QUESTION 69 Once a broker has agreed to represent a buyer through the TAR Residential Buyer/Tenant Representation Agreement, the broker promises to: "(a) use broker's best efforts to assist the Client in acquiring property in the market area; (b) assist Client in negotiating the acquisition of property in the market area; and (c) comply with other provisions of the agreement." If the broker does not find a property that suits the buyer's needs prior to the expiration of the representation agreement, the buyer O can bring a successful lawsuit against the broker for breach of his fiduciary duties because he did not find a suitable property. can bring a successful lawsuit against the broker under the Deceptive Trade Practices Consumer Protection Act (DTPA) and the Texas Statute of Frauds because he did not find a suitable property. O can file a successful complaint against the broker with TREC to have the broker's license revoked because the broker did not find a suitable property. O cannot successfully argue that the broker breached the agreement because the broker is not obligated to find a suitable property within the time of the buyer representation agreement; he is only obligated to use his best efforts to do so.QUESTION 37 Subagency is 0 created by the mutual consent of the parties involved and may be created expressly by agreement or implicitly by words, conduct. or custom. Both the broker with the original agency agreement and the subagent broker owe the principal (whether buyer or seller) all of the duciary duties. Q created by a special Subagency Agreement form that was created by TREC and is required to be signed by the parties involved. The agency duties of the subagent to the client (whether buyer or seller) only include the following: disclosure (full), accounting, and reasonable care and due diligence. 0 created by mutual consent between the seller's broker and the subagent broker. The seller does not have to agree to the subagency relationship; however, the seller's broker must consent to a subagency relationship with a broker from another firm because the seller's broker has to pay the subagent compensation out of his earned compensation. 0 not created by mutual consent but is a function of the actions of the subagent only. It is the decision of the subagent whether or not he represents the seller or the buyer or functions as an intermediary broker in a real estate transaction. QUESTION 15 A sales agent made a listing presentation to a seller. During the presentation, the seller shared that there had been some settling of the foundation and there were cracks that ran through the garage and under the living room. The seller asked the sales agent to keep that information condential, since the revelation would give any potential buyer a negotiating advantage to lower the price of the home. The sales agent assured the seller that he was obligated by his fiduciary duties to keep that information condential. An unrepresented buyer made an appointment to see the property. The sales agent showed the property, answered the prospective buyer's questions, and kept the information about the foundation defects condential. Six weeks after the buyer closed on the property, he began to have problems with the foundation, found that there was $30,000 worth of damage to the foundation, and eventually led a lawsuit against the seller, broker, and sales agent under the Deceptive Trade PracticesConsumer Protection Act (DTPA). Which of the following is NOT true? Q The DTPA applies to brokers or salespeople who, knowing about property defects, fail to disclose information or make misrepresentations concerning defects in the property if the defects would affect the decision of a reasonable and prudent purchaser to buy or not to buy. 0 Regardless of the condition of the property, if the seller reveals a defect in the property, but requires the broker or sales agent to keep that information condential, the broker and sales agent are required by their duciary duty of condentiality to the client to keep the information confidential. 0 Fraud is a deceptive act practiced intentionally by one person in an attempt to gain an unfair advantage over another. In fraud cases, the plaintiff must prove an intent to deceive on the part of the defendant. lf defrauded, and if the elements of a cause of action for fraud have been met, the consumer may sue the broker or sales agent under the Deceptive Trade PracticesConsumer Protection Act. Q If, 1) a material representation was made to the plaintiff by the defendant; 2) the representation was false; 3) the defendant either knew that the material representation was false or 4) made the material representation recklessly, without any knowledge of its truth; 5) the plaintiff to whom the material representation was made acted in reliance upon that representation; and 6) the plaintiff suffered injury or damage, the plaintiff may be able prove a cause of action for fraud against the defendant