Law of Agency-Final Exam Review 2026
Questions and Answers
What are the minimum services an agent
must offer; - Correct answer-According TRELA subchapter 1101.557b states a
broker representing a party or listing real estate for sale is the party's agent and
1. May not instruct another broker to directly or indirectly violate the sub chpt-
1101.65b22, 2.Must inform the party if the broker Receives material information
related to the transaction to list, buy, sell, or lease the parties real estate, including
the receipt of an offer by the broker; and
3. Shall, at a minimum, answer the parties questions and present Any offered to or
from the party.
What is TRELA? - Correct answer-It is the law that establishes the duties of a real
estate licensee.
> TRAC is responsible for the administration of
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, TRELA. TREC consists of nine members - six brokers and three public members -
who are who serve staggered terms of six years. The governor, with the approval of
the senate,
appoints three replacement members every two years.
Advice and opinions are given to whom: - Correct answer-Clients.
Who are the parties to agency agreement? - Correct answer-The seller, buyer,
broker or sales associate, tenant
What is a subagent; - Correct answer-A Licensee holder not sponsored by or
associated with the clients broker who is representing the client through a
cooperative agreement with the client broker. Also called the other broker.
If a principal instructs His agent to violate the law, what should an agent do? -
Correct answer-The agent should remove himself from dealing with the principal
and not violate the law.
What is an attorney - in - fact; - Correct answer-a person authorized to act for
another under a power of attorney. This person is not necessarily a licensed
attorney.
Under what conditions may a broker buy property listed with the broker; - Correct
answer-Only with full disclosure to all parties in the transaction.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Questions and Answers
What are the minimum services an agent
must offer; - Correct answer-According TRELA subchapter 1101.557b states a
broker representing a party or listing real estate for sale is the party's agent and
1. May not instruct another broker to directly or indirectly violate the sub chpt-
1101.65b22, 2.Must inform the party if the broker Receives material information
related to the transaction to list, buy, sell, or lease the parties real estate, including
the receipt of an offer by the broker; and
3. Shall, at a minimum, answer the parties questions and present Any offered to or
from the party.
What is TRELA? - Correct answer-It is the law that establishes the duties of a real
estate licensee.
> TRAC is responsible for the administration of
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, TRELA. TREC consists of nine members - six brokers and three public members -
who are who serve staggered terms of six years. The governor, with the approval of
the senate,
appoints three replacement members every two years.
Advice and opinions are given to whom: - Correct answer-Clients.
Who are the parties to agency agreement? - Correct answer-The seller, buyer,
broker or sales associate, tenant
What is a subagent; - Correct answer-A Licensee holder not sponsored by or
associated with the clients broker who is representing the client through a
cooperative agreement with the client broker. Also called the other broker.
If a principal instructs His agent to violate the law, what should an agent do? -
Correct answer-The agent should remove himself from dealing with the principal
and not violate the law.
What is an attorney - in - fact; - Correct answer-a person authorized to act for
another under a power of attorney. This person is not necessarily a licensed
attorney.
Under what conditions may a broker buy property listed with the broker; - Correct
answer-Only with full disclosure to all parties in the transaction.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
