1. An owner of several apartment complexes hires a broker to manage her properties. The broker approves all tenants, makes decisions regarding repairs,
... [Show More] pays all expenses for the owner, signs all rental agreements, and hires/fires all apartment employees. The relationship between the owner and the property manager is one of
a. general agency.
b. nonagency.
c. special agency.
d. universal agency.
2. A buyer is interested in finding a single-family residential property. One of the buyer's many requirements is that the local elementary school be a feeder school into the John Jay Middle School. A salesperson shows the buyer several properties meeting her various financial and size requirements. The buyer ultimately purchased a property but later found that the elementary school did not feed into John Jay Middle School. The salesperson does not have children and was not aware that the listing broker did not correct the MLS when the school boundaries changed in the fall. The salesperson
a. misrepresented by omission.
b. misrepresented by commission.
c. misrepresented by fraud.
d. did not misrepresent.
3. A broker is previewing a For-Sale-by-Owner (FSBO) property to determine if it meets the requirements of her buyer-client. While touring the property with the FSBO, which statement would cause the broker to be in breach of fiduciary duty to the buyer?
a. "My buyer would like to have a fenced yard for her dogs."
b. "My buyer will need you to agree to seller financing because she has a low credit score."
c. "Your asking price is slightly above the market for this area."
d. "I notice there are no walk-in closets."
4. The type of listing contract that guarantees the listing broker will be paid a commission if anyone, including the seller, finds a buyer for the property, is the
a. exclusive-right-to sell listing.
b. open listing.
c. exclusive-agency listing.
d. either the exclusive-right-to-sell or the exclusive-agency listing.
5. A buyer signs an exclusive-right-to-buy agreement with a broker to be her buyer’s agent and which promises a 2% commission from either the buyer or a seller if the buyer purchases a property during the period of the contract. While driving home from work, the buyer stops to
Texas Law of Agency Eighth Edition
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May be reproduced for educational uses only.
preview a FSBO property. The seller indicates that they will not pay any brokerage fees. If the buyer purchases the FSBO property, which is a TRUE statement?
a. The broker has not earned her commission because the buyer found her own property.
b. The FSBO seller must pay the buyer‘s commission because it is guaranteed in buyer agency contract.
c. The broker earned her commission, and the buyer is contractually bound to pay if the FSBO seller refuses.
d. Neither the FSBO seller or buyer are contractually bound to pay the broker.
6. Which of the following factual comments to the seller by the seller's appointed licensee would be permitted even without the written permission of the buyer in a fully authorized intermediary relationship with appointments?
a. "The buyer would be willing to pay more than the list price if you agree to pay some of their closing costs."
b. "The buyer is truly motivated t [Show Less]