Questions and Answers
What is required to create an agency relationship?
A belief that the relationship exists.
What is express agency?
Express agency is created by either an oral or a written agreement between the principal and the agent.
What is implied authority?
Not specifically given to an agent.
What is agency based on a third party's belief called?
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Which of the following statements is FALSE?
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What does termination of agency for time refer to?
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To terminate the agency after successfully finding a home for a buyer, you need to:
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Why is it important to decide whom the broker represents?
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What is notice to an agent that is considered notice to the principal called?
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What duties continue after the termination of an agency?
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What elements are not essential for agency?
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What is express agency in legal terms?
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What is implied agency?
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What does ostensible mean?
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How is agency normally created in real estate?
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What is agency by estoppel?
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Study Notes
Agency Relationships in Real Estate
- Creation of an agency relationship requires a belief that the relationship exists.
- Express agency establishes representational status through oral or written agreements between principal and agent.
- Implied authority refers to powers not specifically granted to an agent.
Types of Agency
- Ostensible agency occurs when a third party believes a licensee is acting as an agent without a formal agreement.
- Express agency is defined as a clear and definite relationship where principals employ an agent, whether orally or in writing.
- Implied agency arises when actions or statements made by a licensee lead a customer to believe they have agency representation.
Termination and Duties of Agency
- When a buyer’s agency agreement successfully results in finding a home, no action is needed to terminate the agency.
- Duties of agents occasionally persist beyond the termination of agency, especially concerning confidentiality.
Determining Representation
- Clarifying whether the buyer or seller is the broker's principal is crucial, as it establishes the broker's heightened responsibilities.
Essential and Non-Essential Elements
- Essential elements for agency include clear communication and intent; however, compensation, written agreements, contracts, and licenses are not essential for agency creation.
Implied and Ostensible Notice
- Implied notice is a legal concept where notice given to an agent is seen as notice to the principal.
Agency by Estoppel
- This principle holds that if one person's actions lead another to believe a third person is authorized to act, the first person is liable for transactions made under that belief.
Agency Fee Payment
- Agency relationships can exist independent of who pays the agent’s fees, aligning with Texas law that does not link fee payment to agency determination.
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Description
Test your knowledge of key concepts from Chapter 4 of the Texas Real Estate Agency. This quiz covers essential terms and definitions related to agency relationships, including express agency and implied authority. Perfect for students preparing for real estate licensing exams.
