texas interactive study group - kaplan professional
TRANSCRIPT
UNIT 2:
JOHN MATHIS
AGENCY/BROKERAGE
TEXAS INTERACTIVE STUDY
GROUP
1
Study Group Information
Information regarding the Study Group
may be found at:
www.kapre.com/txisg
At this location you will find:
Calendar of discussion topics
Links to discussion questions
2
Contact Information
Contact Information
If you would like to discuss something on the phone,
please send your phone number in the email and the best times to reach you.
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Unit 2:
Agency/Brokerage
TOPICS TO BE DISCUSSED:
Disclosure
Intermediary practice
Duties to client (including minimum services)
Broker-sales agent relationships
Broker’s responsibility for acts of sales agent
Appropriate use of unlicensed assistants
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Question
The initial disclosure of an agency relationship may
be
A. written.
B. oral.
C. oral or written.
D. on the TREC form.
5
Question
At the first substantive dialogue with a party
concerning a specific property, the license holder
must
A. disclose who they represent in writing.
B. orally disclose who they represent.
C. provide the mandatory written statement outlining
the agency relationships allowed in brokerage
services in Texas.
D. enter into a signed agreement for representation.
6
Question
The Information About Brokerage Services form is
a(an)
A. disclosure of agency.
B. notice of an agency representation.
C. addendum.
D. informational brochure.
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Review
Disclosure of representation
Oral or written
At time of first contact in a proposed transaction
• With another party
• With a license holder representing another
party
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Review
If the broker’s representation changes, a new
disclosure must be given.
Includes changing from representation of
only one party to an intermediary
relationship
Includes changing to an appointed license
holder from an intermediary position
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Review
The brokerage must disclose to all parties in the
proposed transaction if there are any
relationship(s) between an associate of the
brokerage and another party in the transaction.
A relationship(s) is defined as a relative, close
friend, or business associate.
10
Review
Information About Brokerage Services Form
The purpose of the form is to benefit the
consumer and to help ensure that Real Estate
Services are better understood in how a broker
can represent them.
At the first substantive dialogue with a party
concerning a specific piece of property the
licensee must provide the mandatory written
statement outlining the agency relationships
allowed in brokerage services in Texas.
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Review
The first substantive dialogue is, “a meeting or
written communication that involves a
substantive discussion relating to specific real
property.”
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Review
Exceptions
• Open house
• A party that is already represented by another
licensee
• A meeting that takes place after a contract
has been signed between the parties
• A residential lease of one year or less in which
no sale is being considered
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QUESTION
To act as an intermediary, a broker must have written
consent from
A. each party being represented in the transaction.
B. the agents and all parties involved in the transaction.
C. the local REALTOR® association.
D. TREC.
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QUESTION
Agents appointed to each of the parties by an
intermediary broker may give
A. advice and opinions to the party to whom they
are appointed.
B. confidential information about one party to the
party they are working with.
C. an undisclosed portion of their commission to
either party to get the sale closed.
D. only publicly recorded facts to the clients.
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QUESTION
With all proper disclosures having been made,
intermediary status will occur if the buyer-client
chooses to
A. make an offer on his broker's listing.
B. work directly with the firm's primary broker.
C. make an offer on another firm's listing.
D. make an offer on a for-sale-by-owner property.
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Review
Intermediary
A broker acting as intermediary under Texas law
must
• have consent of each party in writing and
• disclose any source of expected
compensation to the broker.
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Review
If the parties consent in writing, the broker may
appoint an associated license holder to each
party to communicate with and carry out the
instructions of the party.
• Unlike the intermediary, an appointed license
holder may give advice, opinions, and
negotiating strategies
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Review
A broker acting as an intermediary cannot be
one of the appointed license holders.
• Any license holder in the brokerage who
makes appointments for the broker cannot
appoint herself as one of the appointed
license holders.
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Review
The broker may delegate the authority to appoint
the associates to work with, carry out the
instructions of, and give advice and opinions to
the respective parties, but the broker remains
the impartial intermediary.
• If the broker delegates authority to appoint
associated license holders to another license
holder in the firm, the delegate making
appointments may not delegate himself as
one of the appointed license holders and must
remain impartial and act as the intermediary.
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Review
Associates must be appointed in writing to work
with, communicate with, carry out the
instructions of, and give advice, opinions, and
negotiating strategies to the respective parties.
• Associates not so appointed must remain
impartial, even if they continue to work with
two clients without written appointments.
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Question
A broker is required by TRELA to offer certain
minimum services to her seller-client. Minimum
service does NOT include
A. telling other brokers to negotiate directly with the
client.
B. informing the client of material information.
C. answering the client's questions.
D. presenting any offer to or from the client.
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Question
It may be MOST reasonably inferred that fiduciary
duties demand that a real estate broker, acting as an
agent for the buyer in a real estate transaction, place
A. her personal interests in the transaction below
the interests of the buyer and the seller.
B. no personal interest above that of the buyer.
C. her personal interests in the transaction above
the seller's interest.
D. no personal interest above that of the seller.
23
Question
Which of the following is a license holder prohibited
from disclosing?
A. Information about the location of registered sex
offenders
B. Death due to suicide on a property
C. An accident unrelated to the condition of the
property resulted in death on a property
D. A previous or current occupant has or had
HIV/AIDS
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Review
Fiduciary Duties (OLD CAR)
Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable Care and Skill
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Review
Minimum Service Duties
The minimum services requirement of the
License Act dictates that a limited service broker
• must inform the client of material information
related to the transaction that is received by
the brokerage;
• must answer the client’s questions and
present all offers to or from the client; and
• may not instruct another broker to negotiate
directly with the client.
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Question
The sponsoring broker is responsible for all of the
following EXCEPT
A. Performance of all obligations required by listings
agreements.
B. Making sure that the brokerage firms client is
aware of their obligations under a purchase
agreement.
C. Property management agreements between the
brokerage firm and property owner (landlord).
D. Directly supervising sponsored sales agents.
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Question
A broker is required by TRELA to offer certain
minimum services to her seller-client. Minimum
service does NOT include
A. telling other brokers to negotiate directly with the
client.
B. informing the client of material information.
C. answering the client's questions.
D. presenting any offer to or from the client.
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Review
A broker is responsible for the authorized acts of the
broker’s sales agents.
• The broker is not required to supervise the sales
agents directly.
The brokerage firm owns all contracts.
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Review
The sponsoring broker is responsible for all contracts.
• Listings (employment)
• Purchase agreements
• Independent contract agreements (broker and
sales agents)
• Property management agreements
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Question
An unlicensed assistant may do all of the following
EXCEPT
A. answering phone calls.
B. show property for sale.
C. maintaining records.
D. handling correspondence.
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Question
An unlicensed assistant may do all of the following
EXCEPT
A. scheduling appointments.
B. maintaining records.
C. handling correspondence.
D. solicit listings.
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Review
Unlicensed assistants may perform certain tasks
• Answering phone calls
• Maintaining records
• Handling correspondence
• Scheduling appointments
Unlicensed assistants may not engage in any activity
for which a license is required
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Notes for Tonight
Contact Information
A PDF of tonight’s slides will be emailed to you
tomorrow.
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Topics To Be Discussed Next Week
• Use and understanding of standard contract forms
• Statute of frauds
• Seller disclosure requirements.
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