Law of Agency

An agency relationship exists when one person, the ______ acts for, or on the behalf of another person, the _____________.

• Client, agent

• Agent, principal

• Principal, agent

• Broker, customer

Which of the following if grounds for suspension or revocation of license by TREC?

• Splitting a commission with a person other than a license holder

• Splitting a commission with Texas real estate license holder

• Disclosing a material defect of a property.

• All of these are grounds for suspension or revocation of license

The commission can deny licensure to applicant based on the applicant's __________.

• Credit score

• IQ

• Moral character

• Lack of college degree

What form must an agent provide to potential client at the first substantive discussion of a real estate transaction?

• Buyer's Representation Agreement

• IABS

• Canons of Professional Ethics for Real Estate Agents

• The VAMA

In real estate, an example of a general agent would be a(n)____________.

• Property manager

• Escrow agent

• Cooperative Broker

• Intermediary

When a agent and potential party enter into a ___________ discussion of a real estate transaction, the party must be provided with a TREC-prescribed agency information form. First contact/orally or written.

• ""written-only"

• "orally only"

• "face-to-face"

• "substantive"

TREC rules define ____________ as any form of communication on behalf of a license holder designed to attract the public to use real estate brokerage services.

• Realty

• Marketing

• Advertisement

• Fraud

If any person violates the provisions of the Texas Business and Commerce Code, Fraud in Real Estate and Stock Transaction, he or she is liable to the person defrauded for:

• Attorney's fees

• Expert witness fees

• court fees

• All of these

According to TREC's advertising rules, which of the following terms MUST be used in a real estate team name?

• Company

• Realty

• Associates

• Group

The ____________ is usually a fixed percentage of the sles price negotiated between the broker and the client, payable to the broker.

• HOA fees

• Earnest money

• Broker's fee

• Down payment