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WorksheetsTexas Law of Agency Quiz Questions (120 questions)
Total questions: 120
Worksheet time: 3600secs
One who acts for and with authority from another, called the principal, is known as a/an...?
Agent
Attorney
Employee
Partner
If an individual works as an associate broker, who must they work under...?
An associate licensee
An associate broker does not work under anyone
A real estate salesperson
A sponsoring broker
The Information About Brokerage Services form is presented by the broker to the...?
Associate agent
Escrow agent
Agent
Prospective client
Agency between a broker and principal is created through a/an...?
Listing contract
Purchase contract
Independent contractor agreement
Any of the above
The party the agent brings to the principal as a seller or buyer of the property is known as a/an...?
Partner
Customer
Associate
Associate
Which of the following can legally employ a real estate salesperson to work on their behalf...?
An associate broker
A real estate broker
Another real estate salesperson
A real estate associate
Which of the following has the highest authority in an agency relationship...?
Real estate salesperson
Real estate broker
Associate licensee
Associate broker
A real estate broker may sponsor which of the following...?
Associate licensee
Real estate salesperson
Associate broker
All of the above
A real estate broker works for which of the following in a transaction...?
The customer
The lender
The principal
All of the above
Statutory law is derived from which of the following...?
Court decisions
Legislation
Judge rulings
Common actions
Which of the following is the most restrictive type of agency...?
Special agency
General agency
Specific agency
Universal agency
A listing contract is signed between a principal and a...?
Real estate broker
Any of the above
Real estate salesperson
Associate licensee
According to this fiduciary duty, an agent must meet deadlines set by the principal and/or client...?
Obedience
Loyalty
Confidentiality
Reasonable care and diligence
According to this fiduciary duty, an agent must keep confidential any information that may weaken the principal's bargaining position...?
Reasonable care
Loyalty
Confidentiality
Obedience
Any fact that would influence the decision of a reasonably prudent person is known as a/an...?
Implied fact
Material fact
Constructive fact
Impartial fact
David is serving as a power of attorney for Sarah. David is serving as what type of agent...?
Universal agent
General agent
Specific agent
Special agent
A buyer representation agreement between a buyer and broker creates what type of agency...?
General agency
Special agency
Specific agency
Universal agency
This is a fiduciary relationship that obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract?
Loyalty
Accountability
Confidentiality
Obedience
An agent with limited authority to act on behalf of the principal is known as a...?
General agent
Specific agent
Special agent
Universal agent
This is an agent's duty to place their client's interest above those of all others, including the agent's own self-interest...?
Confidentiality
Loyalty
Accountability
Obedience
Sam recently entered into a buyer representation agreement with a buyer. Which of the following is a third party to the agreement...?
Sam
The seller
The buyer
All of the above
Which of the following is a possible red flag from a seller...?
The seller refuses to disclose certain information on the Sellers Disclosure form
The seller refuses to let buyers know their reason for selling
The seller refuses to reveal the lowest offer they are willing to accept
All of the above
An agent who represents a client owes ..........to that client?
Common duties
Fiduciary duties
Accounting duties
Legal duties
Who is responsible for completing the Seller's Disclosure of Property Condition form...?
The seller's attorney
The buyer
The seller
The seller's broker
Title insurance consists of a contract between an insurance company and a/an...?
Agent
Seller
Broker
Policy holder
Which of the following is considered a physical stigma for a property...?
Lead-based paint
Asbestos
Ground water contamination
All of the above
An attorney provides which of the following, which is based on a property's abstract of title...?
Opinion of title
Official title
Title plan
Survey of title
An agent owes which of the following fiduciary duties to a customer...?
Loyalty
Reasonable care
Obedience
An agent never owes fiduciary duties to a customer
This is a document which precisely shows the property lines, and size and location of improvements on a particular property...?
Topographic map
Survey
Abstract
Roof plan
Under the DTPA, an agent who is found guilty of misrepresentation may be required to pay which of the following...?
Common damages
Substantial damages
Punitive damages
Partial damages
If a broker represents both the seller and buyer, the broker is acting as a/an...?
Partial agent
Net agent
Single agent
Intermediary
Agency that exists as a result of the actions of the parties is known as...?
Partial agency
Implied agency
Express agency
Substantial agency
A listing contract given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is known as a/an...?
Exclusive Right to Sell Agreement
Net Listing
Open Listing
Exclusive Agency Agreement
What must a listing broker disclose at their first substantial dialogue with a prospective buyer...?
The lowest price the seller is willing to accept
The broker's agency relationship with the seller
The seller's motives for selling
All of the above
In order to earn a commission, a broker must secure which of the following...?
A letter of intent from a buyer
An interested buyer
An offer from a buyer
A ready, willing, and able buyer
A listing contract creates what type of agency...?
Universal agency
General agency
Specific agency
Special agency
Which of the following listing agreements offers the most amount of protection for the broker...?
Open Listing
Net Listing
Exclusive Agency Agreement
Exclusive Right to Sell Agreement
Which of the following listing contracts offers the least amount of protection to the broker...?
Exclusive Agency Agreement
Open Listing
Exclusive Right to Sell Agreement
Net Listing
A broker must disclose which of the following to their principal...?
If the broker is receiving an additional commission from another party
How the commission is being split with other brokers
The broker's opinion of value
All of the above
An open listing contract is an example of a/an...?
Non-exclusive listing contract
Exclusive contract
Purchase contract
Net listing contract
Paragraph 17 of the Residential Buyer/Tenant Representation Agreement lists which of the following...?
Confidential information
Attorney's fees
Broker's fees
Special provisions
Sam is a real estate broker who is bringing a buyer to a transaction. If Sam did not sign a buyer representation agreement with the buyer, he will serve as a .............to the seller's broker?
Sub-agent
Customer
Client
Broker
A buyer representation agreement needs to be ............in order for the broker to earn a commission?
Recorded
In writing
Orally created
Implied
Which of the following must be included in a buyer representation agreement...?
The client's duties
The broker's duties
The term of the contract
All of the above
A buyer's agent should not provide which of the following services to the principal...?
Legal services
Appraisal services
Financial services
All of the above
Prior to signing a buyer representation agreement, the buyer operates as a/an .............to the broker?
Employer
Principal
Customer
Client
Which of the following fiduciary duties are owed by a broker to a buyer after signing an exclusive buyer representation agreement...?
Loyalty
Confidentiality
Full disclosure
All of the above
Prior to entering into an agency relationship, a buyer's broker must present the buyer with which of the following forms...?
Information About Brokerage Services
Listing Agreement
Standard Fee Agreement
Seller's Disclosure Form
Which of the following creates an exclusive agency relationship between a buyer and a broker...?
Exclusive right to sell agreement
Exclusive right to purchase agreement
Net Listing agreement
Open buyer agency agreement
A dispute that arises out of a buyer representation agreement must be resolved first through...?
Mediation
Litigation
Arbitration
Civil lawsuit
Which of the following parties must sign the Intermediary Relationship Notice...?
The seller and their broker
Both the buyer and seller
The buyer only
The seller only
Bob is a broker serving as an intermediary in a transaction. He decides to appoint two of his associate licensees to represent the seller and buyer. The associate licensees are prohibited from which of the following actions...?
Disclosing confidential information about either party
Disclosing to the seller that the buyer is willing to pay more than the asking price
Disclosing to the buyer that the seller will accept an offer below the asking price
All of the above
Abraham was assigned to represent a buyer in an intermediary brokerage. What fiduciary duties does Abraham owe to the seller...?
Honesty
Loyalty
Accountability
Obedience
When is written consent not needed for a broker to act as an intermediary...?
If a buyer representation agreement is signed with the buyer
If representation agreements are signed with both the buyer and seller, which allows the broker to act as an intermediary
If the purchase contract grants permission to the broker
If a listing contract is signed with the seller
If an associate licensee is assigned to represent the seller in an intermediary agency transaction, what fiduciary duties does the licensee owe to the seller...?
Reasonable skill and diligence
Loyalty
Confidentiality
All of the Above
Tim is a real estate salesperson who's broker is serving as an intermediary in a transaction. Tim was assigned by his broker to represent the seller in the transaction, while another licensee in the office represented the buyer. Tim is allowed to give advice to which of the following parties...?
Both the seller and buyer
The seller only
Tim is never allowed to give advice if his broker is serving as an intermediary
The buyer
A broker who serves as an intermediary must act fairly and...?
Partially
Impartially
Biased
Reasonably
If a broker acting as an intermediary assigns licensees to represent both the buyer and seller, who becomes responsible for the agency relationships...?
The buyer and seller
The licensee representing the seller
The licensee representing the buyer
The broker is always responsible for the actions of the licensees
Which of the following is needed in order to allow a broker to appoint associate licensees to represent the seller and buyer in an intermediary brokerage...?
Implied consent from all parties
Partial consent from all parties
Oral consent from all parties
Written Consent from all Parties
TRELA allows a broker to act as an intermediary if which of the following is provided...?
Implied consent from all parties
Written consent from all parties
Partial consent from all parties
Oral consent from all parties
What is typically needed to create an agency relationship...?
An implied action by one of the parties
A recorded contract
Mutual Agreement Between the Parties
An agreement by only one of the parties
Which of the following duties does an agent owe to the principal after the agency agreement is terminated...?
Obedience
Confidentiality
Full disclosure
All of the above
Which of the following is an example of a termination of agency by the actions of the parties...?
Execution of the contract
A breach of contract by the agent or principal
Expiration of the contract
Bankruptcy
A listing contract between a seller and broker must be...?
Recorded
In Writing
Oral
All of the above
This type of agency may exist before a listing contract is signed between a broker and seller...?
Partial agency
Substantial agency
Express agency
Agency by estoppel
Which of the following parties primarily benefits from an agency by estoppel...?
The principal
The broker
The customer
The agent
Joe entered into an agency agreement with a buyer. How may Joe's agreement be terminated...?
Expiration of the contract
The buyer rescinds the contract
Fulfillment of the duties by both parties
All of the above
Agency agreements may not have which of the following...?
A stated commission
A termination date
An automatic renewal clause
Any of the above
An agency 'after the fact' is also known as a...?
Agency by ratification
Express agency
Implied agency
Gratuitous agency
What type of agency is typically used in a real estate transaction...?
Express Agency
Implied agency
Agency by estoppel
Agency by ratification
Which of the following is an advantage to working as an intermediary...?
The broker takes on more liability
The broker increases the risk of a conflict of interest
The broker can earn a higher commission
The broker can only offer limited assistance to each party
What is the fourth step in developing a broker's company policies and procedures manual...?
Review the advantages and disadvantages of each agency relationship
Review the size and experience of the broker's office staff
Review the various agency relationships
Write the company policy manual
What is the fifth step in developing a broker's company policies and procedures manual...?
Conduct in-house training sessions and monitor the effectiveness of the manual
Write the company policy manual
Review the various agency relationships
Review the size and experience of the broker's office staff
What is the second step in developing a broker's company policies and procedures manual...?
Review the size and experience of the broker's office staff
Write the company policy manual
Review the various agency relationships
Review the advantages and disadvantages of each agency relationship
What is the third step in developing a broker's company policies and procedures manual...?
Write the company policy manual
Review the various agency relationships
Review the size and experience of the broker's office staff
Review the advantages and disadvantages of each agency relationship
Town Brokers are developing a company policies and procedures manual. What should be included in the manual...?
Matters regarding the competency of agents
Matters regarding advertising rules
Matters regarding continuing education
All of the above
Residential Realty recently started to develop a new policies and procedures manual. What is the second step they need to take in developing the manual...?
Review the size and experience of the broker's office staff
Review the various agency relationships
Review the advantages and disadvantages of each agency relationship
Write the company policy manual
City Realty recently started to develop a new policies and procedures manual. What is the fourth step they need to take in developing the manual...?
Review the size and experience of the broker's office staff
Write the Company Policy Manual
Review the advantages and disadvantages of each agency relationship
Review the various agency relationships
What is the first step in developing a broker's company policies and procedures manual...?
Review the advantages and disadvantages of each agency relationship
Write the company policy manual
Review the size and experience of the broker's office staff
Review the Various Agency Relationships
This document explains to the customer the services offered by the brokerage...?
Brokerage Services Disclosure
The Information About Brokerage Services
Agency Disclosure Form
Listing Contract
Which of the following parties must sign the Independent Contractor Agreement For Sales Associate form...?
Both the Broker and Seller
The agent only
Both the Broker and Agent
The broker only
Which of the following parties may serve as the principal in a transaction...?
Seller
Landlord
Buyer
All of the above
According to the Independent Contractor Agreement For Sales Associate, the salesperson is a member of which associations...?
Texas Institute of Realtors
Texas Bureau of Real Estate
Texas Association of Realtors
All of the above
Alex is a real estate salesperson who recently signed a buyer representation agreement with a buyer; however, Alex decided to leave his broker for a new broker. Who owns Alex's buyer representation agreement...?
Alex only
Alex and his new sponsoring broker
Alex's original sponsoring broker
Alex's new sponsoring broker
Who pays a real estate salesperson their commission for a transaction...?
The salesperson's sponsoring broker
The seller
The buyer
All of the above
Matthew signed an independent contractor agreement with his broker. What is the standard term used in the agreement...?
12 months
24 months
36 months
There is No Standard Term
A real estate salesperson operates as a/an...?
Employer
Independent Contractor
Customer
Consultant
Which of the following must be satisfied in order for an agent to receive a commission from a transaction...?
The Agent Must Have Held a Valid Real Estate License Prior to the Start of the Transaction
The transaction must close
The seller must receive a profit from the transaction, which can be used to pay the broker commission
All of the above
A real estate salesperson must obtain which of the following to cancel or terminate a brokerage service agreement...?
A real estate salesperson does not need anything to terminate a brokerage service agreement
Oral permission from the broker
A real estate salesperson can never terminate a brokerage service agreement
Written Permission from the Broker
According to the Independent Contractor Agreement For Sales Associate, how often is a salesperson required to be present in the broker's office...?
10 hours a week minimum
20 hours a week minimum
40 hours a week minimum
The Salesperson is Not Required to be Present in the Broker's Office
What is the minimum standard of conduct for a real estate professional...?
The law
The TAR code of ethics
The NAR code of ethics
The TAC cannons of ethics
Which of the following was prohibited from being used after 1978...?
Asbestos
Lead-based paint
Wool insulation
Oil-based paint
Which of the following is a protected class under the Federal Fair Housing Act...?
National Origin
Occupation
Occupation
All of the above
Which of the following prohibits discrimination of protected classes in the lending process...?
Equal Credit Opportunity Act
Community Reinvestment Act
Truth-in-Lending Act
Real Estate Settlement Procedures Act
Which of the following laws takes precedent over all other laws...?
Federal law
Local law
State law
County law
Which of the following federal laws requires lenders to disclose to borrowers the actual cost of obtaining a loan...?
Fair Housing Act
ADA
Sherman Anti-Trust Act
TILA
Fraud in the real estate industry is covered in which of the following statutes...?
Uniform Commercial Code
Business and Commerce Code
Texas Fair Housing Act
Texas Constitution
The Texas Property Code requires which of the following in a residential transaction...?
Seller's Disclosure of Property Condition
Commission Disclosure Form
Information About Brokerage Services form
All of the above
Which of the following is considered a reasonable accommodation under the ADA...?
Widening all of the corridors on the first floor of a building
Adding an elevator to a building
Building a Ramp at the Entrance of a Building
All of the above
This is a protected class under the Texas Fair Housing Act, which is not protected under the Federal Fair Housing Act...?
Ancestry
Financial status
Age
All of the above
A written waiver under the DTPA may be enforceable if which of the following is present...?
The waiver does not include the consumer's residence
The consumer is represented by legal council
The total consideration by the consumer is greater than $100,000
All of the Above
The ............is designed to protect the consumers against any false, misleading, or deceptive business practices?
RESPA
ECOA
DTPA
TILA
Lisa is a real estate broker who knowingly committed a violation under the DTPA. Lisa may be held responsible for paying...?
Criminal damages
Nominal damages
Liquidated damages
Punitive Damages
How many misleading acts are listed under the DTPA...?
12
25
50
75
Under the DTPA, if a consumer suffered $5,000 in loses, how much may they recover in punitive damages...?
$1,000
$5,000
$10,000
$15,000
Which of the following is a defense a broker may use if sued under the DTPA...?
The broker was not aware of any misrepresentation
The Broker Made a Good Faith Effort to Settle within a 60 Day Period
The broker did not knowingly commit fraud
The broker provided written notice that they relied on other oral information
Under the DTPA, a consumer may bring a suit against which of the following parties...?
An individual
A corporation
An association
All of the above
If a defendant ................committed a violation of the DTPA, they may be held responsible for punitive damages?
Negligently
Innocently
Intentionally
Partially
A broker who takes advantage of a consumer to a grossly unfair degree may be guilty of...?
Unconscionable Actions
Reasonable actions
Implied actions
Partial actions
The acronym DTPA stands for which of the following...?
Deceptive Trade Practices Act
Demand Trade Procedures Act
Deceptive Trade Procedures Act
Demand Trade Practices Act
The terms of a purchase contract between a buyer and seller are...?
Recorded
Confidential
Fully disclosed
Public record
Which of the following parties is responsible for completing the Seller's Disclosure of Property Condition form...?
The Seller Only
The buyer only
The seller and the seller's broker
The seller's inspector
Which of the following parties must provide written consent to an intermediary brokerage...?
Both the Buyer and Seller
Neither the buyer or seller
The seller only
The buyer only
A buyer's broker typically assists the buyer with which of the following...?
Facilitate negotiations and counter-offers
Making an offer on a property
Answering questions about the purchase contract
All of the above
Real estate brokers typically obtain what type of insurance...?
Residential service insurance
Worker's compensation insurance
Errors and Omissions Insurance
Homebuyers insurance
Marcus is a broker who is about to enter into a listing contract with a seller. Which of the following should be explained to a prospective seller, prior to entering into a listing contract...?
Intermediary brokerage policies
How the broker's fee will be split with other brokers
The broker's commission rate for the transaction
All of the Above
A real estate broker should only provide advice and opinions to which of the following parties...?
The principal
The customer
A customer's agent
Any of the above
Jill works as a seller's agent. What duties does Jill owe to a prospective buyer...?
Loyalty
Confidentiality
Fairness
Obedience
In a typical real estate transaction, the buyer pays for which of the following...?
An appraisal
Loan origination fee
A property inspection
All of the Above
Which of the following should a broker provide to justify the listing price on a listing agreement...?
Appraisal
CMA
Pro-forma
Municipal assessment
