Agency Relationships and Disclosure Flashcards
7 cards from real TREC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Agency Relationships and Disclosure flashcards as text
Under TREC rules, when must a real estate license holder provide the Information About Brokerage Services (IABS) notice to a prospective buyer or tenant?
Answer: At the first substantive dialogue about a specific property
Texas law requires license holders to provide the IABS notice at the first substantive dialogue about specific real property with a prospective buyer or tenant.
Which of the following best describes an 'intermediary' under the Texas Real Estate License Act (TRELA)?
Answer: A broker who represents both parties in the same transaction with written consent
An intermediary is a broker who is authorized to negotiate a transaction between the parties when representing both the buyer and seller in the same transaction, with written consent from both.
A Texas real estate broker may act as an intermediary only if:
Answer: The broker has written consent from both the buyer and the seller
TRELA requires that the broker obtain written consent from both parties before acting as an intermediary in a transaction.
When a license holder represents the seller in a transaction, what duty does the license holder owe to an unrepresented buyer?
Answer: Only the duty to disclose known material defects and treat them honestly
A seller's agent owes the unrepresented buyer honesty and must disclose known material defects, but does not owe fiduciary duties such as loyalty or confidentiality.
Under Texas law, a 'subagent' is best defined as:
Answer: A license holder who acts for the principal through the principal's agent
A subagent is a license holder who represents the principal (typically the seller) through another broker, essentially acting as an agent of the listing broker's client.
Which form must a Texas broker use to authorize an appointed license holder to represent a buyer when the broker is acting as an intermediary?
Answer: An intermediary appointment notice within the written consent agreement
When acting as an intermediary, the broker must appoint different license holders to represent each party and this appointment is typically included within or attached to the written intermediary consent.
A Texas sales agent can enter into an agency agreement with a client only through:
Answer: The sales agent's sponsoring broker
In Texas, sales agents do not have independent authority to represent clients; all agency relationships must be established through the sales agent's sponsoring broker.