TEXAS REAL ESTATE AGENCY ACTUAL EXAM 200

TEXAS REAL ESTATE AGENCY ACTUAL EXAM |200

QUESTIONS WITH VERIFIED CORRECT ANSWERS

1.In your own words, explain the significance of the agency relationship in real estate transactions.It allows agents to represent buyers only.It establishes a legal connection between the principal and agent.It eliminates the need for written agreements. It restricts agents from advertising properties.

2.Explain the significance of a buyer representation agreement in the context of real estate transactions in Texas.It allows the broker to represent multiple buyers simultaneously.It establishes a fiduciary relationship between the buyer and the broker.It is a mandatory document for all real estate transactions. It serves as a marketing tool for the broker.

3.In a scenario where a broker is acting as an intermediary in a transaction, what steps should the broker take to ensure compliance with Texas real estate laws and protect the interests of both clients?Negotiate terms favoring one party to close the deal quickly.Provide full disclosure to both clients and obtain written consent. 1 / 4

Limit communication between the clients to avoid conflicts. Act as a mediator without any formal agreements.

4.Explain the significance of independent contractor status for real estate agents in Texas. Why is it important for companies to adhere to IRS rules regarding this status?It allows agents to work without a license. 2 / 4

It affects how agents are taxed and their eligibility for benefits.It determines the commission structure for agents.It has no significant impact on the agents' operations.

5.What is the primary duty of a fiduciary in a real estate agency relationship in Texas?To maximize profits for the agency To act with trust and honesty towards the client To ensure compliance with advertising rules To negotiate the best price for the property 6.What is the definition of statutory defenses in the context of real estate law?Legal protections that arise from common law principles.Defenses that are based on statutes and governmental records.Arguments that rely solely on the personal knowledge of the defendant.Claims that are only applicable in criminal cases.

7.In Texas real estate practice, what are the two forms of disclosure of representation that are permissible?Only written Only oral Either oral or written Neither oral nor written 3 / 4

8.Explain why a signed employment agreement is essential for a real estate agent to sue for commission in Texas.It serves as proof of the agent's qualifications.

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