Principles of Real Estate MC 12 – Flashcards

While listing the property with you, the seller asks "Who sets real estate commission rates?" The correct response would be: a. The standard rate is set by TREC. b. The standard commission rate is set state law. c. Long ago, the industry agreed on a set rate, and that is pretty much how it is today. However, I can cut the standard rate and make you a deal. d. There is no standard rate. Different brokers charge different fees. Our fees are based upon the following services...

Julie, a salesperson at Acme Realty, obtained a listing on Seller Sam's property on Oak Street. The following week, Julie was found to be mentally incompetent and was admitted to the state mental hospital in Rusk. Given Julie's unfortunate status, what is the effect on the listing with Seller Sam? a. The listing agreement is unaffected because it is an agency agreement between Seller Sam and the broker. b. The listing agreement is terminated because Julie is mentally impaired. c. The listing agreement is unaffected because mental impairment is never an issue in agency agreements. d. The listing agreement is terminated because Seller Sam would not want to have an agent that no longer lives in the local market area.

Seller Steve listed his property with City Realty, Acme Realty and Countrywide Realty all at the same time. After signing the listing agreements, Steve continued to run for sale by owner ads on Craigslist. The type of listing agreement Steve signed with the various companies is a(n): a. Exclusive Right to Sell b. Exclusive Agency Agreement c. Open Listing d. Net Listing

The type of listing agreement that affords the broker the greatest protection is the: a. Exclusive Right to Sell b. Exclusive Agency Agreement c. Open Listing d. Net Listing

In order to successfully sue for commission: a. The broker must have a valid real estate license b. The broker must be the procuring cause of sale c. The broker must have an employment agreement signed by the party to be charged. d. All of the above

Any attempt by competing brokers to fix commission rates in a given market area would be a violation of: a. RESPA b. SAFE Act c. Community Reinvestment Act d. Sherman Anti-Trust Act

Lawsuits related to property defects are most often filed under the: a. Texas Defective Property Act b. Texas Deceptive Trade Practices Act c. Texas Fair Housing Act d. Texas Real Estate License Act

When citing information such as square footage in an advertisement, the best source for the information is the: a. Seller b. Builder c. Architect d. Appraisal district or other tax authority

The federal law that requires that states make available online information related to known sex offenders is: a. Sex Offender Disclosure Act (SODA) b. Megan's Law c. RESPA d. Dangerous Offenders Law

A license holder is always liable for the misrepresentations of his or her principal. a. True b. False