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Tests Exam Questions And Answers
In an intermediary transaction, the consequences to the seller and buyer are all of the following EXCEPT: A) They will not have full disclosure from the broker about anything confidential about the other party. B) They will receive limited fiduciary duties from the broker. C) They will have to take the transaction out of house. D) They will not have complete loyalty from the broker. - correct answer ✅C) They will have to take the transaction out of house. Sarah is a listing agent. When talking to a potential buyer, she can do all of the following EXCEPT: A) Give all required disclosures B) Give advice about price negotiation C) Point out the property's wonderful features D)Help with the loan application - correct answer ✅B) Give advice about price negotiation A real estate brokerage advertises that they will list property for a low commission. Later, the seller finds out that he advertised low
Tests Exam Questions And Answers
commission is contingent upon the seller signing a 12-month listing and agreeing to do all of the showings themselves. Is the brokerage guilty of a violation? A) No, this is just marketing. B) Yes, they are guilty of misrepresentation. C) No, as long as the company notifies the seller of this in writing. D) Yes, only licensed agents can do showings. - correct answer ✅B) Yes, they are guilty of misrepresentation. All of the following statements are true EXCEPT: A) TAR Buyer's Representation Agreements are similar to TAR Listing Agreements. B) There is no commission agreement in the Buyer Representation Agreement. C) Buyer Representation Agreements need to be signed by the buyers and the agent. D) Buyer Representation Agreements need to be in writing. - correct answer ✅B) There is no commission agreement in the Buyer Representation Agreement.
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D) Yes. E&O insurance protects agents and brokers in the event of accidental legal violations, as well as intentional wrongdoing. - correct answer ✅A) Yes. E&O insurance protects agents and brokers in the event of accidental legal violations. Richard has decided to sell his home at 2635 Cason. His agent, Vincent, posted 2635 Cason on the MLS and showed the home to several prospective buyers, including Lily and Lily's agent, Margaret. Eventually, Richard accepted Lily's offer. Vincent is best defined as a: A) Buyer's agent B) Landlord's agent C) Tenant's agent D) Listing agent - correct answer ✅D) Listing agent Ashley is house-hunting and finds a home she likes being sold by the owner. Now that Ashley is interested, neither she nor the owner knows what to do next. Ashley asks her friend Bill, a real estate agent. He advises her and helps her with documents for no fee. What type of relationship has formed?
Tests Exam Questions And Answers
A) Express agency B) Dual agency C) Implied agency D) Limited agency - correct answer ✅C) Implied agency George's buyer client has decided to make an offer on a property that is listed by George's brokerage firm. George's broker's agency policy says he will become an intermediary representative with an appointment to help the buyer. What further action must George take before proceeding? A) George must ensure he has written authorization from both buyer and seller to enter an intermediary relationship. B) George may not proceed regardless - intermediary representation is illegal in Texas. C) George must ensure he obtains written permission from his buyer client. D) None, George is conforming to his broker's policy. - correct answer ✅A) George must ensure he has written authorization from both buyer and seller to enter an intermediary relationship.
Tests Exam Questions And Answers
D) A cooperating agent representing two parties in a transaction - correct answer ✅A) A broker representing both parties in a transaction Donald, a sales agent, tells a potential buyer that if they purchase the house within the next week, his broker will throw in a 10% discount. Donald knows that it's very doubtful that his broker would do this. Did Donald commit a license violation? A) Yes, Donald made a false promise likely to influence a person to enter into an agreement, which is a license violation. B) No, Donald did nothing wrong, as he was just trying to secure a sale. C) Yes, Donald commingled funds, which is a license violation. D) No, Donald did nothing wrong, because his client should know that only brokers can make promises like that. - correct answer ✅A) Yes, Donald made a false promise likely to influence a person to enter into an agreement, which is a license violation. Your friend Lisa calls you up and complains about the service she is getting from her listing agent. "I just can't sell my house!" she wails. She asks if you can start looking around for possible buyers, just as a friendly favor.
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What should you do? A) Help Lisa, but only on an informal basis. B) Help Lisa - if the other agent isn't doing their job, it's their own fault they've lost their business to you. C) Call the other broker and tell them Lisa's concerns. D) Tell Lisa that you cannot help her while she is under contract with another broker. - correct answer ✅D) Tell Lisa that you cannot help her while she is under contract with another broker. Asa, a sales agent, knows that her client, Emma, has HIV. To whom should Asa disclose Emma's HIV status? A) No one B) Emma's agent C) The potential buyer of Emma's house, and also Emma's agent D) The potential buyer of Emma's house - correct answer ✅A) No one
Tests Exam Questions And Answers
Sales Agent Aurora has a client selling his home. A potential buyer is not working with a broker. Aurora decides to help the buyer obtain financing. Is this ethical? Why or why not? A) Yes, because the seller getting financing furthers her client's best interests. B) No, because it is unethical for a sales agent to help someone who is not their client. C) Yes, because she is not acting as a mortgage broker for her client, it is not dual agency. D) No, because only a mortgage broker can offer this kind of assistance. - correct answer ✅A) Yes, because the seller getting financing furthers her client's best interests. Mel, a sales agent, represents his broker Belle in his relationships with clients. As such, Mel helps Belle fulfill her fiduciary duties to her clients. Mel is a(n) ________ of Belle. A) General agent B) Specific agent C) Universal agent
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D) Special agent - correct answer ✅A) General agent Completion of the Notice of Intermediary is needed in which of the following examples? A) Mary is representing a seller and has a buyer customer ready to write an offer. B) Sarah has a listing that an agent from another company just brought her an offer on. C) John is representing a buyer who is buying another broker's listing. D) Delores is representing a buyer who is going to make an offer on a property listed by another agent in her office. - correct answer ✅D) Delores is representing a buyer who is going to make an offer on a property listed by another agent in her office. Broker Susie has been representing Kwame. Kwame is not too happy with Susie, and decides he wants to end the agency relationship with her. What is this called? A) Rescission B) Revocation
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B) Employees are paid either a salary or salary plus commission. Independent contractors are paid only by commission. C) Both are paid only by commissions, but the employee generally takes a higher percentage of the split with the broker. D) Employees are paid only by commission. Independent contractors are paid either a salary or salary plus commission. - correct answer ✅B) Employees are paid either a salary or salary plus commission. Independent contractors are paid only by commission. Larry represents Moe in a real estate transaction. They decide they want to work with each other, and formalize that decision. Larry now represents Moe's best interests in all dealings. Describe this interaction. A) Moe is Larry's agent. Larry is principal. They form a mutual agreement. Larry has fiduciary obligations to Moe. B) Moe is Larry's agent. Larry is principal. They form a mutual agreement. Moe has fiduciary obligations to Larry. C) Larry is Moe's agent. Moe is principal. They form a mutual agreement. Moe has fiduciary obligations to Larry. D) Larry is Moe's agent. Moe is principal. They form a mutual agreement. Larry has fiduciary obligations to Moe. - correct answer ✅D) Larry is Moe's agent. Moe is principal. They form a mutual agreement. Larry has fiduciary obligations to Moe.
Tests Exam Questions And Answers
Buyer agency can be created in all of the following ways EXCEPT: A) Agency by ratification B) Actual agency C) Apparent or ostensible agency D) Listing agency - correct answer ✅D) Listing agency Which of the following is NOT true about the brokerage office policy manual for agents? A) They are a response to TREC's requirement that issues such as broker supervision and occupational procedures be put in writing. B) They should discuss things like the timing of disclosure with customers, clients, and other license holders. C) They should discuss things like first contact with customers and clients and presentation of key documents. D) They should be optional reading for members of a brokerage. - correct answer ✅D) They should be optional reading for members of a brokerage.
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B) The seller suffers a $500 penalty if they don't submit the notice within three days of signing the contract. C) Nothing happens. Provision of the Seller's Disclosure Notice is optional. D) The buyer is allowed to terminate the contract for any reason within seven days after receiving the notice or before closing (whichever is earlier). - correct answer ✅D) The buyer is allowed to terminate the contract for any reason within seven days after receiving the notice or before closing (whichever is earlier). What is an unconscionable action? A) The principle of "buyer beware" B) An act which takes advantage of a consumer's lack of knowledge, ability, experience, or capacity to a grossly unfair degree and to their detriment C) The principle of "seller beware" D) A judicial movement that tries to limit the amount of recourse and awards that can go to a complainant - correct answer ✅B) An act which takes advantage of a consumer's lack of knowledge, ability, experience, or capacity to a grossly unfair degree and to their detriment
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The seller's agent is usually the: A) Intermediary B) Purchasing agent C) Cooperating agent D) Listing agent - correct answer ✅D) Listing agent Broker Cameron gives his client a notice which informs them of his minimum duties, the types of license holders, and how a license holder can represent a party in a real estate transaction. What is this notice called? A) The Information About Brokerage Services Form B) The Buyer Representation Agreement C) The Intermediary Relationship Notice D) The Listing Agreement - correct answer ✅A) The Information About Brokerage Services Form Daisy is looking to sell her home, 5300 Tetler Drive, and has entered into an agency relationship with Broker Josh. Daisy is Broker Josh's:
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C) The CFPB D) TREC - correct answer ✅D) TREC Buyer Bill buys a home without the broker with whom he is contracted (Broker Matt). Matt decides to pursue payment of commission. Which of the following conditions must be met for Matt to sue for collection of commission? A) Matt must work full-time, not part-time. B) Matt must not be an independent contractor. C) The commission needs to be over 2%. D) Matt must have advised Bill of the need for an abstract or title search along with title insurance. - correct answer ✅D) Matt must have advised Bill of the need for an abstract or title search along with title insurance. When a license holder acts as a broker or sales agent, they must uphold all of the following duties to third parties EXCEPT: A) Duty of honesty and fair dealing B) Duty of agency disclosure
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C) Duty of confidentiality D) Duty of accounting - correct answer ✅C) Duty of confidentiality If a supervising broker requires agents to be at the office certain for hours and attend all company meetings, the agents should most likely be classified as: A) Contracted employees B) Subagents C) Independent contractors D) Employees - correct answer ✅D) Employees Alexis, a sales agent, is advising her client on how to fill out the Seller's Disclosure Notice. The client does not want to disclose that the house has water damage. What should Alexis do? A) Alexis should allow the client to not disclose this information. B) Alexis should report the client to the Real Estate Commission on Ethics.
