Texas Real Estate Agency - UNIT 6 - Representing More Than One

Texas Real Estate Agency - UNIT 6 - Representing More Than One

Party in a Transaction: Intermediary Brokerage Flashcards

Which of the following statements is TRUE? A broker may act as an intermediary between parties in a real estate transaction with the written consent of each party.What is undisclosed dual agency?When a nonrepresented buyer believes that a license holder is acting as an agent for her, and the license holder fails to make it clear that he represents the seller either as an agent or subagent.Ace Realty is a licensed brokerage firm that engages in intermediary agency. The firm has three brokers (including the designated broker for the firm) and five sales associates. Allison has engaged Ace to list her farm for sale. Dustin, an Ace client, is interested in buying the farm.Both parties have agreed to intermediary representation.What kind of service can the intermediary provide to the parties if no appointments are made?The broker must treat both parties honestly and fairly.Broker Bill has written authorization from both his clients, seller Ringo and buyer Ted, to act as an intermediary and make appointments should the situation arise. Bill preappointed two sales associates, Alice and Gwen, to work as appointees to Ringo and Ted, respectively, should it become necessary. While Bill is on an extended conference in Las Vegas, Ted decides to enter into negotiation with Ringo. In regard to the appointees, until both clients are given written notification and the names of the appointees, Alice and Gwen must perform the duties of an intermediary and remain impartial.If a broker wants to purchase an FSBO, how can the broker ensure that undisclosed dual representation does not occur?The broker should disclaim any agency relationship with the FSBO.In which of the following situations is unintended dual agency likely to occur?Working with a former client as a customer How can a license holder avoid creating an unintended dual agency when helping a buyer locate an appropriate home through a MLS service?Create an expressed buyer agency agreement with the buyer Superior Realty is a licensed brokerage firm that engages in intermediary agency. The firm has three brokers (including the designated broker for the firm) and five sales associates. Allison has engaged Superior to list her 16-unit apartment complex for sale. Dustin is a Superior client interested in purchasing the property. Both parties have consented to intermediary representation. Who may serve as an appointed license holder to represent the parties in the transaction?Any of the license holders except for the designated broker may be appointed to represent the parties.

A prospective buyer has telephoned a license holder to inquire about a property listed by the license holder's associated broker. Which of the following statements from the license holder might cause unintended dual agency?"I can make sure you get the best price possible on that house." What are some of the consequences of undisclosed dual agency?All of these. (Money damages, Revocation of broker license, Recovery of commissions from the offending broker) The fiduciary duties demand that a real estate broker, acting as an intermediary in a transaction, place his personal interest below those of his two clients.Which of the following is a TRUE statement regarding intermediary representation?Intermediary laws and rules apply to broker representation in 1031 Tax Deferred Exchanges.Why was statutory dual agency replaced with intermediary agency?Because TAR felt that it was inherently dangerous.Jones Realty is a licensed brokerage firm that engages in intermediary agency. The firm has three brokers (including the designated broker for the firm) and five sales associates. Allison has engaged Jones to list her townhome for sale. Dustin is a Jones client interested in purchasing the property. Both parties have consented to intermediary representation. Is the broker required to provide the parties with written notice of the appointments?Yes, the broker must provide written notice of the appointments to the parties.Vonnie is a broker who represents a seller under a listing agreement. Vonnie does not represent the buyer in the same transaction; the buyer is a customer, but Vonnie failed to make clear that she represented only the seller.Vonnie has also failed to obtain the buyer's consent to act as an intermediary, although she did obtain the written consent of the seller. What are the consequences of Vonnie failing to disclose her representation of the seller?Vonnie may have created undisclosed dual agency.In a real estate transaction where the broker is an intermediary between a buyer and a seller and no appointments have been made, which of the following statements BEST describes the broker's role in the transaction?The broker must remain impartial and not give preferential treatment to the buyer or the seller.Broker Fitzroy of Dunoon Realty is the listing broker for seller Roni's property. One of Fitzroy's sales associates is providing customer-level service to buyer Barnie. Which comment(s) by the sales associate to Barnie might place Fitzroy in violation of TRELA?All of these are violations of TRELA. ("Trust me. I'm sure I can get the seller to reduce the list price.", "I know I can get the seller to pay at least some of your closing costs.", "The seller counteroffered $68,500 with another buyer last week.") Jones Realty is a licensed brokerage firm that engages in

intermediary agency. The firm has two brokers: the

designated broker for the firm and a broker associate.There are three sales associates. Allison has engaged Jones to list her 16-unit apartment complex for sale. Dustin is a Jones client interested in purchasing the property. Both

parties have consented to intermediary representation.Who may serve as an appointed license holder to represent a party in the transaction?The designated broker is the only license holder that may not be appointed to represent the parties.Roni, who has just received her broker's license, immediately opens her own brokerage office, Whiska's Realty. Numerous license holders with whom she has worked in the past approach her for sponsorship. Although

Roni is anxious to get started, she has no time to set up a training program. In the past, she focused on property management rather than residential sales and feels insecure in her understanding of intermediary relationships that frequently arise in residential sales. In regard to intermediary services, Roni would be best advised to deny intermediary services to clients until she had time to formally establish a clear office policy for her new license holders.