1.At what point must a Texas broker provide the Information About Brokerage Services (IABS) form to a potential client?
(A)At the signing of a listing agreement
(B)At the closing of a transaction
(C)At the first substantive contact with the potential client
(D)At the time of contract execution
2.A buyer representation agreement in Texas typically includes which of the following provisions?
(A)A guarantee of a certain sale price or terms
(B)A requirement for the buyer to purchase a specific property
(C)A description of the broker's duties and obligations to the buyer
(D)A waiver of the buyer's right to terminate the agreement
3.What is the responsibility of a Texas broker in supervising sponsored agents?
(A)To directly participate in all transactions handled by sponsored agents
(B)To ensure that sponsored agents comply with Texas real estate laws and regulations
(C)To manage the day-to-day activities of sponsored agents
(D)To provide training and education to sponsored agents only
4.In Texas, an intermediary is appointed by which of the following?
(A)The broker's firm
(B)The seller
(C)The buyer
(D)Both the buyer and seller through written consent
5.A Texas broker is working with a buyer who wants to purchase a property. What type of agreement would the broker use to establish representation?
(A)Listing agreement
(B)Buyer representation agreement
(C)Intermediary agreement
(D)Subagency agreement
6.A Texas broker is working with both a buyer and a seller in the same transaction without a written consent. What status must the broker disclose to the parties?
(A)Single agency
(B)Dual agency
(C)Intermediary
(D)Subagency
7.When must a Texas broker provide the Information About Brokerage Services (IABS) notice to a potential client?
(A)At the signing of a listing agreement
(B)At the first substantive contact
(C)When a sales contract is executed
(D)At the closing of a transaction
8.A buyer representation agreement in Texas typically includes which of the following?
(A)A guarantee of a certain sales price
(B)An exclusivity provision
(C)A requirement for the buyer to purchase a specific property
(D)A provision for the buyer to pay a commission
9.What type of agreement gives a broker the exclusive right to represent a seller in the sale of a property?
(A)Open listing
(B)Exclusive agency listing
(C)Exclusive right to sell listing
(D)Net listing
10.A Texas broker has a sponsored sales agent who is working with a buyer. The sales agent fails to disclose a material fact about the property to the buyer. Who is responsible?
(A)The sales agent only
(B)The broker only
(C)Both the sales agent and the broker
(D)Neither the sales agent nor the broker
11.What is the primary purpose of a Texas broker's appointment of a sales agent to a specific client?
(A)To limit the sales agent's authority
(B)To increase the sales agent's liability
(C)To clarify the sales agent's role and responsibilities
(D)To reduce the broker's supervision requirements
12.A Texas broker has a listing agreement with a seller. The seller's property is also being shown by a subagent of the listing broker. What is the relationship between the subagent and the seller?
(A)The subagent represents the buyer
(B)The subagent represents the seller
(C)The subagent is a dual agent
(D)The subagent is an intermediary
13.A Texas broker is required to supervise the activities of sponsored sales agents. What is the primary purpose of this supervision?
(A)To increase sales agent commissions
(B)To reduce broker liability
(C)To ensure compliance with Texas real estate laws and regulations
(D)To limit sales agent authority
14.What must a Texas broker provide to a prospective client at their first substantive contact?
(A)A signed listing agreement
(B)A copy of their real estate license
(C)The Information About Brokerage Services form
(D)A written estimate of the client's closing costs
15.A seller lists their property with a broker under an exclusive right to sell agreement. Who has the authority to negotiate the sale of this property?
(A)Only the listing broker
(B)The listing broker and their sponsored agents
(C)Any real estate agent who can find a buyer
(D)The seller themselves, without the broker's involvement
16.A buyer representation agreement is a contract between a buyer and which of the following?
(A)The buyer's agent
(B)The seller's agent
(C)The listing broker
(D)The buyer's lender
17.A subagent is an agent who
(A)Represents the buyer in a transaction
(B)Represents the seller in a transaction
(C)Works for a broker who has a listing agreement with the seller
(D)Is a broker who sponsors other agents
18.When can a broker appoint an agent to represent a client?
(A)At any time, without client consent
(B)Only with the client's written consent
(C)Only with the broker's written consent
(D)When the client requests a specific agent
19.What is the purpose of the Information About Brokerage Services (IABS) form in Texas?
(A)To explain the terms of a listing agreement
(B)To disclose the broker's commission rate
(C)To inform clients about the types of brokerage services available
(D)To provide a written estimate of closing costs
20.A buyer contacts a sales agent to inquire about a property. What must the agent provide at this first substantive contact?
(A)A listing agreement
(B)A buyer/tenant representation agreement
(C)The Information About Brokerage Services form
(D)A copy of the seller's property survey
Answer key & explanations
1. C — The IABS form must be provided to potential clients at the first substantive contact, which is the initial meeting or discussion about a specific property or transaction.
2. C — A buyer representation agreement outlines the broker's duties and obligations to the buyer, including the scope of services, compensation, and termination provisions.
3. B — A Texas broker is responsible for ensuring that sponsored agents comply with Texas real estate laws and regulations, including maintaining adequate supervision and oversight.
4. D — An intermediary in Texas is appointed by both the buyer and seller through written consent, allowing the broker to represent both parties in a transaction.
5. B — A buyer representation agreement is used to establish representation between the broker and buyer, outlining the terms of the agreement and the broker's duties and obligations.
6. C — In Texas, a broker working with both parties in the same transaction must disclose intermediary status with written consent, replacing common-law dual agency.
7. B — The IABS notice must be provided at the first substantive contact between a broker and a potential client.
8. B — A buyer representation agreement in Texas typically includes an exclusivity provision, where the buyer agrees to work exclusively with the broker.
9. C — An exclusive right to sell listing gives a broker the exclusive right to represent a seller in the sale of a property and earn a commission, regardless of who sells the property.
10. C — In Texas, a broker is responsible for the actions of their sponsored sales agents, including any failures to disclose material facts.
11. C — The primary purpose of a Texas broker's appointment of a sales agent to a specific client is to clarify the sales agent's role and responsibilities.
12. B — In Texas, a subagent of the listing broker represents the seller, not the buyer.
13. C — The primary purpose of a Texas broker's supervision of sponsored sales agents is to ensure compliance with Texas real estate laws and regulations.
14. C — The Information About Brokerage Services (IABS) form must be provided at the first substantive contact with a prospective client.
15. B — Under an exclusive right to sell agreement, the listing broker and their sponsored agents have the authority to negotiate the sale of the property.
16. A — A buyer representation agreement is a contract between a buyer and their agent, outlining the terms of their working relationship.
17. C — A subagent is an agent who works for a broker who has a listing agreement with the seller, and therefore represents the seller's interests.
18. B — A broker can appoint an agent to represent a client only with the client's written consent, as part of the brokerage services agreement.
19. C — The IABS form informs clients about the types of brokerage services available, including intermediary and single-party representation, and helps them make informed decisions about their representation.
20. C — The Information About Brokerage Services form is required to be provided at the first substantive contact with a potential client.
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