Customer
A person who received limited brokerage services without establishing an agency relationship
Agency
A relationship between two
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Texas Real Estate License Act (TRELA)
Makes it illegal to practice any act of real estate brokerage without a license. To protect the public from unscrupulous brokers and sales agents.
Agent
Acts for and on behalf of another person (the principal)
The Principal
Who must the agent always remain loyal (beneficial) to?
The one who hires and gives authority to the agent.
National Association of Realtors (NAR)
Emerged in the 1880's from local and state trade groups formed by real estate agents wanting to prevent the government from controlling them through legislation.
Representation Disclosure (TRELA 1101.558)
Mandates the disclosure of representation and that buyers and sellers be provided with an agency information form.
License Holder
A person licensed by TREC to act as a broker or sales agent in a real estate transaction
Agent
A broker who represents a seller, landlord, buyer or tenant
Subagent
A license holder not associated with the seller's broker, but who is representing the seller through a cooperative agreement, often through membership in a MLS
Public & Fiduciary Responsibility
License holders have two levels of responsibility
Compensated
The agent should be ________ on completion of the agency.
Reimbursed
The agent should be ___________ by the principal for expenses incurred on behalf of the principal, above and beyond the expenses related to the sale itself.
Indemnification
The principal will protect the agent from suffering a loss due to the agent's reliance on information received from the principal.
Information About Brokerage Services (IABS)
What form must an agent provide to a potential client at the first substantive of a real estate transaction?
The Procuring Cause of Sale
The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract, is known as __________.
Perform
The principle is expected to ________ as promised in the agency agreement.
Splitting a commission with a person other than a license holder.
Which of the following is grounds for suspension or revocation of license by TREC?
Determination of Fitness
The commission can deny licensure to an applicant based on the applicant's...
General Agency
___________ is the right to represent the principal in a particular type of transaction or business.
Express Authority
Authority that comes from specific instructions, either oral or written
Agency by Ratification
__________ is established when an agent acts without prior authorization and the principal accepts it.
Universal Authority
_________ is the power to act for the principal in all transactions
Ostensible Agency
___________ is when one's actions lead another person to assume that one is an agent.
Agency by Actual Authority
____________ is when an individual grants express authority to the agent to perform some act.
Agency by Estoppel
__________ is created when a principal inadequately supervises an agent.
Agency coupled with interest
________ is when a broker is the owner of a property that is being sold, or when a broker is interested in buying a property...
Listing Agreements
__________ establish a special agency relationship between the broker and a seller or landlord.
Comingling
___________- is failure to properly account for money
Conversion
When a broker spends his or her clients funds without authorization
Universal Agent
Who has less authority than a general agent
Property Manager
In real estate an example of a general agent
Safe Harbor Policy
Used in deciding whether an advertisement is clear and conspicuous.
Seller disclosure requirements
All sellers have a responsibility/obligation to disclose any known material defects to a buyer.
Stigmatized Properties
Properties where events occur or some people believe a past event or condition affects the property.
Mold Remediation
Texas law requires the seller to provide the buyer with copies of all Certificates of _______________________ received for the property during the five years preceding the sale
Hazardous Substances and Conditions that have to be disclosed.
Radon, Asbestos, UFFI, Lead, Landfills, Underground Storage Fuel Tanks, Farming herbicides & pesticides, and EMF's
Advertisment
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.
Comparative Market Analysis (CMA)
Analysis based on properties that have recently sold that are most similar to the subject property
Net Listing
The real estate brokers commission is the difference between the minimum ____________ established by the seller and the price that the buyer is willing to pay.
Listing Agreement
Contract with a seller that gives the broker the right to find a purchaser for his or her property.
Open Listing
The seller can list his or her property with multiple competing brokers.
Exclusive Agency Agreement
Allows the seller to sell the property himself without paying the broker a commission.
Exclusive Right to Sell lease agreement
Helps to avoid the problem of procuring cause law suites because the listing broker is the only one with the right to sell the property.
Multiple Listing Service (MLS)
A database with shared information used by agents and brokers
Subagency
When a license holder is not associated with the seller's broker but s representing the seller through a cooperative agreement with the seller's broker.
Lead Warning Statement
Should be completed by the seller of any house built prior to 1978.
Broker's Fee
Is usually a fixed percentage of the sales price negotiated between the broker and the client, payable to the broker.
Procuring Cause of Sale
The individual who, through a series of uninterrupted activities, brought about the completion of a contract
Price Fixing
Setting commission rates between groups if brokers in the area
Honest Dealing
An agent may not deceive or defraud a customer
Reasonable Care
The agent is held to a series of uninterrupted activities brought about the completion of a contract.
Accredited Buyer Representation
This designation takes a deep look into agency law. Using the duties of OLDCAR helps to establish tje agent's credibility and competitive standing in the market place. [Show Less]