Agency
Under Texas law, a 'gratuitous agent' is someone who:
APays the seller a gratuity for the listing
BAgrees to act as agent without compensation; they still owe fiduciary duties to their principal✓ Correct
COnly works for tips and gratuities
DRepresents both parties without any agreement
Explanation
A gratuitous agent is someone who agrees to act as an agent without compensation. Even without pay, a gratuitous agent owes fiduciary duties to their principal. However, gratuitous agents may owe a lower standard of care for negligence (gross negligence vs. ordinary negligence) than compensated agents in some circumstances.
Related Texas Agency Questions
- A Texas real estate agent working as a buyer's agent is approached by the listing agent about their buyer's motivation and maximum budget. The buyer's agent should:
- A Texas listing agreement is a bilateral contract. 'Bilateral' means:
- A Texas seller's agent learns that their seller is selling primarily due to a pending divorce and needs to sell quickly. This information is:
- A Texas buyer's agent who has actual knowledge that a listed property has foundation issues the seller has not disclosed is obligated to:
- A Texas agent who earns a commission discovers after closing that the seller fraudulently misrepresented the property. The agent:
- When a Texas buyer's agent submits an offer on behalf of their client, the agent is acting as:
- A Texas real estate sales agent who receives an offer from a buyer wants to present it to the seller as soon as possible. The agent's primary obligation is to present the offer to:
- Under Texas law, a 'seller's agent' who also seeks to represent the buyer without proper intermediary disclosure and consent would be acting as a:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →