Protection against damage or loss.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
B
A person who receives limited brokerage services without establishing an agency relationship.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
D
Based on trust.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
A
Also known as the principal.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
E
A relationship between two parties.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
C
Refusing to tell a buyer how long a property has been on the market.
a. Customer Level
b. Client Level
c. Both
A
Helping the buyer formulate a negotiating strategy.
a. Customer Level
b. Client Level
c. Both
B
Disclosing material facts about a seller's property.
a. Customer Level
b. Client Level
c. Both
C
Refusing to provide a negotiating strategy to a seller.
a. Customer Level
b. Client Level
c. Both
B
Providing public information related to the property, such as square footage, taxes.
a. Customer Level
b. Client Level
c. Both
C
Telling a buyer that a seller's property is overpriced.
a. Customer Level
b. Client Level
c. Both
B
Disclosing to a buyer that the current use of a property is in violation of deed restrictions.
a. Customer Level
b. Client Level
c. Both
C
Presenting a comparative market analysis to a buyer, showing the property is overpriced.
a. Customer Level
b. Client Level
c. Both
B
Telling the seller that the buyer can offer more money for his property.
a. Customer Level
b. Client Level
c. Both
A
Leading a buyer to believe that you are working int he buyer's best interest.
a. Customer Level
b. Client Level
c. Both
B
Calling attention to negative features such as an inefficient floor plan.
a. Customer Level
b. Client Level
c. Both
B
Placing "Property Wanted" ads to find an appropriate property for a buyer.
a. Customer Level
b. Client Level
c. Both
B
Telling a seller's agent that an offer from your buyer is just a beginning point.
a. Customer Level
b. Client Level
c. Both
A
An agency relationship exists when one person, the ___________ acts for, or on the behalf of another person, the _______________.
a. Client, agent
b. Agent, principal
c. Principal, agent
d. Broker, customer
B
The principal must always remain loyal to the customer.
a. True
b. False
B
The duties of the principal to the agent include all of the following, EXCEPT:
a. Trust
b. Reimbursement
c. Performance
d. Indemnification
A
_______________ means that the principal will protect the agent from suffering a loss due to the agent's reliance on information received from the principal.
a. Performance
b. Trust
c. Indemnification
d. None of the above
C
Agency is:
a. The relationship the agent has with the principal
b. When the agent acts for, or on behalf of the client
c. A fiduciary relationship
d. All of the above
D
A licensee has no duties to a customer.
a. True
b. False
B
A buyer's agent:
a. Represents the buyer
b. Is always the intermediary
c. Signs a Seller's Disclosure
d. None of the above
A
A subagent:
a. Is a licensee not associated with the seller's broker
b. Must work in the same real estate office as the listing broker
c. Must place the interests of the broker first
d. Is a licensee that represents the buyer or seller directly
A
The right to represent the principal in a particular type of transaction or business.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
B
Authority that comes from specific instructions, either oral or written.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
C
The power to act for the principal in all transactions.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
D
Established when an agent acts without prior authorization and the principal accepts it.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
E
Also known as limited agency.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
A
What are the three types of agency?
a. Universal, unlimited, general
b. General, special, universal
c. Unlimited, remote, special
d. Special, general, perfect
B
A general agent has less authority than a universal agent.
a. True
b. False
A
A property manager is a common example of a ______________.
a. General agent
b. Special agent
c. Secret agent
d. Universal agent
A
A buyer/tenant representation agreement creates a ___________ agency relationship with the broker.
a. Universal
b. Special
c. General
d. None of the above
B
A written listing agreement provides an agent with ____________ authority.
a. Implied
b. Limited
c. Overriding
d. Express
D
The duties of the agent to the principal can be remembered by using the acronym:
a. PETE
b. NEWCAR
c. OLDCAR
d. HOTROD
C
An agent can share confidential information about a client's property once the listing agreement is terminated.
a. True
b. False
B
Commingling is legal in the state of Texas.
a. True
b. False
B
A real estate agent does not have any duties to a customer, only a client.
a. True
b. False
B
A variety of seller's disclosure notices comply with the Texas Property Code.
a. True
b. False
A
A seller must always fill out Seller's Disclosure of Property Condition.
a. True
b. False
B
An agent does not have to disclose whether or not there has been a suicide on the property.
a. True
b. False
A
Agents should always disclose whether or not a previous or current tenant has had AIDS or HIV- related illness.
a. True
b. False
B
Real estate agents owe certain non-fiduciary duties to customers such as:
a. Trust
b. Advice and opinions
c. Honesty and fairness
d. Compliance
C
The Texas Real Estate License Act is the only law impacting third-party obligations in the real estate brokerage business.
a. True
b. False
B
The federal law requiring all states to release information to the public about known, convicted sex offenders, when necessary, to protected the public's safety is:
a. The Interstate Trade Act
b. The Dodd-Frank Act
c. Hillary's Law
d. Megan's Law
D
A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.
a. True
b. False
A
Which of the following events that happened, or is believed to have happened, on a property can "stigmatize" it?
a. Suicide on the premises
b. Paranormal activity
c. Death on the property
d. All of the above
D
Licensees must disclose whether or not a former tenant had AIDS or an HIV-related disease to potential buyers.
a. True
b. False
B
A seller does not have to disclose any stigma that relates to a material defect in the property.
a. True
b. False
B
The seller can list his or her property with multiple competing brokers.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
D
Contract with a a seller that gives the broker the right to find a purchaser for his or her property.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
C
The seller lists the property with only one broker, but can sell it him or herself without paying a commission.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
E
The real estate broker's commission is the difference between the minimum net established by the seller, and the price that the buyer is willing to pay.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
B
Analysis based on properties that have recently sold that are most similar to the subject property.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
A
Oral listing agreements are allowed in Texas.
a. True
b. False
A
All of the following elements should be included in a listing agreement, EXCEPT:
a. The IABS form
b. A beginning date and termination date
c. The percentage of the broker's commission which is split with the agent
d. Intermediary consent
C
Which type of listing agreement allows for the seller to sell his or her property him or herself without paying a commission even though it is listed with a broker?
a. Open listing
b. Exclusive agency
c. Exclusive right to sell
d. Net listing
B
The best type of listing for a broker is the net listing.
a. True
b. False
B
The shared information from the MLS can be used by agents to prepare a(n) _______________.
a. Comparative Market Analysis
b. Listing Agreement
c. Appraisal
d. Seller's Disclosure of Property Condition
A
Subagency is:
a. When a broker appoints associates to the selling side and the listing side in an in-house sale
b. Outlawed in Texas
c. When a licensee not associated with the seller's broker is representing the seller through a cooperative agreement with
C
Brokers do not need written authorization to advertise on social media.
a. True
b. False
B
All listing agreements must have a definite ____________ date.
a. Termination
b. Sell by
c. Maturity
d. Beginning
A
Setting commission rates between groups of brokers in an area.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
C
An agent my not deceive or defraud a customer.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
D
Federal legislation that specifically deals with illegal fixing of commission rates.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
B
The agent is held to the standards of knowledge, expertise and ethics defined by TRELA.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
E
The individual who, through a series of uninterrupted actives, brought about the completion of a contract.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
A
The agreement that buyers sign, allowing a broker to represent them is called a ____________.
a. Buyer/Agent Agreement
b. Seller's Disclosure
c. Buyer/Tenant Representation Agreement
d. None of the above
C
Only a broker may earn a commission, and only a broker may sue to collect a commission.
a. True
b. False
A
Which of the following requirements must be satisfied if a broker seeks to enforce payment of a commission?
a. The broker must have a valid real estate license
b. The broker must have a signed employment agreement with a promise by the client to pay a com
D
Who is procuring cause of sale?
a. The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract
b. The first individual to show a property to a prospective buyer
c. The listing agent
d. None of th
A
The courts consider a broker's oral listing agreement with a client as enforceable against the client.
a. True
b. False
B
Commission rates are not negotiable between parties.
a. True
b. False
B
Which federal law(s) has the greatest impact in the area of illegal price-fixing of commissions?
a. The Clayton Act
b. Megan's Law
c. The Sherman Anti-Trust Act
d. Both A and C
D
TREC sets the commission rates between the broker and the broker's client
a. True
b. False
B
All of the following actions by a broker are violation of federal law, EXCEPT:
a. Attempting to fix prices
b. Limiting competition by assigning market areas
c. Negotiating commission rates with clients
d. Boycotting discount brokers
C
The agent working with the buyer.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
C
The seller retains the services of a broker.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
D
A property is sold by the listing firm.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
A
The buyer remains the services of a broker.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
E
A property is sold by a firm other than the listing firm.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
B
The best way to create an agency relationship is to do so,
a. By a handshake
b. By an oral agreement
c. In writing
d. After an agreement has been reached between the parties
C
What type of agency is established when a broker hires an agent?
a. Vague agency
b. General agency
c. Special agency
d. Express agency
B
Agents of a brokerage firm all share the same agency duties to all clients of the firm.
a. True
b. False
A
A listing side of a transaction is when...
a. The property is sold by a firm other than the listing firm
b. The buyer retains the services of a broker
c. The seller retains the services of a broker
d. None of the above
C
In real estate, if a party to a transaction is not being represented by an agent, they are known as a ______________.
a. Consultant
b. Client
c. Consumer
d. Customer
D
According to TRELA, when one firm sells a property listed by another firm to a buyer they are not representing, the selling firm represents the seller in a _____________ relationship.
a. Subagency
b. Contingent
c. In-house
d. Tense
A
Subagency was outlawed by the passage of Senate Bill 489.
a. True
b. False
B
A listing is terminated by any of the following, EXCEPT:
a. The expiration of the time period stated in the contract
b. At any time by mutual agreement
c. After exactly one year has passed since the agreement was signed
d. Bankruptcy of either party
C
When the broker is given notice of termination of a listing, the broker must:
a. Remove all signs and lockboxes
b. Cease all marketing activities
c. Remove the listing from websites and other advertising media
d. All of the above
D
A broker has the power to terminate an agency agreement early,
a. Without cause
b. For personal reasons
c. If the principal was not cooperating with the broker's efforts to market the property
d. None of the above
C
The practice that allows a real estate firm to represent both the buyer and the seller with their written permission.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
C
Occurs when a broker appoints associates within a brokerage firm to represent the listing and selling side of a transaction.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
B
Occurs when an agent sells his or her own listing, but cannot give advice or negotiate for either party.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
A
The legislation that gives the industry the Intermediary process.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
E
A transaction in which a broker is on both the listing and selling side.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
D
A(n) ______________ is when a brokerage firm sells its own listing.
a. cooperative sale
b. net sale
c. in-house sale
d. gross sale
C
It is illegal in Texas for a broker to be on both the listing and selling side of a transaction.
a. True
b. False
B
When a broker represents both the buyer and the seller, the broker is an intermediary.
a. True
b. False
A
The broker has no duty to inform the client of the intermediary relationship as it is assumed in Texas.
a. True
b. False
B
According to Texas real estate laws, a broker must always appoint associates in an intermediary relationship.
a. True
b. False
B
What determines whether a transaction is to be done under intermediary rules?
a. The transaction must be an in-house sale
b. Both sides (buyer/seller or landlord/tenant) must be clients
c. The broker must have written consent from both parties
d. All of t
D
Intermediary with appointments requires that the broker sponsor at least two agents.
a. True
b. False
A
To appoint associates or not in an in-house transaction is at the discretion of the broker.
a. True
b. False
A
Intermediary is a process that makes it possible to bring client buyers and sellers together while at the same time representing their best interests.
a. True
b. False
A
A potential buyer must be provided with the IABS form at the first substantive discussion.
a. True
b. False
A
The IABS form is utilized to better inform the potential buyer or seller on agency relationships.
a. True
b. False
A
A brokerage firm that practices Buyer-Agency only has a lot of intermediary transactions.
a. True
b. False
B
An intermediary firm represents sellers only.
a. True
b. False
B
Brokerage firms' policy manuals should address common problems such as, when to present the IABS form, and when to have a buyer sign a buyer/tenant representation agreement.
a. True
b. False
A
The Information About Brokerage Services form should be provided to a potential buyer or seller at the first _____________ discussion of a real estate transaction.
a. Substantial
b. Telephone
c. Substantive
d. None of the above
C
_________________ means that, if a single agent in the firm is working with both buyer and seller, another agent in the firm needs to be brought into the transaction so appointments can be made.
a. No intermediary
b. Intermediary without appointments
c. C
D
All real estate brokerage firms practice both buyer and seller agency.
a. True
b. False
B
If a real estate brokerage firm practices intermediary, then the firm practices _______________.
a. Seller agency
b. Buyer agency
c. Dual agency
d. Both a and b
D
The IABS should be presented as the buyer is about to write an offer.
a. True
b. False
B
The Information About Brokerage Services form is approved by the Texas Real Estate Commission
for voluntary use.
a. True
b. False
A
For a broker to represent the owner:
a. The broker becomes the buyer's agent by entering into an agreement with the buyer
b. The broker's commission is set by TREC
c. The broker becomes the owner's agent by entering into an agreement with the owner
d. Non
C
A broker who acts as an intermediary in a transaction:
a. May disclose that the owner will accept a price less than the asking price if he or she feels that it is the right thing to do
b. May disclose any confidential information that he or she deems will
C
Receives a paycheck that is net of deductions for income taxes and other charges.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
C
Shows the sum of payments received form a salesperson's broker during the tax year.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
B
May be hired to assist a salesperson, but is not required to hold a real estate license.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
D
The broker in the broker-salesperson relationship in real estate.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
E
Receives a gross check and a 1099-MISC.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
A
The IRS set guidelines determining that a salesperson would be classified as an independent contractor in 1976.
a. True
b. False
A
A broker can require a salesperson to work set hours.
a. True
b. False
B
Employment and anti-discrimination laws protect which of the following classes?
a. Race
b. Color
c. Genetic information
d. All of the above
D
All personal assistants at real estate offices are required to be licensed by the state.
a. True
b. False
B
Unlicensed assistants may not:
a. Answer real estate office phones
b. Schedule appointments
c. Receive a commission on a real estate transaction
d. Serve as a host at an open house to welcome visitors and distribute fliers
C
An agent will receive a _________ to show the sum of the payments received from his/her broker during the tax year.
a. W-2
b. W-4
c. 1066-WD40
d. 1099-MISC
D
Which one of the following is NOT a test for specifying that a salesperson is an independent contractor under the Tax Equity and Fiscal Responsibility Act?
a. The salesperson must be full-time salary
b. The salesperson must be paid on a commission basis
c
A
When preparing an income tax return, it is important that a real estate agent know that...
a. Independent contractors do not have taxable income
b. The broker takes all deductions from the agent's checks
c. Business expenses are subtracted from income
d.
C
The real estate agent should be informed on market conditions affecting the real estate business.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
B
The real estate agent should employ prudence and caution so as to avoid misrepresentation in any way.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
A
The real estate agent should place no personal interest above that of his or her client.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
C
A real estate agent must not respond to or facilitate inquires about or make disclosure which indicates any racial, or religious preference.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
E
A set of principles or a system of values.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
D
A business practice may not be ethical, even if it is legal.
a. True
b. False
A
All of the following are included in the Canons of Professional Ethics for real estate licensees, EXCEPT:
a. Competency
b. Integrity
c. Patience
d. Consumer Information Form 1-1
C
It is legal for a real estate licensee to reveal the national origin and ancestry of a potential purchaser or real property.
a. True
b. False
B
Competency of a licensee includes,
a. Knowing his or her strengths and deficiencies
b. Continuing his or her education to improve services to clients
c. Being informed on national, state and local developments in the real estate industry
d. All of the abo
D
If there is evidence that establishes that a licensee violated TRELA, TREC may revoke or suspend his or her license.
a. True
b. False
A
All licensees are Realtors�.
a. True
b. False
B
Texas members of the National Association of Realtors� are not regulated by the Texas Real Estate Commission.
a. True
b. False
B
TRELA requires that TREC assign priorities and investigate complaints using a risk-based approach based on the:
a. Degree of potential harm to the sonsumer
b. Overall severity of the allegations and the complaint
c. Previous compaint history of the licens
D
Arise out of law.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
C
As assertion or statement by words or conduct that is not in accordance with the facts.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
D
Using adjectives and opinions rather than details or facts.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
A
A Texas law that was passed in 1973 that allows an aggrieved consumer to sue a seller of goods for damages.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
E
Informing the customer of material facts relating to a property.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
B
The Deceptive Trade Practices Act:
a. Is a federal law
b. Allows an aggrieved consumer to sue a seller of goods for damages if that seller has been deceptive or unfair
c. Was passed in 1963
d. All of the Above
B
Real estate licensees are rarely sued under an action of the DTPA.
a. True
b. False
B
The state of Texas requires that most sellers of residential property provide a(n) _________ to a potential buyer.
a. Seller's Disclosure of Condition of Property
b. IABS Form
c. Listing Agreement
d. None of the Above
A
All sellers have an obligation to disclose any known material defects to a buyer.
a. True
b. False
A
A court of law cannot suspend or revoke an agent's license under a DTPA violation.
a. True
b. False
A
TREC can suspend or revoke an agent's license if the licensee is found guilty of:
a. Selling real property under a lottery system
b. Acting in the dual capacity of broker and undisclosed principal in a transaction
c. Guaranteeing future profits will resul
D
_____________ uses adjectives and opinions rather than details or facts and is not considered misrepresentation.
a. Phishing
b. Commingling
c. Puffing
d. Pyramiding
C
In Texas, the agent is always responsible for the accuracy of the Seller's Disclosure of Condition of Property.
a. True
b. False
B
Marketing to a specific area or location.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
B
A document that addresses broker and client safety, listing, and contract files and licensee obligations.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
D
A contract between an insurance company and a broker/licensee.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
E
The act of harming another person by making a false statement.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
A
Marketing to a specific set of people sharing many commonalities.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
C
A buyer is:
a. Anyone wanting to view homes
b. Someone who wishes to list a home with a broker
c. Someone who wants to buy a home and is on a time line to do so
d. None of the above
C
What happens to licensees if their sponsoring broker dies?
a. Nothing. The brokerage firm runs as usual.
b. The licenses of the agents are placed on inactive status
c. The licenses of the agents are revoked
d. The licensees must retake the test
B
TREC rules require that most records for brokerage firms be retained for at least ______ years.
a. 4
b. 6
c. 10
d. 25
A
According to TREC advertising rules, the definition of advertisement includes all of the following, EXCEPT:
a. Radio ads
b. Communication from a licensee to his or her client
c. Social Networking Sites
d. Billboards
B
A licensee's advertisement must clearly and conspicuously contain a broker's or company's name.
a. True
b. False
A
Deceptive or misleading advertisements may include failing to remove an advertisement about a listing within a reasonable time after it ends.
a. True
b. False
A
Real estate licensees who make "cold calls" must comply with the requirements of the ________________ before making phone calls.
a. Dodd Frank Act
b. Texas Real Estate Commission Rules of Ethics
c. National Do-Not-Call Registry
d. Deceptive Trade Practice
C
One who hires an agent is called a:
a. Lawyer
b. Principal
c. Manager
d. Licensee
B
The agent works for or on behalf of a:
a. Client
b. Customer
A
A fiduciary relationship is based upon:
a. Customer rules
b. Lies pendens
c. Trust
d. All of these
C
Which of the following is the real estate licensing authority in Texas?
a. TAR
b. TALBC
c. TREC
d. HUD
C
Which of the following is NOT a principal's duty to an agent?
a. Compensation
b. Indemnification
c. Obedience
d. Performance
C
A broker must have _________ to act as an intermediary.
a. Oral consent
b. Written consent
c. The consent of each agent in a transaction
d. All of these are correct
B
The written document is evidence that the agency relationship exists and provides the agent with:
a. Express authority
b. Implied authority
c. Ostensible agency
d. Agency by ratification
A
The most limited of all the agency relationships is called:
a. Special agency
b. Universal agency
c. General agency
d. Law of agency
A
Activity which causes a third-party to believe that an agent has authority which in fact was not granted by a principal to the agent is known as:
a. Agency by actions
b. Agency by ratification
c. Agency by estoppel
d. Agency by implication
C
When actions lead another person to assume that one is an agent this is known as:
a. Ostensible agency
b. Agency by ratification
c. Express authority
d. None of these is correct
A
Disclosure of representation may be:
a. Oral
b. Written
c. Either oral or written
d. None of these are correct
C
Jerome is a licensed agent who wants to sell his mother's home. Jerome has the property listed with his brokerage firm and finds a buyer himself to buy his mother's home. Jerome should:
a. Tell the broker he wants to take the house off the market so as to
C
Confidential information between client and agent should be:
a. Shared with anyone
b. Shared with the next client
c. Kept confidential forever
d. Shared with a secret agent
C
An exemption to using the Information About Brokerage Services form is:
a. A lease for not more than 1 year with no sale anticipated
b. A buyer who is not being represented
c. A commercial transaction
d. There are no exemptions
A
Real estate agents owe certain non-fiduciary duties to customers, such as:
a. Trust and fidelity
b. Advice and opinions
c. Honesty and fairness
d. Compliance and confidentiality
C
A broker is obligated to treat which of the following fairly?
a. Customers
b. Sellers
c. Clients
d. All of the above
D
Which of the following events that happened, or is believed to have happened, on a property can "stigmatize" it?
a. Suicide on the premises
b. Paranormal activity
c. Death on the property
d. All of the above
D
A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.
a. True
b. False
A
The listing agreement should contain:
a. The water district notice
b. The legal description of the property
c. The covenants of the homeowner's association
d. All of the above
B
Sam listed his property with three different real estate brokers at the same time. In each agreement he reserved the right to sell the property himself without paying a commission. The type of listing that Sam signed with each broker was an:
a. Open listi
A
Data used for a CMA should be no older than:
a. 1 year
b. 2 years
c. 60 days
d. 6 months
D
The report used to give a seller or buyer an indication of market value is called a:
a. Comparative Market Analysis
b. Seller's Disclosure form
c. Notification of intermediary
d. None of these
A
Which of the following is an element of a listing?
a. A buyer's agreement to purchase a property
b. A marketability analysis of the neighborhood.
c. The broker's guarantee of profit for the seller
d. The broker's fee
D
A termination date in a listing agreement must be:
a. On-going with a 30-day notice by either party
b. Definite
c. One that either party can change at will
d. Determined by the broker
B
A licensee is not required to provide the IABS when the licensee meets with a party who is:
a. Not represented
b. Represented by another licensee
c. A family member
d. Renting for 2 years or more
B
If a broker sells a property on behalf of a seller without a signed listing agreement, the courts will most likely declare that the broker is:
a. A volunteer
b. An agent in a listing agreement that is un-enforceable against the seller
c. Unable to enforce
D
Commission rates are set by...
a. TREC
b. TAR�
c. The local board of Realtors�
d. Client and broker
D
The TAR Buyer Representation Agreement in our textbook:
a. Authorizes intermediary
b. Is limited to the market area designated in the agreement
c. Authorizes the agent to show properties to competing buyers
d. All of these are correct
D
Listings may be terminated by:
a. Death
b. Either party - broker or client
c. Mutual agreement
d. All of these are correct
D
When the broker is given notice of termination by the principal, the broker must:
a. Terminate the listing in the MLS
b. Remove signage and lockbox, if any
c. Cease all marketing activities
d. All of these are correct
D
A broker has the power to terminate an agency agreement early:
a. Without cause
b. For personal reasons
c. If the principal is not cooperating with the broker's efforts to market the property
d. None of the above
C
If a broker dies what happens to the listing with the seller?
a. It automatically belongs to the new broker
b. It is taken over by the listing agent
c. It automatically terminates
d. None of these are correct
C
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty.
In the above transaction, wh
D
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty.
In the above transaction, wh
B
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty.
What type of transaction is
A
A licensee not associated with the client's broker but who is representing the client through a cooperative agreement with the client's broker is known as a:
a. Subagent
b. Buyer's agent
c. Sales agent
d. All of these are correct
A
Broker Steve, having no agents, is a solo practitioner. He has a buyer client that wants to purchase one of his listings. The process that Broker Steve must use is:
a. Intermediary without appointments
b. Transaction brokerage
c. Intermediary with appoint
A
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing.
In the above
B
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing.
In the above
B
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing.
In the above
C
A licensee has a listing with a seller and has a buyer's representation agreement signed with a buyer who desires to purchase this agent's listing. How is the agent operating?
a. As an appointed associate in an intermediary relationship
b. As a non-appoin
B
In some states other than Texas, the most common method of dealing with in-house transactions between client buyers and sellers is:
a. To terminate the agency agreement with the buyer
b. Creative agency
c. Dual agency
d. Qualified agency
C
A real estate brokerage firm that practices buyer agency only has a lot of intermediary transactions.
a. True
b. False
B
_____________ means that, if a single agent in the firm is working with both buyer and seller, another agent in the firm needs to be brought into the transaction so appointments can be made.
a. No intermediary
b. Intermediary without appointments
c. Coope
D
A licensee must present the Information About Brokerage Services form:
a. Before contract negotiations begin
b. Before closing
c. At the first substantive discussion of a real estate transaction
d. Only if the customer wants representation
C
If a broker's agents are independent contractors, there can be a policies and procedures manual for the agents, however,
a. The broker cannot require mandatory compliance
b. The agents should not abide by these procedures
c. The IRS finds them illegal
d.
A
Real estate agents who are independent contractors generally get paid:
a. Travel expenses
b. Commission
c. Salary
d. Business expenses
B
Your company sends out a memo that there is a mandatory sales meeting this week for the sales agents.
a. You go, so that you won't be fired from your company.
b. The IRS rule on independent contractor status could be violated.
c. There is no IRS independe
B
In Texas, Worker's Compensation must be paid for real estate agents by brokers:
a. True
b. False
B
The Tax Equity and Fiscal Responsibility Act has which of the following tests for independent contractor status?
a. The salesperson signs a written contract with the broker stating the salesperson is not an employee
b. The salesperson states in writing he
A
Sally is an unlicensed assistant to Agent Bill at ABC Realty. In her role as a transaction coordinator, Sally recently called a buyer and discussed some minor title issues that turned up in the title search. She also mentioned to the buyer that rates are
C
All of the following are included in the Canons of Professional Ethics for real estate licensees, EXCEPT:
a. Competency
b. Patience
c. Integrity
d. Consumer Information Form 1-1
B
All licensees are Realtors�
a. True
b. False
B
Which of the following is a statutory defense for a lawsuit brought about by DTPA?
a. "I was told by someone that this was correct information."
b. Written information obtained from a government record
c. "The seller told me."
d. "The inspector told me it
B
Actual awareness of a falsity, deception, or unfairness of an act under DTPA is known as:
a. Unintentional
b. Deception
c. Knowingly
d. Falsifying
C
An agent is not liable for a misrepresentation or concealment of material fact by a party if:
a. The licensee did not know of the falsity of the misrepresentation
b. The seller removes himself from the transaction
c. The buyer was not damaged over $1,000,
A
It is always a good idea to have:
a. The agent fill out the Seller's Disclosure Notice
b. The agent do the inspection of the property
c. The seller fill out the Seller's Disclosure Notice
d. None of the above
C
Usually, a defamation claim requires evidence of:
a. A false statement made to someone other than the person who is allegedly defamed
b. A false statement
c. Damage to the person allegedly defamed by a false statement
d. All of the above
D
Protection against damage or loss.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
B
A person who receives limited brokerage services without establishing an agency relationship.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
D
Based on trust.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
A
Also known as the principal.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
E
A relationship between two parties.
a. Fiduciary
b. Indemnification
c. Agency
d. Customer
e. Client
C
Refusing to tell a buyer how long a property has been on the market.
a. Customer Level
b. Client Level
c. Both
A
Helping the buyer formulate a negotiating strategy.
a. Customer Level
b. Client Level
c. Both
B
Disclosing material facts about a seller's property.
a. Customer Level
b. Client Level
c. Both
C
Refusing to provide a negotiating strategy to a seller.
a. Customer Level
b. Client Level
c. Both
B
Providing public information related to the property, such as square footage, taxes.
a. Customer Level
b. Client Level
c. Both
C
Telling a buyer that a seller's property is overpriced.
a. Customer Level
b. Client Level
c. Both
B
Disclosing to a buyer that the current use of a property is in violation of deed restrictions.
a. Customer Level
b. Client Level
c. Both
C
Presenting a comparative market analysis to a buyer, showing the property is overpriced.
a. Customer Level
b. Client Level
c. Both
B
Telling the seller that the buyer can offer more money for his property.
a. Customer Level
b. Client Level
c. Both
A
Leading a buyer to believe that you are working int he buyer's best interest.
a. Customer Level
b. Client Level
c. Both
B
Calling attention to negative features such as an inefficient floor plan.
a. Customer Level
b. Client Level
c. Both
B
Placing "Property Wanted" ads to find an appropriate property for a buyer.
a. Customer Level
b. Client Level
c. Both
B
Telling a seller's agent that an offer from your buyer is just a beginning point.
a. Customer Level
b. Client Level
c. Both
A
An agency relationship exists when one person, the ___________ acts for, or on the behalf of another person, the _______________.
a. Client, agent
b. Agent, principal
c. Principal, agent
d. Broker, customer
B
The principal must always remain loyal to the customer.
a. True
b. False
B
The duties of the principal to the agent include all of the following, EXCEPT:
a. Trust
b. Reimbursement
c. Performance
d. Indemnification
A
_______________ means that the principal will protect the agent from suffering a loss due to the agent's reliance on information received from the principal.
a. Performance
b. Trust
c. Indemnification
d. None of the above
C
Agency is:
a. The relationship the agent has with the principal
b. When the agent acts for, or on behalf of the client
c. A fiduciary relationship
d. All of the above
D
A licensee has no duties to a customer.
a. True
b. False
B
A buyer's agent:
a. Represents the buyer
b. Is always the intermediary
c. Signs a Seller's Disclosure
d. None of the above
A
A subagent:
a. Is a licensee not associated with the seller's broker
b. Must work in the same real estate office as the listing broker
c. Must place the interests of the broker first
d. Is a licensee that represents the buyer or seller directly
A
The right to represent the principal in a particular type of transaction or business.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
B
Authority that comes from specific instructions, either oral or written.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
C
The power to act for the principal in all transactions.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
D
Established when an agent acts without prior authorization and the principal accepts it.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
E
Also known as limited agency.
a. Special agency
b. General agency
c. Express authority
d. Universal agency
e. Agency by ratification
A
What are the three types of agency?
a. Universal, unlimited, general
b. General, special, universal
c. Unlimited, remote, special
d. Special, general, perfect
B
A general agent has less authority than a universal agent.
a. True
b. False
A
A property manager is a common example of a ______________.
a. General agent
b. Special agent
c. Secret agent
d. Universal agent
A
A buyer/tenant representation agreement creates a ___________ agency relationship with the broker.
a. Universal
b. Special
c. General
d. None of the above
B
A written listing agreement provides an agent with ____________ authority.
a. Implied
b. Limited
c. Overriding
d. Express
D
The duties of the agent to the principal can be remembered by using the acronym:
a. PETE
b. NEWCAR
c. OLDCAR
d. HOTROD
C
An agent can share confidential information about a client's property once the listing agreement is terminated.
a. True
b. False
B
Commingling is legal in the state of Texas.
a. True
b. False
B
A real estate agent does not have any duties to a customer, only a client.
a. True
b. False
B
A variety of seller's disclosure notices comply with the Texas Property Code.
a. True
b. False
A
A seller must always fill out Seller's Disclosure of Property Condition.
a. True
b. False
B
An agent does not have to disclose whether or not there has been a suicide on the property.
a. True
b. False
A
Agents should always disclose whether or not a previous or current tenant has had AIDS or HIV- related illness.
a. True
b. False
B
Real estate agents owe certain non-fiduciary duties to customers such as:
a. Trust
b. Advice and opinions
c. Honesty and fairness
d. Compliance
C
The Texas Real Estate License Act is the only law impacting third-party obligations in the real estate brokerage business.
a. True
b. False
B
The federal law requiring all states to release information to the public about known, convicted sex offenders, when necessary, to protected the public's safety is:
a. The Interstate Trade Act
b. The Dodd-Frank Act
c. Hillary's Law
d. Megan's Law
D
A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.
a. True
b. False
A
Which of the following events that happened, or is believed to have happened, on a property can "stigmatize" it?
a. Suicide on the premises
b. Paranormal activity
c. Death on the property
d. All of the above
D
Licensees must disclose whether or not a former tenant had AIDS or an HIV-related disease to potential buyers.
a. True
b. False
B
A seller does not have to disclose any stigma that relates to a material defect in the property.
a. True
b. False
B
The seller can list his or her property with multiple competing brokers.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
D
Contract with a a seller that gives the broker the right to find a purchaser for his or her property.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
C
The seller lists the property with only one broker, but can sell it him or herself without paying a commission.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
E
The real estate broker's commission is the difference between the minimum net established by the seller, and the price that the buyer is willing to pay.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
B
Analysis based on properties that have recently sold that are most similar to the subject property.
a. CMA
b. Net listing
c. Listing agreement
d. Open listing
e. Exclusive agency
A
Oral listing agreements are allowed in Texas.
a. True
b. False
A
All of the following elements should be included in a listing agreement, EXCEPT:
a. The IABS form
b. A beginning date and termination date
c. The percentage of the broker's commission which is split with the agent
d. Intermediary consent
C
Which type of listing agreement allows for the seller to sell his or her property him or herself without paying a commission even though it is listed with a broker?
a. Open listing
b. Exclusive agency
c. Exclusive right to sell
d. Net listing
B
The best type of listing for a broker is the net listing.
a. True
b. False
B
The shared information from the MLS can be used by agents to prepare a(n) _______________.
a. Comparative Market Analysis
b. Listing Agreement
c. Appraisal
d. Seller's Disclosure of Property Condition
A
Subagency is:
a. When a broker appoints associates to the selling side and the listing side in an in-house sale
b. Outlawed in Texas
c. When a licensee not associated with the seller's broker is representing the seller through a cooperative agreement with
C
Brokers do not need written authorization to advertise on social media.
a. True
b. False
B
All listing agreements must have a definite ____________ date.
a. Termination
b. Sell by
c. Maturity
d. Beginning
A
Setting commission rates between groups of brokers in an area.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
C
An agent my not deceive or defraud a customer.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
D
Federal legislation that specifically deals with illegal fixing of commission rates.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
B
The agent is held to the standards of knowledge, expertise and ethics defined by TRELA.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
E
The individual who, through a series of uninterrupted actives, brought about the completion of a contract.
a. Procuring Cause of Sale
b. Sherman Anti-Trust Act
c. Price fixing
d. Honest dealing
e. Reasonable care
A
The agreement that buyers sign, allowing a broker to represent them is called a ____________.
a. Buyer/Agent Agreement
b. Seller's Disclosure
c. Buyer/Tenant Representation Agreement
d. None of the above
C
Only a broker may earn a commission, and only a broker may sue to collect a commission.
a. True
b. False
A
Which of the following requirements must be satisfied if a broker seeks to enforce payment of a commission?
a. The broker must have a valid real estate license
b. The broker must have a signed employment agreement with a promise by the client to pay a com
D
Who is procuring cause of sale?
a. The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract
b. The first individual to show a property to a prospective buyer
c. The listing agent
d. None of th
A
The courts consider a broker's oral listing agreement with a client as enforceable against the client.
a. True
b. False
B
Commission rates are not negotiable between parties.
a. True
b. False
B
Which federal law(s) has the greatest impact in the area of illegal price-fixing of commissions?
a. The Clayton Act
b. Megan's Law
c. The Sherman Anti-Trust Act
d. Both A and C
D
TREC sets the commission rates between the broker and the broker's client
a. True
b. False
B
All of the following actions by a broker are violation of federal law, EXCEPT:
a. Attempting to fix prices
b. Limiting competition by assigning market areas
c. Negotiating commission rates with clients
d. Boycotting discount brokers
C
The agent working with the buyer.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
C
The seller retains the services of a broker.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
D
A property is sold by the listing firm.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
A
The buyer remains the services of a broker.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
E
A property is sold by a firm other than the listing firm.
a. In-house sale
b. Cooperative sale
c. Selling agent
d. Listing agent
e. Selling side
B
The best way to create an agency relationship is to do so,
a. By a handshake
b. By an oral agreement
c. In writing
d. After an agreement has been reached between the parties
C
What type of agency is established when a broker hires an agent?
a. Vague agency
b. General agency
c. Special agency
d. Express agency
B
Agents of a brokerage firm all share the same agency duties to all clients of the firm.
a. True
b. False
A
A listing side of a transaction is when...
a. The property is sold by a firm other than the listing firm
b. The buyer retains the services of a broker
c. The seller retains the services of a broker
d. None of the above
C
In real estate, if a party to a transaction is not being represented by an agent, they are known as a ______________.
a. Consultant
b. Client
c. Consumer
d. Customer
D
According to TRELA, when one firm sells a property listed by another firm to a buyer they are not representing, the selling firm represents the seller in a _____________ relationship.
a. Subagency
b. Contingent
c. In-house
d. Tense
A
Subagency was outlawed by the passage of Senate Bill 489.
a. True
b. False
B
A listing is terminated by any of the following, EXCEPT:
a. The expiration of the time period stated in the contract
b. At any time by mutual agreement
c. After exactly one year has passed since the agreement was signed
d. Bankruptcy of either party
C
When the broker is given notice of termination of a listing, the broker must:
a. Remove all signs and lockboxes
b. Cease all marketing activities
c. Remove the listing from websites and other advertising media
d. All of the above
D
A broker has the power to terminate an agency agreement early,
a. Without cause
b. For personal reasons
c. If the principal was not cooperating with the broker's efforts to market the property
d. None of the above
C
The practice that allows a real estate firm to represent both the buyer and the seller with their written permission.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
C
Occurs when a broker appoints associates within a brokerage firm to represent the listing and selling side of a transaction.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
B
Occurs when an agent sells his or her own listing, but cannot give advice or negotiate for either party.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
A
The legislation that gives the industry the Intermediary process.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
E
A transaction in which a broker is on both the listing and selling side.
a. Intermediary without appointments
b. Intermediary with appointments
c. Dual agency
d. In-house sale
e. Senate Bill 489
D
A(n) ______________ is when a brokerage firm sells its own listing.
a. cooperative sale
b. net sale
c. in-house sale
d. gross sale
C
It is illegal in Texas for a broker to be on both the listing and selling side of a transaction.
a. True
b. False
B
When a broker represents both the buyer and the seller, the broker is an intermediary.
a. True
b. False
A
The broker has no duty to inform the client of the intermediary relationship as it is assumed in Texas.
a. True
b. False
B
According to Texas real estate laws, a broker must always appoint associates in an intermediary relationship.
a. True
b. False
B
What determines whether a transaction is to be done under intermediary rules?
a. The transaction must be an in-house sale
b. Both sides (buyer/seller or landlord/tenant) must be clients
c. The broker must have written consent from both parties
d. All of t
D
Intermediary with appointments requires that the broker sponsor at least two agents.
a. True
b. False
A
To appoint associates or not in an in-house transaction is at the discretion of the broker.
a. True
b. False
A
Intermediary is a process that makes it possible to bring client buyers and sellers together while at the same time representing their best interests.
a. True
b. False
A
A potential buyer must be provided with the IABS form at the first substantive discussion.
a. True
b. False
A
The IABS form is utilized to better inform the potential buyer or seller on agency relationships.
a. True
b. False
A
A brokerage firm that practices Buyer-Agency only has a lot of intermediary transactions.
a. True
b. False
B
An intermediary firm represents sellers only.
a. True
b. False
B
Brokerage firms' policy manuals should address common problems such as, when to present the IABS form, and when to have a buyer sign a buyer/tenant representation agreement.
a. True
b. False
A
The Information About Brokerage Services form should be provided to a potential buyer or seller at the first _____________ discussion of a real estate transaction.
a. Substantial
b. Telephone
c. Substantive
d. None of the above
C
_________________ means that, if a single agent in the firm is working with both buyer and seller, another agent in the firm needs to be brought into the transaction so appointments can be made.
a. No intermediary
b. Intermediary without appointments
c. C
D
All real estate brokerage firms practice both buyer and seller agency.
a. True
b. False
B
If a real estate brokerage firm practices intermediary, then the firm practices _______________.
a. Seller agency
b. Buyer agency
c. Dual agency
d. Both a and b
D
The IABS should be presented as the buyer is about to write an offer.
a. True
b. False
B
The Information About Brokerage Services form is approved by the Texas Real Estate Commission
for voluntary use.
a. True
b. False
A
For a broker to represent the owner:
a. The broker becomes the buyer's agent by entering into an agreement with the buyer
b. The broker's commission is set by TREC
c. The broker becomes the owner's agent by entering into an agreement with the owner
d. Non
C
A broker who acts as an intermediary in a transaction:
a. May disclose that the owner will accept a price less than the asking price if he or she feels that it is the right thing to do
b. May disclose any confidential information that he or she deems will
C
Receives a paycheck that is net of deductions for income taxes and other charges.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
C
Shows the sum of payments received form a salesperson's broker during the tax year.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
B
May be hired to assist a salesperson, but is not required to hold a real estate license.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
D
The broker in the broker-salesperson relationship in real estate.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
E
Receives a gross check and a 1099-MISC.
a. Independent contractor
b. 1099-MISC
c. Employee
d. Personal assistant
e. Principal
A
The IRS set guidelines determining that a salesperson would be classified as an independent contractor in 1976.
a. True
b. False
A
A broker can require a salesperson to work set hours.
a. True
b. False
B
Employment and anti-discrimination laws protect which of the following classes?
a. Race
b. Color
c. Genetic information
d. All of the above
D
All personal assistants at real estate offices are required to be licensed by the state.
a. True
b. False
B
Unlicensed assistants may not:
a. Answer real estate office phones
b. Schedule appointments
c. Receive a commission on a real estate transaction
d. Serve as a host at an open house to welcome visitors and distribute fliers
C
An agent will receive a _________ to show the sum of the payments received from his/her broker during the tax year.
a. W-2
b. W-4
c. 1066-WD40
d. 1099-MISC
D
Which one of the following is NOT a test for specifying that a salesperson is an independent contractor under the Tax Equity and Fiscal Responsibility Act?
a. The salesperson must be full-time salary
b. The salesperson must be paid on a commission basis
c
A
When preparing an income tax return, it is important that a real estate agent know that...
a. Independent contractors do not have taxable income
b. The broker takes all deductions from the agent's checks
c. Business expenses are subtracted from income
d.
C
The real estate agent should be informed on market conditions affecting the real estate business.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
B
The real estate agent should employ prudence and caution so as to avoid misrepresentation in any way.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
A
The real estate agent should place no personal interest above that of his or her client.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
C
A real estate agent must not respond to or facilitate inquires about or make disclosure which indicates any racial, or religious preference.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
E
A set of principles or a system of values.
a. Integrity
b. Competency
c. Fidelity
d. Ethics
e. Discriminatory practices
D
A business practice may not be ethical, even if it is legal.
a. True
b. False
A
All of the following are included in the Canons of Professional Ethics for real estate licensees, EXCEPT:
a. Competency
b. Integrity
c. Patience
d. Consumer Information Form 1-1
C
It is legal for a real estate licensee to reveal the national origin and ancestry of a potential purchaser or real property.
a. True
b. False
B
Competency of a licensee includes,
a. Knowing his or her strengths and deficiencies
b. Continuing his or her education to improve services to clients
c. Being informed on national, state and local developments in the real estate industry
d. All of the abo
D
If there is evidence that establishes that a licensee violated TRELA, TREC may revoke or suspend his or her license.
a. True
b. False
A
All licensees are Realtors�.
a. True
b. False
B
Texas members of the National Association of Realtors� are not regulated by the Texas Real Estate Commission.
a. True
b. False
B
TRELA requires that TREC assign priorities and investigate complaints using a risk-based approach based on the:
a. Degree of potential harm to the sonsumer
b. Overall severity of the allegations and the complaint
c. Previous compaint history of the licens
D
Arise out of law.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
C
As assertion or statement by words or conduct that is not in accordance with the facts.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
D
Using adjectives and opinions rather than details or facts.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
A
A Texas law that was passed in 1973 that allows an aggrieved consumer to sue a seller of goods for damages.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
E
Informing the customer of material facts relating to a property.
a. Puffing
b. Disclosure
c. Statutory Defenses
d. Misrepresentation
e. DTPA
B
The Deceptive Trade Practices Act:
a. Is a federal law
b. Allows an aggrieved consumer to sue a seller of goods for damages if that seller has been deceptive or unfair
c. Was passed in 1963
d. All of the Above
B
Real estate licensees are rarely sued under an action of the DTPA.
a. True
b. False
B
The state of Texas requires that most sellers of residential property provide a(n) _________ to a potential buyer.
a. Seller's Disclosure of Condition of Property
b. IABS Form
c. Listing Agreement
d. None of the Above
A
All sellers have an obligation to disclose any known material defects to a buyer.
a. True
b. False
A
A court of law cannot suspend or revoke an agent's license under a DTPA violation.
a. True
b. False
A
TREC can suspend or revoke an agent's license if the licensee is found guilty of:
a. Selling real property under a lottery system
b. Acting in the dual capacity of broker and undisclosed principal in a transaction
c. Guaranteeing future profits will resul
D
_____________ uses adjectives and opinions rather than details or facts and is not considered misrepresentation.
a. Phishing
b. Commingling
c. Puffing
d. Pyramiding
C
In Texas, the agent is always responsible for the accuracy of the Seller's Disclosure of Condition of Property.
a. True
b. False
B
Marketing to a specific area or location.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
B
A document that addresses broker and client safety, listing, and contract files and licensee obligations.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
D
A contract between an insurance company and a broker/licensee.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
E
The act of harming another person by making a false statement.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
A
Marketing to a specific set of people sharing many commonalities.
a. Defamation
b. Geographic Farming
c. Demographic Farming
d. Policy and procedure
e. Errors and omissions policy
C
A buyer is:
a. Anyone wanting to view homes
b. Someone who wishes to list a home with a broker
c. Someone who wants to buy a home and is on a time line to do so
d. None of the above
C
What happens to licensees if their sponsoring broker dies?
a. Nothing. The brokerage firm runs as usual.
b. The licenses of the agents are placed on inactive status
c. The licenses of the agents are revoked
d. The licensees must retake the test
B
TREC rules require that most records for brokerage firms be retained for at least ______ years.
a. 4
b. 6
c. 10
d. 25
A
According to TREC advertising rules, the definition of advertisement includes all of the following, EXCEPT:
a. Radio ads
b. Communication from a licensee to his or her client
c. Social Networking Sites
d. Billboards
B
A licensee's advertisement must clearly and conspicuously contain a broker's or company's name.
a. True
b. False
A
Deceptive or misleading advertisements may include failing to remove an advertisement about a listing within a reasonable time after it ends.
a. True
b. False
A
Real estate licensees who make "cold calls" must comply with the requirements of the ________________ before making phone calls.
a. Dodd Frank Act
b. Texas Real Estate Commission Rules of Ethics
c. National Do-Not-Call Registry
d. Deceptive Trade Practice
C
One who hires an agent is called a:
a. Lawyer
b. Principal
c. Manager
d. Licensee
B
The agent works for or on behalf of a:
a. Client
b. Customer
A
A fiduciary relationship is based upon:
a. Customer rules
b. Lies pendens
c. Trust
d. All of these
C
Which of the following is the real estate licensing authority in Texas?
a. TAR
b. TALBC
c. TREC
d. HUD
C
Which of the following is NOT a principal's duty to an agent?
a. Compensation
b. Indemnification
c. Obedience
d. Performance
C
A broker must have _________ to act as an intermediary.
a. Oral consent
b. Written consent
c. The consent of each agent in a transaction
d. All of these are correct
B
The written document is evidence that the agency relationship exists and provides the agent with:
a. Express authority
b. Implied authority
c. Ostensible agency
d. Agency by ratification
A
The most limited of all the agency relationships is called:
a. Special agency
b. Universal agency
c. General agency
d. Law of agency
A
Activity which causes a third-party to believe that an agent has authority which in fact was not granted by a principal to the agent is known as:
a. Agency by actions
b. Agency by ratification
c. Agency by estoppel
d. Agency by implication
C
When actions lead another person to assume that one is an agent this is known as:
a. Ostensible agency
b. Agency by ratification
c. Express authority
d. None of these is correct
A
Disclosure of representation may be:
a. Oral
b. Written
c. Either oral or written
d. None of these are correct
C
Jerome is a licensed agent who wants to sell his mother's home. Jerome has the property listed with his brokerage firm and finds a buyer himself to buy his mother's home. Jerome should:
a. Tell the broker he wants to take the house off the market so as to
C
Confidential information between client and agent should be:
a. Shared with anyone
b. Shared with the next client
c. Kept confidential forever
d. Shared with a secret agent
C
An exemption to using the Information About Brokerage Services form is:
a. A lease for not more than 1 year with no sale anticipated
b. A buyer who is not being represented
c. A commercial transaction
d. There are no exemptions
A
Real estate agents owe certain non-fiduciary duties to customers, such as:
a. Trust and fidelity
b. Advice and opinions
c. Honesty and fairness
d. Compliance and confidentiality
C
A broker is obligated to treat which of the following fairly?
a. Customers
b. Sellers
c. Clients
d. All of the above
D
Which of the following events that happened, or is believed to have happened, on a property can "stigmatize" it?
a. Suicide on the premises
b. Paranormal activity
c. Death on the property
d. All of the above
D
A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction if the seller did not disclose it to the agent.
a. True
b. False
A
The listing agreement should contain:
a. The water district notice
b. The legal description of the property
c. The covenants of the homeowner's association
d. All of the above
B
Sam listed his property with three different real estate brokers at the same time. In each agreement he reserved the right to sell the property himself without paying a commission. The type of listing that Sam signed with each broker was an:
a. Open listi
A
Data used for a CMA should be no older than:
a. 1 year
b. 2 years
c. 60 days
d. 6 months
D
The report used to give a seller or buyer an indication of market value is called a:
a. Comparative Market Analysis
b. Seller's Disclosure form
c. Notification of intermediary
d. None of these
A
Which of the following is an element of a listing?
a. A buyer's agreement to purchase a property
b. A marketability analysis of the neighborhood.
c. The broker's guarantee of profit for the seller
d. The broker's fee
D
A termination date in a listing agreement must be:
a. On-going with a 30-day notice by either party
b. Definite
c. One that either party can change at will
d. Determined by the broker
B
A licensee is not required to provide the IABS when the licensee meets with a party who is:
a. Not represented
b. Represented by another licensee
c. A family member
d. Renting for 2 years or more
B
If a broker sells a property on behalf of a seller without a signed listing agreement, the courts will most likely declare that the broker is:
a. A volunteer
b. An agent in a listing agreement that is un-enforceable against the seller
c. Unable to enforce
D
Commission rates are set by...
a. TREC
b. TAR�
c. The local board of Realtors�
d. Client and broker
D
The TAR Buyer Representation Agreement in our textbook:
a. Authorizes intermediary
b. Is limited to the market area designated in the agreement
c. Authorizes the agent to show properties to competing buyers
d. All of these are correct
D
Listings may be terminated by:
a. Death
b. Either party - broker or client
c. Mutual agreement
d. All of these are correct
D
When the broker is given notice of termination by the principal, the broker must:
a. Terminate the listing in the MLS
b. Remove signage and lockbox, if any
c. Cease all marketing activities
d. All of these are correct
D
A broker has the power to terminate an agency agreement early:
a. Without cause
b. For personal reasons
c. If the principal is not cooperating with the broker's efforts to market the property
d. None of the above
C
If a broker dies what happens to the listing with the seller?
a. It automatically belongs to the new broker
b. It is taken over by the listing agent
c. It automatically terminates
d. None of these are correct
C
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty.
In the above transaction, wh
D
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty.
In the above transaction, wh
B
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to purchase Joe's listing. The buyer that Agent Sean is working with has chosen not to enter into an agency relationship with City Realty.
What type of transaction is
A
A licensee not associated with the client's broker but who is representing the client through a cooperative agreement with the client's broker is known as a:
a. Subagent
b. Buyer's agent
c. Sales agent
d. All of these are correct
A
Broker Steve, having no agents, is a solo practitioner. He has a buyer client that wants to purchase one of his listings. The process that Broker Steve must use is:
a. Intermediary without appointments
b. Transaction brokerage
c. Intermediary with appoint
A
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing.
In the above
B
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing.
In the above
B
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue's buyer wants to purchase Agent Bill's listing.
In the above
C
A licensee has a listing with a seller and has a buyer's representation agreement signed with a buyer who desires to purchase this agent's listing. How is the agent operating?
a. As an appointed associate in an intermediary relationship
b. As a non-appoin
B
In some states other than Texas, the most common method of dealing with in-house transactions between client buyers and sellers is:
a. To terminate the agency agreement with the buyer
b. Creative agency
c. Dual agency
d. Qualified agency
C
A real estate brokerage firm that practices buyer agency only has a lot of intermediary transactions.
a. True
b. False
B
_____________ means that, if a single agent in the firm is working with both buyer and seller, another agent in the firm needs to be brought into the transaction so appointments can be made.
a. No intermediary
b. Intermediary without appointments
c. Coope
D
A licensee must present the Information About Brokerage Services form:
a. Before contract negotiations begin
b. Before closing
c. At the first substantive discussion of a real estate transaction
d. Only if the customer wants representation
C
If a broker's agents are independent contractors, there can be a policies and procedures manual for the agents, however,
a. The broker cannot require mandatory compliance
b. The agents should not abide by these procedures
c. The IRS finds them illegal
d.
A
Real estate agents who are independent contractors generally get paid:
a. Travel expenses
b. Commission
c. Salary
d. Business expenses
B
Your company sends out a memo that there is a mandatory sales meeting this week for the sales agents.
a. You go, so that you won't be fired from your company.
b. The IRS rule on independent contractor status could be violated.
c. There is no IRS independe
B
In Texas, Worker's Compensation must be paid for real estate agents by brokers:
a. True
b. False
B
The Tax Equity and Fiscal Responsibility Act has which of the following tests for independent contractor status?
a. The salesperson signs a written contract with the broker stating the salesperson is not an employee
b. The salesperson states in writing he
A
Sally is an unlicensed assistant to Agent Bill at ABC Realty. In her role as a transaction coordinator, Sally recently called a buyer and discussed some minor title issues that turned up in the title search. She also mentioned to the buyer that rates are
C
All of the following are included in the Canons of Professional Ethics for real estate licensees, EXCEPT:
a. Competency
b. Patience
c. Integrity
d. Consumer Information Form 1-1
B
All licensees are Realtors�
a. True
b. False
B
Which of the following is a statutory defense for a lawsuit brought about by DTPA?
a. "I was told by someone that this was correct information."
b. Written information obtained from a government record
c. "The seller told me."
d. "The inspector told me it
B
Actual awareness of a falsity, deception, or unfairness of an act under DTPA is known as:
a. Unintentional
b. Deception
c. Knowingly
d. Falsifying
C
An agent is not liable for a misrepresentation or concealment of material fact by a party if:
a. The licensee did not know of the falsity of the misrepresentation
b. The seller removes himself from the transaction
c. The buyer was not damaged over $1,000,
A
It is always a good idea to have:
a. The agent fill out the Seller's Disclosure Notice
b. The agent do the inspection of the property
c. The seller fill out the Seller's Disclosure Notice
d. None of the above
C
Usually, a defamation claim requires evidence of:
a. A false statement made to someone other than the person who is allegedly defamed
b. A false statement
c. Damage to the person allegedly defamed by a false statement
d. All of the above
D