Texas Law of Agency- CE Source Revision Exam Questions Fully Answered.
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Course
Texas Code Enforcement CE
Institution
Texas Code Enforcement CE
Which entity may act independently in conducting a real estate transaction? - Answer Broker
Which of the following is NOT a growing trend in real estate transactions?
1. Lower consumer expectations.
2. Use of buyer brokerage.
3. Legal protections for consumers.
4. Greater licensee pro...
Texas Law of Agency- CE Source
Revision Exam Questions Fully
Answered.
Which entity may act independently in conducting a real estate transaction? - Answer Broker
Which of the following is NOT a growing trend in real estate transactions?
A licensee is prohibited from performing which of the following for a customer?
1. Discuss different types of mortgages.
2. Handle the customer's money .
3. Show the customer the property.
4. Convey information from the seller. - Answer 2. Handle the customer's money. This is a fiduciary duty
and a licensee agent cannot be a fiduciary for a customer.
Nearly every state requires
1. representation of the seller..
2. representation of the buyer..
3. written or oral disclosure of agency..
4. dual agency.. - Answer 3. written or oral disclosure of agency
Where in the Texas Administrative Code are the rules pertaining to real estate professionals?
,1. Title 18.
2. Title 20.
3. Title 22.
4. Title 24. - Answer 3. Title 22 - Title 22 of the Texas Administrative Code (TAC) governs real estate
professionals..
To a real estate agent, the difference between a client and a customer is best described by which of the
following statements?
1. The agent has a duty of fairness to a client and a fiduciary duty to a customer. .
2. The agent has a fiduciary duty to neither the client nor the customer..
3. The agent has a duty of fairness to both the client and the customer..
4. The agent has a fiduciary duty to a client and a duty of fairness to a customer.. - Answer 4. The agent
has a fiduciary duty to a client and a duty of fairness to a customer - A licensee works with a customer
and for a client.
A broker who assumes responsibility for the real estate brokerage activities of a sales agent is called a
1. broker associate..
2. subagent..
3. sponsoring broker..
4. fiduciary.. - Answer 3. sponsoring broker
Can the buyer in a real estate transaction ever be considered a client?
1. No, only sellers are clients because they work with agents..
2. Yes, if the buyer has a buyer's agent..
3. No, TRELA defines "client" as a seller. .
4. Yes, only if the buyer agrees to use the seller's agent.. - Answer 2. Yes, if the buyer has a buyer's
agent.
,Which is NOT noted as a reason for studying agency law?
1. Increased commission fees.
2. Increased complexity of transactions.
3. Increased litigation.
4. Greater consumer expectations. - Answer 1. increased commission fees - Fees are not considered
under the concept of agency, but rather they are the compensation agreed to between the broker and
the consumer to whom the broker has agreed to provide service. ..
TREC is BEST described as an agency that
1. protects consumers..
2. manages real estate..
3. settles law suits among licensees..
4. determines real property tax rates.. - Answer 1. protects consumers - If TREC receives a complaint
about the practice of a licensee who has violated TRELA, it may investigate the complaint and take the
appropriate action, which could result in fines and/or suspension or revocation of the license. .
One of the principals to a real estate transaction is considered which of the following?
1. An offeror.
2. An offeree.
3. A party .
4. A broker . - Answer 3. A party - A broker is not a party in the real estate transaction but may be a
party to a listing agreement..
A professional real estate licensee
1. is skilled in every area and never needs the help of other professionals..
2. is protected by the common law for making errors and misrepresentations when giving advice and
counsel about technical areas for which they are neither licensed nor experienced..
, 3. may do a home inspection as part of the duties and responsibilities of the holder of a real estate
license..
4. knows when it is time to enlist the help of other professionals.. - Answer 4. knows when it is time to
enlist the help of other professionals
As an agent of the broker, sales associates generally do NOT
1. give opinions as to the market value of residential properties..
2. sign listing and buyer agency contracts..
3. reject offers from prospective buyers that are below the listing price..
4. sign property management agreements.. - Answer 3. reject offers from prospective buyers that are
below the listing price..
After prolonged negotiations, a seller has accepted the buyer's price offer. The buyer is eager to move
ahead, but needs to change the closing date by one week. Can the seller's agent change the closing date
without involving the seller?
1. Yes, because the seller has approved the price offer..
2. Yes, reasonable care allows agents to adjust minor terms..
3. No, the change cannot be made without the client's approval..
4. No, once the price has been accepted, other contract terms cannot be changed.. - Answer 3. No, the
change cannot be made without the client's approval..
Broker Bob operates an office with five sponsored salespeople. Bob is the agent representing seller Sam
on the sale of his ranch. Steve, a sales agent who is sponsored by Bob, overhears a conversation in which
Sam says he'd be willing to divide the land into smaller parcels if he does not have a reasonable offer
within 90 days. Steve's cousin would like to buy a portion of Bob's land. Can Steve share what he
overheard to help the client with an eventual sale?
1. Yes, Steve can share this information because he is not the agent of record..
2. Yes, Steve can share this information because he want to assist in a sale..
3. No, Steve shares the obligations of loyalty and confidentiality to the broker's client..
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