Broker Davis is supervising a new sales agent who has been using a contract template from an online real estate education course to prepare offers. The template is not a TREC promulgated form. What is Broker Davis's responsibility?
Correct Answer
C) Ensure the sales agent uses TREC promulgated forms and take corrective action for the violation
Under Texas law, the sponsoring broker has supervisory responsibility over sponsored sales agents. Broker Davis must ensure the sales agent uses TREC promulgated forms and must take corrective action. The broker may also face disciplinary action for failing to adequately supervise the sales agent.
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Related Topics & Key Terms
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Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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A Texas license holder is working with a buyer who wants to purchase a vacant lot to build a custom home. The buyer asks the agent which TREC form to use. What is the correct form for this transaction?
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In a Texas residential transaction, a sales agent is asked to help the buyer and seller negotiate an extension of the closing date. The original contract has already been signed. The agent should: