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Texas Specific Exam 02 Question and answers rated A+
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Texas Specific Exam 02 Question and answers rated A+In which of the following situations can a licensee legally and ethically accept a net listing? A) Only when the principal understands current market values and requires a net listing. B) Anytime the seller agrees, as long as the agent earns n...

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  • July 20, 2024
  • 21
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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  • Real Estate Brokerage
  • Real Estate Brokerage

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Texas Specific Exam 02
Texas Specific Exam 02
2024/2025 In which of the following situations can a licensee legally and ethically accept a net listing?
A) Only when the principal understands current market values and requires a net listing.
B) Anytime the seller agrees, as long as the agent earns no more than 10% of
the sale proceeds.
C) Whenever the sale price exceeds the owner's asking price by at 25%.
D) Only when he is representing both parties of a transaction - correct answer
✔A) Only when the principal understands current market values and requires a net listing.
*Net listings are discouraged because they enable the agent to place personal
interests above the principal's interests. Net listings should only be executed when the principal is familiar with market values and requires a net listing. The
licensee should always work diligently to obtain the best price possible for the principal and although commissions are always fully negotiable, a maximum should be set for the amount to be earned on a net listing.
It is the responsibility of a broker to let clients know that a real estate recovery trust account exists to pay damages to aggrieved persons. Which of the following ways is NOT an acceptable method to communicate to clients the availability of this trust account?
A) Through a written contract for the license or certificate holder's services.
B) In a brochure that the license or certificate holder distributes.
C) On a bill or receipt for professional services.
D) By directing them to the web site of the Texas Real Estate Commission. - correct answer ✔D) By directing them to the web site of the Texas Real Estate Commission. *A broker has the responsibility to let clients know that a real estate recoverey trust account exists to pay damages to aggrieved persons. This information can be communicated through: a written contract for the license or certificate holder's services; on a brochure that the license or certificate holder distributes; on a prominent sign in the broker's place of business; on a bill or receipt for professional services; in a prominent display on the website of a regulated person. The notice must include the commission's name, mailing address, and telephone number. Directing clients to the TREC website is not sufficient notification.
Subagency is ______ in Texas, while undisclosed dual agency is______ in Texas.
A) illegal, legal
B) legal, legal
C) legal, illegal
D) illegal, illegal - correct answer ✔C) legal, illegal
*Subagency is allowed in Texas while undisclosed dual agency is not.
What is required of a seller's agent who shows a property to a prospective buyer?
A) The seller's salesperson must advise the buyer to enter into a buyer's representation agreement with a qualified licensee.
B) The seller's salesperson must enter a buyer's representation agreement with the prospective buyer.
C) The seller's salesperson must show the property without any commentary on the relationship with the seller.
D) The seller's salesperson must notify the prospective buyer of the relationship between the salesperson and the seller and the salesperson's

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