CHAMPIONS REAL ESTATE EXAM LAW OF
AGENCY | LATEST EXAM 2025 | ALL
QUESTIONS & VERIFIED A+ ANSWERS
This person hires an agent - CORRECT ANSWER ✅✅✅the Principal
The agent works on behalf of this person - CORRECT ANSWER ✅✅✅the
client (principal)
This type of agency allows for the greatest range of authority - CORRECT
ANSWER ✅✅✅Universal
This is provided to the agent when there is written documentation that the
agency relationship exists. - CORRECT ANSWER ✅✅✅Express authority
This is the most limited of all the agency relationships - CORRECT ANSWER
✅✅✅Special agency
This type of agency is created when a 3rd party believes that an agent has
authority that has NOT been granted by a principal - CORRECT ANSWER
✅✅✅Agency by Estoppel
This type of agency is created when actions lead another person to assume
that one is an agent (Example- you have a key to neighbors home and show
the property) - CORRECT ANSWER ✅✅✅Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the
buyer? - CORRECT ANSWER ✅✅✅No one
,This establishes a relationship with a broker - CORRECT ANSWER ✅✅✅The
Buyer/Tenant Representation agreement
This can be written or oral - CORRECT ANSWER ✅✅✅Disclosure of
Representation
These are required to place their own selfish interests behind that of their
clients. - CORRECT ANSWER ✅✅✅Fiduciaries
A licensee isn't required to provide the IABS when... - CORRECT ANSWER
✅✅✅the licensee meets with a party that is already represented
A broker is obligated to treat who honestly? - CORRECT ANSWER
✅✅✅client, customer, and agents
Broker must have written consent to act as... - CORRECT ANSWER ✅✅✅an
intermediary
IABS form is the property of... - CORRECT ANSWER ✅✅✅TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a
listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is
being represented by the firm. Agent Sue's buyer wants to purchase Agent
Bill's listing
In the above transaction, Broker Bob will: - CORRECT ANSWER
✅✅✅Remain neutral and refrain from providing advice and opinion to
either party
,The IABS should contain - CORRECT ANSWER ✅✅✅How the broker will be
compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer that
wants to purchase one of his listings. The process that Broker Steve must use
is: - CORRECT ANSWER ✅✅✅Intermediary without appointments
A fiduciary relationship is based on - CORRECT ANSWER ✅✅✅trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the buyer? - CORRECT ANSWER
✅✅✅No body because the buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? - CORRECT ANSWER
✅✅✅The seller, because City Realty is a subagent of ABC Realty in this
transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
, purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
What type of transaction is this? - CORRECT ANSWER ✅✅✅cooperative
(co-op)
An exemption to using the Information About Brokerage Services form is: -
CORRECT ANSWER ✅✅✅a lease for less than 1 year with no sale
anticipated
A licensee not associated with the client's broker but who is representing the
client through a
cooperative agreement with the client's broker is known as: - CORRECT
ANSWER ✅✅✅Subagent
This must be in at least 10 point type, must have the exact language prescribed
in the License Act
and must be provided to a buyer or seller at the first substantive discussion of
a real estate
transaction - CORRECT ANSWER ✅✅✅IABS (Information About Brokerage
Services)
Jeffrey wants to see property that your company has listed; he does not want
to be represented.
The agent must: - CORRECT ANSWER ✅✅✅give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form: -
CORRECT ANSWER ✅✅✅at the first substantive discussion of a real estate
transaction
AGENCY | LATEST EXAM 2025 | ALL
QUESTIONS & VERIFIED A+ ANSWERS
This person hires an agent - CORRECT ANSWER ✅✅✅the Principal
The agent works on behalf of this person - CORRECT ANSWER ✅✅✅the
client (principal)
This type of agency allows for the greatest range of authority - CORRECT
ANSWER ✅✅✅Universal
This is provided to the agent when there is written documentation that the
agency relationship exists. - CORRECT ANSWER ✅✅✅Express authority
This is the most limited of all the agency relationships - CORRECT ANSWER
✅✅✅Special agency
This type of agency is created when a 3rd party believes that an agent has
authority that has NOT been granted by a principal - CORRECT ANSWER
✅✅✅Agency by Estoppel
This type of agency is created when actions lead another person to assume
that one is an agent (Example- you have a key to neighbors home and show
the property) - CORRECT ANSWER ✅✅✅Ostensible Agency
If a buyer hasn't signed a buyer's rep agreement, then who is representing the
buyer? - CORRECT ANSWER ✅✅✅No one
,This establishes a relationship with a broker - CORRECT ANSWER ✅✅✅The
Buyer/Tenant Representation agreement
This can be written or oral - CORRECT ANSWER ✅✅✅Disclosure of
Representation
These are required to place their own selfish interests behind that of their
clients. - CORRECT ANSWER ✅✅✅Fiduciaries
A licensee isn't required to provide the IABS when... - CORRECT ANSWER
✅✅✅the licensee meets with a party that is already represented
A broker is obligated to treat who honestly? - CORRECT ANSWER
✅✅✅client, customer, and agents
Broker must have written consent to act as... - CORRECT ANSWER ✅✅✅an
intermediary
IABS form is the property of... - CORRECT ANSWER ✅✅✅TREC
Broker Bob is the broker/owner of ABC Realty. Agent Bill at ABC Realty is a
listing agent. Agent Sue, also at ABC Realty, is working with a buyer who is
being represented by the firm. Agent Sue's buyer wants to purchase Agent
Bill's listing
In the above transaction, Broker Bob will: - CORRECT ANSWER
✅✅✅Remain neutral and refrain from providing advice and opinion to
either party
,The IABS should contain - CORRECT ANSWER ✅✅✅How the broker will be
compensated
Broker Steve, having no agents, is a solo practitioner. He has a client buyer that
wants to purchase one of his listings. The process that Broker Steve must use
is: - CORRECT ANSWER ✅✅✅Intermediary without appointments
A fiduciary relationship is based on - CORRECT ANSWER ✅✅✅trust
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is representing the buyer? - CORRECT ANSWER
✅✅✅No body because the buyer is a customer.
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
In the above transaction, who is City Realty representing? - CORRECT ANSWER
✅✅✅The seller, because City Realty is a subagent of ABC Realty in this
transaction
Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who
wishes to
, purchase Joe's listing. The buyer that Agent Sean is working with has chosen to
not enter into an
agency relationship with City Realty.
What type of transaction is this? - CORRECT ANSWER ✅✅✅cooperative
(co-op)
An exemption to using the Information About Brokerage Services form is: -
CORRECT ANSWER ✅✅✅a lease for less than 1 year with no sale
anticipated
A licensee not associated with the client's broker but who is representing the
client through a
cooperative agreement with the client's broker is known as: - CORRECT
ANSWER ✅✅✅Subagent
This must be in at least 10 point type, must have the exact language prescribed
in the License Act
and must be provided to a buyer or seller at the first substantive discussion of
a real estate
transaction - CORRECT ANSWER ✅✅✅IABS (Information About Brokerage
Services)
Jeffrey wants to see property that your company has listed; he does not want
to be represented.
The agent must: - CORRECT ANSWER ✅✅✅give Jeffrey the IABS form
A licensee must present the Information About Brokerage Services form: -
CORRECT ANSWER ✅✅✅at the first substantive discussion of a real estate
transaction
