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- 1. Multiple Choice
An agency relationship exists when one person, the ______ acts for, or on the behalf of another person, the _____________.
Client, agent
Agent, principal
Principal, agent
Broker, customer
- 2. Multiple Choice
Which of the following if grounds for suspension or revocation of license by TREC?
Splitting a commission with a person other than a license holder
Splitting a commission with Texas real estate license holder
Disclosing a material defect of a property.
All of these are grounds for suspension or revocation of license
- 3. Multiple Choice
The commission can deny licensure to applicant based on the applicant's __________.
Credit score
IQ
Moral character
Lack of college degree
- 4. Multiple Choice
What form must an agent provide to potential client at the first substantive discussion of a real estate transaction?
Buyer's Representation Agreement
IABS
Canons of Professional Ethics for Real Estate Agents
The VAMA
- 5. Multiple Choice
In real estate, an example of a general agent would be a(n)____________.
Property manager
Escrow agent
Cooperative Broker
Intermediary
- 6. Multiple Choice
When a agent and potential party enter into a ___________ discussion of a real estate transaction, the party must be provided with a TREC-prescribed agency information form. First contact/orally or written.
""written-only"
"orally only"
"face-to-face"
"substantive"
- 7. Multiple Choice
TREC rules define ____________ as any form of communication on behalf of a license holder designed to attract the public to use real estate brokerage services.
Realty
Marketing
Advertisement
Fraud
- 8. Multiple Choice
If any person violates the provisions of the Texas Business and Commerce Code, Fraud in Real Estate and Stock Transaction, he or she is liable to the person defrauded for:
Attorney's fees
Expert witness fees
court fees
All of these
- 9. Multiple Choice
According to TREC's advertising rules, which of the following terms MUST be used in a real estate team name?
Company
Realty
Associates
Group
- 10. Multiple Choice
The ____________ is usually a fixed percentage of the sles price negotiated between the broker and the client, payable to the broker.
HOA fees
Earnest money
Broker's fee
Down payment
- 11. Multiple Choice
Exclusive agency agreements:
Set the broker's commission as the difference between the seller's minimum net and the price the buyer is willing to pay
Allow the seller to sell the property himself without paying the broker a commission
Grant the broker the commission even if the seller the property himself
Are outlawed in many states
- 12. Multiple Choice
The shared information from the MLS can be used by agency to prepare a(n) ________.
Comparative Market Analysis
Listing Agreement
Appraisal
Seller's Disclosure of Property Condition
- 13. Multiple Choice
The agreement that buyers sign, allowing a broker to represent them is called a __________.
Buyer/Agent Agreement
Seller's Disclosure
Buyer/Tenant Representation Agreement
None of these are correct
- 14. Multiple Choice
Which of the following statements should a license holder only say AFTER a Buyer's Representation Agreement has been signed?
"My professional opinion is that the market value of this property is $350,000."
"I will write up the offer of $347,000 for you at my office"
"It is my professional opinion that this house is overpriced for the neighborhood."
All of these statements should be made after a Buyer's Representation Agreement has been signed.
- 15. Multiple Choice
The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract is also known as _________.
The procuring cause of sale
The closing agent
The closing coordinator
None of the above
- 16. Multiple Choice
Why is timing critical when taking a listing?
Listing must be entered into the MLS the same day
Confidential information shared by the seller before an agency agreement is in place could result in harm to the seller's future negotiating position
There are time limits attached to oral representation
Timing is never an issue in taking a listing
- 17. Multiple Choice
Broker Susan is representing the seller and Broker Daniel is working with a buyer customer. Susan is representing the seller. Who is Daniel representing?
The seller
The buyer and seller
His own firm
The buyer only
- 18. Multiple Choice
In Texas, there is no _______ agency relationship with any party to a transaction.
Implied
General
Special
Universal
- 19. Multiple Choice
The ______________ notifies the parties that both the seller and buyer are clients of the broker.
Intermediary Relationship Notice
IABS
Dual Agency Notice
Buyer's Representation Agreement
- 20. Multiple Choice
Which of the following if true regarding Intermediary rules for a transaction?
The transaction must be a in-house sale
Both sides of the transaction must be clients of the broker
The broker must have written consent from both parties
All of these are correct
- 21. Multiple Choice
Broker Steve, having no agents, is solo practitioner in the state of Texas. He has a buyer-client who wants to purchase one of his listings. The process that Broker Steve must use is:
Intermediary Without Appointments
Transaction brokerage
Intermediary With Appointments
Dual agency
- 22. Multiple Choice
Which of the following is NOT an advantage of a brokerage policy of Seller Agency Only - No Intermediary?
The broker does not have to make appointments
The broker and agents are free to negotiate for the seller without conflict of interest
The broker collects both selling and buying commissions
All of these are advantages of Seller Agency Only
- 23. Multiple Choice
If one agent in the firm is working with both the buyer and the seller, _______ says that another agent in the firm needs to be brought into the transaction.
No intermediary
Intermediary without appointments
Cooperative sale
Intermediary with appointments only
- 24. Multiple Choice
Which statement is INCORECT?
The IABS can be sent as an attachment in an email or a link in the body of an email with specific reference to the IABS form in the body of the email.
The IABS can be provided in the body of an email
An agent may overnight the IABS to a potential client
An agent must provide a blank copy of the IABS at the first substantive dialogue with a potential client.
- 25. Multiple Choice
Unlicensed assistants may not:
Answer real estate office phones
Schedule appointments
Receive a commission on a real estate transaction
Serve as a host at an open house to welcome visitors and distribute filters provided a licensed agent is also present at the open house.
- 26. Multiple Choice
Which of the following is NOT anti - discrimination legislation that affects employers?
Age Discrimination in Employment Act
Rehabilitation Act of 1973
Genetic Non-Discrimination Act of 2008
Truth-in-Lending
- 27. Multiple Choice
The TAR Independent Contractor Agreement for Sales associates.
Gives the associate the authority to sign listing agreement on the broker's behalf
Creates a partnership between the parties
Grants ownership of listings to the sales associate
All of these are correct
- 28. Multiple Choice
Where would you find the Canons of Professional Ethics and Conduct for Real Estate License Holders?
Texas State Constitution
Rules of the Commission
NAR Code of Ethics
TAR Code of Ethics
- 29. Multiple Choice
What does the Consumer Protection Notice (CN1-2) notify of?
How to file a complaint against a license holder
The Recovery Trust Account
TREC regulates brokers, sales agents, and inspectors among others
All of these
- 30. Multiple Choice
____________ requires that TREC investigate complaints against license holders according to a risk-based approach.
The Secretary of the State
The Secretary of the Commission
The Governor
TRELA
- 31. Multiple Choice
Who can suspend or revoke a sales agent's license under a DTPA violations?
TREC
A court of law
Congress
The agent's sponsoring broker
- 32. Multiple Choice
The Deceptive Trade Practices Act is found in the ___________.
Texas Business and Commerce Code
Rules of the Commission
Texas Real Estate License Act
Texas Insurance Code
- 33. Multiple Choice
According to DTPA, Trade and commerce includes the _________ of any good or service affecting the people of Texas.
Advertising
Distribution
Offering for sale of lease
All of these are included in the DTPA under trade and commerce
- 34. Multiple Choice
A buyer is:
Anyone wanting to view homes
Someone who wishes to list a home with a broker
Someone who wants to buy a home and is on a timeline to do so
None of these are correct
- 35. Multiple Choice
Which of the following actions creates risk for the broker?
Mishandling trust funds
Unintentionally creating an unwritten agency relationship with a potential buyer/seller
Failing to give the proper disclosures in a timely manner
All of these actions create risk for the broker
- 36. Multiple Choice
TREC rules require that most records for brokerage firms be retained for at least ___ years.
4
6
10
25
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