND
ANSWERS
What is Agency? - ANSWER>>One person the AGENT acts for or on behalf of another person,
the principle also known as the client.
TRELA (Texas Real Estate License Act) - ANSWER>>The purpose is to protect the public against
unscrupulous brokers/agents.
Cooperative Broker - ANSWER>>A broker selling the listing of another broker
A Principal/client/seller has certain duties & responsibilities to an agent these include -
ANSWER>>Compensation
Reimbursement
Indemnification
Performance
Indemnification - ANSWER>>The principle will protect the agent from suffering a loss due to the
agents reliance on information received from the principle.
EX ; the seller knows the foundation is messed up but doesn't tell agent, the seller
misrepresented the property in the sellers disclosure
Express Authority - ANSWER>>The power to act for the principle/client in all transactions
ex; A written listing agreement or buyer representation agreement is evidence that the agency
relationship exists and provides the agent with
Implied Authority - ANSWER>>an agent's authority to do things not specifically authorized in
order to carry out express authority
for example homeowner can expect the listing agent to make appointments to show the
property, not only during business hours but on weekends and in the evenings. this authority is
defined as -
fiduciaries are: - ANSWER>>Held to the highest degree of good faith, Required to exclude
selfish interest, Require to make disclosures of all relevant facts
AGAIN EX: when the agent acts for on behalf of the principle/client.
, A real estate broker who becomes an agent of a seller or buyer, either intentionally through the
execution of. a written agreement, or unintentionally by a course of conduct
General Agency - ANSWER>>EX: Property manager
obidience - ANSWER>>An agent is obligated to follow all lawful instructions of the client
Accounting / conversion - ANSWER>>When a broker spends his or hers clients funds without
authorization that broker is guilty of conversion
If the prospect is a buyer the goal is to secure what - ANSWER>>the buyer as a client
Agency relationships are terminated by - ANSWER>>- The expiration of the period stated in the
listing contract
- At any time by mutual agreement. The parties are certainly free to terminate the agreement
- Bankruptcy of either party
Duties of agency that survive termination - ANSWER>>The duties of an agent do not end in
termination or expiration of an agency relationship. The duty of confidentiality extends forever
into the future.
TREC rules for advertising - ANSWER>>DO NOT USE : company, brokerage, associates
MAY USE : Realty (followed by team or group)
MUST USE : team, group
TREC RULES Advertising and Social Media - ANSWER>>The brokers logo does not generally
count as the brokers name unless it contains either the broker licensed name or assumed
business name (DBA in full not a short version of it, it is important to make a PRINTED NAME IS
1/2 the size of the largest contact info in the AD.
Seller's Disclosure Notice - ANSWER>>the seller is responsible for its accuracy. The agent's role
is to encourage honesty and full disclosure.
Stigmatized Property - ANSWER>>someone adverse event occurs on-site , or people believe
that a past event or condition affects it
EX; the house is haunted
A property can be stigmatized for several reasons: - ANSWER>>Death on property
ANSWERS
What is Agency? - ANSWER>>One person the AGENT acts for or on behalf of another person,
the principle also known as the client.
TRELA (Texas Real Estate License Act) - ANSWER>>The purpose is to protect the public against
unscrupulous brokers/agents.
Cooperative Broker - ANSWER>>A broker selling the listing of another broker
A Principal/client/seller has certain duties & responsibilities to an agent these include -
ANSWER>>Compensation
Reimbursement
Indemnification
Performance
Indemnification - ANSWER>>The principle will protect the agent from suffering a loss due to the
agents reliance on information received from the principle.
EX ; the seller knows the foundation is messed up but doesn't tell agent, the seller
misrepresented the property in the sellers disclosure
Express Authority - ANSWER>>The power to act for the principle/client in all transactions
ex; A written listing agreement or buyer representation agreement is evidence that the agency
relationship exists and provides the agent with
Implied Authority - ANSWER>>an agent's authority to do things not specifically authorized in
order to carry out express authority
for example homeowner can expect the listing agent to make appointments to show the
property, not only during business hours but on weekends and in the evenings. this authority is
defined as -
fiduciaries are: - ANSWER>>Held to the highest degree of good faith, Required to exclude
selfish interest, Require to make disclosures of all relevant facts
AGAIN EX: when the agent acts for on behalf of the principle/client.
, A real estate broker who becomes an agent of a seller or buyer, either intentionally through the
execution of. a written agreement, or unintentionally by a course of conduct
General Agency - ANSWER>>EX: Property manager
obidience - ANSWER>>An agent is obligated to follow all lawful instructions of the client
Accounting / conversion - ANSWER>>When a broker spends his or hers clients funds without
authorization that broker is guilty of conversion
If the prospect is a buyer the goal is to secure what - ANSWER>>the buyer as a client
Agency relationships are terminated by - ANSWER>>- The expiration of the period stated in the
listing contract
- At any time by mutual agreement. The parties are certainly free to terminate the agreement
- Bankruptcy of either party
Duties of agency that survive termination - ANSWER>>The duties of an agent do not end in
termination or expiration of an agency relationship. The duty of confidentiality extends forever
into the future.
TREC rules for advertising - ANSWER>>DO NOT USE : company, brokerage, associates
MAY USE : Realty (followed by team or group)
MUST USE : team, group
TREC RULES Advertising and Social Media - ANSWER>>The brokers logo does not generally
count as the brokers name unless it contains either the broker licensed name or assumed
business name (DBA in full not a short version of it, it is important to make a PRINTED NAME IS
1/2 the size of the largest contact info in the AD.
Seller's Disclosure Notice - ANSWER>>the seller is responsible for its accuracy. The agent's role
is to encourage honesty and full disclosure.
Stigmatized Property - ANSWER>>someone adverse event occurs on-site , or people believe
that a past event or condition affects it
EX; the house is haunted
A property can be stigmatized for several reasons: - ANSWER>>Death on property
