AYPO Real Estate Law of Agency Final Exam Review Questions and Answers 2024/2025 with complete solutions

Real estate agents are considered to have which kind relationship with clients? - correct answer-A fiduciary relationship Acting as which of the following is a violation of The Real Estate License Act? - correct answer-Acting as a broker without possessing a valid license issued by the Texas Real Estate Commission Which of the following is a reason to study the aspects of agency and agency law? - correct answer-1. Agents who are well versed in the aspects of the agency roles can project an aura of confidence that can calm a nervous client 2. Agents who follow the law are less prone to being held liable for harm suffered by clients or customers 3. Agents who follow the law have a better reputation with the public A licensee who is representing a buyer is required to treat which of the following in an honest and fair manner? - correct answer-1. The seller's agent 2. The seller 3. The buyer Brokers have which of the following with a client? - correct answer-Privity of contract True or False: Apparent authority is expressly detailed in the contract that establishes the agency relationship. - correct answer-FALSE A principal becomes disabled and gives authority to an agent to act on behalf of the principal in nearly all circumstances. This type of agent is... - correct answer-a universal agent. Which one of the following is not one of the commonly recognized fiduciary duties? - correct answer-Punctuality According to Section 1101.558 of TRELA, which of the following parties must be provided with a disclosure when the first instance of contact occurs? - correct answer-1. Another licensee who represents another party to the transaction 2. Another party to the transaction What is the term for a duty owed by an agent to someone who is not the principal party? - correct answer-Non-fiduciary duty The duty of a seller's agent to be loyal to the _______ trumps the duty to be forthright with the_______. - correct answer-seller / buyer What is the term for a person or organization that a person interacts with while acting as an agent for a principal party? - correct answer-Third party What is private information? - correct answer-information about a person which is not public knowledge but which will most likely not result in identity theft if it is revealed What is the name of the form created by TREC to help sellers meet the requirements of Section 5.008 of the Property Code? - correct answer-The Seller's Disclosure of Property Condition Who has the right to choose whether to disclose non-material stigmas related to a property being sold? - correct answer-The seller Which of the following is a type of listing agreement? - correct answer-1. Exclusive Right-to-Sell 2. Open 3. Net What is the term for a transaction in which licensees from the same brokerage represent both the buyer and seller? - correct answer-In-house sale A seller who has established a listing contract with a broker benefits from the broker's... - correct ience. edge. s to resources possessed by the brokerage. An agency agreement between a supervising broker and their selling client generally takes a written form as which of the following? - correct answer-A listing agreement. When is a licensee required to provide a seller with a written statement which contains the disclosure describing services which may be expected from an agent of a seller? - correct answer-At the time of first substantive dialogue True or false: a non-exclusive right to represent buyer-broker agreement requires the buyer to pay commission to the broker for services rendered. - correct answer-TRUE Who does a buyer representation agreement drafted by a sales agent belong to? - correct answer-The broker who sponsors that sales agent