Principles of Real Estate Agency Unit 1

Agency is

• a real estate brokerage.
• the operation of a business.
• one person acting on behalf of another.
• one person giving advice to another.

An agent works on behalf of

• a customer.
• a client.
• both a customer and a client.
• neither a customer not a client.

TRELA

• enforces the License Act.

• may appoint an administrator for the TREC.

• is a primary law that regulates the conduct of the real estate licence holders.

• is the law established by the TREC in the rule-making authority.

The Texas Real Estate Commission

• does not hold the broker accountable for the actions of sponsored associates.
• holds the broker accountable for the professional actions of sponsored associates.
• holds buyers or sellers accountable for the acts of their real estate brokers and sales agents.

B, a broker, is representing Smith, a buyer. In a real estate transaction, Smith is considered

• a customer of B.
• a fiduciary of B.
• a client of B.
• an agent for B.

A person who engages an agent to represent her interests in a transaction is called a client, or

• a customer of the agent.
• a seller.
• a buyer.
• the agent's principal.

A key distinction between the services given to clients versus those given to customers are given to clients versus those given to customers is that

• advice, opinions, and advocacy are given to clients, not customers.
• more advice and opinions are offered to the customer.
• customers get advice and opinions free, while clients must pay.
• clients must have a contract to receive services, while customers do not.

A license holder not associated with the listing broker who represents the seller through the listing broker is known as

• a buyer's agent.
• an intermediary.
• a seller's agent.
• a subagent.

One of the BEST ways a broker might protect against agency problems is to

• never represent buyers.

• never discuss agency issues with the parties.

• always treat both parties as valued customers and treat them fairly, giving them both the same level of service.

• develop a clear, written office policy regarding agency issues and require that it be followed by the broker's agents.

An important reason to study agency today is

• to better represent customers.

• the increased litigation against agents.

• to be able to settle legal disputes between buyers and sellers.

• because commissions are greater to the agent when agency law is followed.