Texas Real Estate Agency Unit 4 Flashcards

Texas Real Estate Agency Unit 4 Flashcards The listing that allows the seller to list with several brokers isA. the exclusive right to sell.B. the exclusive agency.C.the open listing.D. the net agency.

• the open listing.

A buyer approaches broker Smith, an exclusive seller's agent, and asks to be represented in the purchase of a home. Smith shouldA. explain that there are no real benefits to buyer representation.B. explain that while he cannot personally work with the buyer, one of his associates may do so.C. describe the services that the buyer may receive as a customer, but if the buyer still wants representation, refer the buyer to a buyer's broker.D.show the buyer only properties listed by other brokers.

• describe the services that the buyer may receive as a

customer, but if the buyer still wants representation, refer the buyer to a buyer's broker.If the property sells, the broker will get a commission.Exclusive-right-to-sell listing Which of the following is TRUE regarding an agent representing a seller rather than the seller selling her property on her own?A) An agent must maintain all confidential information of the seller regardless of another law.B) It relieves the seller of direct liability for what is disclosed on the Seller's Disclosure Notice.C) An agent must maintain the confidentiality of your information unless it is required to be disclosed by another law.D) The agent can best represent your interests by changing the terms of the TREC contract to suit your needs.

• An agent must maintain the confidentiality of your

information unless it is required to be disclosed by another

law.explanation: Unless otherwise authorized by the seller,

the seller's agent is required to keep all information of the seller-client confidential. There are times when the law requires that certain information be disclosed, such as the condition of the property or condition of the title to the property. In these instances, the agent is required to fully and honestly disclose that type of information.The broker will get a commission only if securing the offer from the buyer Exclusive-agency listing A buyer asks a broker, who is the subagent of the listing broker, whether the seller would accept $4,000 less than the asking price. The listing broker already has told the subagent that the seller will take $5,000 less. Which is the BEST response for the subagent?A. "Go ahead and make the offer because the seller needs to sell before the bank forecloses."B. "You may make the offer, and we'll see what the seller says. But remember, you may want to make your very best offer the first time because we don't discuss the existence or nonexistence of other offers."C. "I can't present an offer that is less than the asking price."D. "If I get the seller to accept this low offer, I want a $1,000 bonus. But remember, you may want to make your very best offer the first time because we don't discuss the existence or nonexistence of other offers."

• "You may make the offer, and we'll see what the seller

says. But remember, you may want to make your very best offer the first time because we don't discuss the existence or nonexistence of other offers."

A broker has a listing agreement wherein she is paid an agreed-upon fee or commission regardless of who sells the property. What type of listing agreement is this?A) Exclusive right to sellB) Net listingC) Exclusive agencyD) Open listing

A) Exclusive right to sellexplanation: The exclusive

right-to-sell listing offers the broker the greatest amount of protection and security, and, generally, offers the seller the greatest amount of service. Under this agreement, the broker is entitled to the contractually agreed fee or commission no matter who sells the property-even if it is the seller.What happens when a selling broker accepts the listing broker's offer of subagency through MLS?A) The subagent broker and subagent broker's sales agents owe partial fiduciary duties to the seller.B) The subagent broker and the subagent broker's sales agents owe full fiduciary duties to the seller.C) The subagent broker owes fiduciary duties to the seller, but the subagent broker's sales agents may serve as buyer's agents with the seller's consent.D) The subagent broker and subagent broker's sales agents must treat the seller and buyer equally.

• The subagent broker and the subagent broker's sales

agents owe full fiduciary duties to the seller.explanation: By

accepting the listing broker's offer of subagency through the MLS or by some other agreement, the subagent broker and the subagent broker's associates owe complete fiduciary duties and loyalty to the seller. Any real estate agent acting as a subagent of the seller must relate to both buyer and seller exactly as though the subagent's company had taken the listing. The subagent must be careful not to act for the buyer in any manner adverse to the seller's best interests.A listing broker owes which of the following duties to the prospective buyer/customer?A. LoyaltyB. ObedienceC.Agency disclosureD. All of these

• Agency disclosure

Which of the following is a benefit to a seller who chooses to work with an exclusive seller agency?A) Save money through the lower compensation ratesB) Full loyalty and confidentialityC) Faster sales because more buyers are attracted to the firmD) Greater flexibility through creative contracting

B) Full loyalty and confidentialityexplanation: In an

exclusive seller agency, sellers receive 100% loyalty and confidentiality, with someone advocating their best interests and providing expert advice.Which of the following statements accurately describes how buyers are treated in an in-house sale by a real estate company that offers exclusive seller agency?A) They cannot receive service from the license holders.B) They are treated as client.C) They are treated as clients or customers.D) They are treated as customers.

D) They are treated as customers.explanation: Exclusive

seller representation means that brokers and associates represent sellers only; therefore, buyers are treated as customers.Ashley owns property that she has listed with Jason, a sales agent with AAA Realty. Jason has marketed the property intensively and Jamie, a sales agent with TNT Realty, has found a buyer, Mason, for Ashley's property.Ashley is leery of other sales agents representing her as a subagent, so she has elected not to offer compensation to subagents in her listing agreement with Jason. Mason doesn't want representation, so he is Jamie's customer only. Will Jamie be able to show the property to Mason?A) Yes, because the law requires that Mason be shown the property.B) No, because even if he refers Mason to Jason, Jamie cannot be paid a referral fee.C) No, because Ashley

has not offered compensation to subagents.D) Yes, because Jason must pay Jamie a commission for procuring cause, Jamie at a minimum can show Mason the property.

• No, because Ashley has not offered compensation to

subagents.explanation: Because agency is consensual, the

sellers may elect not to allow license holders from other offices to represent them in the sale of the property, particularly license holders they do not know. If a listing broker does not offer subagency, a broker working with an unrepresented buyer would not be able to show the buyer the property. Therefore, if he wants compensation, he may refer Mason to AAA Realty and ask for a finder's fee.Bruce is buying his first home. He met with Linda, a license holder with an exclusive seller agency. After answering several general questions, Linda realized that Bruce

needed a license holder who could provide him with advice about selecting a property and making an offer. To help Bruce, Linda shouldA) explain that she represents the interests of sellers and encourage him to get a buyer's broker.B) stop talking with Bruce until he has the advice of a real estate attorney.C) advise Bruce and steer him toward sellers who have the most appropriate properties.D) recommend that Bruce talk with someone from a government-funded home finance program.

• explain that she represents the interests of sellers and

encourage him to get a buyer's broker.explanation: In an

exclusive seller agency, the seller is always the client, and