LAW OF AGENCY EXAM QUESTIONS AND
CORRESPONDING ANSWERS WITH SURETY
OF 100% PASS MARK.
⩥ 50. In Texas, Worker's Compensation must be paid for real estate agents
by brokers:
(a) True
(b) FALSE. Answer: B
⩥ 51. The Tax Equity and Fiscal Responsibility Act has which of the
following tests for independent contractor status?
(a) the salesperson signs a written contract with the broker stating the
salesperson is not an employee
(b) the salesperson states in writing he will not discriminate
(c) the salesperson is exempt because he is between 40-70 years old
(d) there is no such Act. Answer: A
⩥ 52. Sally is an unlicensed assistant to Agent Bill at ABC Realty. In her role
as a transaction coordinator, Sally recently called a buyer and discussed
some minor title issues that turned up in the title search. She also
,mentioned to the buyer that rates are down, and that, considering the
buyer's situation, an FHA loan might be more attractive than a conventional
loan. Based on this conversation, we can say that Sally:
(a) Appears to be doing a great job as a transaction coordinator.
(b) Should consider being more informative when contacting buyers
(c) Is dealing with issues that should only be discussed by a licensed
assistant
(d) Has no problem here because transaction coordinators always discuss
title and finance issues. Answer: C
⩥ 53. A business practice may not be ethical, even if it is legal.
(a) TRUE
(b) FALSE. Answer: A
⩥ 54. All of the following are included in the Canons of Professional Ethics
for real estate licensees, EXCEPT:
(a) Competency
(b) Patience
(c) Integrity
,(d) Consumer Information Form 1-1. Answer: B
⩥ 55. All licensees are Realtors®
(a) True
(b) FALSE. Answer: B
⩥ 56. Which of the following is a statutory defense for a lawsuit brought
about by DTPA?
(a) "I was told by someone that this was correct information."
(b) Written information obtained from a government record
(c) "The seller told me."
(d) "The inspector told me it was in perfect condition.". Answer: B
⩥ 57. Actual awareness of a falsity, deception, or unfairness of an act under
DTPA is known as:
(a) Unintentional
(b) Deception
(c) Knowingly
, (d) Falsifying. Answer: C
⩥ 58. An agent is not liable for a misrepresentation or concealment of
material fact by a party if:
(a) The licensee did not know of the falsity of the misrepresentation
(b) The seller removes himself from the transaction
(c) The buyer was not damaged over $1,000,000
(d) None of these are correct. Answer: A
⩥ 59. It is always a good idea to have:
(a) The agent fill out the Seller's Disclosure Notice
(b) The agent do the inspection of the property
(c) The seller fill out the Seller's Disclosure Notice
(d) None of the above. Answer: C
⩥ 60. Usually, a defamation claim requires evidence of:
(a) A false statement made to someone other than the person who is
allegedly defamed
CORRESPONDING ANSWERS WITH SURETY
OF 100% PASS MARK.
⩥ 50. In Texas, Worker's Compensation must be paid for real estate agents
by brokers:
(a) True
(b) FALSE. Answer: B
⩥ 51. The Tax Equity and Fiscal Responsibility Act has which of the
following tests for independent contractor status?
(a) the salesperson signs a written contract with the broker stating the
salesperson is not an employee
(b) the salesperson states in writing he will not discriminate
(c) the salesperson is exempt because he is between 40-70 years old
(d) there is no such Act. Answer: A
⩥ 52. Sally is an unlicensed assistant to Agent Bill at ABC Realty. In her role
as a transaction coordinator, Sally recently called a buyer and discussed
some minor title issues that turned up in the title search. She also
,mentioned to the buyer that rates are down, and that, considering the
buyer's situation, an FHA loan might be more attractive than a conventional
loan. Based on this conversation, we can say that Sally:
(a) Appears to be doing a great job as a transaction coordinator.
(b) Should consider being more informative when contacting buyers
(c) Is dealing with issues that should only be discussed by a licensed
assistant
(d) Has no problem here because transaction coordinators always discuss
title and finance issues. Answer: C
⩥ 53. A business practice may not be ethical, even if it is legal.
(a) TRUE
(b) FALSE. Answer: A
⩥ 54. All of the following are included in the Canons of Professional Ethics
for real estate licensees, EXCEPT:
(a) Competency
(b) Patience
(c) Integrity
,(d) Consumer Information Form 1-1. Answer: B
⩥ 55. All licensees are Realtors®
(a) True
(b) FALSE. Answer: B
⩥ 56. Which of the following is a statutory defense for a lawsuit brought
about by DTPA?
(a) "I was told by someone that this was correct information."
(b) Written information obtained from a government record
(c) "The seller told me."
(d) "The inspector told me it was in perfect condition.". Answer: B
⩥ 57. Actual awareness of a falsity, deception, or unfairness of an act under
DTPA is known as:
(a) Unintentional
(b) Deception
(c) Knowingly
, (d) Falsifying. Answer: C
⩥ 58. An agent is not liable for a misrepresentation or concealment of
material fact by a party if:
(a) The licensee did not know of the falsity of the misrepresentation
(b) The seller removes himself from the transaction
(c) The buyer was not damaged over $1,000,000
(d) None of these are correct. Answer: A
⩥ 59. It is always a good idea to have:
(a) The agent fill out the Seller's Disclosure Notice
(b) The agent do the inspection of the property
(c) The seller fill out the Seller's Disclosure Notice
(d) None of the above. Answer: C
⩥ 60. Usually, a defamation claim requires evidence of:
(a) A false statement made to someone other than the person who is
allegedly defamed
