AYPO Real Estate Law of Agency Final Exam
Review Questions and Answers
Real estate agents are considered to have which kind relationship with clients? - -A
fiduciary relationship
-Acting as which of the following is a violation of The Real Estate License Act? - -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? - -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? - -1. The seller's agent
2. The seller
3. The buyer
-Brokers have which of the following with a client? - -Privity of contract
-True or False: Apparent authority is expressly detailed in the contract that establishes the
agency relationship. - -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... - -a universal agent.
-Which one of the following is not one of the commonly recognized fiduciary duties? - -
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? - -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? -
-Non-fiduciary duty
-The duty of a seller's agent to be loyal to the _______ trumps the duty to be forthright with
the_______. - -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? - -Third party
-What is private information? - -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? - -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? - -The seller
-Which of the following is a type of listing agreement? - -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? - -In-house sale
-A seller who has established a listing contract with a broker benefits from the broker's... -
-1.experience.
2.knowledge.
3.access 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? - -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? - -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. - -TRUE
-Who does a buyer representation agreement drafted by a sales agent belong to? - -The
broker who sponsors that sales agent
-All real estate contracts (with the exception of property management contracts) are
required to contain a... - -termination date.
-When setting up a buyer representation agreement, the licensee must make sure that he
or she does not do which of the following? - -Promise to do things that are outside their
area of expertise
-Which of the following is not a common way in which the buyer's commission can be
paid? - -Paid by the financial institution financing the transaction
Review Questions and Answers
Real estate agents are considered to have which kind relationship with clients? - -A
fiduciary relationship
-Acting as which of the following is a violation of The Real Estate License Act? - -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? - -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? - -1. The seller's agent
2. The seller
3. The buyer
-Brokers have which of the following with a client? - -Privity of contract
-True or False: Apparent authority is expressly detailed in the contract that establishes the
agency relationship. - -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... - -a universal agent.
-Which one of the following is not one of the commonly recognized fiduciary duties? - -
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? - -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? -
-Non-fiduciary duty
-The duty of a seller's agent to be loyal to the _______ trumps the duty to be forthright with
the_______. - -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? - -Third party
-What is private information? - -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? - -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? - -The seller
-Which of the following is a type of listing agreement? - -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? - -In-house sale
-A seller who has established a listing contract with a broker benefits from the broker's... -
-1.experience.
2.knowledge.
3.access 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? - -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? - -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. - -TRUE
-Who does a buyer representation agreement drafted by a sales agent belong to? - -The
broker who sponsors that sales agent
-All real estate contracts (with the exception of property management contracts) are
required to contain a... - -termination date.
-When setting up a buyer representation agreement, the licensee must make sure that he
or she does not do which of the following? - -Promise to do things that are outside their
area of expertise
-Which of the following is not a common way in which the buyer's commission can be
paid? - -Paid by the financial institution financing the transaction
