Chapter 4: Real Estate Brokerage and Law of Agency Flashcards

Chapter 4: Real Estate Brokerage and Law of Agency Flashcards

In an agency relationship, the principal is the _____.person hiring the agent Third Partiespersons who are not parties to a contract but who may be affected by it Puffingstatements a reasonable person would recognize as nonfactual or extravagant When an agent's authority arises from custom in the

industry, it is identified as:

Implied authority Fiduciary responsibilities of an agent to the principal include all of the following EXCEPT Provision of legal advise When an agent represents both the buyer and seller in a transaction both the buyer and the seller must sign the Intermediary Relation Agreement with the agent / broker A seller has told her listing broker in writing not to present any offers below $200,000. What should the agent do?only present offers for $200,000 and up the duties to a CUSTOMER include-honesty-fairness-disclosure Agency by Ratificationagency relationship established after the fact The relationship of a real estate broker to the owner of

property listed for sale with the broker is that of a(n):

Special Agent Comminglingthe mixing of clients' or customers' funds with an agent's personal funds Intermediarya broker who is employed to negotiate a transaction between the parties Agentthe person empowered to act by and on behalf of the principal A brokerage that offers reduced commissions and fees and often reduced services discount brokerage Principala person who authorizes another to act on their behalf When an agent is given the right to transact all types of

matters on behalf of the principal, the agent serves as:

Universal Agent Real estate licensees must provide all prospective parties to the transaction with specific written information explaining available types of brokerage services _____.upon a substantive conversation A broker who misrepresents a property to a prospect may be subject to all of the following EXCEPT Criminal Prosecution Implied AuthorityAn agency relationship in authority arises from custom in the industry, common usage, and conduct of the parties involved Any earnest money deposits paid by the purchaser Must be placed in a proper trust account Is an agent protected from liability to disclose defects in a property by stating in writing that the property is being sold "as is"?No, because the agent may still be liable for having withheld material facts about the property

An agent's "fiduciary obligations" to the principal means the agent must _____.put the principal's best interests above his/her own Ready, Willing, and Able Buyera buyer who is ready to buy at the seller's price and terms and who has the financial capability to do so Dual Agencyrepresentation of two or more principals in a transaction by the same agent Conversiontheft of funds The acronym "OLD CAR" is used to remember the _____.agent's fiduciary obligations to the principal Agency relationships and all other activities of real estate brokers and agents in Texas are regulated by _____.-TRELA-TREC Rules An agent who is authorized to bind an employer in a trade

or business is a(n):

General Agent When a broker acts as an agent for both purchaser and seller in a transaction, this is identified as a(n) Dual Agency A broker may act as an agent for both parties in a transaction only with the permission of Both parties Ostensible Authorityan agency relationship created by the conduct of the principal