Shelby was encouraged by Paula to obtain his real estate license and he passed the licensing exam with Paula agreeing to be his sponsoring broker.Shelby wants to open his own real estate office.May he do so?

2.What are some ways Paula and Shelby may agree on Shelby's compensation?

3.Would Paula rather have Shelby be an employee or independent contractor?Explain.

Shelby is showing a home to a couple who are customers.He is a subagent for the listing broker from another firm.Based on information from the MLS listing Shelby tells the couple that the home has 1620 square feet of living area but it actually only has 1590 square feet.

4.Is Shelby's statement actionable under the Texas Deceptive Trade Practices Act (DTPA)?

5.Does Paula have any liability for Shelby's actions?

6.If the couple bought the house relying on Shelby's statement regarding square footage what remedies would be available under the Deceptive Trade Practices Act?What steps should Shelby or Paula take?

7.Shelby listed a home owned by Jenna and Reggie and asked them to finilized a seller's disclosure of property condition specifically asking them to provide full, accurate information.No defects were noted under "foundation/slab(s) but Shelby saw cracked walls and When the sellers were confronted they admitted they were aware of foundation problems but do not want to disclose them.What should he do regarding the listing agreement? Does he have potential liability for fraud?What should he do regarding disclosure to potential buyers?Explain each answer.