Buyer Agency

In Texas, when a buyer contracts with a buyer's broker, determining which broker was the procuring cause of the sale, and therefore deserving of the commission, Mark only one oval.

• will be extremely difficult.

• is generally a nonissue.

• must be submitted for arbitration.

• will be negotiated between the listing broker and the cooperating buyer's broker.

Jeff paid a retainer fee to Elena, who agreed to serve as his buyer's broker. According to TREC rules, what must Elena do with the retainer fee? Mark only one oval.

• Keep the retainer fee in her operating account

• Deposit the money in a trust account

• Give the retainer fee to the seller’s broker

• Interplead the fee to a court until closing

Is it permissible for a seller to pay a buyer's broker fee? Mark only one oval.

• No, only the buyer can pay that fee.

• No, only the seller's broker can pay that fee.

• Yes, it can be decided at the closing.

• Yes, it should be stated in the contract.

Allisa, a licensed sales associate, transfers sponsorship of her license from Bay Area Realty to Crystal City Realty. What is TRUE regarding the buyer agency agreement Allisa signed with George while still with Bay Realty? Mark only one oval.

• George is now a client of Crystal City Realty.

• George is now Allisa's client.

• George remains a client of Bay Area Realty.

• The buyer agency agreement became null and void as soon as Allisa transferred.

Broker Sue of Holy Loch Realty has scheduled several showings for Gus, a buyer-client. One of the showings is for a property on Loch Awe Road. Three years ago, Sue was in a buyer-agency relationship with the current owner in the purchase of that property. In regard to the property on Loch Awe Road, which of the following is the BEST answer? Mark only one oval.

• Sue cannot reveal any confidential information to Gus that was obtained during her buyer agency relationship with the current owner.

• Sue should disclose to Gus her previous agency relationship with the owner.

• Sue must disclose all of these.

• Sue has a legal and ethical responsibility to disclose her previous relationships.

According to its licensing law, which of the following items is required in a buyer-representation contract in Texas? Mark only one oval.

• Conflict-of-interest clause

• Termination date

• Single-property stipulation

• Maximum commission fee

Which of the following statements BEST describes a benefit of buyer agency to the broker? Mark only one oval.

• Fewer legal or ethical regulations

• Easier licensing procedure

• No fiduciary responsibility

• No liability for acts of the listing agent

Which of the following BEST explains why a buyer's broker may prefer to be paid directly by the buyer? Mark only one oval.

• Remove control of payment from a nonclient

• Buyers pay higher rates than typical commission splits

• Opportunity to collect two commissions

• Receive payment even if transaction is not completed

When must the Information About Brokerage Services Notice be given to a party in a real estate transaction? Mark only one oval.

• At the first substantive communication

• At the first face-to-face meeting

• Before the contract is executed by both parties

• Before the contract is closed

Panchito is a broker and has a buyer representation agreement with a buyer. May Panchito be compensated by both the buyer and the seller? Mark only one oval.

• Yes, but only with the full knowledge and consent of both parties

• Yes, with the buyer’s consent

• No, he can never receive compensation from other party

• Yes, with the consent of the other party