Law of Agency ch. 1

  1. How many years do you have to work under a broker?
  2. You don't have to renew you license each year.
    false, you have to renew each year.
  3. What is an agent?
    the person acting for on another's behalf; you are the agent
  4. What is a principal?
    the person for whom the agent is acting for.
  5. What is a fiduciary relationship? And how is it created?
    • a relationship of trust and confidence.  A real estate broker or salesperson, while acting as an agent for another, is a fiduciary.
    • -represent the interests of his client
    • -to be faithful and observant to trust
    • -that the real estate agent place no personal interest about that of his client.
  6. What is a broker/brokerage?
    • Agency exists when one person is given the authority to act for or in place of another person.  
    • -a broker has a special knowledge of the supply, demand, marketing, and types of goods available in a particular field of endeavor.
  7. What does TREC stand for?
    Texas Real Estate Commission
  8. What does TRELA stand for?
    Texas Real Estate License Act
  9. The TREC was created by what?
    TRELA, 1949
  10. What are the 5 articles of Canons of Professional Ethics and Conduct for Real Estate?
    • -Fidelity
    • -Integrity
    • -Competency
    • -Consumer Information
    • -Discriminatory Practices
  11. What is Integrity?
    must disclose everything to sell and buyer and to avoid misrepresentation by acts of commission or omission.
  12. omission
    to leave out; fail to include or mention
  13. What is competency?
    • To be knowledgeable as a real estate brokerage practitioner.
    • -be informed on market conditions-affecting real estate market, continuing education
    • -be informed on national, state, and local issues and developments in the real estate industry
    • -exercise judgement and skill in the performance of work.
    • -city happens and crime, don't have to report suicide.
  14. What is Consumer Information?
    Each active real estate broker or real estate inspector licensed by the TREC must display Consumer Information Form 1-1 prominently in each place of business that the broker or inspector maintains.
  15. What is Discriminatory Practices? What are the protected classes and non-protected classes?
    No real estate licensee shall inquire about, respond to, or facilitate inquiries about or make a disclosure which indicates or is intended to indicate any preference, limitation, or discrimination based on protected classes; race, color, religion, sex, national origin, ancestry, and familial status; handicapped owners, previous or current occupants, potential purchasers, lessors, or potential lessees of real property, AIDS, HIV.
  16. Litigation
    to make the subject of a lawsuit
  17. What is caveat emptor?
    let the buyer beware; consumer protection
  18. What is a subagent?
    another agent working for the same client; both working for a client; in past times, the listing agent was the agent of the seller, and the selling agent was the subagent; not representing the buyer, but show them one of your listings.
  19. Don't make or choose inspectors for clients, let them choose.
Card Set
Law of Agency ch. 1
Law of Agency ch. 1