Tx Law of Agency Real Estate Practice Exam Flashcards

Tx Law of Agency Real Estate Practice Exam Flashcards Which of the following would be a violation of the Texas Deceptive Trade Practices-Consumer Protection Act

(DTPA)?

Misrepresenting the facts about the reasons for a price decrease(Misrepresenting the facts about the reasons for a price decrease is a violation of the Texas DTPA.) What is the code of ethics?Guidelines for conduct(The code of ethics is a defined set of guidelines for ethical conduct rules to prohibit or require certain behavior) Personal beliefs, such as religious ones, have the greatest effect on what?Morals(morals tend to be specific to the individual and are shaped by personal believes.) A prospective buyer is curious why a previous owner is selling such a perfect home. The license he knows that the previous owner recently died due to complications from AIDS, How should the licensee respond to the perspective buyers inquiry?The license he can't disclose that a previous owner had HIV or AIDS.(HIV or AIDS status can't be disclosed under any circumstances. This is a fair housing law violation.Buyers can ask why sellers are selling, but sellers don't have to disclose the reasons.) Without a buyer agency agreement in place, who does the agent assisting the buyer represent an old loyalty to?The seller(if there is no agency agreement in place, the agent assisting the buyer represents the seller.) In what way (S) do consumers compensate brokers for their services?As a flat fee, fee for service, and/or percentage of sale.(Consumers generally compensate brokers for their services in the form of a percentage of the sales price of the property, but other options include a flat fee or fee for service.) After a few meetings, the Stinson sign a listing agreement with broker Vera so she can sell their house. The house is already generated interest from a potential buyer named Sergio, who has spoken with Vera about the house square footage and potential as an investment. Which of the following is true about this situation?The Stinsons and Vera have an agency agreement.(The Stinson's and Vera now have an express agency agreement since they signed a listing agreement. By talking to Sergio, Vera's filling her duty of helping to find a buyer.) In addition to providing a disclosure of any lead-based hazards in a home built before 1978, what my sellers provide to perspective buyers?EPA lead safety pamphlet(sellers must also provide a lead safety pamphlet, available from the environmental protection agency, to perspective buyers.) In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer?The sellers existing mortgage(Most property transactions include an existing mortgage that creates a title defect, but the defect will be cleared at closing when the seller's proceeds are used to pay off the loan.) If a buyers agent gives the buyer miss information about the property, who is responsible?The buyers agent(When buyers have their own agent, the seller's agent is not responsible for the actions of the buyers agent.) Which of the following best describes a net listing?The seller specifies a price desired for the property and agrees to pay the broker any amount received that's more than that price.(A net listing means that the seller is holding out for a specific price; the amount of the commission to be paid to the listing agent depends on the price the seller

receives.) Who must protect the seller's best interest during the negotiation of a sales contract for the property?Seller's agent(once the agency relationship is established, the seller's agent must put the sellers interest above all others.)

According to the terms defined in subchapter A of TRELA known as the general provisions, what is the definition of a broker?A person who, for a commission or other valuable consideration, performs specific real estate related tasks for another person.(Under the general provisions of TRELA, a broker performs real estate related activities, for others and for a fee. These real estate related activities could include helping someone to buy, sell, lease, auction, or list at home.) Which of the following is true about asbestos? It is not safe at any level(Asbestos is harmful mostly when it is distributed because the fibers are released into the air.No level of asbestos is considered safe, and only qualified professional should remove it.) Why is it important that a broker actively enforce the policies and procedures document it in the firm's policies and procedures manual?Active enforcement helps to ensure compliance from members of the firm and helps protect the broker against claims that there was no expectation of adherence.(It's important for a broker to actively enforce the policies and procedures documented in the firms ppm because enforcement helps to ensure compliance and helps protect the broker against claims that there was no expectations of adherence.) Which of the following would cause a property to be psychologically stigmatized?Ghosts or paranormal activity(psychological stigmas result when events occur that can affect the psychological well-being of the properties occupants like ghosts or paranormal activity.) Marsha's title insurance policy was issued on closing day, June 18. The policy list the standard exclusions as well as requirements for the company to issue the policy, such as pay not existing recorded lines. Which of these will not be addressed in the schedule of exceptions?Marsha's second mortgage on the property, which was properly recorded in January.(Title insurance typically covers events or claims filed on the public record before the title insurance policies effective date but excludes disclosed an undisclosed easements.) Putting clients interest ahead of all of those describes which fiduciary duty?Loyalty What actor require sellers, landlords, and their agents to disclose any known lead hazards in the home?Residential Lead Based Paint Hazard Reduction Act.(The residential lead-based paint hazards production act requires this disclosure. It also requires them to provide a lead safety pamphlet and any records they have of lead assessments or testing to perspective buyers.) An agent, Alice has listed a three bedroom home for her client. Before she finds a buyer, the home burns to the ground. What happened to the agency agreement that Alice has with her client?The agency agreement is terminated upon destruction of the property.(One of the ways that an agency agreement can be terminated is through destruction of property.) A homeowner has converted to rooms in his home to a rental unit. What does the "Mrs Murphy" Exemption permit him to do?Refuse to rent to a female tenant.(The "Mrs Murphy "exemption applies to owner occupied buildings with no more than four units. The owner may choose to rent only to a like sex tenant but may not discriminate on any other basis.)

Radon is an important environmental issue because it causes what?Lung cancer(Radon causes lung cancer, and the EPA estimates that more people die each year from lung cancer related to radon exposure than drunk driving, drowning or fires.) Which fiduciary duty requires agents to put their clients interests ahead of all others?Loyalty(this is a description of the fiduciary duty of loyalty.) In Texas whose responsibility is it to supervise associated licensees and review transactional paperwork and advertising?The brokers (it's a broker's responsibility to review transactional paperwork and advertising. Each broker is also responsible for the acts of their affiliated licensees.) What was the name of the first law regulating real estate brokerage in Texas, which was originally passed in 1939?Texas real estate dealers act(The first loss tablets to regulate real estate brokerage in Texas was the real estate dealers act. TRELA came along 16 years later.) Which one of the following is an OT and example of how agency terminates by operation of law?Completion of sale(Agency agreements can be terminated by operation of law (meaning that the parties don't initiate the termination.) In several ways, including when either the client or the agent files for bankruptcy, the transaction is completed, or the contract expires.) Barbara, a Texas sponsoring broker for Longhorn realty, paid Gwendolyn, a buyer, a portion of the commission Longhorn received from the sales transaction. This is known as_____ A Rebate(A broker may legally rebate a portion of their commission to a principal to the transaction, as long as the payment is strictly a rebate. Although this option is illegal in some other states, it is legal in Texas.) Yeah Which one of Jerry's statements to a client crosses the line into unauthorized practice of law?"Most couples take ownership of property as joint tenants, so that's what I advise".(Jerry cross the line when he tried to interpret the impact of his clients decision about how to take ownership.) Amelia is a broker who is employed to negotiate a transaction between both parties to the transaction, and with the parties written consent, may act as the agent of the two parties. In what capacity is Amelia acting?An intermediary.(A broker who is acting as the agent to both parties to a transaction such as the buyer and the seller is known as an intermediary. The broker must have the signed, written permission of both parties to act in this capacity. When acting as an intermediary, the broker is prohibited from favoring one party over the other.) Which of the following is an example of sub-agency?Kaila is a licensee with ABC Realty and list a property for seller Devon. Maurice Is a sales person with XYZ Realty group and brings a buyer to the table, but owes fiduciary duties to the seller.(Only the agent working with a buyer customer on behalf of another firm's listing is an example of the Sub-agency situation. In this case, that would be Maurice.) Rachel is a broker with a listing that a former client, Gary, is interested in purchasing. Gary would like Rachel to represent him as the buyer in the transaction. Which is the only legal option in Texas for Rachel to represent both Gary and the seller?Intermediary(Rachel can act as an intermediary in this transaction to represent her seller and the buyer, Gary, provided she gets the signed, written consent of both parties. Don't agency is illegal in Texas.) Customers, lenders, and appraisers are all? Third parties(these are all third parties.)