CHAMPIONS LAW OF AGENCY EXAM
FINAL PAPER 2026 VERIFIED RESPONSES
⫸ fiduciary relationship. Answer: a relationship founded on trust and
confidence
⫸ Agency Relationship. Answer: Exists when one person (the agent)
acts for, or on
behalf of another person (the principal).
⫸ the principal. Answer: is the one who hires and gives authority to the
agent
⫸ Texas Real Estate License Act TRELA. Answer: Was passed 1939.
The purpose is to protect the public against unscrupulous brokers and
sales agents.
⫸ Texas Real Estate Commission TREC. Answer: Was created to
enforce and administer TRELA in 1949. The purpose of this act is to
protect the public against unscrupulous brokers and sales agents.
⫸ A licensed broker may not pay a commission to or otherwise
compensate a person directly or indirectly for performing an act of a
broker unless the person is.... Answer: a license holder or a real estate
broker licensed in another state
, ⫸ TRELA may suspend or revoke a license or take other disciplinary
action if the license holder, while engaged in real estate brokerage
engages in.... Answer: conduct that is dishonest or in bad faith or that
demonstrates untrustworthiness
⫸ a broker works FOR. Answer: a client
⫸ a broker works WITH. Answer: a customer
⫸ how does a buyer become a client. Answer: by entering into a buyer
representation agreement with the broker
⫸ Subagent. Answer: A license holder not associated with the seller's
broker, but who is representing the seller through a cooperative
agreement, often through membership in a Multiple Listing Service
(MLS), with the seller's broker.
⫸ An agency relationship exists when one person, the _____ acts for, or
on behalf of another person, the ______. Answer: agent, principal
⫸ which of the following is grounds for suspension or revocation of
license by TREC?. Answer: splitting commission with a person other
than a license holder
FINAL PAPER 2026 VERIFIED RESPONSES
⫸ fiduciary relationship. Answer: a relationship founded on trust and
confidence
⫸ Agency Relationship. Answer: Exists when one person (the agent)
acts for, or on
behalf of another person (the principal).
⫸ the principal. Answer: is the one who hires and gives authority to the
agent
⫸ Texas Real Estate License Act TRELA. Answer: Was passed 1939.
The purpose is to protect the public against unscrupulous brokers and
sales agents.
⫸ Texas Real Estate Commission TREC. Answer: Was created to
enforce and administer TRELA in 1949. The purpose of this act is to
protect the public against unscrupulous brokers and sales agents.
⫸ A licensed broker may not pay a commission to or otherwise
compensate a person directly or indirectly for performing an act of a
broker unless the person is.... Answer: a license holder or a real estate
broker licensed in another state
, ⫸ TRELA may suspend or revoke a license or take other disciplinary
action if the license holder, while engaged in real estate brokerage
engages in.... Answer: conduct that is dishonest or in bad faith or that
demonstrates untrustworthiness
⫸ a broker works FOR. Answer: a client
⫸ a broker works WITH. Answer: a customer
⫸ how does a buyer become a client. Answer: by entering into a buyer
representation agreement with the broker
⫸ Subagent. Answer: A license holder not associated with the seller's
broker, but who is representing the seller through a cooperative
agreement, often through membership in a Multiple Listing Service
(MLS), with the seller's broker.
⫸ An agency relationship exists when one person, the _____ acts for, or
on behalf of another person, the ______. Answer: agent, principal
⫸ which of the following is grounds for suspension or revocation of
license by TREC?. Answer: splitting commission with a person other
than a license holder
