1|Page
LAW OF AGENCY CHAMPIONS SCHOOL OF REAL
ESTATE EXAM|| ACCURATE AND FREQUENTLY
TESTED QUESTIONS AND 100% CORRECT ANSWERS
WITH RATIONALES|| LATEST AND COMPLETE
UPDATE WITH EXPERT VERIFIED SOLUTIONS||
SURE PASS!!
The principal is also known as - ANSWER: client
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
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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
The commission can deny licensure to an applicant based on the applicant's
_______________________ - ANSWER: moral character
Ostensible Agency - ANSWER: exists when actions lead another person to
assume that one is an agent.
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Agency by Ratification - ANSWER: Occurs when an agent acts without prior
authorization, and the principal, upon learning of this action, accepts it.
agency coupled with an interest - ANSWER: When a broker is the owner of a
property that is being sold, or when a broker is interested in buying a property, we
have agency coupled with an interest
Agency Authority - ANSWER: or rights, may also be a result of "the norm", or
what is considered customary in the business
Implied Authority - ANSWER: an agent's authority to do things not specifically
authorized in order to carry out express authority
Fiduciaries - ANSWER: are held to the highest amount of good faith, are required
to exclude all selfish interest, are prohibited from putting themselves in positions
where personal interest and representative interest will conflict and must, in any
direct dealing with the principal, make full disclosure of all relevant facts and give
the latter an opportunity to obtain independent advice
General Agent - ANSWER: has less authority than the universal agent. Has the
right to represent his or her principal in a particular type of transaction or business.
One common example of a general agent in real estate is the property manager.
As agents, our fiduciary duties and responsibilities include - ANSWER: OLD
CAR
Obedience
Loyalty
Disclosure
Confidentiality
LAW OF AGENCY CHAMPIONS SCHOOL OF REAL
ESTATE EXAM|| ACCURATE AND FREQUENTLY
TESTED QUESTIONS AND 100% CORRECT ANSWERS
WITH RATIONALES|| LATEST AND COMPLETE
UPDATE WITH EXPERT VERIFIED SOLUTIONS||
SURE PASS!!
The principal is also known as - ANSWER: client
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
,2|Page
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
The commission can deny licensure to an applicant based on the applicant's
_______________________ - ANSWER: moral character
Ostensible Agency - ANSWER: exists when actions lead another person to
assume that one is an agent.
, 3|Page
Agency by Ratification - ANSWER: Occurs when an agent acts without prior
authorization, and the principal, upon learning of this action, accepts it.
agency coupled with an interest - ANSWER: When a broker is the owner of a
property that is being sold, or when a broker is interested in buying a property, we
have agency coupled with an interest
Agency Authority - ANSWER: or rights, may also be a result of "the norm", or
what is considered customary in the business
Implied Authority - ANSWER: an agent's authority to do things not specifically
authorized in order to carry out express authority
Fiduciaries - ANSWER: are held to the highest amount of good faith, are required
to exclude all selfish interest, are prohibited from putting themselves in positions
where personal interest and representative interest will conflict and must, in any
direct dealing with the principal, make full disclosure of all relevant facts and give
the latter an opportunity to obtain independent advice
General Agent - ANSWER: has less authority than the universal agent. Has the
right to represent his or her principal in a particular type of transaction or business.
One common example of a general agent in real estate is the property manager.
As agents, our fiduciary duties and responsibilities include - ANSWER: OLD
CAR
Obedience
Loyalty
Disclosure
Confidentiality
