Real Estate: Texas Law of Agency Flashcards

Real Estate: Texas Law of Agency Flashcards

Revocation by the ClientSome sellers will not be happy with the lack of progress in showing and selling their home. The client can request the listing be revoked. This is termed RenunciationWhen the broker wants to end the relationship What types of things is a broker NOT authorized to do for a client?The broker does not have the authority to do certain things

such as:Accepting an offer on a listing even if it is for the

full purchase price. Only the owner can decide whether or not to accept an offerAllowing the buyer to move into the property before the closing without the owner's permissionProposing an offer on a property on behalf of a buyer client without the client's permission What is meant by a latent defect?A latent defect is not readily observable or readily discoverable by reasonable means.When must a buyer's agent provide a written statement about brokerage services to a party?At first contact with the seller, landlord, or either party's agent Agency coupled with an interestan agency relationship in which the agent has an interest in the property that is being sold. This type of agency cannot be revoked by the principal, nor is it terminated if the principal dies.An agent's fiduciary responsibilities to a client usually end when the transaction closes. This is not true of which duty?Confidentiality.Open ListingThe broker verbally agrees to attempt to find a ready, willing, and able buyer for a seller, but this is not an exclusive arrangement between the seller and broker. The seller has shared this same opportunity with other brokers.It is just a matter of which broker is able to locate a buyer first as to who receives the commission.Seller's AgentA broker licensee who represents the seller in a transaction (also known as the listing agent) intermediary with appointmentsThis occurs when the broker appoints one agent to represent the seller and another agent to represent the buyer.LicenseeSomeone who is licensed in Texas as a salesperson or broker IntermediaryA broker licensee who works for both the seller and the buyer in the same transaction (a special agency alternative allowed in Texas) General Agentthe principal delegates to the agent ongoing tasks and duties within a particular business or enterprise. Such delegation may include the authority to enter into contracts.

Contract AcceptanceThe seller's acceptance of the offer is effective only if delivered in writing to the buyer or buyer's agent. The buyer can revoke the offer at any time before the seller's acceptance. The acceptance should be dated and timed.What is the most important task a broker needs to perform with the seller-principal?to give a market analysis of what the property is worth.Intermediary Agencywhere a licensee represents both sides of a transaction in an agent-client capacity. In a firm, intermediary agency can

occur in two ways:The supervising broker or a single

licensee represents both parties.One of the principal broker's agents represents a seller and another of his agents represents a buyer.Subagencypracticed between brokerage firms where "cooperating" licensees, of other firms, are subagents of the listing supervising broker of the principal. Subagency is legal in

Texas. A subagent is a license holder who:Represents a

principal through cooperation with a broker, and the

consent of a broker representing the principal: andIs not

sponsored by, or associated with the principal's broker What exception exists to the duty of obedience when working with a client?An agent is not bound by the duty of if the principal's directions are not legal.Which transaction model has been used to replace dual agency?Transaction Brokerage AgentThe person who is authorized to represent and act on the behalf of another person What is the name of the Texas' disclosure statement?Seller's Disclosure of Property Condition How does an agent become an undisclosed dual agent?By conduct that misleads a buyer into thinking that the agent represents him or her When must a seller's agent provide a written statement about brokerage services to a party?At the time of the first substantive dialogue with the party Implied AgencyWhen a salesperson says or does something that creates agency such as giving advice to a customer, giving an opinion to a customer, or negotiating on the customer's behalf When does buyer agency exist?Buyer agency exists when the broker represents the buyer exclusively in the real estate transaction.Ostensible AgencyThis occurs when a court declares that the licensee was acting like an agent. The judge would then in effect say, "Therefore, you were the agent." This means that now the licensee and the broker are responsible for their actions and that if the complainants were damaged by the actions of the licensees, then the office is liable for those actions.How much time notice is required when a licensee decides to leave his or her broker?There is no notice required

What is a licensee's responsibility to a client? Since the licensee is representing the broker, he or she has the same responsibility to the client that the broker does.procuring cause agentThe agent who ultimately caused the buyer to purchase the home and earned the commission Buyer's AgentA broker licensee who represents the buyer in a transaction (also known as the selling broker or cooperating broker) Implied AuthorityThe broker has implied authority to work on behalf of the client when he or she has verbally formed agency with the seller or buyer. The broker will not make decisions on behalf of the client. The broker will give the client a list of possible options on what to do and will even give advice to the client on what the broker feels would be appropriate. It is the client, however, who must make the decisions.What transaction model was developed to replace dual agency?Intermediary Rescissionis when both the client and the broker agree to end the relationship that they are in.specialized real estate transactionusually involves three or more parties and a number of party representatives. Often a person involved in a transaction incorrectly assumes that everyone in the transaction knows the role of everyone else. exchanges, syndications, farm sales, and leases of industrial and commercial properties A real estate syndicateis a financial services group formed temporarily for the purpose of handling a large transaction that would be difficult or impossible for an individual entity to handle.Syndication allows companies to pool their resources and share risks.A broker's policy that allows intermediary without appointments mostly benefits Agents The best way to practice intermediary is with appointments Real estate brokerage is based on what kind of agency?Special Agency In-house saleis one in which the seller is being represented by the broker and the buyer is also obtaining help from the same office.This could happen when the buyer is a customer. It could also happen when the buyer is a client of the same firm that the seller is a client.Subagencyrefers to a specific client representation relationship between a property broker or real estate agent and another real estate broker or agent who brings the buyer to the property. Subagency exists when the buyer is a customer and there are two brokers involved.Single Agencywhen a licensee represents a either a seller/landlord or a buyer/tenant directly and exclusively as an agent. This relationship is normally bound by a written agency

agreement, or listing agreement having a specified and limited duration Ministerial ActsActs performed by a licensed agent for a customer that are informative or clerical in nature