I’m working on a real estate practice test / quiz and need guidance to help me learn.
41. Which of the following statements regarding sales agents working with buyers and sellers is FALSE?
(a) Agents should present and explain the IABS form when working with buyers.
(b) Showing properties to individuals who do not financially qualify to buy a home is a waste of time.
(c) There is no difference between being a customer and a client.
(d) Sales agents are often required to negotiate on behalf of their clients.
43. Sally is an unlicensed assistant to Agent Bill at ABC Realty. In her role as a transaction coordinator, she recently called a buyer and discussed some minor title issues that turned up in the title search. She also mentioned that rates are down and that the buyer might consider an FHA loan over a conventional loan. Based on this conversation, we can say that Sally:
(a) Appears to be doing a great job as a transaction coordinator
(b) Should consider being more informative when contacting buyers
(c) Is dealing with issues that should only be discussed by a licensed assistant
(d) Has no problem here because transaction coordinators always discuss title and finance issues
45. Agency created by actions that cause a third party to believe that an agent has authority, which goes beyond the scope of the authority given by the principal, is known as _____.
(a) Agency by actions
(b) Agency by ratification
(c) Agency by estoppel
(d) Agency by general agreement
46. Agent Todd wrote an ad for a listing, describing the home as being located on the “most serene and beautiful piece of property.” What, if anything, is Agent Todd guilty of?
(a) Puffing
(b) Redlining
(c) Dual agency
(d) Discriminatory practices
47. For which of the following agent’s activities would the sponsoring broker be responsible?
(a) Payment of licensing fees
(b) Ensuring that at least 40 hours per week are spent in the office
(c) Submitting and registering a new team name with TREC
(d) Reimbursement for travel expenses
48. Which statement best describes an ethical dilemma?
(a) Broker John brings twins Felipe and Fernando into his brokerage as independent contractors. Felipe negotiates a 50/50 fee split with Broker John. Fernando negotiates a 40/60 fee split with Broker John.
(b) Natalie takes a listing in a neighborhood she has no real knowledge of and sells the client’s house in just two days. Her broker awards her “Agent of the Month.”
(c) Bryan judges Agent Rick’s unfortunate situation based on his own strong personal beliefs and high standards. Then he tells the other agents at the brokerage to learn from Rick’s mistake, so they do not end up a statistic on TREC’s list of disciplinary actions.
(d) Brenda notices significant damage to her client’s house during a walkthrough that the seller told her not to worry about. Since this is her first listing, she is afraid to point it out to potential buyers but knows that it could influence a buyer’s decision to purchase the home. She lies awake that night pondering her next move.
49. All social media advertising is required to include the agent’s name or team name, and the sponsoring broker’s name or DBA. The rule for the required information is that it must be _____.
(a) Accessed in one click
(b) Accessed in no more than two clicks
(c) In 10-point font
(d) In the upper right corner of the screen
50. Which of the following statements is CORRECT?
(a) Oral agency agreements are never legal in Texas.
(b) The MLS has a field specifically for the entry of oral agency agreements.
(c) An oral agency agreement is enforceable against the agent.
(d) An oral agency agreement is necessary in order to sue for a commission.
51. All potential buyers and sellers who make contact with a license holder are _____ by default.
(a) Clients
(b) Customers
(c) Principals
(d) Fiduciaries
52. If trust funds are held by a license holder, they must be maintained in the _____.
(a) Broker’s operating account
(b) Sales agent’s separate business account
(c) Brokerage office safe
(d) Broker’s trust accounts
53. What happens to a commission if a brokerage is on both the listing side and selling side of a transaction?
(a) The entire gross commission is paid to the brokerage, and the listing and selling agents are paid accordingly.
(b) There are two gross commissions: one is split between the broker and the listing agent, while the other is split between the broker and the selling agent.
(c) The entire gross commission is split between the broker and the listing agent.
(d) The entire gross commission is split between the broker and the selling agent.
54. If a member of the National Association of REALTORS violates the association’s Code of Ethics, disciplinary action could include:
(a) Suspension of membership
(b) A fine
(c) Revocation of membership
(d) Any or all of these
55. _____ is often concerned with what is right, wrong, good, or bad.
(a) Agency
(b) Discrimination
(c) Ethics
(d) Advertising
56. Which of the following is an example of a special agent?
(a) A sales agent with a residential listing
(b) A sponsoring broker and his/her sponsored associates
(c) A sales agent with a property management agreement
(d) An attorney in fact
57. Which statement is TRUE?
(a) In Texas, buyers have always been represented by an agent in a real estate transaction.
(b) In the past, buyers were rarely represented by an agent, and almost all cooperative agents represented the seller in a subagency relationship.
(c) In Texas, cooperative agents are no longer allowed to act as subagents.
58. Universal agency:
(a) Is created with power of attorney
(b) Is often used in real estate
(c) Is created with a listing agreement
(d) Is created when a property management agreement is signed by an owner/investor
59. Joseph is showing a property to a potential buyer, Ron, who has not yet signed a buyer-representation agreement with his brokerage. What information can Joseph share with Ron about the property?
(a) That cemetery directly across the street from the house was founded in 1875.
(b) My brokerage is handling the sale, and the listing agent told me that the seller is having marital problems and wants to sell quickly, so act fast.
(c) In my professional opinion, this property is overpriced for the market and should be priced at $275,000 instead of $300,000
(d) This house is legit haunted.
60. Which party typically receives the commission from the seller?
(a) The buyer
(b) The selling broker
(c) The listing broker
(d) The cooperating broker
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